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HOUSE BILL 427
57
TH LEGISLATURE
-
STATE
OF
NEW
MEXICO
-
FIRST SESSION
,
2025
INTRODUCED BY
Micaela Lara Cadena
AN ACT
RELATING TO WATER; AMENDING THE WATER PROJECT FINANCE ACT TO
PROMOTE THE USE OF REAL-TIME MONITORING DATA TO TRACK AND
MONITOR THE QUALITY OF NEW MEXICO'S DRINKING WATER.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. Section 72-4A-5 NMSA 1978 (being Laws 2001,
Chapter 164, Section 5, as amended) is amended to read:
"72-4A-5. BOARD--DUTIES.--The board shall:
A. adopt rules governing terms and conditions of
grants or loans recommended by the board for appropriation by
the legislature from the water project fund, giving priority to
projects that have been identified by the board as being urgent
to address public health and safety issues; that have matching
contributions from federal or local funding sources available;
and that have obtained all requisite state and federal permits
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and authorizations necessary to initiate the project;
B. authorize qualifying water projects to the
authority that are for:
(1) storage, conveyance or delivery of water
to end users;
(2) implementation of federal Endangered
Species Act of 1973 collaborative programs;
(3) wastewater conveyance and treatment;
(4) restoration and management of watersheds;
(5) flood prevention; [or ]
(6) water conservation or recycling, treatment
or reuse of water as provided by law; or
(7) the monitoring and protection of water
quality; and
C. evaluate projects, including their environmental
impacts, and recommend projects to the interstate stream
commission pursuant to the provisions of Section 72-14-45 NMSA
1978."
SECTION 2. Section 72-4A-6 NMSA 1978 (being Laws 2001,
Chapter 164, Section 6, as amended) is amended to read:
"72-4A-6. AUTHORITY--DUTIES.--The authority shall:
A. provide staff support for the board;
B. develop application procedures and forms for
qualifying entities to apply for grants and loans from the
water project fund; and
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C. make loans or grants to qualifying entities for
qualifying water projects authorized by the legislature and for
real-time water quality monitoring projects as provided in
Section 72-4A-7 NMSA 1978 ; provided that the service area for
the project is wholly within the boundaries of the state or the
project is an interstate project that directly benefits New
Mexico."
SECTION 3. Section 72-4A-7 NMSA 1978 (being Laws 2001,
Chapter 164, Section 7, as amended) is amended to read:
"72-4A-7. CONDITIONS FOR GRANTS AND LOANS.--
A. Grants and loans shall be made only to
qualifying entities that:
(1) agree to operate and maintain a water
project so that it will function properly over the structural
and material design life;
(2) require the contractor of a construction
project to post a performance and payment bond in accordance
with the requirements of Section 13-4-18 NMSA 1978;
(3) provide written assurance signed by an
attorney or provide a title insurance policy that the
qualifying entity has proper title, easements and rights of way
to the property upon or through which a water project proposed
for funding is to be constructed or extended;
(4) meet the requirements of the financial
capability set by the authority to ensure sufficient revenues
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to operate and maintain a water project for its useful life and
to repay the loan;
(5) agree to properly maintain financial
records in accordance with all applicable laws; and
(6) agree to pay costs of originating grants
and loans as determined by rules adopted by the authority.
B. Grant projects and loans for real-time water
quality monitoring projects that are authorized as qualifying
water projects:
(1) shall be made by the authority to
qualifying entities that apply to the authority for grant
money:
(a) to invest in application programming
interfaces or other technology and to develop real-time water
monitoring systems to obtain data on water and wastewater
quality and resources in New Mexico; or
(b) for technical assistance with
applying for federal or other funding for programs for real-
time monitoring of water management and treatment;
(2) shall not include the costs of originating
the grants as determined by rules adopted by the authority and
shall not exceed five hundred thousand dollars ($500,000) per
grant application;
(3) shall require reporting of real-time water
quality monitoring data to the department of environment; and
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(4) shall not exceed a cap of thirty-one
million five hundred thousand dollars ($31,500,000) in total
obligations of the fund, plus administrative expenses and a
prudent fund balance, as determined by the authority pursuant
to this section. The authority shall evaluate the amount of
the cap in an appropriate proceeding to be completed by June
30, 2027 and consider whether, based on the then-current status
of the fund, the cap should be modified, maintained or
eliminated.
[B.] C. Plans and specifications for a water
project shall be approved by the authority after review and
upon the recommendation of the state engineer and the
department of environment before grant or loan disbursements to
pay for construction costs are made to a qualifying entity.
Plans and specifications for a water project shall incorporate
available technologies and operational design for water use
efficiency.
[C.] D. Grants and loans shall be made only for
eligible items, which include:
(1) to match federal and local cost shares;
(2) engineering feasibility reports;
(3) contracted engineering design;
(4) inspection of construction;
(5) special engineering services;
(6) environmental or archaeological surveys;
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(7) construction;
(8) land acquisition;
(9) easements and rights of way; [and ]
(10) legal costs; and
(11) real-time water quality monitoring as
specified in Subsection B of this section ."
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