• The Strategic Water Supply Act now focuses solely on brackish water.
• Produced water from oil and gas extraction was removed from the bill.
• The bill creates funding pathways for desalination projects.
• Research institutions will continue studying water reuse options.

March 4, 2025 — New Mexico is adjusting its approach to water management as the state legislature moves forward with a revised Strategic Water Supply Act (HB 137). Originally designed to include both brackish water and treated produced water—wastewater from oil and gas operations—the bill now focuses exclusively on brackish water desalination.

The changes come after concerns from lawmakers and environmental groups led to the removal of produced water projects from the legislation. Despite this revision, Governor Michelle Lujan Grisham remains committed to advancing research on produced water treatment, emphasizing its role in long-term water security.

What the Bill Now Covers.

Under the updated HB 137, New Mexico will invest in brackish water projects by establishing funding pathways for desalination. Brackish water, which contains a moderate level of dissolved salts, is being eyed as a viable alternative for industrial use and energy production, helping to preserve the state’s dwindling freshwater supplies.

The bill, sponsored by Representative Susan Herrera and Senator George Muñoz, also expands funding eligibility for brackish water projects while maintaining protections for water rights owners. $75 million has been allocated to the Strategic Water Supply Program Fund to finance water infrastructure projects. Additionally, $28.8 million will go to the New Mexico Institute of Mining and Technology for aquifer mapping and groundwater characterization, while $4 million will fund water research at New Mexico State University.

Research and Regulations Continue.

Although produced water has been removed from HB 137, efforts to explore its potential use will continue through other state programs and academic research. New Mexico’s Water Quality Control Commission is finalizing regulations that will guide future water reuse initiatives. Meanwhile, research institutions, including New Mexico State University and the New Mexico Institute of Mining and Technology, will continue studying safe and effective water treatment methods.

Legislative Path and Fiscal Implications.

The bill has advanced through multiple committees, with amendments along the way:

• January 27, 2025 – Pre-filed in the House.
• February 12, 2025 – Sent to the House Agriculture, Acequias, and Water Resources Committee.
• February 22, 2025 – Received a “Do Not Pass” recommendation but moved forward with a substitute version.
• February 27, 2025 – Amended in the House Energy, Environment & Natural Resources Committee.
• February 28, 2025 – House Appropriations and Finance Committee removed specific appropriations from the bill.

The fiscal impact report estimates that the New Mexico Environment Department (NMED) may require additional personnel to oversee the program, with up to $280,000 in recurring costs over three years.

As the bill moves closer to a final vote, New Mexico is setting the groundwork for a more sustainable water future—one that relies on alternative sources while balancing environmental and economic concerns.

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Image:

Northern New Mexico, July 2017, by Netherzone.  Licensed under the Creative Commons Attribution-Share Alike 4.0 International license.

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