New Mexico’s Environment Dept Faces Scrutiny Over Business Ties

ProgressNow NM, a progressive advocacy group, has requested that the state auditor investigate contracts between the New Mexico Environment Department (NMED) and Apaluma Inc., a company founded by former cabinet chief Alicia Keyes.

Background

• Alicia Keyes
• Former Economic Development Secretary (2019‑2023)

• Founded Apaluma Inc. in Delaware, 2025

• Apaluma’s Role

• Subcontractor for NMED’s Project Velocity, a digitization effort aimed at improving public document accessibility and reducing storage costs

• Key Contracts
• 2025: NMED’s Secretary James Kenney directed staff to work with Apaluma, adding ~$500,000 to an existing contract with Speridian Technologies
• $977,354 agreement included Apaluma’s AI tool and listed Keyes as a key staff member

Allegations by ProgressNow NM

1. Violation of Procurement Rules

   • Kenney’s directive may have bypassed competitive bidding processes.

2. Conflict of Interest

   • Kenney’s prior work with Keyes during Governor Lujan Grisham’s term could create a conflict.

3. Private Sector Influence

   • Review Keyes’ private sector jobs with state agencies and lobbyists for Apaluma who represent other clients before NMED.

4. BorderPlex Digital Assets

   • Keyes is linked to BorderPlex, the company behind Project Jupiter, a massive data center for Oracle and OpenAI in Santa Teresa.
   • Project seeks an air‑quality permit from NMED’s Air Quality Bureau.
   • Questions raised about Keyes’ involvement and whether NMED officials appeared in promotional videos for Apaluma’s AI product.

NMED’s Response

• Contracted Speridian through a statewide price agreement.
• Let Apaluma handle the user interface after vetting.
• Emphasizes that the digitization effort is transparent and cost‑saving, denying any wrongdoing.

Current Status

• The auditor has declined to comment on the investigations.
• ProgressNow NM continues to push for a thorough audit of the contracts and potential conflicts.