HB 95 — WATER ADMINISTRATION CHANGES

u [ B.

Publication of notice of application, .219433.6 - 4 - HENRC/HB 95 opportunity for the filing of objections or protests and a hearing on the application shall be provided as required by Sections 72-5-4 and 72-5-5 NMSA 1978.

In determiningmaking ifthe determination as to whether approval would be contrary to the conservation of water within the state, the state engineer shall consider the impacts of drought and climate change, and in making the determination as to whether approval would be:be detrimental to the public welfare of the state, the state engineer shall consider the impacts on health, safety, recreational, cultural and environmental interests.

(1)D. contrary to the conservation of water within the state, the state engineer shall make written findings based on reliable scientific projections of the impacts of climate change over a forty-year period on the e e 17 sustainability or depletion of the water source;

andThe e e n d 18 (2) detrimental to the public welfare of the = = l ] 19 state, the state engineer shall makepublish writtenspecific findings onto asupport lthe rstate iengineer's 20approval whetheror thedenial proposed beneficial use of thean waterapplication, iswhich tshall einclude athe tfactual economicallyand viablelegal overrationale afor forty-yearthe period."state mengineer's mdecision." 21 e d r e 22 SECTION 5.4.

Section 72-5A-572-5A-6 NMSA 1978 (being Laws 1999, c e rt c17 23 Chapter 285, Section 5,6) as amended) is amended to read:

ew al n bd 2418 "72-5A-5."72-5A-6.

NOTICE--PROTESTS--HEARINGS--DETERMINATIONS--STATE uENGINEER--POWERS [AND JUDICIALDUTIES--PERMIT-- REVIEW.--= .218152.4= -19 6MONITORING -REQUIREMENTS.-- a l i a e r 20 A.

UponThe receiptstate ofengineer anshall applicationissue for a permit to constructa andt operatem am project,21 theconstruct stateand engineeroperate shalla endorseproject onif the applicationapplicant thehas dateprovided ita wasd receivedr ande shall22 keepreasonable ademonstration recordthat: of the application.

Thec statee engineers shallk conduct23 an(1) initialthe reviewapplicant ofhas the applicationtechnical withinand sixtye daysa ofn receipt.b 24 financial capability to construct and operate the project;

Ifu the[ state(2) engineer determines in the initialproject review that the application is incomplete,hydrologically thefeasible; state engineer shall notify the applicant of the application's deficiencies.

The.219433.6 application- shall5 remain- incompleteHENRC/HB until95 (3) the applicantproject provideswill allnot informationimpair requiredexisting bywater therights Groundor Waterthe Storagestate's andinterstate Recoveryobligations; Act.

The(4) statethe engineerproject maywill requestnot additionalbe informationcontrary fromto the applicantconservation andof shallwater conductwithin an investigation of the project.state;

B.(5) the project will not be detrimental to the public welfare of the state;

Within(6) thirtythe daysapplicant afterhas determiningcompleted thatapplications anfor applicationall ispermits complete,required unless an extension is requested by the applicant, the state engineerand shallfederal proceedlaw; in accordance e e 17 with the provisions of Section [1 of this 2019 act ] 72-2-20 e e n d 18 NMSA 1978 regarding notice of the application.

The(7) noticethe =applicant =has la ]valid 19water shallright contain:quantified by one of the following legal processes:

a(a) l r i 20 (1) the legal description of the location of t e a twater therights proposedadjudication; project;

m(b) m 21 e d r e 22 (2) a briefconsent descriptiondecree; of the proposed c e r c 23 project, including its capacity;

e(c) aan nact bof 24congress, (3)including thea namenegotiated ofsettlement theratified applicant;by congress;

u(d) [a (4)contract thepursuant dateto of43 theUSC last620 publication;et seq.;

andor .218152.4e -t 717 -(e) (5)an theagreement requirementswith foran owner who has a w l n d 18 valid water right subject to an objection.application for a change in = = 19 purpose, place of use or point of diversion;

and a l i a e r 20 (8) [that] the project will not cause harm to a t m m 21 users of land and water within the area of hydrologic effect.

d r e 22 B.

A permit for a project shall include:

c e s k 23 (1) the name and mailing address of the person e a n b 24 to whom the permit is issued;

u [ (2) the name of the declared underground water .219433.6 - 6 - HENRC/HB 95 basin in which the project will be located;

(3) the capacity and plan of operation of the project;

(4) any monitoring program required;

(5) all conditions required by or [regulations] rules adopted pursuant to the Ground Water Storage and Recovery Act;

and (6) other information the state engineer determines to be necessary.

AThe personpermit objectingshall thatnot thebecome grantingeffective ofuntil the applicationapplicant willobtains impairall theother objector'srequired waterstate right, will be contrary to the conservation of water or will be detrimental to the public welfare [and showing that the objector will be substantially and specificallyfederal affectedpermits. by the granting of the application] shall have standing to file objections or protests.

[provided, however, that ] The state or any of its branches, agencies, departments, boards, instrumentalities or institutions, and all political subdivisions of the state and their agencies, instrumentalities and institutions, shall have standing to file objections or protests.

AnThe objectionstate engineer shall beadopt filed[regulations] inrules writing,to includecarry out the nameprovisions andof mailingthe addressGround ofWater theStorage objector,and identifyRecovery theAct, groundsincluding formonitoring the objectionoperation of projects and includetheir effects on other water users in the signaturearea of thehydrologic objectoreffect, orincluding thean objector'sIndian legalnation, representative.tribe or pueblo.

The state e et 17 engineerIn shalldetermining schedulemonitoring arequirements, hearing on the applicationstate andengineer ew el n d 18 provideshall atcooperate leastwith thirtyall days'government noticeentities ofthat theregulate hearing,and by = = l19 ]monitor 19the certifiedquality mail,of towater, including the applicantdepartment andof anya objector.l i a e r 20 environment.

a lt rm im 2021 E.

AfterIn themaking expiration of the timedetermination foras filingto twhether e a t objections, if no objections have been filed, the state m m 21 e d r e 22 engineerapproval shall,would ifbe thecontrary stateto engineerthe findsconservation thatof thewater within c e rs ck 23 applicationthe meetsstate, the requirementsstate ofengineer theshall Groundconsider Waterthe Storageimpacts of e a n b 24 drought and Recoveryclimate Act,change, issueand ain permitmaking to the applicantdetermination toas construct u [ theto projectwhether approval would be detrimental to storethe andpublic recoverwelfare all.219433.6 or- a7 part- HENRC/HB 95 of the watersstate, .218152.4the -state 8engineer -shall appliedconsider for,the asimpacts conditionedon byhealth, thesafety, staterecreational, engineer.cultural and environmental interests.

The state engineer shall publish specific findings to support the state engineer's approval or denial of an application, which shall include the factual and legal rationale for the state engineer's decision.decision." SECTION 5.

The rationale 6 used in approving or denying an application shall be precedent for the state engineer's consideration of subsequent applications, unless the factual or legal basis for approval or denial of a subsequent application is clearly distinguished.

[F.] G.

A person or governmental entity aggrieved by any decision of the state engineer may appeal that decision to the district court pursuant to Section 72-7-1 NMSA 1978." SECTION 6.

The state engineer shall approve the application e e 17 if the applicant has reasonably shown that [his[his] ] the e e n d 18 applicant's proposed use and location of use is a beneficial = = l ] 19 use and:

a l r i 20 (1) will not impair any existing right to a t e a t greater degree than [such[such] ] the right is, or would be, impaired m m 21 e dt r17 e 22 by the continued use and location of use by the owner;

and cw el rn cd 2318 (2) will not be contrary to the conservation e= a= n19 b 24 of water within the state or detrimental to the public welfare ua [l i a e r 20 of the state.

.218152.4a -t 9m -m 21 B.

In the case of annual allotments of project d r e 22 water leased to a special water users' association from an c e s k 23 irrigation district organized pursuant to Chapter 73, Article e a n b 24 10 NMSA 1978, if the state engineer determines that the u [ proposed changes in place and purpose of use and point of .219433.6 - 8 - HENRC/HB 95 diversion comply with the rules established pursuant to Subsection G of Section 73-10-48 NMSA 1978, the board of directors of the irrigation district may approve the application in accordance with the provisions of Section 73-10-48 NMSA 1978.

In determiningmaking ifthe determination as to whether approval would be contrary to the conservation of water within the state, the state engineer shall consider the impacts of drought and climate change, and in making the determination as to whether approval would be:be detrimental to the public welfare of the state, the state engineer shall consider the impacts on health, safety, recreational, cultural and environmental interests.

(1)D. contrary to the conservation of water within the state, the state engineer shall make written findings based on reliable scientific projections of the impacts of climate change over a forty-year period on the sustainability or depletion of the water source;

andThe estate eengineer 17shall (2)publish detrimentalspecific findings to thesupport public welfare of the estate eengineer's napproval dor 18denial state,of thean stateapplication, engineerwhich shall makeinclude writtenthe findingsfactual onand =legal =e lt ]17 19rationale whetherfor the proposedstate beneficialengineer's usedecision." ofw the water is a l rn id 2018 economicallySECTION viable6. over a forty-year period.

tSection e72-12-3 aNMSA t1978 D.(being Laws 1931, = = 19 Chapter 131, Section 3, as amended) is amended to read:

Thea statel engineeri shalla publish specific m m 21 e d r e20 22"72-12-3. findings to support the state engineer's approval or denial of c e r c 23 an application, which shall include the factual and legal e a n b 24 rationale for the state engineer's decision.

TheAPPLICATION rationaleFOR uUSE [OF usedUNDERGROUND inWATER-- approvinga ort denyingm anm application21 shallPUBLICATION beOF precedentNOTICE--PERMIT.-- .218152.4d -r 10e -22 forA. the state engineer's consideration of subsequent applications, unless the factual or legal basis for approval or denial of a subsequent application is clearly distinguished." SECTION 7.

Section[Any] 72-12-3A NMSAperson, 1978firm (beingor Lawscorporation 1931,or any other c e s k 23 entity desiring to appropriate for beneficial use any of the e a n b 24 waters described in Chapter 131,72, SectionArticle 3,12 asNMSA amended)1978 isshall amendedu [ apply to read:the state engineer in a form prescribed by the state .219433.6 - 9 - HENRC/HB 95 engineer.

"72-12-3.

APPLICATION FOR USE OF UNDERGROUND WATER-- PUBLICATION OF NOTICE--PERMIT.-- A.

[Any ] A person, firm or corporation or any other entity desiring to appropriate for beneficial use any of the waters described in Chapter 72, Article 12 NMSA 1978 shall apply to the state engineer in a form prescribed by the state engineer.

(2) the beneficial use to which the water will e e 17 be applied;

e e n d 18 (3) the location of the proposed well;

= = l ] 19 (4) the name of the owner of the land on which a l r i 20 the well will be located;

t e a t (5) the amount of water applied for;

m m 21 e d r e 22 (6) the place of the use for which the water c e r c 23 is desired;

and e a n b 24 (7) if the use is for irrigation, the u [ description of the land to be irrigated and the name of the .218152.4 - 11 - owner of the land.

If the well will be located on privately owned e t 17 land and the applicant is not the owner of the land or the w l n d 18 owner or the lessee of the mineral or oil and gas rights under = = 19 the land, the application shall be accompanied by an a l i a e r 20 acknowledged statement executed by the owner of the land that a t m m 21 the applicant is granted access across the owner's land to the d r e 22 drilling site and has permission to occupy such portion of the c e s k 23 owner's land as is necessary to drill and operate the well.

e a n b 24 This subsection does not apply to the state or any of its u [ political subdivisions.

If the application is approved, the .219433.6 - 10 - HENRC/HB 95 applicant shall have the permit and statement, executed by the owner of the land, recorded in the office of the county clerk of the county in which the land is located.

No application shall be accepted by the state engineer unless it is accompanied by all the information e e 17 required by Subsections A and B of this section.

e e n d 18 D.

Upon the filing of an application, the state = = l ] 19 engineer shall proceed in accordance with the provisions of a l r i 20 Section [1 of this 2019 actact] ] 72-2-20 NMSA 1978 regarding notice t e a t of the application.

[Any] A person, firm or corporation or m m 21 e d r e 22 other entity objecting that the granting of the application c e r c 23 will impair the objector's water right shall have standing to e a n b 24 file objections or protests.

[Any] A person, firm or u [ corporation or other entity objecting that the granting of the .218152.4 - 12 - application will be contrary to the conservation of water within the state or detrimental to the public welfare of the e t 17 state [andand showing that the objector will be substantially and w l n d 18 specifically affected by the granting of the application]application shall = = 19 have standing to file objections or protests.

[provided, a l i a e r 20 however, that] The state or any of its branches, agencies, a t m m 21 departments, boards, instrumentalities or institutions, and all d r e 22 political subdivisions of the state and their agencies, c e s k 23 instrumentalities and institutions, shall have standing to file e a n b 24 objections or protests.

u [ E.

After the expiration of the time for filing .219433.6 - 11 - HENRC/HB 95 objections, if no objections have been filed, the state engineer shall, if the state engineer finds that there are in the underground stream, channel, artesian basin, reservoir or lake unappropriated waters and that the proposed appropriation would not impair existing water rights from the source, is not e e 17 contrary to conservation of water within the state and is not e e n d 18 detrimental to the public welfare of the state, grant the = = l ] 19 application and issue a permit to the applicant to appropriate a l r i 20 all or a part of the waters applied for, subject to the rights t e a t of all prior appropriators from the source.

m m 21 e d r e 22 F.

If objections or protests have been filed within c e r c 23 the time prescribed in the notice or if the state engineer is e a n b 24 of the opinion that the permit should not be issued, the state u [ engineer may deny the application without a hearing or, before .218152.4 - 13 - the state engineer acts on the application, may order that a hearing be held.

The state engineer shall notify the applicant e t 17 of the action by certified mail sent to the address shown in w l n d 18 the application.

= = 19 G.

In determiningmaking ifthe determination as to whether a l i a e r 20 approval would be contrary to the conservation of water within a t m m 21 the state, the state engineer shall consider the impacts of d r e 22 drought and climate change, and in making the determination as c e s k 23 to whether approval would be:be detrimental to the public welfare e a n b 24 of the state, the state engineer shall consider the impacts on u [ health, safety, recreational, cultural and environmental .219433.6 - 12 - HENRC/HB 95 interests.

(1) contrary to the conservation of water within the state, the state engineer shall make written findings based on reliable scientific projections of the impacts of climate change over a forty-year period on the sustainability or depletion of the water source;

and (2) detrimental to the public welfare of the state, the state engineer shall make written findings on whether the proposed beneficial use of the water is economically viable over a forty-year period.

The state engineer shall publish specific findings to support the state engineer's approval or denial of e e 17 an application, which shall include the factual and legal e e n d 18 rationale for the state engineer's decision.decision." SECTION 7.

TheSection rationale72-12-7 =NMSA =1978 l(being ]Laws 191931, usedChapter in131, approvingSection or7, denyingas anamended) application shall be precedent a l r i 20 for the state engineer's consideration of subsequent t e a t applications, unless the factual or legal basis for approval or m m 21 e d r e 22 denial of a subsequent application is clearlyamended distinguished."to cread: e r c 23 SECTION 8.

"72-12-7.

CHANGE OF LOCATION OF WELL--CHANGE IN USE ON APPLICATION--TEMPORARY CHANGE.-- A.

The owner of a water right may change the location of [his] the owner's well or change the use of the water, but only upon application to the state engineer and upon showing that the change will not impair existing rights and will not be contrary to the conservation of water within the state and will not be detrimental to the public welfare of the state.

The application may be granted only after such e t 17 advertisement and hearing as are prescribed in the case of w l n d 18 original applications.

= = 19 B.

When the owner of a water right applies for a a l i a e r 20 temporary change [of] not to exceed one year for not more than a t m m 21 three acre-feet of water to a different location or to a d r e 22 different use, or both, the state engineer shall make an c e s k 23 investigation and, if the change does not permanently impair e a n b 24 any vested rights of others, [he] the state engineer shall u [ enter an order authorizing the change.

If [he] the state .219433.6 - 13 - HENRC/HB 95 engineer finds that the change sought might impair vested rights, [he] the state engineer shall order advertisement and hearing as in other cases.

C.

If objections or protests have been filed within the time prescribed in the notice or if the state engineer is of the opinion that the permit should not be issued, the state engineer may deny the application or, before [he acts] acting on the application, may order that a hearing be held.

[He] The state engineer shall notify the applicant of [his] the action by certified mail sent to the address shown in the application.

D.

In making the determination as to whether approval would be contrary to the conservation of water within the state, the state engineer shall consider the impacts of drought and climate change, and in making the determination as to whether approval would be detrimental to the public welfare of the state, the state engineer shall consider the impacts on e t 17 health, safety, recreational, cultural and environmental w l n d 18 interests.

= = 19 E.

The state engineer shall publish specific a l i a e r 20 findings to support the state engineer's approval or denial of a t m m 21 an application, which shall include the factual and legal d r e 22 rationale for the state engineer's decision." c e s k 23 SECTION 8.

APPLICATIONS FOR THE TRANSPORTATION AND USE OF .218152.4.219433.6 - 14 - HENRC/HB 95 PUBLIC WATERS OUTSIDE THE STATE.-- A.

[Any[Any] ] A person, firm or corporation or any other entity intending to withdraw water from any surface or underground water source in the state of New Mexico and transport it for use outside the state or to change the place or purpose of use of a water right from a place in New Mexico to a place out of that state shall apply to the state engineer for a permit to do so.

Upon the filing of an application, the e et 17 state engineer shall proceed in accordance with the provisions ew el n d 18 of Section [1 of this 2019 actact] ] 72-2-20 NMSA 1978 regarding = = l ] 19 notice of the application.

Any person, firm or corporation or a l r i a e r 20 other entity objecting that the granting of the application a t em am t21 would impair or be detrimental to the objector's water right m m 21 e d r e 22 shall have standing to file objections or protests.

[Any[Any] ] A c e rs ck 23 person, firm or corporation or other entity objecting that the e a n b 24 granting of the application will be contrary to the u [ conservation of water within the state or detrimental to the .218152.4.219433.6 - 15 - HENRC/HB 95 public welfare of the state [andand showing that the objector will be substantially and specifically affected by the granting of the application]application shall have standing to file objections or protests.

[Provided, however, thatthat] ] The state of[of New MexicoMexico] or any of its branches, agencies, departments, boards, instrumentalities or institutions,institutions and all political subdivisions of the state and their agencies, instrumentalities and institutions,institutions shall have standing to file objections or protests.

In order to approve an application under this e et 17 act,[act] section, the state engineer must find that the applicant'sw el e n d 18 applicant's withdrawal and transportation of water for use outside the = = l19 ]outside 19the state would not impair existing water rights, is nota contraryl i a le r i 20 not contrary to the conservation of water within the state and isa not t em am t21 is not otherwise detrimental to the public welfare of the citizens of m m 21 e d r e 22 citizens of New Mexico.

c e rs ck 23 D.

In acting upon an application under this act,[act] e a n b 24 section, the state engineer shall consider [but not be limited to ] the u [ to] the following factors:

.218152.4.219433.6 - 16 - HENRC/HB 95 (1) the supply of water available to the state of New Mexico;

[and[and] ] (6) the demands placed on the applicant's supply in the state where the applicant intends to use the water;

and (7) reliable scientific projections of the impacts of climatedrought changeand overclimate achange. forty-year period on the e e 17 sustainability or depletion of the water source;

andE. e e n d 18 (8) whether the proposed beneficial use of the = = l ] 19 water is economically viable over a forty-year period.

aBy filing an application to withdraw and e t 17 transport waters for use outside the state, the applicant shall w l rn id 2018 E.submit to and comply with the laws of the state of New Mexico = = 19 governing the appropriation and use of water.

Bya filingl ani application to withdraw and t e a t transport waters for use outside the state, the applicant shall m m 21 e d r e20 22F. submit to and comply with the laws of the state of New Mexico c e r c 23 governing the appropriation and use of water.

eThe state engineer is empowered to condition the a nt bm 24m F.21 permit to insure that the use of water in another state is d r e 22 subject to the same regulations and restrictions that may be c e s k 23 imposed upon water use in the state of New Mexico.

The state engineer is empowered to condition the u [ permit to insure that the use of water in another state is .218152.4 - 17 - subject to the same regulations and restrictions that may be imposed upon water use in the state of New Mexico.

G.

Upon approval of the application, the applicant shall designate an agent in New Mexico for reception of service of process and other legal notices.

H.

The state engineer shall publish specific findings to support the state engineer's approval or denial of an application, which shall include the factual and legal rationale for the state engineer's decision.

The rationale used in approving or denying an application shall be precedent for the state engineer's consideration of subsequent applications, unless the factual or legal basis for approval or denial of a subsequent application are clearly distinguished." SECTION 9.

Section 72-14-3.1 NMSA 1978 (being Laws 2003, Chapter 131, Section 1 and Laws 2003, Chapter 137, Section 1) is amended to read:

e e 17 "72-14-3.1.

STATE WATER PLAN--PURPOSE--CONTENTS.-- e e n d 18 A.

It is the intent of the legislature that the = = l ] 19 interstate stream commission, in collaboration with the office a l r i 20 of the state engineer and the water trust board, prepare and t e a t implement a comprehensive state water plan.

m m 21 e d r e 22 B.

The state water plan shall be a strategic c e r c 23 management tool for the purposes of:

e a n b 24 (1) promoting stewardship of the state's water u [ resources;

.218152.4 - 18 - (2) protecting and maintaining water rights and their priority status;

(3) protecting the diverse customs, culture, environment and economic stability of the state;

(4) protecting both the water supply and water quality;

(5) promoting cooperative strategies, based on concern for meeting the basic needs of all New Mexicans;

(6) meeting the state's interstate compact obligations;

(7) providing a basis for prioritizing infrastructure investment;

and (8) providing statewide continuity of policy and management relative to our water resources.

C.

The interstate stream commission in collaboration with the office of the state engineer and in e e 17 consultation with other government agencies as appropriate e e n d 18 shall develop a comprehensive, coordinated state water plan = = l ] 19 that shall:

a l r i 20 (1) identify and reflect the common t e a t priorities, goals and objectives that will have a positive m m 21 e d r e 22 impact on the public welfare of the state;

c e r c 23 (2) establish a clear vision and policy e a n b 24 direction for active management of the state's waters;

u [ (3) identify and use reliable scientific .218152.4 - 19 - projections of the impacts of climate change for future water demand, supply and storage of the surface and ground waters of New Mexico over a forty-year period;

[(3)] (4) include an inventory of the quantity and quality of the state's water resources, population projections and other water resource demands under a range of conditions, including reliable scientific projections of the impacts of climate change on the waters of New Mexico over a forty-year period;

[(4)] (5) include water budgets for the state and for all major river basins and aquifer systems in the state;

[(5)] (6) develop water conservation strategies and policies to maximize beneficial use, including reuse and recycling by conjunctive management of water resources and by doing so to promote nonforfeiture of water e e 17 rights;

e e n d 18 [(6)] (7) include a drought management plan = = l ] 19 designed to address drought emergencies, promote strategies for a l r i 20 prevention of drought-related emergencies in the future and t e a t coordinate drought planning statewide;

m m 21 e d r e 22 [(7)] (8) recognize the relationship between c e r c 23 water availability and land-use decisions;

e a n b 24 [(8)] (9) promote river riparian and watershed u [ restoration that focuses on protecting the water supply, .218152.4 - 20 - improving water quality and complying with federal Endangered Species Act of 1973 mandates;

[(9)] (10) consider water rights transfer policies that balance the need to protect the customs, culture, environment and economic health and stability of the state's diverse communities while providing for timely and efficient transfers of water between uses to meet both short-term shortages and long-term economic development needs;

[(10)] (11) promote strategies and mechanisms for achieving coordination with all levels of government;

[(11)] (12) integrate regional water plans into the state water plan as appropriate and consistent with state water plan policies and strategies;

[(12)] (13) integrate plans of water supply purveyors, including those of local governments, privately owned public utilities, associations, cooperatives, irrigation e e 17 districts and acequias as appropriate and consistent with state e e n d 18 water plan policies and strategies, as those plans are = = l ] 19 completed and submitted to the office of the state engineer;

a l r i 20 [(13)] (14) identify water-related t e a t infrastructure and management investment needs and m m 21 e d r e 22 opportunities to leverage federal and other funding;

and c e r c 23 [(14)] (15) promote collaboration with and e a n b 24 strategic focusing of the research and development of the u [ state's national laboratories and research institutions to .218152.4 - 21 - address the state's water challenges and to bring to the state demonstration projects in desalination, conservation, watershed restoration, weather modification and other technological approaches to enhancing water supply and management.

D.

Recognizing that complete water rights adjudication, measurement, well inventories and adequate databases are essential elements of an effective water management plan, and further recognizing that completion of these work elements will require substantial time and resources until such time as these elements are complete, the state water plan shall include work plans and strategies for:

(1) completion of water rights adjudications, with required supporting documentation, including hydrographic surveys, aquifer mapping and aerial mapping of irrigated land;

(2) creation and completion of a comprehensive database and an electronically accessible information system on e e 17 the state's water resources and water rights, including file e e n d 18 abstraction and imaging of paper files as well as information = = l ] 19 on pending adjudications;

a l r i 20 (3) measuring of surface and ground water uses t e a t in the state as necessary for management of the state's water m m 21 e d r e 22 resources;

and c e r c 23 (4) taking inventory of existing water wells e a n b 24 and determining appropriate disposition of unused wells.

u [ E.

The interstate stream commission and the office .218152.4 - 22 - of the state engineer shall consult directly with the governments of Indian nations, tribes and pueblos to formulate a statement of policy and process to guide:

(1) coordination or integration of the water plans of Indian nations, tribes and pueblos located wholly or partially within New Mexico with the state water plan;

and (2) final adjudication or settlement of all water rights claims by Indian nations, tribes and pueblos located wholly or partially within New Mexico.

F.

The interstate stream commission shall ensure that public participation and public input are integrated throughout the planning process.

The interstate stream commission shall convene water planners and stakeholders from diverse constituencies to advise it and the office of the state engineer on the state water plan, including statewide policies, priorities, goals and objectives for the plan, issues of e e 17 statewide concern and strategies for implementation of the e e n d 18 plan.

The interstate stream commission shall also ensure that = = l ] 19 representatives of the stakeholder groups affected by various a l r i 20 plan components will participate in the development of those t e a t plan components.

Members of the interstate stream commission m m 21 e d r e 22 and water trust board shall be notified of and are welcome to c e r c 23 participate in all aspects of the planning process.

AfterUpon publicapproval reviewof andthe comment,application, the stateapplicant water u [ planshall developeddesignate inan conformanceagent within thisNew sectionMexico isfor subjectreception toof .218152.4service .219433.6 - 2317 - adoptionHENRC/HB by95 theof interstateprocess streamand commission.other legal notices.

Following its adoption, the state water plan shall be presented to the interim legislative committee that studies water and natural resources.

The state waterengineer plan shall bepublish periodicallyspecific reviewed,findings updatedto support the state engineer's approval or denial of an application, which shall include the factual and amendedlegal inrationale responsefor tothe changingstate conditions.engineer's decision." SECTION 9.

At a minimum a review shall be undertaken every five years;

provided that a water budget analysis for the state and for all major river basins and aquifer systems shall be undertaken and published every two years.

I.

Nothing in the state water plan shall be construed to permit the granting or the condemnation of water rights.

J.

Nothing in the state water plan shall be construed to determine, abridge or affect the water rights of Indian nations, tribes or pueblos." e e 17 SECTION 10.

Section 72-14-3.2 NMSA 1978 (being Laws 2003, e e n d 18 Chapter 138, Section 3) is amended to read:

= = l ] 19 "72-14-3.2.

WATER CONSERVATION PLANS--MUNICIPALITIES, a l r i 20 COUNTIES AND WATER SUPPLIERS.-- t e a t A.

As used in this section, "covered entity" means m m 21 e d r e 22 municipalities, counties [and ] or any other person that c e r c 23 supplies, distributes or otherwise provides at least five e a n b 24 hundred acre-feet of water annually for domestic, commercial, u [ industrial or government customers for other than agricultural .218152.4 - 24 - purposes, but does not include Indian tribes, pueblos, nations, chapters or any entity of a tribe, pueblo, nation or chapter.

B.

A covered entity may develop, adopt and submit to the state engineer [by December 31, 2005 ] a comprehensive water conservation plan, including a drought management plan.

In developing a water conservation plan, a covered entity shall use reliable scientific projections of the impacts of climate change over a forty-year period on projections for future water demand and supply and the water sources used by the covered entity.

C.

The manner in which the covered entity develops, adopts and implements a comprehensive water conservation plan shall be determined by the covered entity.

The plan shall be accompanied by a program for its implementation.

D.

In developing a water conservation plan pursuant to this section:

e e 17 (1) municipalities and counties shall consider e e n d 18 ordinances and codes to encourage conservation measures;

= = l ] 19 covered entities without ordinance or code enforcement ability a l r i 20 shall consider incentives to encourage voluntary compliance t e a t with a set of conservation guidelines.

Covered entities shall m m 21 e d r e 22 identify and implement best practices in their operations to c e r c 23 improve conservation of the resources;

and e a n b 24 (2) the covered entity shall consider, and u [ incorporate into its plan if appropriate, at least the .218152.4 - 25 - following:

(a) water-efficient fixtures and appliances, including toilets, urinals, showerheads and faucets;

(b) low-water-use landscaping and efficient irrigation;

(c) water-efficient commercial and industrial water-use processes;

(d) water reuse systems for both potable and nonpotable water;

(e) distribution system leak repair;

(f) dissemination of information regarding water-use efficiency measures, including public education programs and demonstrations of water-saving techniques;

(g) water rate structures designed to e e 17 encourage water-use efficiency and reuse in a fiscally e e n d 18 responsible manner;

and = = l ] 19 (h) incentives to implement water-use a l r i 20 efficiency techniques, including rebates to customers or t e a t others, to encourage the installation of water-use efficiency m m 21 e d r e 22 and reuse measures.

c e r c 23 E.

The water conservation plan shall contain a e a n b 24 section that references the regional water plans in the area u [ that have been accepted by the interstate stream commission.

.218152.4 - 26 - The section shall cite conservation guidelines mentioned in the regional plan that have been adopted into the covered entity's water conservation plan.

F.

A covered entity may at any time adopt changes to its water conservation plan and shall submit changes to the state engineer.

G.

[After December 31, 2005 ] Neither the water trust board nor the New Mexico finance authority shall accept an application from a covered entity for financial assistance in the construction of any water diversion, storage, conveyance, water treatment or wastewater treatment facility unless the covered entity includes a copy of its water conservation plan." SECTION 11.

Section 72-14-44 NMSA 1978 (being Laws 1987, Chapter 182, Section 2) is amended to read:

"72-14-44.

INTERSTATE STREAM COMMISSION--[GROUNDWATER ] e e 17 GROUND WATER APPROPRIATION--WATER RIGHTS PURCHASE--WATER e e n d 18 PLANNING FUNDING.-- = = l ] 19 A.

The interstate stream commission is authorized a l r i 20 to appropriate [groundwater ] ground water or purchase water t e a t rights on behalf of any of the various regions of the state.

m m 21 e d r e 22 B.

Nothing in this section shall be construed as c e r c 23 permitting the condemnation of water rights or as determining, e a n b 24 abridging or affecting in any way the water rights of Indian u [ nations, tribes or pueblos.

.218152.4 - 27 - C.

The interstate stream commission is authorized to make grants or loans of funds for the purpose of regional water planning.

Prior to approval of any proposal by a region for planning funds under this section, the commission shall develop criteria for evaluating such proposals.

These criteria at a minimum shall provide for:

(1) identification of the region requesting planning funds and why it is hydrologically and politically an appropriate applicant;

(2) use of an appropriate planning process, including opportunities for participation by those Indian nations, tribes or pueblos located within the various regions of the state;

(3) reasonable proposed costs and timetables for completion of the planning process;

(4) appropriate provisions for notice, review e e 17 and comment where applicable;

e e n d 18 (5) adequate review of potential conflict with = = l ] 19 laws relating to impact on existing water rights;

a l r i 20 (6) adequate review of water conservation and t e a t the effect on the public welfare;

[and ] m m 21 e d r e 22 (7) adequate review of reliable scientific c e r c 23 projections of the impacts of climate change over a forty-year e a n b 24 period on projections for future water demand and supply and u [ the water sources used by the water planning region;

and .218152.4 - 28 - [(7)] (8) identification of sources other than the interstate stream commission for funding of the proposed regional planning process.

D.

A water planning region eligible for funding under this section is an area within the state that contains sufficient hydrological and political interests in common to make water planning feasible.

The state as a whole shall not be considered a water planning region for purposes of this section.

E.

No entity shall be made a part of a proposal for planning funds under this section without its consent.

F.

No funds shall be granted under this [act ] section to any party [or parties] that [are] is not within a water planning region.

Whether a proposal for funding falls within a water planning region shall be determined on a case- by-case basis by the interstate stream commission after e e 17 consultation with the state engineer and consideration of the e e n d 18 following:

= = l ] 19 (1) whether the source of water and the a l r i 20 potential place of use of the water are located within the same t e a t hydrologic basin;

and m m 21 e d r e 22 (2) if there is more than one party and the c e r c 23 parties are requesting funds on a joint basis, whether the e a n b 24 parties have demonstrated political and economic interests in u [ common by entering into a binding intergovernmental agreement .218152.4 - 29 - for carrying out the planning process." SECTION 12.

"[NEW MATERIAL] RULEMAKING--CLIMATE CHANGE IMPACTS.--No later than July 1, 2023, the state engineer shall adopt rules to identify and assess the impacts of drought and climate change onin the administration of the surface and ground waters of New Mexico.

The rules shall be based on reliable scientific projections and datadata." and shall be used by the state engineer in administration of the state's water laws." SECTION 13.10.

- 3018 - 15 e et 17 ew el n d 18 = = l ] 19 a l r i 20a t e r 20 a t m m 21 e d r e 22 c e rs ck 23 e a n b 24 u [ .218152.4.219433.6