- HB 137 establishes a statewide fund for brackish water projects.
- Produced water was removed from the bill amid environmental concerns.
- The program supports clean energy and manufacturing while conserving freshwater.
Tuesday, April 1, 2025 — New Mexico’s push to secure its long-term water future reached a major milestone on March 22 as the state Senate approved House Bill 137, clearing the way for Governor Michelle Lujan Grisham to sign it into law. The legislation, which forms the backbone of the state’s new Strategic Water Supply program
, is a key component of the governor’s 50-Year Water Action Plan.
The initiative is designed to reduce strain on New Mexico’s freshwater resources by promoting the use of brackish water—a naturally salty groundwater that is abundant but underutilized. By treating and repurposing this water for non-potable industrial needs, the state hopes to both support economic development and preserve freshwater for essential uses like drinking water, agriculture, and ecosystems.
“The Strategic Water Supply is essential to protecting our most precious natural resource, strengthening our rapidly growing economy, and ensuring that future generations have safe, fresh water supplies,” said Gov. Lujan Grisham. “I look forward to signing House Bill 137 and putting more of our state’s vast brackish water resources to use as soon as possible.”
Refined Focus After Public Pushback.
Earlier versions of HB 137 included provisions for treated “produced water”—wastewater from oil and gas production—but lawmakers ultimately removed that language following environmental and public health concerns. The revised legislation now focuses exclusively on desalinating brackish groundwater, a move supporters say provides a safer and more publicly palatable path forward.
“This legislation will provide every community with access to a stable freshwater supply at a lower cost,” said Sen. George K. Muñoz, one of the bill’s sponsors. Rep. Susan K. Herrera, who co-sponsored the bill in the House, added, “This bill has been carefully vetted and changed during the legislative process, and it sets another path to secure our water resources in New Mexico.”
Infrastructure, Research, and Oversight.
HB 137 also establishes the Strategic Water Supply Program Fund, which will be managed by the New Mexico Environment Department and the Office of the State Engineer. These agencies will oversee grants and contracts for brackish water projects, with the Economic Development Department also playing a supporting role.
Funds are also earmarked for water infrastructure, the New Mexico Institute of Mining and Technology for aquifer mapping and groundwater characterization—critical steps in locating viable brackish sources — and water research at New Mexico State University.
The state is encouraging participation from municipalities, utilities, and private sector partners to develop localized treatment projects. By supplying industrial users with treated brackish water, the plan is structured to reduce competition for the state’s freshwater resources.
Produced Water Research Will Continue Elsewhere.
Although HB 137 no longer addresses produced water, Governor Lujan Grisham has signaled that research into its safe treatment and reuse will continue through other avenues. The state’s Water Quality Control Commission is currently finalizing regulations that will guide future water reuse efforts.
Universities such as New Mexico State and New Mexico Tech will continue to study treatment technologies and safety protocols for various non-traditional water sources.
With HB 137 on the cusp of becoming law, New Mexico is positioning itself as a regional leader in the responsible reuse of non-potable water—balancing economic ambition with the long-term realities of living in a water-scarce West.
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Image:
Looking Southwest down the Los Padillas Drain in the South Valley, New Mexico
. Autumn 2021, by Matthew Lowal. Licensed under the Creative Commons Attribution-Share Alike 4.0 International license.
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