New Mexico 2025 Regular Session

New Mexico House Bill HB581 Compare Versions

Only one version of the bill is available at this time.

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28	28	HOUSE BILL 581
29	29	57
30	30	TH LEGISLATURE
31	31	-
32	32
33	33	STATE
34	34
35	35	OF
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37	37	NEW
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39	39	MEXICO
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41	41	-
42	42	FIRST SESSION
43	43	,
44	44
45	45	2025
46	46	INTRODUCED BY
47	47	Patricia Roybal Caballero
48	48	AN ACT
49	49	RELATING TO THE ENVIRONMENT; REQUIRING THE DEPARTMENT OF
50	50	ENVIRONMENT AND LOCAL AGENCIES TO COMPLETE ALL INSPECTIONS ON
51	51	EXISTING SOURCES OWNED OR OPERATED BY PERMIT APPLICANTS BEFORE
52	52	THE ISSUANCE OF OPERATING OR CONSTRUCTION PERMITS FOR NEW OR
53	53	MODIFIED SOURCES TO SUCH APPLICANTS; ESTABLISHING A PERIODIC
54	54	INSPECTION PROGRAM IN 2025 THAT SHALL USE THE BEST AVAILABLE
55	55	TECHNOLOGY; REQUIRING THE DEPARTMENT AND LOCAL AGENCIES TO
56	56	INCREASE PERMITTING FEES TO IMPLEMENT THE INSPECTION PROGRAM;
57	57	REQUIRING THE DEPARTMENT TO REPORT TO THE LEGISLATURE IN 2026
58	58	AND 2027 REGARDING THE INSPECTION PROGRAM.
59	59	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
60	60	SECTION 1. Section 74-2-7 NMSA 1978 (being Laws 1972,
61	61	Chapter 51, Section 4, as amended) is amended to read:
62	62	"74-2-7. PERMITS--PERMIT APPEALS TO THE ENVIRONMENTAL
63	63	.230424.1 underscored material = new
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90	90	IMPROVEMENT BOARD OR THE LOCAL BOARD--PERMIT FEES.--
91	91	A. By regulation, the environmental improvement
92	92	board or the local board shall require:
93	93	(1) a person intending to construct or modify
94	94	any source, except as otherwise specifically provided by
95	95	regulation, to obtain a construction permit from the department
96	96	or the local agency prior to such construction or modification;
97	97	and
98	98	(2) a person intending to operate any source
99	99	for which an operating permit is required by the 1990
100	100	amendments to the federal act, except as otherwise specifically
101	101	provided by regulation, to obtain an operating permit from the
102	102	department or the local agency.
103	103	B. Regulations adopted by the environmental
104	104	improvement board or the local board shall include at least the
105	105	following provisions:
106	106	(1) requirements for the submission of
107	107	relevant information, including information the department or
108	108	the local agency deems necessary to determine that regulations
109	109	and standards under the Air Quality Control Act, [or ] the Oil
110	110	and Gas Act specifically relating to the venting and flaring of
111	111	natural gas by oil and gas facilities and the federal act,
112	112	including all amendments , will not be violated through minimum
113	113	mandatory documentation and procedures and that:
114	114	(a) applications for construction and
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143	143	operating permits shall include certified or otherwise verified
144	144	proof of compliance issued by the department, the local agency
145	145	or other authorized government department or agency
146	146	establishing that each of the other facilities owned or
147	147	operated by the applicant and subject to these state and
148	148	federal laws are in compliance with all state and federal
149	149	emission standards during the current inspection period and all
150	150	prior inspection periods, where such proof of compliance shall
151	151	be a condition precedent to the application;
152	152	(b) if an applicant is unable to produce
153	153	acceptable proof of compliance with the applicant's
154	154	application, the department or local agency shall inspect all
155	155	of the applicant's facilities within six months of the
156	156	submission of the application; and
157	157	(c) the department or local agency shall
158	158	notify the applicant of the results of all inspections
159	159	conducted pursuant to the provisions of this subsection and, if
160	160	the department or local agency determines that the sources are
161	161	in compliance with the applicable state and federal laws and
162	162	emission standards and the department or local agency
163	163	determines that the application is otherwise complete, the
164	164	department or local agency shall proceed with evaluating the
165	165	application for the new source; if the department or local
166	166	agency determines that the sources are not in compliance with
167	167	the applicable state and federal laws and standards, the
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196	196	department or local agency shall issue a final action pursuant
197	197	to Subsection G of this section denying the permit application
198	198	for the new source;
199	199	(2) specification of the deadlines for
200	200	processing permit applications; provided that the deadline for
201	201	a final decision by the department or the local agency on a
202	202	construction permit application may not exceed:
203	203	(a) ninety days after the application is
204	204	determined to be administratively complete, if the application
205	205	is not subject to requirements for prevention of significant
206	206	deterioration, unless the secretary or the director grants an
207	207	extension not to exceed ninety days for good cause, including
208	208	the need to have public hearings and, if the applicant has
209	209	failed to produce proof of compliance of each of the
210	210	applicant's facilities not subject to the prevention
211	211	requirements, the secretary or the director shall deem such
212	212	event as good cause for an additional extension of six months ;
213	213	or
214	214	(b) one hundred eighty days after the
215	215	application is determined to be administratively complete, if
216	216	the application is subject to requirements for prevention of
217	217	significant deterioration, unless the secretary or the director
218	218	grants an extension not to exceed ninety days for good cause,
219	219	including the need to have public hearings and, if the
220	220	applicant has failed to produce proof of compliance of each of
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249	249	the applicant's facilities subject to the prevention
250	250	requirements, the secretary or director shall deem the event as
251	251	good cause for an additional extension of six months ;
252	252	(3) that if the department or local agency
253	253	fails to take final action on a construction permit application
254	254	within the deadlines specified in Paragraph (2) of this
255	255	subsection, the department or local agency shall notify the
256	256	applicant in writing that an extension of time is required to
257	257	process the application and specify in detail the grounds for
258	258	the extension;
259	259	(4) a description of elements required before
260	260	the department or local agency shall deem an application
261	261	administratively complete and where such elements shall include
262	262	as a condition precedent the proof of compliance issued by the
263	263	department, the local agency or other authorized government
264	264	department or agency as described in this subsection ;
265	265	(5) specification of the public notice,
266	266	comment period and public hearing, if any, required prior to
267	267	the issuance of a permit; provided that the permit regulations
268	268	adopted:
269	269	(a) by the environmental improvement
270	270	board shall include provisions governing notice to nearby
271	271	states; and
272	272	(b) by any local board shall include
273	273	provisions requiring that notice be given to the department of
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302	302	all permit applications by any source that emits, or has a
303	303	potential emission rate of, one hundred tons per year or more
304	304	of any regulated air contaminant, including any source of
305	305	fugitive emissions of each regulated air contaminant, at least
306	306	sixty days prior to the date on which construction or major
307	307	modification is to commence;
308	308	(6) a schedule of construction permit fees
309	309	sufficient to cover the reasonable costs of:
310	310	(a) reviewing and acting upon any
311	311	application for such permit; and
312	312	(b) implementing and enforcing the terms
313	313	and conditions of the permit, including the costs of the
314	314	periodic inspection program required by Section 74-2-13 NMSA
315	315	1978, but excluding any court costs or other costs associated
316	316	with an enforcement action;
317	317	(7) a schedule of emission fees consistent
318	318	with the provisions of Section 502(b)(3) of the 1990 amendments
319	319	to the federal act;
320	320	(8) a method for accelerated permit processing
321	321	that may be requested at the sole discretion of the applicant
322	322	[at the time the applicant submits a construction permit
323	323	application] if and only if the applicant has first submitted a
324	324	proof of compliance that has been subsequently accepted by the
325	325	department or local agency as true and that:
326	326	(a) allows the department or local
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355	355	agency to contract with qualified outside firms to assist the
356	356	department or local agency in its accelerated review of the
357	357	construction permit application; provided that the department
358	358	or local agency can contract with a qualified firm that does
359	359	not have a conflict of interest; and
360	360	(b) establishes a process for the
361	361	department or local agency to account for the expenditure of
362	362	the accelerated permit processing fees;
363	363	(9) allowance for additional permit
364	364	application fees, sufficient to cover the reasonable costs of
365	365	an accelerated permit application review process that is
366	366	applicable only to applicants who have first submitted proof of
367	367	compliance that has been subsequently accepted as true as
368	368	described in this subsection . Before the applicant is notified
369	369	that the permit application has been determined to be complete,
370	370	the department or local agency shall give the applicant a
371	371	reasonable estimate of costs of an accelerated permit
372	372	application review process;
373	373	(10) specification of the maximum length of
374	374	time for which a permit shall be valid; provided that for an
375	375	operating permit such period may not exceed five years; and
376	376	(11) for an operating permit only:
377	377	(a) provisions consistent with Sections
378	378	502(b) and 505(b) of the federal act providing: 1) notice to
379	379	and review and comment by the United States environmental
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408	408	protection agency; and 2) that if the department or local
409	409	agency receives notice of objection from the United States
410	410	environmental protection agency before the operating permit is
411	411	issued, the department or the local agency shall not issue the
412	412	permit unless it is revised and issued under Section 505(c) of
413	413	the federal act;
414	414	(b) provisions governing renewal of the
415	415	operating permit; and
416	416	(c) specification of the conditions
417	417	under which the operating permit may be terminated, modified or
418	418	revoked and reissued prior to the expiration of the term of the
419	419	operating permit.
420	420	C. Except as provided in Subsection O of this
421	421	section, the department or the local agency may deny any
422	422	application for:
423	423	(1) a construction permit if it appears that
424	424	the construction or modification:
425	425	(a) will not meet applicable standards,
426	426	rules or requirements of the Air Quality Control Act, the Oil
427	427	and Gas Act specifically relating to regulations of the venting
428	428	and flaring of natural gas by oil and gas facilities or the
429	429	federal act;
430	430	(b) will cause or contribute to air
431	431	contaminant levels in excess of a national or state standard
432	432	or, within the boundaries of a local authority, applicable
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461	461	local ambient air quality standards; or
462	462	(c) will violate any other provision of
463	463	the Air Quality Control Act, the Oil and Gas Act specifically
464	464	relating to regulations of the venting and flaring of natural
465	465	gas by oil and gas facilities or the federal act; and
466	466	(2) an operating permit if the source will not
467	467	meet the applicable standards, rules or requirements pursuant
468	468	to the Air Quality Control Act, the Oil and Gas Act
469	469	specifically relating to regulations of the venting and flaring
470	470	of natural gas by oil and gas facilities or the federal act.
471	471	D. The department or the local agency may specify
472	472	conditions to any permit granted under this section, including:
473	473	(1) for a construction permit:
474	474	(a) a requirement that such source
475	475	install and operate control technology, determined on a case-
476	476	by-case basis, sufficient to meet the standards, rules and
477	477	requirements of the Air Quality Control Act, the Oil and Gas
478	478	Act specifically relating to regulations of the venting and
479	479	flaring of natural gas by oil and gas facilities and the
480	480	federal act;
481	481	(b) individual emission limits,
482	482	determined on a case-by-case basis, but only as restrictive as
483	483	necessary to meet the requirements of the Air Quality Control
484	484	Act, the Oil and Gas Act specifically relating to regulations
485	485	of the venting and flaring of natural gas by oil and gas
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514	514	facilities and the federal act or the emission rate specified
515	515	in the permit application, whichever is more stringent;
516	516	(c) compliance with applicable federal
517	517	standards of performance;
518	518	(d) reasonable restrictions and
519	519	limitations not relating to emission limits or emission rates;
520	520	or
521	521	(e) any combination of the conditions
522	522	listed in this paragraph; provided that the combination results
523	523	in the most stringent level of performance that is the most
524	524	protective of health and safety ; and
525	525	(2) for an operating permit, terms and
526	526	conditions sufficient to ensure compliance with the applicable
527	527	standards, rules and requirements pursuant to the Air Quality
528	528	Control Act, the Oil and Gas Act specifically relating to
529	529	regulations of the venting and flaring of natural gas by oil
530	530	and gas facilities and the federal act.
531	531	E. This section does not authorize the department
532	532	or the local agency to require the use of machinery, devices or
533	533	equipment from a particular manufacturer if the federal
534	534	standards of performance, state regulations and permit
535	535	conditions may be met by machinery, devices or equipment
536	536	otherwise available.
537	537	F. The issuance of a permit does not relieve any
538	538	person from the responsibility of complying with the provisions
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567	567	of the Air Quality Control Act, the applicable portions of the
568	568	Oil and Gas Act and any applicable regulations of the
569	569	environmental improvement board or the local board. Any
570	570	conditions placed upon a permit by the department or the local
571	571	agency shall be enforceable to the same extent as a regulation
572	572	of its board.
573	573	G. A person who participated in a permitting action
574	574	before the department or the local agency shall be notified by
575	575	the department or the local agency of the final action taken
576	576	and the reasons for the final action. Notification of the
577	577	applicant shall be by certified mail.
578	578	H. A person who participated in a permitting action
579	579	before the department or the local agency and who is adversely
580	580	affected by such permitting action may file a petition for
581	581	hearing before the environmental improvement board or the local
582	582	board upon receipt of the final action of the department or the
583	583	local agency. The petition shall be made in writing to the
584	584	environmental improvement board or the local board within
585	585	thirty days from the date notice is given of the department's
586	586	or the local agency's action. Unless a timely petition for
587	587	hearing is made, the decision of the department or the local
588	588	agency shall be final.
589	589	I. If a timely petition for hearing is made, the
590	590	environmental improvement board or the local board shall hold a
591	591	hearing within sixty days after receipt of the petition. The
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620	620	environmental improvement board or the local board shall notify
621	621	the petitioner and the applicant or permittee, if other than
622	622	the petitioner, by certified mail of the date, time and place
623	623	of the hearing. If the subject of the petition is a permitting
624	624	action deemed by the environmental improvement board or the
625	625	local board to substantially affect the public interest, the
626	626	environmental improvement board or the local board shall ensure
627	627	that the public receives notice of the date, time and place of
628	628	the hearing. The public in such circumstances shall also be
629	629	given a reasonable opportunity to submit data, views or
630	630	arguments orally or in writing and to examine witnesses
631	631	testifying at the hearing. Any person submitting data, views
632	632	or arguments orally or in writing shall be subject to
633	633	examination at the hearing.
634	634	J. The environmental improvement board or the local
635	635	board may designate a hearing officer to take evidence in the
636	636	hearing. All hearings shall be recorded.
637	637	K. The burden of proof shall be upon the
638	638	petitioner. Based upon the evidence presented at the hearing,
639	639	the environmental improvement board or the local board shall
640	640	sustain, modify or reverse the action of the department or the
641	641	local agency respectively.
642	642	L. Notwithstanding any other provision of law and
643	643	subject to the provisions of Section 74-2-4 NMSA 1978, a final
644	644	decision on a permit by the department, the environmental
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673	673	improvement board, the local agency, the local board or the
674	674	court of appeals that a source will or will not meet applicable
675	675	local, state and federal air pollution standards and
676	676	regulations shall be conclusive and is binding on every other
677	677	state agency and as an issue before any other state agency
678	678	shall be deemed resolved in accordance with that final
679	679	decision.
680	680	M. Subject to the provisions of Section 74-2-4 NMSA
681	681	1978, if the local board has adopted a permit regulation
682	682	pursuant to this section, persons constructing or modifying any
683	683	source within the boundaries of the local authority shall
684	684	obtain a permit from the local agency and not from the
685	685	department.
686	686	N. Fees collected pursuant to this section shall be
687	687	deposited in:
688	688	(1) the state air quality permit fund created
689	689	by Section 74-2-15 NMSA 1978 if collected by the department; or
690	690	(2) a fund created pursuant to Section 74-2-16
691	691	NMSA 1978 if collected by a local agency pursuant to a permit
692	692	regulation adopted by the local board pursuant to this section.
693	693	O. The department may not deny an application for a
694	694	construction permit for a cotton gin if the applicant proposes
695	695	use of the best system of emissions reduction currently in use
696	696	by cotton gins in the United States, as specified by regulation
697	697	of the environmental improvement board, and the cotton gin has
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726	726	a potential emission rate, considering the use of the proposed
727	727	emissions reduction system and the proposed hours of operation,
728	728	of not more than fifty tons per year of any regulated air
729	729	contaminant for which there is a national ambient air quality
730	730	standard. The construction permit shall require that the
731	731	applicant use the proposed emission reduction system and limit
732	732	the hours of operation to the hours specified in the
733	733	application. For purposes of this subsection, "best system of
734	734	emissions reduction" for cotton gins means a system that will
735	735	result in emissions reduction equal to or greater than that
736	736	obtained by the use of condenser screens, seventy-mesh screen
737	737	or equivalent on low-pressure exhausts and high-efficiency
738	738	cyclone dust collectors on high-pressure exhausts.
739	739	P. The department or local agency may deny any
740	740	permit application or revoke any permit issued pursuant to the
741	741	Air Quality Control Act if, within ten years immediately
742	742	preceding the date of submission of the permit application, the
743	743	applicant or permittee has:
744	744	(1) knowingly misrepresented a material fact
745	745	in an application for a permit;
746	746	(2) refused to disclose the information
747	747	required by the provisions of the Air Quality Control Act;
748	748	(3) been convicted in any court of any state
749	749	or the United States of:
750	750	(a) a felony related to environmental
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779	779	crime; or
780	780	(b) a crime defined by state or federal
781	781	statute as involving or being in restraint of trade, price
782	782	fixing, bribery or fraud;
783	783	(4) constructed or operated a facility for
784	784	which a permit is sought without a permit required by the Air
785	785	Quality Control Act, except when such an unpermitted facility
786	786	is discovered after acquisition in the course of a timely
787	787	environmental audit authorized by department or local board
788	788	policy and except if:
789	789	(a) the operator of the facility using
790	790	good engineering practices and established approved calculation
791	791	methodologies estimated that the facility's emissions would not
792	792	require a permit pursuant to the Air Quality Control Act; and
793	793	(b) upon discovery of the discrepancy
794	794	between the calculated pre-construction maximum facility
795	795	emissions and the calculated post-construction maximum facility
796	796	emissions, the operator of the facility applies for the
797	797	appropriate permit within thirty calendar days; or
798	798	(5) had any permit revoked or permanently
799	799	suspended for cause under the environmental laws of any state
800	800	or the United States.
801	801	Q. In making a finding under Subsection P of this
802	802	section, the department or local agency may consider
803	803	aggravating and mitigating factors.
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832	832	R. If an applicant or permittee whose permit is
833	833	being considered for denial or revocation on any basis provided
834	834	by Subsection P of this section has submitted an action plan
835	835	that has been approved in writing by the secretary or director,
836	836	and plan approval includes a period of operation under a
837	837	conditional permit that will allow the applicant or permittee a
838	838	reasonable opportunity to demonstrate its rehabilitation, the
839	839	secretary or director may issue a conditional permit for a
840	840	reasonable period of time.
841	841	S. An applicant for a permit pursuant to the Air
842	842	Quality Control Act shall file a disclosure statement with the
843	843	department or local agency with the information listed in
844	844	Subsection P of this section, and on a form developed by the
845	845	department. An existing permit holder shall provide such
846	846	disclosure upon request by the department or local agency."
847	847	SECTION 2. Section 74-2-13 NMSA 1978 (being Laws 1972,
848	848	Chapter 51, Section 8, as amended) is repealed and a new
849	849	Section 74-2-13 NMSA 1978 is enacted to read:
850	850	"74-2-13. [NEW MATERIAL ] PERIODIC AND OTHER
851	851	INSPECTIONS.--
852	852	A. The department, through a joint powers agreement
853	853	with the energy, minerals and natural resources department and
854	854	local agencies, shall establish a periodic inspection program
855	855	through regulations that shall be effective no later than
856	856	November 2025 that shall require that inspections:
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885	885	(1) occur without prior notice every two years
886	886	at all sources within their respective boundaries that hold
887	887	construction or operating permits;
888	888	(2) determine whether the sources inspected
889	889	are in compliance with the Air Quality Control Act, the Oil and
890	890	Gas Act as it relates to all regulations of venting and flaring
891	891	of oil and gas facilities and the federal act;
892	892	(3) be completed onsite with use of the best
893	893	available technology, including EXOatmospheric measurements
894	894	generated by methaneSAT; and
895	895	(4) be funded by permitting fees paid by the
896	896	owners or operators of permitted sources, the costs to be
897	897	allocated in an equitable manner to be determined by the
898	898	secretary and the director and approved by the board or local
899	899	board.
900	900	B. The department and a local agency shall notify
901	901	the owners and operators of the inspected sources of the
902	902	results of these periodic inspections within thirty days of
903	903	their completion, and the notification shall include either a
904	904	proof of compliance or, as applicable, a remediation plan, a
905	905	plan for follow-up inspections and an assessment of all
906	906	resulting penalties or conditional penalties.
907	907	C. The department shall report to the legislature
908	908	in 2026 and 2027 regarding the status of the periodic
909	909	inspection program, to include, at a minimum:
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938	938	(1) the number of sources inspected during the
939	939	reporting period;
940	940	(2) the schedule for the completion of the
941	941	inspections of all sources;
942	942	(3) the number of sources that are in
943	943	noncompliance with the applicable standards under state and
944	944	federal laws and regulations but expressly to include the
945	945	methane emission standards of the Oil and Gas Act and Section
946	946	136 of the federal act; and
947	947	(4) a summary of the remediation plans imposed
948	948	and the penalties assessed.
949	949	D. The secretary or the director or an authorized
950	950	representative of either, upon presentation of the appropriate
951	951	credentials:
952	952	(1) shall have a right of entry to, upon or
953	953	through all premises on which an emission source is located or
954	954	on which all records required to be maintained by regulations
955	955	of the environmental improvement board, the local board or by a
956	956	permit condition are located to conduct the periodic
957	957	inspections described in this section; and
958	958	(2) may at all reasonable times have access to
959	959	the premises to copy all records required to be established and
960	960	maintained by regulations of the environmental improvement
961	961	board or the local board or a permit condition; to inspect all
962	962	monitoring equipment and method required by regulations of the
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991	991	environmental improvement board, the local board or by a permit
992	992	condition; and to sample any emissions that are required to be
993	993	sampled pursuant to regulation of the environmental improvement
994	994	board, the local board or a permit condition."
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