HB311 creates the “Reclaimed Water Act” and establishes a new framework for promoting, organizing, and regulating reclaimed water use in New Mexico. The bill allows the economic development department, upon request from a municipality or county, to authorize the creation of a reclaimed water authority as a nonprofit corporation. These authorities would be governed by a board with public and industry representation and would be tasked with identifying reclaimed water sources and uses, facilitating transactions, supporting infrastructure, and promoting reclaimed water as part of economic development and water conservation efforts.
The bill also sets out a detailed system for reclaimed water markets and oversight. Authorities may help negotiate agreements, establish policies for handling and transport, inspect reclaimed water, and, if authorized by the Water Quality Control Commission, oversee water quality standards that are at least as strict as existing state standards. The bill requires retail water suppliers, in certain circumstances, to respond to requests for reclaimed water service and to enter into agreements when reclaimed water is available or can be made available. It also addresses rates for reclaimed water, including separate treatment for utilities regulated by the Public Regulation Commission and reporting requirements for sales prices.
A major feature of HB311 is its treatment of “certified reclaimed water.” The bill states that reclaimed water does not have to be certified, but it creates a process for the Water Quality Control Commission to adopt certification standards and procedures if requested. Once water meets those standards, it would no longer be regulated as wastewater or produced water under applicable state laws and rules. The bill also clarifies that reclaimed water use may not impair existing water rights and that authorities remain subject to water-rights, transportation, and water-quality laws.
The bill’s impact on state law is broad: it adds a new statutory regime for reclaimed water authorities, expands the role of the economic development department and the Water Quality Control Commission, and creates new obligations for retail water suppliers and other market participants. It also exempts reclaimed water authorities from being treated as state agencies or political subdivisions for several legal purposes, while still subjecting them to open meetings and public records laws and granting tort immunity similar to other public entities. The effective date is July 1, 2025.
No committee transcripts or vote history were provided, so there is no recorded discussion or roll-call sentiment to assess. Based on the bill text alone, the measure appears generally pro-development and pro-conservation, aiming to encourage reuse of water and support new water-treatment industries. Potential points of contention likely include the new obligations placed on retail water suppliers, the authority’s quasi-public structure, confidentiality for pricing information, and the extent to which reclaimed water certification and oversight could affect existing water-rights and regulatory authority.
HB311 would create a new chapter of state law governing reclaimed water authorities, reclaimed water market development, and certification standards. It would authorize municipalities and counties to form nonprofit reclaimed water authorities with powers to facilitate supply, infrastructure, pricing, and water-quality oversight, while also imposing duties on retail water suppliers and establishing a certification pathway that can remove reclaimed water from wastewater/produced-water regulation once standards are met. The bill would also affect the roles of the economic development department, the Water Quality Control Commission, the Department of Environment, and the Public Regulation Commission, and it would preserve existing water-rights protections.
No committee discussion or vote history was provided, so there is no direct evidence of legislative sentiment from hearings or floor action. The bill’s structure suggests a generally favorable policy posture toward water reuse, conservation, and economic development, with an emphasis on creating market mechanisms and infrastructure for reclaimed water. At the same time, the detailed regulatory and reporting requirements indicate an effort to balance promotion of reclaimed water with oversight and protection of existing water users.
Likely points of contention include whether retail water suppliers should be required to enter reclaimed-water agreements when available, how much authority a reclaimed water authority should have over rates, inspections, and standards, and whether the bill gives too much discretion to a quasi-private nonprofit structure. Another possible issue is the confidentiality provision for pricing information, which could limit public access to market data. Stakeholders most likely to raise concerns would include regulated utilities, water-rights holders, environmental regulators, and local governments, while supporters would likely include economic development advocates, water-reuse proponents, and industries interested in desalination, treatment, and reuse infrastructure.