New Mexico 2025 Regular Session

New Mexico Senate Bill SB22 Latest Draft

Bill / Introduced Version Filed 01/21/2025

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SENATE BILL 22
57
TH LEGISLATURE 
-
 
STATE
 
OF
 
NEW
 
MEXICO
 
-
 FIRST SESSION
,
 
2025
INTRODUCED BY
Peter Wirth and Kristina Ortez
AN ACT
RELATING TO THE ENVIRONMENT; ALPHABETIZING AND ADDING
DEFINITIONS TO THE WATER QUALITY ACT; PROVIDING FOR CERTAIN
WATER QUALITY CONTROL COMMISSION RULES RELATING TO THE
REGULATION OF WATER POLLUTION; CREATING THE NEGLECTED AND
CONTAMINATED SITES FUND; PROVIDING FOR GENERAL PERMIT COVERAGE
FOR MULTIPLE DISCHARGERS; REVISING THE WATER QUALITY MANAGEMENT
FUND AND DISTRIBUTION OF CERTAIN PENALTIES; ALLOWING FOR THE
DENIAL OF PERMITS THAT WOULD CONTRIBUTE TO WATER CONTAMINANT
LEVELS IN EXCESS OF DOWNSTREAM STATE OR TRIBAL WATER QUALITY
STANDARDS; AMENDING NOTICE REQUIREMENTS FOR WATER QUALITY ACT
PERMITS; PROVIDING FOR CERTAIN USES OF PERMIT FEES; AMENDING
THE PURPOSES OF THE WATER QUALITY MANAGEMENT FUND; CREATING
CERTAIN EXCEPTIONS FOR SURFACE WATER DISCHARGES; MAKING AN
APPROPRIATION; DECLARING AN EMERGENCY.
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. Section 74-6-2 NMSA 1978 (being Laws 1967,
Chapter 190, Section 2, as amended) is amended to read:
"74-6-2.  DEFINITIONS.--As used in the Water Quality Act:
[A.  "gray water" means untreated household
wastewater that has not come in contact with toilet waste and
includes wastewater from bathtubs, showers, washbasins, clothes
washing machines and laundry tubs, but does not include
wastewater from kitchen sinks or dishwashers or laundry water
from the washing of material soiled with human excreta, such as
diapers;
B.  "water contaminant" means any substance that
could alter, if discharged or spilled, the physical, chemical,
biological or radiological qualities of water.  "Water
contaminant" does not mean source, special nuclear or byproduct
material as defined by the federal Atomic Energy Act of 1954;
C.  "water pollution" means introducing or
permitting the introduction into water, either directly or
indirectly, of one or more water contaminants in such quantity
and of such duration as may with reasonable probability injure
human health, animal or plant life or property, or to
unreasonably interfere with the public welfare or the use of
property;
D.  "wastes" means sewage, industrial wastes or any
other liquid, gaseous or solid substance that may pollute any
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waters of the state;
E.  "sewer system" means pipelines, conduits,
pumping stations, force mains or any other structures, devices,
appurtenances or facilities used for collecting or conducting
wastes to an ultimate point for treatment or disposal;
F.  "treatment works" means any plant or other works
used for the purpose of treating, stabilizing or holding
wastes;
G.  "sewerage system" means a system for disposing
of wastes, either by surface or underground methods, and
includes sewer systems, treatment works, disposal wells and
other systems;
H.  "water" means all water, including water
situated wholly or partly within or bordering upon the state,
whether surface or subsurface, public or private, except
private waters that do not combine with other surface or
subsurface water;
I.  "person" means an individual or any other
entity, including partnerships, corporations, associations,
responsible business or association agents or officers, the
state or a political subdivision of the state or any agency,
department or instrumentality of the United States and any of
its officers, agents or employees; ]
A.  "barrier" means a technical, including any log
reduction credits assigned, operational or managerial measure
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to control microbial or chemical constituents; 
[J.] B. "commission" means the water quality
control commission;
[K.] C. "constituent agency" means, as the context
may require, any or all of the following agencies of the state:
(1)  the department [of environment ];
(2)  the state engineer and the interstate
stream commission;
(3)  the department of game and fish;
(4)  the oil conservation commission;
(5)  the state parks division of the energy,
minerals and natural resources department;
(6)  the New Mexico department of agriculture;
(7)  the soil and water conservation
commission; and 
(8)  the bureau of geology and mineral
resources at the New Mexico institute of mining and technology; 
[L.  "new source" means:
(1)  any source, the construction of which is
commenced after the publication of proposed regulations
prescribing a standard of performance applicable to the source;
or
(2)  any existing source when modified to treat
substantial additional volumes or when there is a substantial
change in the character of water contaminants treated;
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M.  "source" means a building, structure, facility
or installation from which there is or may be a discharge of
water contaminants directly or indirectly into water;
N.  "septage" means the residual wastes and water
periodically pumped from a liquid waste treatment unit or from
a holding tank for maintenance or disposal purposes;
O.  "sludge" means solid, semi-solid or liquid waste
generated from a municipal, commercial or industrial wastewater
treatment plant, water supply treatment plant or air pollution
control facility that is associated with the treatment of these
wastes.  "Sludge" does not mean treated effluent from a
wastewater treatment plant;
P.  "substantial adverse environmental impact" means
that an act or omission of the violator causes harm or damage:
(1)  to human beings; or
(2)  that amounts to more than ten thousand
dollars ($10,000) damage or mitigation costs to flora,
including agriculture crops; fish or other aquatic life;
waterfowl or other birds; livestock or wildlife or damage to
their habitats; ground water or surface water; or the lands of
the state;
Q.  "federal act" means the Federal Water Pollution
Control Act, its subsequent amendment and successor provisions;
R.  "standards of performance" means any standard,
effluent limitation or effluent standard adopted pursuant to
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the federal act or the Water Quality Act; and
S.  "produced water" means a fluid that is an
incidental byproduct from drilling for or the production of oil
and gas]
D.  "compensatory mitigation" means the process of
restoring, establishing, enhancing or preserving wetlands,
streams or other aquatic resources to offset unavoidable
adverse impacts that remain after appropriate and practicable
avoidance and minimization measures have been achieved;
E.  "department" means the department of
environment;
F.  "facility" means all contiguous land, and
structures, other appurtenances and improvements on the land,
including any building, installation, equipment, pipe or
pipeline, including any pipe into a sewer or publicly owned
treatment works, well, pit, pond, lagoon, impoundment, ditch,
landfill, storage container, motor vehicle, rolling stock or
aircraft, or any site or area where a water contaminant has
been, is currently or is proposed to be managed, treated,
deposited, stored, disposed of or placed or otherwise come to
be located;
G.  "federal act" means the Federal Water Pollution
Control Act, its subsequent amendment and successor provisions;
H.  "general permit" means a permit that applies to
one or more categories or subcategories of discharges, sludge
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use or disposal practices or facilities within a geographic
area, including the state or a region, basin or watershed in
the state;
I.  "general permit coverage" means authorization to
discharge pursuant to a general permit and any additional
permit conditions required by a constituent agency;
J.  "gray water" means untreated household
wastewater that has not come in contact with toilet waste and
includes wastewater from bathtubs, showers, washbasins, clothes
washing machines and laundry tubs, but does not include
wastewater from kitchen sinks or dishwashers or laundry water
from the washing of material soiled with human excreta, such as
diapers;
K.  "new source" means: 
(1)  any source, the construction of which is
commenced after the publication of proposed rules prescribing a
standard of performance applicable to the source; or
(2)  an existing source when modified to treat
substantial additional volumes or when there is a substantial
change in the character of water contaminants treated;
L.  "pathogen" means a microorganism capable of
causing illness in humans;
M.  "person" means an individual or other entity,
including partnerships, corporations, associations, a
responsible business or association agents or officers, the
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state or a political subdivision of the state or an agency, a
department or an instrumentality of the United States and any
of its officers, agents or employees;
N.  "produced water" means a fluid that is an
incidental byproduct from drilling for or the production of oil
and gas;
O.  "responsible party" means those persons
described in Section 107(a) of the federal Comprehensive
Environmental Response, Compensation, and Liability Act of
1980;
P.  "septage" means the residual wastes and water
periodically pumped from a liquid waste treatment unit or
holding tank for maintenance or disposal purposes;
Q.  "sewer system" means pipelines, conduits,
pumping stations, force mains or other structures, devices,
appurtenances or facilities used for collecting or conducting
wastes to an ultimate point for treatment or disposal;
R.  "sewerage system" means a system for disposing
of wastes, either by surface or underground methods, and
includes sewer systems, treatment works, disposal wells and
other systems;
S.  "sludge" means solid, semi-solid or liquid waste
generated from a municipal, commercial or industrial wastewater
treatment plant, a water supply treatment plant or an air
pollution control facility that is associated with the
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treatment of these wastes.  "Sludge" does not mean treated
effluent from a wastewater treatment plant;
T.  "source" means a building, a structure, a
facility or an installation from which there is or may be a
discharge of water contaminants directly or indirectly into
water;
U.  "standards of performance" means a standard,
effluent limitation or effluent standard adopted pursuant to
the federal act or the Water Quality Act;
V.  "substantial adverse environmental impact" means
that an act or omission of the violator causes harm or damage:
(1)  to human beings; or
(2)  that amounts to more than ten thousand
dollars ($10,000) damage or mitigation costs to flora,
including agriculture crops; fish or other aquatic life;
waterfowl or other birds; livestock or wildlife or damage to
their habitats; ground water or surface water; or the lands of
the state;
W.  "treatment works" means a plant or other works
used for the purpose of treating, stabilizing or holding
wastes;
X.  "wastes" means sewage, industrial wastes or
other liquid, gaseous or solid substances that may pollute the
waters of the state;
Y.  "water" means all water, including water
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situated wholly or partly within or bordering upon the state,
whether surface or subsurface, public or private, except
private waters that do not combine with other surface or
subsurface water;
Z.  "water contaminant" means a substance that could
alter, if discharged or spilled, the physical, chemical,
biological or radiological qualities of water.  "Water
contaminant" does not mean source, special nuclear or byproduct
material as defined by the federal Atomic Energy Act of 1954;
and
AA.  "water pollution" means introducing or
permitting the introduction into water, either directly or
indirectly, of one or more water contaminants in a quantity and
duration as may with reasonable probability injure human
health, animal or plant life or property or to unreasonably
interfere with the public welfare or the use of property ."
SECTION 2. Section 74-6-4 NMSA 1978 (being Laws 1967,
Chapter 190, Section 4, as amended) is amended to read:
"74-6-4.  DUTIES AND POWERS OF COMMISSION.--The
commission:
A.  may accept and supervise the administration of
loans and grants from the federal government and from other
sources, public or private, which loans and grants shall not be
expended for [other than the ] purposes [for which ] other than
those provided;
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B.  shall adopt a comprehensive water quality
management program and develop a continuing planning process;
C.  shall not adopt or promulgate a standard or
[regulation] rule that exceeds a grant of rulemaking authority
listed in the statutory section of the Water Quality Act
authorizing the standard or [regulation ] rule;
D.  shall adopt water quality standards for surface
and ground waters of the state based on credible scientific
data and other evidence appropriate under the Water Quality
Act.  The standards shall include narrative standards and, as
appropriate, the designated uses of the waters and the water
quality criteria necessary to protect such uses.  The standards
shall at a minimum protect the public health or welfare,
enhance the quality of water and serve the purposes of the
Water Quality Act.  In making standards, the commission shall
give weight it deems appropriate to all facts and
circumstances, including the use and value of the water for
water supplies, propagation of fish and wildlife, recreational
purposes and agricultural, industrial and other purposes;
E.  shall adopt [promulgate and publish regulations ]
rules to prevent or abate water pollution in the state or in
any specific geographic area, aquifer or watershed of the state
or in any part thereof, or for any class of waters, and to
govern the disposal of septage and sludge and the use of sludge
for various beneficial purposes.  The [regulations ] rules
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governing the disposal of septage and sludge may include the
use of tracking and permitting systems or other reasonable
means necessary to assure that septage and sludge are
designated for disposal in, and arrive at, disposal facilities,
other than facilities on the premises where the septage and
sludge is generated, for which a permit or other authorization
has been issued pursuant to the federal act or the Water
Quality Act.  [Regulations ] Rules may specify a standard of
performance for new sources that reflects the greatest
reduction in the concentration of water contaminants that the
commission determines to be achievable through application of
the best available demonstrated control technology, processes,
operating methods or other alternatives, including where
practicable a standard permitting no discharge of pollutants. 
The rules governing the prevention or abatement of water
pollution shall include provisions for the responsible party
and defenses of the responsible party that are equivalent to
and no less stringent than federal regulations adopted pursuant
to the federal Comprehensive Environmental Response,
Compensation, and Liability Act of 1980.  In making
[regulations] rules, the commission shall give weight it deems
appropriate to all relevant facts and circumstances, including:
(1)  the character and degree of injury to or
interference with health, welfare, environment and property;
(2)  the public interest, including the social
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and economic value of the sources of water contaminants;
(3)  the technical practicability and economic
reasonableness of reducing or eliminating water contaminants
from the sources involved and previous experience with
equipment and methods available to control the water
contaminants involved;
(4)  the successive uses, including domestic,
commercial, industrial, pastoral, agricultural, wildlife and
recreational uses;
(5)  feasibility of a user or a subsequent user
treating the water before a subsequent use;
(6)  property rights and accustomed uses; and
(7)  federal water quality requirements;
F.  shall assign responsibility for administering
its [regulations] rules to constituent agencies [so as ] to
assure adequate coverage and prevent duplication of effort.  To
this end, the commission may make such classification of waters
and sources of water contaminants as will facilitate the
assignment of administrative responsibilities to constituent
agencies.  The commission shall also hear and decide disputes
between constituent agencies as to jurisdiction concerning
[any] matters within the purpose of the Water Quality Act.  In
assigning responsibilities to constituent agencies, the
commission shall give priority to the primary interests of the
constituent agencies.  The department [of environment ] shall
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provide technical services, including certification of permits
pursuant to the federal act, and shall maintain a repository of
the scientific data required by the Water Quality Act;
G.  may enter into or authorize constituent agencies
to enter into agreements with the federal government or other
state governments for purposes consistent with the Water
Quality Act and receive and allocate to constituent agencies
funds made available to the commission;
H.  may grant an individual variance from [any
regulation] a rule of the commission whenever it is found that
compliance with the [regulation ] rule will impose an
unreasonable burden upon any lawful business, occupation or
activity.  The commission may only grant a variance conditioned
upon a person effecting a particular abatement of water
pollution within a reasonable period of time.  [Any ] A variance
shall be granted for the period of time specified by the
commission.  The commission shall adopt [regulations ] rules
specifying the procedure under which variances may be sought,
which [regulations] rules shall provide for the holding of a
public hearing before [any ] a variance may be granted;
I.  may adopt [regulations ] rules to require the
filing with [it] the commission or a constituent agency of
proposed plans and specifications for the construction and
operation of new sewer systems, treatment works or sewerage
systems or extensions, modifications of or additions to new or
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existing sewer systems, treatment works or sewerage systems. 
Filing with and approval by the federal housing administration
of plans for an extension to an existing or construction of a
new sewerage system intended to serve a subdivision solely
residential in nature shall be deemed compliance with all
provisions of this subsection;
J.  may adopt [regulations ] rules requiring notice
to [it] the commission or a constituent agency of intent to
introduce or allow the introduction of water contaminants into
waters of the state;
K.  shall specify in [regulations ] rules the
measures to be taken to prevent water pollution and to monitor
water quality.  The commission may adopt [regulations ] rules
for particular industries.  The commission shall adopt
[regulations] rules for the dairy industry and the copper
industry.  The commission shall consider, in addition to the
factors listed in Subsection E of this section, the best
available scientific information.  The [regulations ] rules may
include variations in requirements based on site-specific
factors, such as depth and distance to ground water and
geological and hydrological conditions.  The constituent agency
shall establish an advisory committee composed of persons with
knowledge and expertise particular to the industry category and
other interested stakeholders to advise the constituent agency
on appropriate [regulations ] rules to be proposed for adoption
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by the commission.  The [regulations ] rules shall be developed
and adopted in accordance with a schedule approved by the
commission.  The schedule shall incorporate an opportunity for
public input and stakeholder negotiations;
L.  may adopt [regulations ] rules establishing
pretreatment standards that prohibit or control the
introduction into publicly owned sewerage systems of water
contaminants that are not susceptible to treatment by the
treatment works or that would interfere with the operation of
the treatment works; 
M.  shall not require a permit respecting the use of
water in irrigated agriculture, except in the case of the
employment of a specific practice in connection with [such ] the
irrigation that documentation or actual case history has shown
to be hazardous to public health or the environment or for the
use of produced water; 
N.  shall not require a permit for applying less
than two hundred fifty gallons per day of private residential
gray water originating from a residence for the resident's
household gardening, composting or landscape irrigation if:
(1)  a constructed gray water distribution
system provides for overflow into the sewer system or on-site
wastewater treatment and disposal system;
(2)  a gray water storage tank is covered to
restrict access and to eliminate habitat for mosquitos or other
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vectors;
(3)  a gray water system is sited outside of a
floodway;
(4)  gray water is vertically separated at
least five feet above the ground water table;
(5)  gray water pressure piping is clearly
identified as a nonpotable water conduit;
(6)  gray water is used on the site where it is
generated and does not run off the property lines;
(7)  gray water is applied in a manner that
minimizes the potential for contact with people or domestic
pets;
(8)  ponding is prohibited, application of gray
water is managed to minimize standing water on the surface and
to ensure that the hydraulic capacity of the soil is not
exceeded;
(9)  gray water is not sprayed;
(10)  gray water is not discharged to a
watercourse; and
(11)  gray water use within municipalities or
counties complies with all applicable municipal or county
ordinances enacted pursuant to Chapter 3, Article 53 NMSA 1978;
O.  shall coordinate application procedures and
funding cycles for loans and grants from the federal
government and from other sources, public or private, with
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the local government division of the department of finance
and administration pursuant to the New Mexico Community
Assistance Act; 
P.  shall adopt [regulations ] rules to be
administered by the department [of environment ] for the
discharge, handling, transport, storage, recycling or treatment
for the disposition of treated produced water, including
disposition in road construction maintenance, roadway ice or
dust control or other construction, or in the application of
treated produced water to land, for activities unrelated to the
exploration, drilling, production, treatment or refinement of
oil or gas; [and]
Q.  [may] shall adopt [regulations] rules to be
administered by the department [of environment ] for surface
water discharges, including discharges of dredged or fill
materials.  In making the rules, the commission shall give
weight the commission deems appropriate to relevant facts and
circumstances, including those identified in Subsection E of
this section.  For discharges of dredged or fill material, the
rules shall prioritize avoidance and minimization of adverse
impacts to wetlands, streams and other aquatic resources and
may require compensatory mitigation for unavoidable adverse
impacts that remain after appropriate and practicable avoidance
and minimization measures have been achieved;
R.  shall adopt rules to be administered by the
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department for state-led response, investigation and
remediation of water pollution and contamination in soil and
soil vapor for the protection of human health and the
environment; and
S.  shall adopt rules to be administered by the
department to govern the transfer and use of treated wastewater
for potable reuse.  The rules may specify a standard of
performance, including log reduction for pathogen removal,
critical control points, barriers and the greatest reduction in
the concentration of water contaminants and pathogens that the
commission determines to be achievable through application of
the best available demonstrated control technology, processes,
operating methods or other alternatives, including, where
practicable, a standard permitting no risk to human health. 
The rules governing the potable reuse of wastewater may include
the use of existing permitting systems or create new permitting
rules that include the means necessary to assure that potable
reuse projects are conducted in a manner that is directly
protective of human health ."
SECTION 3. Section 74-6-5 NMSA 1978 (being Laws 1973,
Chapter 326, Section 4, as amended) is amended to read:
"74-6-5.  PERMITS--CERTIFICATION--APPEALS TO COMMISSION.--
A.  By [regulation] rule, the commission may require
[persons] a person to obtain from a constituent agency
designated by the commission a permit or general permit
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coverage for the discharge of [any ] a water contaminant or for
the disposal or reuse of septage or sludge.
B.  The commission shall adopt [regulations ] rules
establishing procedures for certifying federal water quality
permits.
C.  Prior to the issuance of a permit or approval of
general permit coverage , the constituent agency may require the
submission of plans, specifications and other relevant
information that it deems necessary.
D.  The commission shall by [regulation ] rule set
the dates upon which applications for permits shall be filed
and designate the time periods within which the constituent
agency shall, after the filing of an administratively complete
application for a permit, either grant the permit, grant the
permit subject to conditions or deny the permit.  The
constituent agency has the burden of showing that each
condition is reasonable and necessary to ensure compliance with
the Water Quality Act and applicable [regulations ] rules,
considering site-specific conditions.  After [regulations ]
rules have been adopted for a particular industry, permits for
facilities in that industry shall be subject to conditions
contained in the [regulations ] rules.  Additional conditions on
a final permit may be imposed if the applicant is provided with
an opportunity to review and provide comments in writing on the
draft permit conditions and to receive a written explanation of
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the reasons for the conditions from the constituent agency.
E.  The constituent agency shall deny [any ] an
application for a permit or request for general permit coverage
or deny the certification of a federal water quality permit if:
(1)  the effluent would not meet applicable
state or federal effluent regulations, standards of performance
or limitations;
(2)  [any] a provision of the Water Quality Act
would be violated;
(3)  the discharge would cause or contribute to
water contaminant levels in excess of [any ] a state or federal
standard.  Determination of the discharge's effect on ground
water shall be measured at [any ] a place of withdrawal of water
for present or reasonably foreseeable future use. 
Determination of the discharge's effect on surface waters shall
be measured at the point of discharge; [or ]
(4)  the surface water discharge would cause or
contribute to water contaminant levels in excess of a
downstream state or tribal water quality standard; or
[(4)] (5) the applicant has, within the ten
years immediately preceding the date of submission of the
permit application or request for general permit coverage :
(a)  knowingly misrepresented a material
fact in an application for a permit or request for general
permit coverage;
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(b)  refused or failed to disclose [any ]
information required [under ] pursuant to the Water Quality Act;
(c)  been convicted of a felony or other
crime involving moral turpitude;
(d)  been convicted of a felony in [any ]
court for [any] a crime defined by state or federal law as
being a restraint of trade, price-fixing, bribery or fraud;
(e)  exhibited a history of willful
disregard for environmental laws of [any ] a state or the United
States; or
(f)  had an environmental permit revoked
or permanently suspended for cause under [any ] environmental
laws of [any] a state or the United States.
F.  The commission shall by [regulation ] rule
develop procedures that ensure that the public, affected
governmental agencies, Indian nations, tribes and pueblos and
any other state whose water may be affected shall receive
notice of each [application for issuance, renewal or
modification of a] draft permit.  Public notice shall include
the following, except that for a general permit, Paragraphs (1)
and (3) of this subsection shall not be required :
(1)  [for issuance or modification of a permit:
(a)] notice [by mail] to adjacent and nearby landowners using
postal or electronic mail, text messages or a combination of
these methods; 
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(2)  notice to potentially affected local,
state and federal [governments ] government agencies , land grant
organizations, ditch associations and Indian nations, tribes
[or] and pueblos using postal or electronic mail ;
[(b)] (3) posting at a place conspicuous to
the public and near the discharge or proposed discharge site;
[and (c)  a display advertisement in English and Spanish ] 
(4)  notice to the general public and others
whom the commission deems appropriate using one or more
reasonable and appropriate methods, such as electronic mail to
persons who have requested notification, social media posts,
radio announcements or advertisements in a newspaper of general
circulation in the location of the discharge or proposed
discharge; [provided, however, that the advertisement shall not
be displayed in the classified or legal advertisement sections ]
and
[(2)  for issuance of renewals of permits:
(a)  notice by mail to the interested
public, municipalities, counties, land grant organizations,
ditch associations and Indian nations, tribes or pueblos; and
(b)  a display advertisement in English
and Spanish in a newspaper of general circulation in the
location of the discharge; provided, however, that the
advertisement shall not be displayed in the classified or legal
advertisement sections ]
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(5)  consideration of the languages spoken by
and the communication methods accessible to the intended
recipients of the public notice .
G.  No ruling shall be made on [any application for ]
a draft permit without opportunity for a public hearing at
which all interested persons shall be given a reasonable chance
to submit evidence, data, views or arguments orally or in
writing and to examine witnesses testifying at the hearing. 
The hearing shall be recorded.  [Any ] A person submitting
evidence, data, views or arguments shall be subject to
examination at the hearing.
H.  The commission may adopt [regulations ] rules for
the operation and maintenance of the permitted facility,
including requirements, as may be necessary or desirable, that
relate to continuity of operation, personnel training and
financial responsibility, including financial responsibility
for corrective action.
I.  Permits shall be issued for fixed terms [not to
exceed] of five years, except that surface water permits may be
issued for fixed terms of up to ten years .  For new discharges,
the term of the permit shall commence on the date the discharge
begins, but in no event shall the term of the permit exceed
seven years from the date the permit was issued.
J.  By [regulation] rule, the commission may impose
reasonable conditions upon permits requiring permittees to:
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(1)  install, use and maintain [effluent ]
monitoring devices;
(2)  sample effluents and receiving waters for
any known or suspected water contaminants in accordance with
methods and at locations and intervals as may be prescribed by
the commission;
(3)  establish and maintain records of the
nature and amounts of effluents and the performance of effluent
control devices;
(4)  provide [any] other information relating
to the discharge or direct or indirect release of water
contaminants; and
(5)  notify a constituent agency of the
introduction of new water contaminants from a new source and of
a substantial change in volume or character of water
contaminants being introduced from sources in existence at the
time of the issuance of the permit.
K.  The commission shall provide by [regulation ]
rule a schedule of fees for permits [not exceeding the
estimated cost of investigation and issuance, modification and
renewal of permits] and approvals of general permit coverage
sufficient to pay the cost of developing and implementing the
permitting rules authorized pursuant to Section 74-6-4 NMSA
1978, including the review of applications, issuance and
enforcement of permits and rules, compliance assistance,
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monitoring and inspection of facilities and discharges, data
stewardship, records management and administrative and legal
costs.  Fees collected pursuant to this section shall be
deposited in the water quality management fund. 
L.  The issuance of a permit or approval of a
general permit coverage does not relieve [any ] a person from
the responsibility of complying with the provisions of the
Water Quality Act, any applicable [regulations ] rules or water
quality standards of the commission or any applicable federal
laws, regulations or standards.
M.  A permit or general permit coverage may be
terminated or modified by the constituent agency that issued
the permit or approved the general permit coverage prior to its
date of expiration for any of the following causes:
(1)  violation of [any ] a condition of the
permit;
(2)  obtaining the permit or general permit
coverage by misrepresentation or failure to disclose fully all
relevant facts;
(3)  violation of [any ] the provisions of the
Water Quality Act or any applicable [regulations ] rules,
standard of performance or water quality standards;
(4)  violation of [any ] applicable state or
federal effluent regulations or limitations; or
(5)  change in [any] a condition that requires
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either a temporary or permanent reduction or elimination of the
permitted discharge.
N.  If the constituent agency denies, terminates or
modifies a permit or general permit coverage or grants a permit
subject to condition, the constituent agency shall notify the
applicant or permittee by certified mail or other method
acceptable to the applicant or permittee of the action taken
and the reasons.  Notice shall also be given by postal or
electronic mail to persons who participated in the permitting
action.  
O.  A person who participated in a permitting action
before a constituent agency or a person affected by a
certification of a federal permit and who is adversely affected
by [such] the permitting action or certification may file a
petition for review before the commission.  Unless a timely
petition for review is made, the decision of the constituent
agency shall be final and not subject to judicial review.  The
petition shall:
(1)  be made in writing to the commission
within thirty days from the date notice is given of the
constituent agency's action;
(2)  include a statement of the issues to be
raised and the relief sought; and
(3)  be provided to all other persons
submitting evidence, data, views or arguments in the proceeding
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before the constituent agency.
P.  If a timely petition for review is made, the
commission shall consider the petition within ninety days after
receipt of the petition.  The commission shall notify the
petitioner and the applicant or permittee, if other than the
petitioner, by certified mail of the date, time and place of
the review.  If the petitioner is not the applicant or
permittee, the applicant or permittee shall be a party to the
proceeding.  The commission shall ensure that the public
receives notice of the date, time and place of the review.
Q.  The commission shall review the record compiled
before the constituent agency, including the transcript of
[any] a public hearing held on the application or draft permit,
and shall allow any party to submit arguments.  The commission
may designate a hearing officer to review the record and the
arguments of the parties and recommend a decision to the
commission.  The commission shall consider and weigh only the
evidence contained in the record before the constituent agency
and the recommended decision of the hearing officer, if any,
and shall not be bound by the factual findings or legal
conclusions of the constituent agency.  Based on the review of
the evidence, the arguments of the parties and recommendations
of the hearing officer, the commission shall sustain, modify or
reverse the action of the constituent agency.  The commission
shall enter ultimate findings of fact and conclusions of law
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and keep a record of the review.
R.  Prior to the date set for review, if a party
shows to the satisfaction of the commission that there was no
reasonable opportunity to submit comment or evidence on an
issue being challenged, the commission shall order that
additional comment or evidence be taken by the constituent
agency.  Based on the additional evidence, the constituent
agency may revise the decision and shall promptly file with the
commission the additional evidence received and action taken. 
The commission shall consider the additional evidence within
ninety days after receipt of the additional evidence and shall
notify the petitioner and the applicant or permittee, if other
than the petitioner, of the date, time and place of the review.
S.  The commission shall notify the petitioner and
all other participants in the review proceeding of the action
taken by the commission and the reasons for that action.
T.  Exemptions for surface water permits shall
include:
(1)  normal farming and ranching activities as
determined by the commission or constituent agency;
(2)  construction or maintenance of farm or
stock ponds, acequias or irrigation ditches or the maintenance
of drainage ditches; and
(3)  construction or maintenance of farm roads
in accordance with best management practices. "
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SECTION 4. Section 74-6-5.2 NMSA 1978 (being Laws 1993,
Chapter 100, Section 4) is amended to read:
"74-6-5.2.  WATER QUALITY MANAGEMENT FUND CREATED.--There
is created as a nonreverting fund in the state treasury the
"water quality management fund" to be administered by the
department [of environment ].  Unless otherwise required by law ,
all fees and penalties collected pursuant to [the regulations
adopted by the commission under Subsection H of ] Section 74-6-5
NMSA 1978 and for the operation and maintenance of a permitted
facility pursuant to Subsection H of Section 74-6-5 NMSA 1978
shall be deposited in the fund.  Money in the fund is
appropriated to the department [of environment ] for the purpose
of administering the [regulations ] rules adopted by the
commission pursuant to [Section ] Sections 74-6-4 and 74-6-5
NMSA 1978.  Disbursements from the fund shall be made upon
warrants drawn by the secretary of finance and administration
pursuant to vouchers signed by the secretary of environment."
SECTION 5. Section 74-6-10 NMSA 1978 (being Laws 1967,
Chapter 190, Section 9, as amended) is amended to read:
"74-6-10.  PENALTIES ENFORCEMENT--COMPLIANCE ORDERS--
PENALTIES--ASSURANCE OF DISCONTINUANCE.--
A.  Whenever, on the basis of any information, a
constituent agency determines that a person violated or is
violating a requirement, regulation or water quality standard
adopted pursuant to the Water Quality Act or a condition of a
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permit issued pursuant to that act, the constituent agency may:
(1)  issue a compliance order requiring
compliance immediately or within a specified time period or
issue a compliance order assessing a civil penalty, or both; or
(2)  commence a civil action in district court
for appropriate relief, including injunctive relief.
B.  A compliance order issued pursuant to Paragraph
(1) of Subsection A of this section may include a suspension or
termination of the permit allegedly violated.
C.  A compliance order shall state with reasonable
specificity the nature of the violation.  Any penalty assessed
in the compliance order shall not exceed:
(1)  fifteen thousand dollars ($15,000) per day
of noncompliance with the provisions in Section 74-6-5 NMSA
1978, including a regulation adopted or a permit issued
pursuant to that section; or
(2)  ten thousand dollars ($10,000) per day for
each violation of a provision of the Water Quality Act other
than the provisions in Section 74-6-5 NMSA 1978 or of a
regulation or water quality standard adopted pursuant to the
Water Quality Act.
D.  In assessing a penalty authorized by this
section, the constituent agency shall take into account the
seriousness of the violation, any good faith efforts to comply
with the applicable requirements and other relevant factors.
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E.  For purposes of this section, a single
operational event that leads to simultaneous violations of more
than one standard shall be treated as a single violation.
F.  If a person fails to take corrective actions
within the time specified in a compliance order, the
constituent agency may:
(1)  assess a civil penalty of not more than
twenty-five thousand dollars ($25,000) for each day of
continued noncompliance with the compliance order; and
(2)  suspend or terminate the permit violated
by the person.
G.  [Any] A compliance order issued by a constituent
agency pursuant to this section shall become final unless, no
later than thirty days after the compliance order is served,
[any] a person named in the compliance order submits a written
request to the commission for a public hearing.  The commission
shall conduct a public hearing within ninety days after receipt
of a request.
H.  The commission may appoint an independent
hearing officer to preside over [any ] a public hearing held
pursuant to Subsection [F ] G of this section.  The hearing
officer shall:
(1)  make and preserve a complete record of the
proceedings; and
(2)  forward to the commission a report that
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includes recommendations if recommendations are requested by
the commission.
I.  The commission shall consider the findings of
the independent hearing officer, and based on the evidence
presented at the hearing, the commission shall make a final
decision regarding the compliance order.
J.  In connection with any proceeding [under ]
provided for in this section, the commission may:
(1)  adopt rules for discovery procedures; and
(2)  issue subpoenas for the attendance and
testimony of witnesses and for relevant papers, books and
documents.
K.  Unless otherwise required by law , penalties
collected pursuant to this section for surface waters shall be
deposited in the [general ] water quality management fund.
Unless otherwise required by law, penalties collected pursuant
to this section for ground waters, other than the provisions in
Section 74-6-5 NMSA 1978, shall be deposited in the neglected
and contaminated sites fund.
L.  As an additional means of enforcing the Water
Quality Act or any regulation or standard of the commission,
the commission may accept an assurance of discontinuance of any
act or practice deemed in violation of the Water Quality Act,
or any regulation or standard adopted pursuant to that act,
from any person engaging in, or who has engaged in, such act or
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practice, signed and acknowledged by the [chairman ] chair of
the commission and the party affected.  Any such assurance
shall specify a time limit during which the discontinuance is
to be accomplished."
SECTION 6. Section 74-6-12 NMSA 1978 (being Laws 1967,
Chapter 190, Section 11, as amended) is amended to read:
"74-6-12.  LIMITATIONS.--
A.  The Water Quality Act does not grant to the
commission or to any other entity the power to take away or
modify the property rights in water, nor is it the intention of
the Water Quality Act to take away or modify such rights.
B.  The Water Quality Act does not apply to [any ] an
activity or condition subject to the authority of the
environmental improvement board pursuant to the Hazardous Waste
Act, the Ground Water Protection Act or the Solid Waste Act
except to abate water pollution or to control the disposal or
use of septage and sludge.
C.  The Water Quality Act does not authorize the
commission to adopt [any regulation ] a rule with respect to
[any] a condition or quality of water if the water pollution
and its effects are confined entirely within the boundaries of
property within which the water pollution occurs when the water
does not combine with other waters.
D.  The Water Quality Act does not grant to the
commission any jurisdiction or authority affecting the relation
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between employers and employees with respect to or arising out
of [any] a condition [of water] or quality of water.
E.  The Water Quality Act does not supersede or
limit the applicability of [any ] a law relating to industrial
health, safety or sanitation.
F.  Except as required by federal law or for surface
water discharges permitted pursuant to the Water Quality Act ,
in the adoption of [regulations ] rules and water quality
standards and in an action for enforcement of the Water Quality
Act and [regulations] rules adopted pursuant to that act,
reasonable degradation of water quality resulting from
beneficial use shall be allowed.  [Such ] The degradation shall
not result in impairment of water quality to the extent that
water quality standards are exceeded.
G.  Except for the discharge of a water contaminant
to a surface water, the Water Quality Act does not apply to
[any] an activity or condition subject to the authority of the
oil conservation commission pursuant to provisions of the Oil
and Gas Act [Section 70-2-12 NMSA 1978 ] and other laws
conferring power on the oil conservation commission to prevent
or abate water pollution.
H.  When changes in dissolved oxygen, temperature,
dissolved solids, sediment or turbidity in a water of the state
is attributable to natural causes or to the reasonable
operation of irrigation and flood control facilities that are
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not subject to federal or state water pollution control
permitting, numerical standards for temperature, dissolved
solids content, dissolved oxygen, sediment or turbidity adopted
under the Water Quality Act do not apply.  "Reasonable
operation", as used in this subsection, shall be defined by
[regulation] rule of the commission."
SECTION 7. A new section of the Water Quality Act is
enacted to read:
"[NEW MATERIAL] NEGLECTED AND CONTAMINATED SITES FUND--
CREATED.--
A.  The "neglected and contaminated sites fund" is
created as a nonreverting fund in the state treasury.  The fund
consists of appropriations, gifts, grants, donations and money
received by the department from the federal government or other
state agencies.  Unless otherwise required by law, money
received or recovered by the state by or on behalf of the
department arising from claims for enforcement actions,
response actions or response costs relating to the
contamination liability, including any fees, penalties,
settlement funds, recovered litigation costs and any interest
derived therefrom, shall be deposited in the fund.
B.  The department shall administer the fund.  Money
in the fund is appropriated to the department for state-led
response, investigation and remediation of water pollution and
contamination in soil and soil vapor.
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C.  Money in the fund shall be disbursed on warrants
signed by the secretary of finance and administration pursuant
to vouchers signed by the secretary of environment or the
secretary's designee." 
SECTION 8. APPROPRIATION.--Fifty million dollars
($50,000,000) is appropriated from the general fund to the
neglected and contaminated sites fund for expenditure in fiscal
year 2026 and subsequent fiscal years for the purposes of the
fund, for contracted expenditures and to provide full-time-
equivalent employees and supplies for the state ground water
quality bureau of the department of environment to implement a
state-led response, investigation and remediation of water
pollution and contamination in soil and soil vapor at neglected
and contaminated sites.  Any unexpended or unencumbered balance
remaining at the end of a fiscal year shall not revert to the
general fund.
SECTION 9. SEVERABILITY.--If any part or application of
this 2025 act is held invalid, the remainder or its application
to other situations or persons shall not be affected.
SECTION 10. EMERGENCY.--It is necessary for the public
peace, health and safety that this act take effect immediately.
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.229483.3SA