N.M. Stat. § 71-10-3
Creation of a district.
A county may form a district:
A. the initial boundaries of which lie within the jurisdiction of the county; and
B. that includes an operating coal-fueled electric generating facility that is owned by
a non-investor-owned electric utility or a coal-fueled electric generating facility that is
owned by a non-investor-owned electric utility and has been or is in the process of
being retired.