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New Mexico Strategic Water Supply Bill Advances Through House With Enhanced Public Protections

Government and Politics

March 7, 2025

From: New Mexico Governor Michelle Lujan Grisham

VIDEO: Strategic Water Supply — Key To Protecting New Mexico’s Future

SANTA FE — A bill establishing the New Mexico Strategic Water Supply passed the House of Representatives today — marking a significant step toward implementing a key piece of Gov. Michelle Lujan Grisham’s 50-Year Water Action Plan.

“This legislation represents a forward-thinking approach to managing our state’s most precious resource,” said Gov. Lujan Grisham. “By developing New Mexico’s brackish water resources, we’re charting a new course that balances economic opportunity with responsible stewardship of our freshwater supplies.”

“Across New Mexico, especially in rural communities like mine, we understand that water is our most precious resource,” said lead sponsor Rep. Susan Herrera. “The Strategic Water Supply program is an innovative, responsive solution that uses our state’s existing resources to strengthen our drought resilience and help responsibly secure New Mexico’s water for future generations.”

HB 137 establishes the Strategic Water Supply program to conserve New Mexico’s limited freshwater resources by treating and promoting the use of brackish water — naturally occurring salty water found underground. By tapping into this alternative water source to support manufacturing and clean energy needs, the bill helps preserve community drinking water supplies while growing local economies.

In response to concerns from lawmakers and the public, the bill’s sponsors — Reps. Herrera, Raymundo Lara, Rod Montoya, Sens. George Muñoz, and Craig Brandt — have revised the legislation, most notably removing produced water projects and the proposed fee on the volume of produced water generated by industry.

On March 7th, the House adopted an important amendment to the bill that ensures every Strategic Water Supply project will be subject to a public protest option, regardless of the depth of the brackish water below the ground. This amendment provides greater assurance of meaningful public involvement for each project that is considered by the state for a Strategic Water Supply grant or contract.

The bill now moves to the New Mexico Senate. If approved by the full legislature, once signed into law, HB 137 would establish the Strategic Water Supply program with key safeguards and funding opportunities for brackish water projects. It would also create the Strategic Water Supply Program Fund, allowing state natural resource agencies to award grants and contracts for projects that support economic development while protecting and enhancing freshwater supplies.

Three state agencies — the Environment Department, the Office of the State Engineer, and the Economic Development Department — will collaborate on the Strategic Water Supply program.

Their goal is to spur community utilities, private companies, and other entities to develop projects that make treated brackish water suitable for local priorities, leaving more freshwater available for people, crops, livestock, and nature.

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