The New Mexico Environment Department (NMED) recently finalized updates to its air permitting fee regulations under 20.2.75 NMAC (Construction Permit Fees) and 20.2.71 NMAC (Operating Permit Emissions Fees). These revisions were proposed to the Environmental Improvement Board to better align fee structures with the actual costs of program administration, oversight, and enforcement.
On April 17, 2026, the Environmental Improvement Board approved the repeal and replacement of the existing regulations. The updated fee schedules officially took effect on June 1, 2026.
Key Changes to Application Fees
Several notable adjustments to application and emissions fees include:
- Fee Point Increase
The cost per fee point has increased from $539 to $585. - Non-Oil and Gas General Construction Permits (GCPs)
The application fee remains at 10 fee points; however, the total cost has risen from $5,390 to $5,850. - Oil and Gas General Construction Permits (GCPs)
Application requirements have increased from 10 to 30 fee points, raising the total cost from $5,390 to $17,550. - Air Dispersion Modeling Review
Fees have doubled from 15 to 30 fee points, increasing costs from $8,035 to $17,550. - Notice of Intent (NOI) Applications
The fee structure has shifted from a flat $500 filing fee to a 10-point system, resulting in a $5,850 application fee. In addition, NOI applications are now subject to a $700 annual fee. - New Source Review (NSR) Applications
A new annual fee of $2,800 has been introduced.
Updates to Title V Emission Fees
Beginning in 2027, Title V emissions fees will reflect the following updates:
- The non-hazardous air pollutant (non-HAP) fee rate has increased from $20 per ton to $85 per ton.
- The hazardous air pollutant (HAP) fee rate has increased from $165 per ton to $258 per ton.
- Mercury and total suspended particulate matter (TSP) have been removed from the list of fee pollutants.
- PM10 and PM2.5 have been added as fee pollutants.
- The emissions cap used to calculate annual fees has been updated from 6,000 tons to 3,000 tons to ensure no single facility pays more than ~5% of total Title V fee revenues.
Enforcement and Late Fees
NMED has also clarified its enforcement authority related to fee compliance. The Department may now assess:
- Late fees of up to $5,000 if payment is made promptly after delinquency.
- Late fees of up to $10,000 if the late fee itself remains unpaid.
Additionally, NMED has explicit authority to pursue enforcement actions in cases of nonpayment.
Implications for Regulated Entities
The revised fee structure represents a material increase in both upfront permitting costs and ongoing compliance expenses, particularly for facilities operating in New Mexico’s oil and gas sector and those subject to Title V permitting requirements.
For companies pursuing construction permits, the higher fee-point value and updated fee-point amounts will directly increase project development costs. Oil and gas operators will see roughly a threefold increase in general construction permit application fees, and nearly a 12-fold increase in NOI application fees, both of which may impact project budgeting and capital allocation decisions. Additionally, the doubling of air dispersion modeling review fees could influence permitting strategy for affected companies within New Mexico.
The introduction of an annual fee for NOI holders introduces a recurring financial obligation for sources that previously incurred only minimal filing costs. Similarly, the introduction of a new annual fee for NSR permits adds an ongoing compliance cost that should be factored into long-term operational planning.
Beginning in 2027, Title V sources will experience some of the most significant cost impacts due to the substantial increase in per-ton emissions fees. Facilities with higher emission profiles will be particularly affected, although the reduced emissions cap may partially offset costs for very large emitters. The addition and removal of specific pollutants from the fee program may also require facilities to reassess their emissions inventories and tracking methodologies to ensure accurate reporting and financial forecasting.
Finally, expanded enforcement authority and enhanced late fee provisions reinforce the importance of timely fee payments and proactive compliance management. The potential for penalties, including a $10,000 fee for delinquent payments, highlights increased regulatory scrutiny and financial risk associated with noncompliance.
Recommended Actions
Considering these changes, we recommend that the following steps be taken:
- Reevaluate project economics: Incorporate updated permitting and emissions fees into capital planning and project cost analyses.
- Forecast future compliance costs: Model the financial impact of increased permitting and annual fees, such as the Title V annual emissions fee, under the new rates and emissions cap.
- Review permitting strategies: Assess whether current approaches to general construction permits, modeling, and NOI submissions remain cost-effective under the new fee structure.
- Strengthen compliance tracking: Ensure internal processes are in place to accurately track emissions, deadlines, and fee obligations to avoid penalties.
- Plan for recurring fees: Account for new annual fees (e.g., NOI and NSR) in operating budgets.
Call to Action
Our team actively supports clients in navigating these regulatory changes and their financial implications. If your operations are subject to New Mexico air permitting requirements, we encourage you to engage with us early to evaluate how these updates may impact your business.
We can assist with:
- Fee impact assessments and cost projections.
- Permitting strategy optimization
- Emissions inventory review and forecasting
- Regulatory compliance planning and risk mitigation
Please reach out to discuss how these changes may affect your current or planned operations and to develop a tailored approach moving forward.
If you would like to discuss the updated NMED permit fees and how they may impact your facility, please email Michael Brown in Trinity’s Albuquerque Office or call 505.266.6611.
