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, HENRC/HAAWC/HB 137/a
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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 HENRC/HAAWC/HB 137/a
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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 HENRC/HAAWC/HB 137/a
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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 so in accordance with the
State-Tribal Collaboration Act, where applicable; and
(2) consult with the secretary of economic
development.
G. The department of environment or the office of
the state engineer shall notify the state investment council
about new strategic water supply program contracts or grants HENRC/HAAWC/HB 137/a
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and any opportunities for public input associated with the
strategic water supply program within two business days of
the date the agency publishes the new grant, contract or
public input opportunity to the general public.
H. When evaluating contract or grant proposals for
compliance with Subsection C or D of this section, the agency
shall evaluate how the projects in the proposal will limit
greenhouse gas emissions.
I. In connection with any strategic water supply
program contract or grant that is subject to the notice of
intention filing requirements pursuant to Section 72-12-26
NMSA 1978, the office of the state engineer shall provide an
opportunity for a federally recognized Indian nation, tribe
or pueblo located wholly or partially in New Mexico, a
person, a firm, a corporation or other entity to file an
objection or protest through a process consistent with the
provisions of Section 72-12-3 NMSA 1978 regarding a
determination by the state engineer made pursuant to Section
72-12-26 NMSA 1978.
SECTION 4. STRATEGIC WATER SUPPLY PROGRAM FUND.--
A. The "strategic water supply program fund" is
created as a nonreverting fund in the state treasury and
shall be administered by the department of environment. The
fund consists of distributions, appropriations, gifts,
grants, donations, income from investment of the fund and HENRC/HAAWC/HB 137/a
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fees collected pursuant to Section 70-13-6 NMSA 1978.
B. Money in the fund is appropriated to the
department of environment and the office of the state
engineer for the purpose of administering the strategic water
supply program pursuant to Section 3 of the Strategic Water
Supply Act.
C. Expenditures from the fund shall be to the
department of environment or the office of the state engineer
by warrant of the secretary of finance and administration
pursuant to vouchers signed by both the secretary of
environment or the secretary's authorized representative and
the state engineer or the state engineer's authorized
representative.
SECTION 5. Section 72-12-26 NMSA 1978 (being Laws 1967,
Chapter 86, Section 2) is amended to read:
"72-12-26. NOTICE OF DRILLING--DEPTH AND LOCATION.--Any
person proposing to drill wells or recomplete existing wells
to appropriate waters referred to in Section 72-12-25 NMSA
1978 shall file a notice of intention to drill or recomplete
with the office of the state engineer in such form as the
state engineer shall prescribe and shall publish a notice, in
a newspaper of general circulation in the county in which the
proposed wells will be located once a week for three
consecutive weeks, stating the location and the proposed depth
of such wells, the purpose for which the water shall be used HENRC/HAAWC/HB 137/a
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and an estimate of the volume of water to be used. The wells
shall not be drilled or recompleted prior to thirty days after
the last publication of the notice and until the state
engineer has determined that the use of water stated in the
notice will not impair existing water rights, be contrary to
the conservation of water within the state or be detrimental
to the public welfare of the state."