Enchantment State News

A bill aimed at establishing a Strategic Water Supply for New Mexico has passed its first legislative committee. The House Agriculture, Acequias and Water Resources Committee approved House Bill 137 with a narrow 5-4 vote. This move is part of Governor Michelle Lujan Grisham's broader initiative to ensure sustainable water resources in line with her 50-Year Water Action Plan.

The bill will now be reviewed by the House Energy, Environment and Natural Resources Committee. If enacted, HB 137 would create a Strategic Water Supply Program Fund. This fund would enable state natural resource agencies to provide grants and contracts for projects that align with state, tribal, or local economic development goals while reducing dependency on freshwater sources.

According to experts, New Mexico has vast underground aquifers containing up to 650 trillion gallons of brackish water. Additionally, the state's oil and gas industry produces over 80 billion gallons of water annually. The strategic plan seeks to treat this water for use in manufacturing and clean energy projects without compromising freshwater supplies.

Governor Lujan Grisham stated, "The Strategic Water Supply will support clean energy and advanced manufacturing initiatives without putting our freshwater supplies at risk." She emphasized her commitment to working with the legislature to advance the bill and secure necessary funding.

Once enacted into law, HB 137 would initiate the Strategic Water Supply program with essential guidelines for funding deep brackish water projects. Following the adoption of produced water reuse rules by the Water Quality Control Commission, a new fee of three cents per barrel on produced water volumes would be implemented. This fee aims to encourage recycling within the oil and gas industry while generating revenue for future projects under the program.

Four state agencies — the Energy, Minerals and Natural Resources Department; the Environment Department; the Office of the State Engineer; and the Economic Development Department — will collaborate on this initiative. Their goal is to promote industrial use of treated produced or deep brackish water, thereby conserving more freshwater for other uses such as agriculture and nature.