SB 37 — STRATEGIC WATER RESERVE FUND

SENATEAN BILLACT 37RELATING 57THTO LEGISLATUREWATER; - STATEOFNEWMEXICO- FIRST SESSION, 2025 INTRODUCED BY Elizabeth "Liz" Stefanics and Meredith A.

DixonCREATING andTHE MatthewSTRATEGIC McQueenWATER andRESERVE PeterFUND WirthTO ThisBE documentADMINISTERED mayBY incorporateTHE amendmentsINTERSTATE proposedSTREAM byCOMMISSION; a committee, but not yet adopted, as well as amendments that have been adopted during the current legislative session.

ThePROVIDING documentTHAT isTHE aSTRATEGIC toolWATER toRESERVE showSHALL amendmentsBE inUSED contextTO andASSIST cannotIN beWATER usedMANAGEMENT forAND theCONSERVATION purposeEFFORTS ofDESIGNED addingTO amendmentsSUPPORT toAQUIFER legislation.RECHARGE OR REDUCE GROUND WATER DEPLETION;

ANALLOWING ACTTHE hINTERSTATE RELATINGSTREAM COMMISSION TO WATER;PRIORITIZE WATER TRANSACTIONS THAT PROVIDE SUPPLEMENTARY BENEFITS IN ADDITION TO AT LEAST ONE AUTHORIZED PURPOSE;

CREATING THE STRATEGIC WATER RESERVE FUND TO g o BE ADMINISTERED BY THE INTERSTATE STREAM COMMISSION;

PROVIDING t hr g e i k THAT THE STRATEGIC WATER RESERVE SHALL BE USED TO ASSIST IN h r i s WATER MANAGEMENT AND CONSERVATION EFFORTS DESIGNED TO SUPPORT h , t, AQUIFER RECHARGE OR REDUCE GROUND WATER DEPLETION;

ALLOWING THE e u g e b l e e h INTERSTATE STREAM COMMISSION TO PRIORITIZE WATER TRANSACTIONS n d d i = = o h THAT PROVIDE SUPPLEMENTARY BENEFITS IN ADDITION TO AT LEAST ONE l ] b ,d i a º e AUTHORIZED PURPOSE;

rBE iIT =ENACTED rBY tTHE eLEGISLATURE wOF dTHE mSTATE aOF nNEW oMEXICO: d m :

b e d s º o t n = .229819.1AIC February 12, 2025 (9:51am) s k m e e a n e d r e l u [ A d BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

A new section of Chapter 72, Article 14 NMSA 1978 is enacted to read:

"[NEW"STRATEGIC MATERIAL] STRATEGIC WATER RESERVE FUND--CREATED.-- A.

Money in the fund is appropriated to the interstate stream commission for the purposes of the SB 37 Page 1 strategic water reserve pursuant to Section 72-14-3.3 NMSA 1978;

provided that over any five-year period, no more than twenty-five h g percent of money expended shall be used for the purpose of o t hr aquifer recharge and ground water depletion reduction pursuant g e i k to Paragraph (3) of Subsection B of Section 72-14-3.3 NMSA h r i s h 1978.

Expenditures from the fund shall be by warrant of the , t, e u g secretary of finance and administration pursuant to vouchers e b l e e h signed by the director of the interstate stream commission or n d d i = = o h the director's authorized representative." l ] b ,d i a º e r i = r SECTION 2.

Section 72-14-3.3 NMSA 1978 (being Laws 2005, t e w d m a n o Chapter 175, Section 1 and Laws 2005, Chapter 182, Section 1, das mamended) :is amended to read:

b e d s º o t n = .229819.1AIC February 12, 2025 (9:51am) s k m e - 2 - e a n e d r e l u [ A d as amended) is amended to read:

At no time shall the use of water or water rights held by the strategic water reserve result in an SB 37 Page 2 increase in net depletions in any basin.

The commission may accept money or grants from federal or other governmental h entities or other persons to purchase or lease water or water u » r t h rights for the strategic water reserve, to pay administrative g e l i costs and to develop, construct, operate and maintain h r i s infrastructure for the delivery of water to the location of h , e h t u g need.

The commission shall not acquire water or water rights e b l e e , gh that are served by or owned by an acequia or community ditch n d d i = = o h established pursuant to Chapter 73, Articles 2 and 3 NMSA 1978 l ] b ,d i a º r for inclusion in the strategic water reserve.

The commission eshall rnot =acquire twater eor wwater drights mthat aare nserved oby shallan notirrigation acquiredistrict waterestablished pursuant to Chapter 73, Article 10 NMSA 1978, except through contractual arrangement with the district board of directors or as a special water rightsusers thatassociation areestablished servedpursuant byto anChapter d73, mArticle :10 NMSA 1978, but nothing in this section shall be construed to authorize the interstate stream commission to acquire water rights contrary to Section 72-1-2.4 NMSA 1978.

b r e t º o t n = .229819.1AIC February 12, 2025 (9:51am) s k m e - 3 - e a n e d r e l u [ A d irrigation district established pursuant to Chapter 73, Article NMSA 1978, except through contractual arrangement with the district board of directors or as a special water users association established pursuant to Chapter 73, Article 10 NMSA 1978, but nothing in this section shall be construed to authorize the interstate stream commission to acquire water rights contrary to Section 72-1-2.4 NMSA 1978.

The SB 37 Page 3 commission shall not acquire water or water rights for the strategic water reserve by condemnation and may only condemn real property when that property is needed for infrastructure related to the conveyance of water.

h g B.

Water and water rights in the strategic water o t hr reserve shall be used to:

g e i k (1) assist the state in complying with h r i s interstate stream compacts and court decrees;

[or ] h , t, e u g (2) assist the state and water users in water e b l e e h management efforts for the benefit of threatened or endangered n d d i = = o h species or in a program intended to avoid additional listings l ] b ,d i a º e r i = r of species.

Management of water pursuant to this subsection t e w d m a n o shall be done in conjunction with collaborative programs or dprocesses mwhere :they exist.

b e d s º o t n = .229819.1AIC February 12, 2025 (9:51am) s k m e - 4 - e a n e d r e l u [ A d processes where they exist.

or (3) assist the state or water users with water management and water conservation efforts designed to support aquifer recharge or reduce ground water depletiondepletion, SCONCº,»SCONC in order to promote stream flow or other environmental benefits.

Surface water leased or purchased for the SCONCºreserve»SCONCpurpose SCONCºpurpose of this paragraph»SCONCparagraph shall not be converted to ground water via any SB 37 Page 4 methods other than natural, passive infiltration through the streambed.

The interstate stream commission shall develop river reach or ground water basin priorities for the acquisition of water or water rights and storage rights for the strategic water reserve in consultation with the New Mexico interstate stream compact commissioners, the office of the state engineer and the [attorney general's office ] state h g department of justice.

For each river reach or ground water o t hr basin, additional prioritization shall be developed in g e i k coordination with the governing bodies of the following h r i s h organizations within the affected river reach or ground water , t, e u g basin:

e b l e e h (1) Indian nations, tribes and pueblos;

n d d i = = o h (2) boards of county commissioners;

l ] b ,d i a º e r i = r (3) municipalities;

t e w d m a n o (4) special districts established pursuant to dChapter m73 :NMSA 1978;

b e d s º o t n = .229819.1AIC February 12, 2025 (9:51am) s k m e - 5 - e a n e d r e l u [ A d Chapter 73 NMSA 1978;

When establishing priorities for acquisition of water or water rights and storage rights for the strategic SB 37 Page 5 water reserve pursuant to Subsection C of this section, the interstate stream commission shall consider SCONCºwhetherpotential the acquisition will provide»SCONC SCONCºpotential»SCONC supplementary benefits, such as supporting traditional and cultural practices, habitat improvement or recreational opportunities within the affected water reach or ground water basin.

The interstate stream commission may prioritize transactions that meet at least one of these supplementary h g benefits, in addition to at least one of the purposes described o t hr in Subsection B of this section.

g e i k [E.] F.