NM
New Mexico House Bill HB311

New Mexico 2025 Regular Session

New Mexico House Bill HB311 Compare Versions

Only one version of the bill is available at this time.
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2828 HOUSE BILL 311
2929 57TH LEGISLATURE - STATE OF NEW MEXICO - FIRST SESSION, 2025
3030 INTRODUCED BY
3131 Nathan P. Small
3232 AN ACT
3333 RELATING TO WATER; ENACTING THE RECLAIMED WATER ACT; PROVIDING
3434 A PROCESS FOR CREATION OF RECLAIMED WATER AUTHORITIES;
3535 PROVIDING POWERS AND DUTIES OF AN AUTHORITY; PROVIDING FOR THE
3636 USE, SALE, PROVISION AND CERTIFICATION OF RECLAIMED WATER.
3737 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
3838 SECTION 1. [NEW MATERIAL] SHORT TITLE.--This act may be
3939 cited as the "Reclaimed Water Act".
4040 SECTION 2. [NEW MATERIAL] DEFINITIONS.--As used in the
4141 Reclaimed Water Act:
4242 A. "authority" means a reclaimed water authority
4343 established pursuant to the Reclaimed Water Act;
4444 B. "board" means a reclaimed water authority's
4545 board of directors;
4646 C. "certified reclaimed water" means reclaimed
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7474 water that is certified by the water quality control commission
7575 or the commission's delegate to indicate the water has been
7676 treated to a sufficient quality that it is no longer regulated
7777 as wastewater;
7878 D. "county" means a county of any classification;
7979 E. "customer" means a person or entity that
8080 purchases reclaimed water;
8181 F. "department" means the economic development
8282 department;
8383 G. "jurisdiction" means the area:
8484 (1) governed by a municipality or a county
8585 that has established an authority; and
8686 (2) that is covered by the actions of an
8787 authority;
8888 H. "municipality" means an incorporated city,
8989 village or town;
9090 I. "participating member" means a customer,
9191 reclaimed water producer, reclaimed water wholesaler or retail
9292 water supplier that chooses to participate in work overseen by
9393 an authority;
9494 J. "reclaimed water" means any type of water,
9595 regardless of the source and including wastewater that has been
9696 treated mechanically or chemically, that can be used once it
9797 meets water quality standards issued by the state;
9898 K. "reclaimed water authority" means a newly
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127127 created nonprofit organization authorized pursuant to the
128128 Reclaimed Water Act;
129129 L. "reclaimed water producer" means an entity that
130130 operates a water treatment facility that produces or generates
131131 reclaimed water, including midstream operators, desalination
132132 plant operators and municipal wastewater treatment facilities;
133133 M. "reclaimed water wholesaler" means an entity
134134 that transports or distributes reclaimed water to customers or
135135 suppliers; and
136136 N. "retail water supplier" means an entity that
137137 provides retail water service, including a private water
138138 company, a public agency or a municipality or county.
139139 SECTION 3. [NEW MATERIAL] RECLAIMED WATER AUTHORITY--
140140 AUTHORIZATION TO CREATE.--
141141 A. In response to a request from a municipality or
142142 a county, the department may authorize a municipality or county
143143 to create a reclaimed water authority to work with communities
144144 in the authority's jurisdiction to promote the use of reclaimed
145145 water.
146146 B. A county's or municipality's request pursuant to
147147 this section shall include:
148148 (1) the name of the person submitting the
149149 request;
150150 (2) the name of the county or municipality
151151 requesting authorization to create an authority;
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180180 (3) the names and addresses of all persons who
181181 are proposed to serve on the authority's board of directors;
182182 (4) the names and addresses of the persons who
183183 are proposed to serve as the authority's officers;
184184 (5) the authority's proposed business plan;
185185 (6) the proposed sources and volumes of
186186 reclaimed water that would be within the authority's
187187 jurisdiction; and
188188 (7) the area that would be within the
189189 authority's jurisdiction.
190190 C. A request may be denied if the requester fails
191191 to provide any of the information required pursuant to
192192 Subsection B of this section.
193193 D. The department shall approve or deny a request
194194 within sixty days from the date the request is submitted to the
195195 department.
196196 SECTION 4. [NEW MATERIAL] ORGANIZATION--BOARD OF
197197 DIRECTORS--APPOINTMENT.--
198198 A. Once approved by the department, an authority
199199 may be organized as a nonprofit corporation in accordance with
200200 the Nonprofit Corporation Act and the Reclaimed Water Act. The
201201 authority shall file all documents required by the secretary of
202202 state and by state law in relation to the authority's
203203 organization as a nonprofit corporation and authority.
204204 B. An authority shall be governed by a board of
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233233 directors. A board shall consist of at least six members, five
234234 of whom are voting members, as follows:
235235 (1) the secretary of economic development or
236236 the secretary's designee, who shall serve as an advisor to the
237237 board and not as a voting member; and
238238 (2) the following voting members appointed by
239239 the mayor or governing body of the municipality or county in
240240 the authority's jurisdiction:
241241 (a) one economic development
242242 professional;
243243 (b) at least one professional who has
244244 worked for a reclaimed water producer;
245245 (c) at least one professional who has
246246 worked for a reclaimed water wholesaler;
247247 (d) one member who has worked with or
248248 for a water retailer; and
249249 (e) at least one professional with
250250 experience in environmental studies or environmental protection
251251 work.
252252 C. Upon creation of an authority, three members
253253 shall be appointed to initial terms of two years and three
254254 members shall be appointed to initial terms of one year.
255255 Thereafter, members of the board shall be appointed to terms of
256256 two years. When a vacancy occurs in any of the voting member
257257 positions, the position shall be filled in accordance with the
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286286 provisions of Subsection B of this section.
287287 D. A board shall:
288288 (1) appoint a chair;
289289 (2) elect other officers as the board deems
290290 necessary;
291291 (3) adopt bylaws for the board, in accordance
292292 with the provisions of the Nonprofit Corporation Act, to govern
293293 the conduct of the board in the performance of its duties; and
294294 (4) hire or appoint a president who shall be
295295 the chief administrative officer of the authority and be
296296 responsible for its operations.
297297 SECTION 5. [NEW MATERIAL] AUTHORITY POWERS AND DUTIES.--
298298 A. An authority shall have the powers conferred
299299 upon a domestic nonprofit corporation by the Nonprofit
300300 Corporation Act and, pursuant to the Reclaimed Water Act, the
301301 authority may:
302302 (1) sue and be sued in the authority's
303303 corporate name;
304304 (2) seek and work with vendors, customers or
305305 participants who sell, give, purchase, take or provide funding;
306306 (3) apply for and obtain federal and state
307307 funding and loans;
308308 (4) purchase, take, store, receive, acquire,
309309 own, hold, dispose of, use and otherwise deal in and with
310310 property, including intangible personal property, intellectual
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339339 property, technological innovations and reclaimed or untreated
340340 water;
341341 (5) operate and maintain lawfully permitted
342342 water treatment facilities, desalination plants, laboratories,
343343 water transportation equipment and vehicles and water storage
344344 equipment and facilities;
345345 (6) develop and implement water quality
346346 management plans;
347347 (7) oversee public health and safety programs
348348 applicable to participating members within the authority's
349349 jurisdiction;
350350 (8) provide technical support and consultation
351351 services to industries, municipalities and counties regarding
352352 water treatment;
353353 (9) sell, convey, pledge, exchange, transfer
354354 or otherwise dispose of the authority's assets and properties
355355 for consideration and upon terms and conditions the authority
356356 shall determine;
357357 (10) incur liabilities or borrow money at
358358 rates of interest the authority may determine;
359359 (11) issue and collect fees and assessments;
360360 (12) execute all contracts and other
361361 instruments the board deems necessary in the exercise of the
362362 powers and duties provided in the Reclaimed Water Act;
363363 (13) invest and reinvest the authority's funds
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392392 and receive and administer grants, contracts and private gifts;
393393 (14) conduct activities and operations to
394394 exercise the powers provided in the Reclaimed Water Act;
395395 (15) employ, set compensation for and
396396 prescribe duties of officers and employees as the authority
397397 deems necessary;
398398 (16) enter into agreements with insurance
399399 carriers to insure against any loss in connection with the
400400 authority's operations;
401401 (17) authorize retirement programs and other
402402 benefits for officers and employees of the board;
403403 (18) engage in research and development
404404 activities to improve water and wastewater treatment
405405 technologies and processes;
406406 (19) make grants to promote reclaimed water
407407 use;
408408 (20) engage in community outreach and
409409 educational programs to raise awareness about water
410410 conservation, pollution prevention and the importance of
411411 environmental stewardship; and
412412 (21) perform inspections of reclaimed water;
413413 inspect water quality; and assess fees, penalties and fines
414414 against reclaimed water producers, reclaimed water wholesalers,
415415 and retail water suppliers conducting business with a reclaimed
416416 water authority.
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445445 B. Pursuant to policies established by an
446446 authority's board of directors and as directed by the board's
447447 president, an authority shall:
448448 (1) establish relationships with reclaimed
449449 water producers, reclaimed water wholesalers and customers
450450 throughout New Mexico to encourage the responsible use of
451451 reclaimed water;
452452 (2) foster and promote uses for reclaimed
453453 water that support the development of new industries and the
454454 diversification of the state's economy;
455455 (3) foster relationships among reclaimed water
456456 producers, reclaimed water wholesalers and customers;
457457 (4) work for communities within the
458458 authority's jurisdiction to recruit businesses and jobs related
459459 to the treatment, desalination and purification of reclaimed
460460 water;
461461 (5) develop policies and standards for the
462462 authority that promote the use of reclaimed water and
463463 frameworks for shared infrastructure projects for reclaimed
464464 water;
465465 (6) perform all actions required of an
466466 authority pursuant to the Reclaimed Water Act;
467467 (7) provide quarterly reports of the
468468 authority's activities to the department and the department of
469469 environment; and
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498498 (8) adopt policies and procedures to allow
499499 reclaimed water producers, reclaimed water wholesalers, retail
500500 water suppliers and customers to join an authority's
501501 membership.
502502 SECTION 6. [NEW MATERIAL] MEMBERSHIP OF AN AUTHORITY.--
503503 Reclaimed water producers, reclaimed water wholesalers, retail
504504 water suppliers and customers who choose to become members of a
505505 reclaimed water authority shall be subject to the policies and
506506 procedures adopted by the reclaimed water authority.
507507 SECTION 7. [NEW MATERIAL] INFRASTRUCTURE AND
508508 FACILITIES.--Upon a majority vote of a board and an authority's
509509 participating members, the authority may:
510510 A. construct and operate facilities and
511511 infrastructure; and
512512 B. contract with third parties to allow the
513513 authority or its contractors to take possession of and acquire,
514514 store, transport, sell or dispose of reclaimed water in
515515 accordance with applicable state law.
516516 SECTION 8. [NEW MATERIAL] APPLICATION OF OTHER LAW.--
517517 A. A reclaimed water authority shall be subject to
518518 all applicable laws and rules governing:
519519 (1) water rights;
520520 (2) transportation and handling of water; and
521521 (3) water quality, including rules issued by
522522 the energy, minerals and natural resources department, the
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551551 office of the state engineer and the department of environment.
552552 B. The use of reclaimed water by an authority shall
553553 not impair any existing water rights.
554554 C. An authority is separate and apart from the
555555 state and shall not be deemed an agency, public body or
556556 political subdivision of the state for purposes of application
557557 of law relating to personnel, procurement of goods and
558558 services, gross receipts tax, disposition or acquisition of
559559 property, capital outlays or per diem and mileage.
560560 D. An authority and its board shall be subject to
561561 the Open Meetings Act and the Inspection of Public Records Act;
562562 provided, however, that information obtained by the authority
563563 or its board related to pricing may be designated and marked as
564564 confidential by the party that submits the information, and if
565565 the pricing information is designated and marked confidential,
566566 the pricing information shall not be subject to inspection
567567 pursuant to the Inspection of Public Records Act.
568568 E. An authority or a board and the authority's or
569569 board's officers, directors and employees shall be granted
570570 immunity from liability for any tort as provided in the Tort
571571 Claims Act and may enter into agreements with insurance
572572 carriers to insure against a loss in connection with the
573573 authority's operations even though the loss may be included
574574 among losses covered by the risk management fund of New Mexico.
575575 A director, the president or another officer shall not be
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604604 personally liable for any damages resulting from:
605605 (1) any negligent act or omission of an
606606 employee of the authority or board;
607607 (2) any negligent act or omission of another
608608 director or officer of the authority or board; or
609609 (3) any action taken as a director or officer
610610 or a failure to take any action as a director or officer unless
611611 the director or officer has breached or failed to perform the
612612 duties of the director's or officer's office and the breach or
613613 failure to perform constitutes willful misconduct or
614614 recklessness.
615615 SECTION 9. [NEW MATERIAL] IDENTIFICATION OF RECLAIMED
616616 WATER MARKETS--RETAIL WATER SUPPLIERS--DUTIES.--
617617 A. An authority shall identify:
618618 (1) within the authority's jurisdiction:
619619 (a) potential uses for reclaimed water;
620620 and
621621 (b) potential customers for reclaimed
622622 water service; and
623623 (2) within a reasonable time from the date the
624624 authority is organized, potential sources of reclaimed water.
625625 B. If a municipality or county has not established
626626 an authority, a retail water supplier that serves the area in
627627 which the municipality or community is located shall identify:
628628 (1) within the supplier's service area:
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657657 (a) potential uses for reclaimed water;
658658 and
659659 (b) potential customers for reclaimed
660660 water service; and
661661 (2) potential sources of reclaimed water.
662662 C. Reclaimed water producers and reclaimed water
663663 wholesalers may identify potential uses for reclaimed water and
664664 assist a retail water supplier in identifying potential
665665 customers for reclaimed water service within the supplier's
666666 service area. Information obtained pursuant to this subsection
667667 shall be disclosed to the department within thirty days of the
668668 discovery of the information.
669669 D. Information obtained by an authority or a retail
670670 water supplier pursuant to this section shall be disclosed to
671671 the department within thirty days of the discovery of the
672672 information.
673673 SECTION 10. [NEW MATERIAL] OVERSIGHT BY A RECLAIMED WATER
674674 AUTHORITY.--
675675 A. An authority shall help facilitate communication
676676 among customers, reclaimed water producers, reclaimed water
677677 wholesalers and retail water suppliers within the authority's
678678 jurisdiction.
679679 B. An authority may:
680680 (1) assist with negotiation of commercial
681681 transactions among the parties listed in Subsection A of this
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710710 section and may serve as a mediator in those negotiations;
711711 (2) upon request of a participating member,
712712 assist with establishing rates for reclaimed water with respect
713713 to transactions that occur within the authority's jurisdiction
714714 and in areas that are not overseen by the public regulation
715715 commission; and
716716 (3) with a majority vote from its board of
717717 directors and participating members, issue policies and
718718 procedures that allow for inspections of reclaimed water or
719719 create policies and procedures governing the handling, storage,
720720 transportation or disposal of reclaimed water.
721721 C. The water quality control commission may
722722 authorize an authority to:
723723 (1) establish water quality standards no less
724724 stringent than water standards already established by the
725725 commission;
726726 (2) oversee enforcement of standards
727727 established pursuant to this subsection; and
728728 (3) oversee water quality for reclaimed water
729729 located within the jurisdiction of the authority.
730730 SECTION 11. [NEW MATERIAL] DETERMINATIONS OF AVAILABILITY
731731 OF RECLAIMED WATER.--
732732 A. Upon request of a customer, retail water
733733 supplier, reclaimed water producer or reclaimed water
734734 wholesaler, the department shall provide for the requester's
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763763 inspection any information submitted to the department pursuant
764764 to Section 9 of the Reclaimed Water Act.
765765 B. A retail water supplier or customer that has
766766 identified a potential use or potential customer pursuant to
767767 Section 9 of the Reclaimed Water Act may request that the
768768 authority help facilitate an agreement for reclaimed water
769769 supply.
770770 C. A reclaimed water producer or reclaimed water
771771 wholesaler that, pursuant to Section 9 of the Reclaimed Water
772772 Act, has identified a potential use or potential customer that
773773 is within the service territory or jurisdiction of a retail
774774 water supplier or customer may, in writing, request a retail
775775 water supplier or customer to enter into an agreement to
776776 provide reclaimed water to the potential customer. If the
777777 retail water supplier or customer has not responded to the
778778 request to enter into an agreement within thirty days, the
779779 reclaimed water producer or reclaimed water wholesaler may
780780 request that the authority assist with facilitating an
781781 agreement.
782782 D. An authority shall post and update at least
783783 quarterly a list of retail water suppliers, customers,
784784 reclaimed water producers and reclaimed water wholesalers
785785 within the authority's jurisdiction that have expressed
786786 interest in providing or using reclaimed water.
787787 SECTION 12. [NEW MATERIAL] AGREEMENTS TO PROVIDE
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816816 RECLAIMED WATER.--
817817 A. A retail water supplier that receives a request
818818 from a customer pursuant to Subsection C of Section 11 of the
819819 Reclaimed Water Act shall enter into an agreement to provide
820820 reclaimed water if it is available or can be made available to
821821 the supplier for sale to the customer; provided, however, that
822822 the supplier may delegate this obligation to a reclaimed water
823823 producer or a reclaimed water wholesaler in a written agreement
824824 between the supplier and the producer or wholesaler.
825825 B. If a reclaimed water producer or a reclaimed
826826 water wholesaler provides a customer of a retail water supplier
827827 with a written statement that the producer or wholesaler is
828828 able to and will provide reclaimed water to the retailer, the
829829 retail water supplier shall, within one hundred twenty days
830830 from the date on which the retail water supplier receives the
831831 written statement from the customer by certified mail, return
832832 receipt requested, submit a written offer to the customer that
833833 includes rates and conditions pursuant to Subsection C of
834834 Section 13 of the Reclaimed Water Act.
835835 C. If an authority makes a determination that there
836836 is available reclaimed water to serve a customer of a retail
837837 water supplier, the retail water supplier, not later than one
838838 hundred twenty days from the date on which the retail water
839839 supplier receives a copy of that determination from the
840840 customer by certified mail, return receipt requested, shall
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869869 submit a written offer to the customer.
870870 SECTION 13. [NEW MATERIAL] RECLAIMED WATER RATES--PARTIES
871871 NOT REGULATED BY THE PUBLIC REGULATION COMMISSION.--
872872 A. The price charged per barrel of reclaimed water
873873 sold shall be reported to a designated official appointed by
874874 the authority in the jurisdiction in which it was sold or to
875875 the department, if there is no authority in the jurisdiction,
876876 within sixty days following the sale. The report shall be made
877877 using a form approved by the authority or the department.
878878 B. The rates and conditions for reclaimed water
879879 service shall be established by contract between a retail water
880880 supplier and its customer.
881881 C. A contract executed as provided in Subsection B
882882 of this section shall include:
883883 (1) the source of the reclaimed water;
884884 (2) treatment and transportation costs for the
885885 water;
886886 (3) the method of conveying the reclaimed
887887 water;
888888 (4) a schedule for delivery of the reclaimed
889889 water;
890890 (5) the terms of service;
891891 (6) the rate for the reclaimed water,
892892 including the per-unit cost for that water; and
893893 (7) the costs necessary to provide service and
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922922 the basis for determining those costs.
923923 D. This section does not apply to reclaimed water
924924 services or reclaimed water service rates established before
925925 July 31, 2025 or any amendments to those rates for the duration
926926 of the contract pursuant to which those rates were established.
927927 SECTION 14. [NEW MATERIAL] RECLAIMED WATER RATES--
928928 SUPPLIERS REGULATED BY THE PUBLIC REGULATION COMMISSION.--
929929 A. This section applies only to a retail water
930930 supplier that is regulated by the public regulation commission.
931931 B. A regulated water utility may request the public
932932 regulation commission to establish the rate or rates for the
933933 delivery of reclaimed water, with the objective of providing,
934934 where practicable, a reasonable economic incentive for a
935935 customer to purchase reclaimed water in place of other water
936936 sources.
937937 C. When setting rates in accordance with Subsection
938938 B of this section, the public regulation commission shall set
939939 rates with primary consideration given to enabling retail water
940940 suppliers to promote the sale of reclaimed water in a manner
941941 that allows for reclaimed water activities to increase within
942942 the state.
943943 SECTION 15. [NEW MATERIAL] CERTIFIED RECLAIMED WATER.--
944944 A. There shall be no requirement that reclaimed
945945 water be certified.
946946 B. Any person may submit a request to the water
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975975 quality control commission to adopt standards and procedures
976976 for the certification of reclaimed water.
977977 C. Upon receipt of a request provided for in
978978 Subsection B of this section, following an opportunity for
979979 notice and hearing, the water quality control commission shall
980980 issue standards and procedures for the certification of
981981 reclaimed water. The standards and procedures shall ensure
982982 that certified reclaimed water is in sufficient condition to no
983983 longer require oversight or regulation necessary for wastewater
984984 or produced water.
985985 D. When a batch of reclaimed water is shown to meet
986986 the standards established by the water quality control
987987 commission for certified reclaimed water, the reclaimed water
988988 will no longer be subject to state laws and rules applicable to
989989 wastewater or produced water.
990990 E. The duties of the water quality control
991991 commission described in this section are in addition to the
992992 powers and duties described in the Water Quality Act and shall
993993 apply to reclaimed water generally and not only circumstances
994994 that involve the discharge of water.
995995 SECTION 16. EFFECTIVE DATE.--The effective date of the
996996 provisions of this act is July 1, 2025.
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