New Mexico HB 137: STRATEGIC WATER SUPPLY ACT

Bill Text

HENRC/HAAWC/HB 137/a
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AN ACT
RELATING TO WATER; ENACTING THE STRATEGIC WATER SUPPLY ACT;
CREATING THE STRATEGIC WATER SUPPLY PROGRAM; AUTHORIZING THE
DEPARTMENT OF ENVIRONMENT AND THE OFFICE OF THE STATE
ENGINEER TO ENTER INTO CONTRACTS AND AWARD GRANTS FOR
PROJECTS INVOLVING BRACKISH WATER THAT ENHANCE THE STATE'S
FRESH WATER RESOURCES; CREATING THE STRATEGIC WATER SUPPLY
PROGRAM FUND; PROVIDING REQUIREMENTS BEFORE A PERSON DRILLS
WELLS OR RECOMPLETES EXISTING WELLS TO APPROPRIATE WATERS;
MAKING AN APPROPRIATION.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. SHORT TITLE.--Sections 1 through 4 of this
act may be cited as the "Strategic Water Supply Act".
SECTION 2. DEFINITIONS.--As used in the Strategic Water
Supply Act:
A. "brackish water" means water that is sourced
from an underground stream, channel, artesian basin,
reservoir or lake, having reasonably ascertainable
boundaries, that contains not less than one thousand parts
per million of dissolved solids and is not produced water;
B. "produced water" means a fluid that is an
incidental byproduct from drilling for or the production of
oil and gas;
C. "public entity" means a county, municipality,

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political subdivision, state agency or state institution of
higher education; and
D. "treated brackish water" means brackish water
that has undergone a process to remove or eliminate
contaminants to meet applicable standards for water quality
established pursuant to the Water Quality Act by the water
quality control commission.
SECTION 3. STRATEGIC WATER SUPPLY PROGRAM.--
A. The "strategic water supply program" is
created. Subject to the availability of funds and a project
that meets all eligibility requirements, the department of
environment and the office of the state engineer may each
enter into contracts or award grants for eligible projects
involving treated brackish water for the purposes of
enhancing the state's fresh water resources.
B. A contract entered into pursuant to this
section shall be in accordance with the Procurement Code,
except that the contract duration shall not exceed twenty
years in length, including extensions and renewals.
C. To be eligible for a strategic water supply
program contract, a project shall:
(1) comply with all applicable state,
federal, tribal and local governmental standards, permit
requirements and other provisions of law, including public
notice, public hearing processes and all other associated

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requirements related to public involvement, to protect
existing water rights, conservation of water within the
state, public welfare, public health and the environment;
(2) furnish financial assurance, other than
third party guarantees, to the department of environment in
accordance with rules promulgated by the water quality
control commission, running to the benefit of the state and
with any forfeitures deposited in the state treasury in the
strategic water supply program fund;
(3) clearly demonstrate how the project will
advance state, tribal or local government economic
development goals in accordance with the purposes of
enhancing the state's fresh water resources; and
(4) submit a specific, actionable and
measurable community benefits plan that includes a process
for community engagement and is designed to provide broadly
shared benefits to members of the public who are or may be
impacted by the strategic water supply program contract.
D. To be eligible for a strategic water supply
program grant, the grant recipient shall be a public entity
or federally recognized Indian nation, tribe or pueblo
located wholly or partially in New Mexico and the grant
project shall:
(1) be approved by the state engineer as
advancing the exploration, production or treatment of

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brackish water in New Mexico;
(2) comply with applicable state, federal,
tribal and local governmental standards and permit
requirements and other provisions of law, including public
notice, public hearing processes and all other associated
requirements related to public involvement, to protect
existing water rights, conservation of water within the
state, public welfare, public health and the environment; and
(3) clearly demonstrate how the project will
advance state, tribal or local government economic
development goals in accordance with the purposes of
enhancing the state's fresh water resources.
E. The agency awarding a strategic water supply
contract shall publish the community benefits plan to the
agency's website.
F. When preparing a request for proposals pursuant
to Subsection C of this section or a grant solicitation
pursuant to Subsection D of this section, the agency shall:
(1) do s