Strategic Water Supply Act
The bill is a response to increasing concerns about water availability and the need for sustainable water management in New Mexico. With the designated appropriations expected to amount to $75 million for the 2026 fiscal year and beyond, the fund is intended to support projects that conserve water, provide treatment solutions for brackish or produced water, and facilitate environmental and public health compliance. Proponents argue that the legislative changes could improve water conservation methods and support technological advancements in water treatment and supply systems.
House Bill 137, known as the Strategic Water Supply Act, aims to address New Mexico's water scarcity issues by establishing a program dedicated to reducing reliance on fresh water resources and expanding water reuse opportunities. The act empowers relevant state departments to enter into contracts and award grants for projects that utilize treated brackish and produced water. An important aspect of the bill is the creation of the Strategic Water Supply Program Fund, which will be financed through a five-cent fee per barrel of produced water from oil and gas wells, as well as appropriations from the state general fund for the program's initial operation.
While the strategic focus on water supply is broadly recognized, there are concerns regarding the imposition of the barrel fee and its potential impact on the oil and gas industries. Stakeholders worry that these fees could increase operational costs, thus affecting production rates. Additionally, ensuring that projects funded by the act benefit local communities and protect public health will require careful oversight to balance economic growth with environmental responsibilities.