Catalyst with Shayle Kann

Episode Title: New Mexico Proves America Can Still Build [Partner Content]
Air Date: November 18, 2025
Host: Shayle Kann (Latitude Media)
Guests: Rob Black (New Mexico Economic Development Department Secretary), Jim Kenney (New Mexico Environment Department Secretary)

Episode Overview

This episode explores New Mexico’s unique approach to economic development, energy innovation, and regulatory policy—demonstrating that it’s actively “getting to yes” on clean energy and infrastructure goals while building an economy that is both environmentally responsible and robust. Shayle Kann is joined by Rob Black and Jim Kenney, who offer an insider look into the state’s strategies for combining sustainable growth, regulatory certainty, workforce investment, and white-glove government service to attract next-generation industries like fusion and geothermal.

Key Themes & Discussion Points

1. Rethinking Economic and Environmental Trade-offs

• Deconstructing an Old Narrative (00:55–01:44)
  • Rob and Jim counter the traditional "economy vs. environment" tension, emphasizing collaborative problem-solving.
  • Quote [Jim Kenney, 01:30]: “I think you’re not working hard enough, especially in government, if you think one of those has to win over the other of those.”

2. “White Glove Service” – Government as Concierge

• Proactive, Personal Government Involvement (01:44–02:19)

  • New Mexico officials provide hands-on assistance to businesses, from airport pickups to sharing direct lines.
  • Quote [Rob Black, 01:58]: “My business card...has my mobile number on it...I want to be that accessible.”

• Cultural & Policy Differences (02:52–04:27)

  • Consensus-driven, less partisan atmosphere enables bipartisan focus on results and rapid policy implementation.

3. How New Mexico Builds Faster

• Flexible Regulatory Innovation (04:48–06:21)
  • Energy Transition Act (2019): Created a regulatory framework for decarbonization and fostered R&D and deployment synergies.
  • Legacy of scientific innovation (Sandia & Los Alamos labs, fission, fusion, fracking).
  • Quote [Rob Black, 05:09]: “Fission, fusion and fracking were all invented in New Mexico.”

4. All-of-the-Above Clean Energy Strategy

• Diversity and Depth of New Mexico’s Approach (07:49–09:22)

  • From fusion and geothermal to oil and gas—forging strict environmental standards while diversifying the energy portfolio.

• Firm Loads and Grid Reliability

  • Focus on enabling firm loads for heavy industry, alongside wind and solar expansion.

5. Regulatory Certainty & Speed as Economic Differentiators

• Certainty Through State Law (10:04–11:48)

  • Anti-“backsliding” legislation ensures regulatory stability regardless of federal swings.
  • Quote [Jim Kenney, 10:04]: “Certainty is the most powerful thing that you can provide from a government standpoint.”

• Rapid Permitting and Site Readiness (11:48–13:07)

  • Sites pre-certified and infrastructure pre-deployed; utilities and regulators have firm review timelines.
  • Microgrid bill allows large users to quickly build carbon-compliant microgrids.

6. Strategic Investment via Sovereign Wealth Fund

• The SIC and Deep Tech Investment (13:20–15:24)

  • $65 billion (2nd only to Alaska), with $2 billion deployed to catalyze deep tech and clean energy, including fusion and geothermal.
  • Direct investments support local job creation—company fund recipients (e.g., Pacific Fusion, XGS Geothermal).
  • Quote [Rob Black, 13:20]: “You’re really thinking about Saudi Arabia, Abu Dhabi, Singapore and now New Mexico where you’ve paired a sovereign wealth fund with targeted investments aligned to a state strategy.”

• Water Innovation Funding (15:24–16:36)

  • $400M earmarked for water technology to support energy development, especially utilizing brackish water for industrial processes.

7. Comprehensive Incentives “Stack”

• Layered Incentive Packages (16:48–19:26)
  • R&D tax credits (up to 10%), high-wage job credits, wage subsidies, 30-year equipment/property tax waivers, infrastructure support.
  • Environment Department brings ultra-low interest loans and grants, stacking financial support for projects.

8. Fusion Industry Leadership

• Aiming to Be the Global Fusion Hub (19:26–21:01)
  • Pacific Fusion R&D facility sited in NM; fund created specifically for fusion and advanced energy.
  • Proximity to national labs and deep regulatory/technical expertise accelerates permitting (“5–6 months instead of 18–24”).
  • Quote [Jim Kenney, 21:05]: “We can be quicker, faster and just as productive as any other state in issuing the permit.”

9. What Companies Want from New Mexico

• Characteristics Valued by Industry (23:16–26:19)

  • Access to green power, rapid market entry, regulatory stability, best-in-class incentives, transportation/logistics edge, and capital.
  • Unique respect for intellectual property, backed by state law and the presence of national labs.
  • Quote [Jim Kenney, 24:33]: “There’s a deep rooted understanding that the intellectual property...was going to be valued here in the state.”

• Skilled Workforce

  • Highest density of R&D spend and PhDs per capita in the nation.
  • Extensive technical skillsets, e.g., drilling (for geothermal), nuclear regulation.

10. Making New Mexico Livable

• Workforce Sustainability & Quality of Life (27:54–29:26)
  • Free two- and four-year college tuition for residents; universal free childcare—unique within the US.
  • Low housing costs, affordable energy, strong recreation/lifestyle options.

11. The New Mexico Model: A Proof Point for America

• A Model of Collaborative Progress (29:46–30:44)
  • Rejects binary economic/environmental tradeoffs; demonstrates implementation and policy innovation.
  • Quotes:
    • [Rob Black, 29:46]: “In New Mexico, we can build the things we need to build. We can do it in a way that is equitable, that achieves our climate goals and our economic goals.”
    • [Jim Kenney, 30:07]: “We are an action oriented government who knows how to think, craft and implement policy. And that translates into the results.”

Notable Quotes & Memorable Moments

• On Disproving America’s “Build Nothing” Stigma:
  “Did we just forget how to build things?” [Host, 00:11]

• Rewriting the Environment vs. Economy Script:
  "You don’t think of government as innovative, but I will say we’ve cracked the code on that here in New Mexico." [Jim Kenney, 04:52]

• On Incentives and Workforce:
  “We have a research and development tax credit which can pay up to 10%... a high wage jobs tax credit...will help build capital infrastructure...” [Rob Black, 16:48]
  “We have the most PhDs per capita in the United States live here in New Mexico.” [Rob Black, 26:19]

• On Broader Impact:
  "We can be a yes and environment. It doesn’t have to be binary. It can be a lot of people can win.” [Rob Black, 29:46]

Segment Timestamps

| Segment | Start | End | |-----------------------------------------------|----------|----------| | Reframing the American “Can’t Build” Dilemma | 00:11 | 01:09 | | The White Glove Approach | 01:44 | 02:30 | | Culture, Policy, & Transmission | 02:52 | 04:27 | | Clean Energy Advances & All-of-the-Above | 05:09 | 09:22 | | Regulatory Certainty & Site Readiness | 10:04 | 13:07 | | Sovereign Wealth Fund and Innovation | 13:20 | 16:36 | | Incentive Stacks & Financing | 16:48 | 19:26 | | Fusion as Flagship Technology | 19:26 | 22:53 | | What Companies Need & Workforce Development | 23:16 | 27:18 | | Making NM Livable & Workforce Retention | 27:54 | 29:26 | | Lessons for the Nation | 29:46 | 30:44 |

Takeaway

New Mexico offers a striking counterexample to the notion that building in America has become impossible. Through cross-functional government collaboration, investment-driven policy, regulatory certainty, aggressive tech/infrastructure incentives, and investment in workforce and quality of life, New Mexico demonstrates a model that could inform the national conversation on decarbonization, clean energy, and economic renewal.

Guests:

• Rob Black – Secretary, New Mexico Economic Development Department
• Jim Kenney – Secretary, New Mexico Environment Department

Details & Links:
Learn more: edd.newmexico.gov