The House Energy, Environment & Natural Resources Committee on Feb. 22 voted to advance the committee substitute for House Bill 137, establishing a Strategic Water Supply program aimed at expanding brackish-water desalination projects and accelerating aquifer mapping across New Mexico. The committee substitute removes produced-water provisions that had been in earlier drafts.

Sponsor Representative Herrera framed the bill as a response to long-term water scarcity driven by climate: "the biggest problem facing our state ... is that there's no snow on the mountains," Herrera said, describing recent fires and floods in her district and saying the substitute "eliminates the produced water parts of the bill," "expands brackish water to include more shallow water resources," "provides money for aquifer mapping," and "provides $4,000,000 to continue the study at NMSU."

Rebecca Roos, infrastructure program director for the governor's office, linked HB137 to the governor's 50-Year Water Action Plan, explaining that the plan projects roughly a 25 percent statewide water reduction over 50 years and identifies the strategic water supply as one priority action. Roos said the substitute includes three appropriations in section 6 and that the current version of the House general appropriations bill (HB2) contains over $420 million for water investments, with $40 million of that identified as an initial infusion to the strategic water supply fund contingent on enactment of HB137.

Public comment at the hearing was sharply divided. Opponents asked the committee to require comprehensive aquifer mapping before any brackish desalination projects are authorized and to remove a proposed $75 million fund allocation for brackish development. Julia Bernal of Pueblo Action Alliance said the initiative "is purely based in economic development, and a pathway to commodify brackish water without proper scientific understanding and appropriate legal framework." Several public speakers cited environmental and public-health concerns:

- Sky Johnson (YECA) urged limits on public funding and mandatory aquifer mapping, saying "75,000,000 is too much" and warning about waste disposal and energy requirements for desalination.
- George Jurasic, retired UNM geophysics professor, cited a Harvard/NYU study showing limited PFAS removal in advanced treatment and warned that treatment could concentrate PFAS in some waste streams.

Supporters—including former State Engineer John D'Antonio, municipal and utility representatives, tribal representatives and water engineers—argued the technology is proven and that New Mexico needs alternative, site-specific sources of supply. D'Antonio noted existing statute changes (House Bill 19 in 2009 and sections cited as 72-12-25 through 72-12-28) that provide a notice-of-intent process and state-engineer oversight for deep brackish development. Several speakers said that some communities, including the village of Cuba, have shovel-ready desalination projects with high price tags (the Cuba project was described by the sponsor as having a projected cost of about $37 million).

Committee members discussed program design details: the bill creates both a grant pathway and a contracting pathway administered by either the Environment Department or the Office of the State Engineer. Contracts would be used in cases where a more mature treatment project needs a revenue or procurement structure; the bill requires contract proposals to include a community benefit plan, tribal consultation consistent with the State and Tribal Collaboration Act, and evaluation criteria such as preservation of freshwater resources and greenhouse gas impacts. The committee substitute also requires notification to the State Investment Council of new contracts or grants under the program.

Members pressed agency witnesses on technical standards and monitoring. Deputy State Engineer Tanya Trujillo and others said existing water-quality and drinking-water standards (state water-quality act rules, water-quality control commission regulations, and federal Safe Drinking Water Act requirements) would apply, and New Mexico Tech's aquifer characterization program would be expanded with new appropriations. The substitute includes a $4 million appropriation to New Mexico State University; testimony said those funds would support desalination and brackish-water research (witnesses described overlap between brackish-water and earlier produced-water research at NMSU but said the bill's scope is now focused on brackish water).

After extended debate and public testimony, the committee adopted the committee substitute and moved to recommend it pass out of committee. The clerk's roll call recorded 11 yes, 0 no.

What passed the committee is a program to fund and contract for brackish-water treatment projects where the science and community planning support them, paired with an expanded aquifer-characterization effort and requirements for tribal consultation and community benefit planning. Opponents at the hearing repeatedly asked the Legislature to require comprehensive aquifer mapping and stronger, explicit public safeguards before awarding large-scale public subsidies for desalination projects.