New Mexico legislators met on February 22, 2025, to discuss House Bill 137 (HB 137), known as the Strategic Water Supply Act. The legislation passed the second round of three total House committees unanimously.
HB 137 would allow the state to secure and manage long-term water resources amid widespread water scarcity issues in New Mexico. The bill would create a $75 million strategic water supply program fund.
Key takeaways from the Strategic Water Supply Act
Key provisions of the legislation include:
- Water acquisition: The New Mexico Interstate Stream Commission (ISC) can purchase or lease water rights, invest in infrastructure and develop new water sources including desalination and water reuse projects.
- Strategic reserves: The act allows the state to create water reserves to safeguard against droughts and shortages.
- Funding: The act allows public-private partnerships and access to state and federal funding.
- Sustainability: The act emphasizes conservation efforts and climate resilience.
According to a New Mexico Environment Department feasibility study, brackish water projects are estimated to cost between $3 million and $107 million. Costs for produced water projects are estimated to cost between $13 million and $667 million.
The Strategic Water Supply is part of the state’s larger 50-Year Water Action Plan.
“Our 50-Year Water Action Plan protects our drinking water, diversifies our water supply, and strengthens our economy as we face ongoing challenges,” said New Mexico Governor Lujan Grisham in a press release. “This study shows that we can, and must, safeguard our freshwater supply while establishing new sources of water for our growing economy.”
Produced water pushback
According to an Albuquerque Journal article, the bill received pushback from its produced water components following the bills first committee hearing.
This led to bill sponsors ditching all the produced water components.
What is produced water?
Produced water is brought to the surface during oil and gas extraction. It is a byproduct of drilling activities such as fracking, as well as conventional oil and gas production.
Produced water can contain saline, dissolved minerals, hydrocarbons, chemicals from drilling and heavy metals.
