The House Energy, Environment and Natural Resources Committee on March 13 recommended passage of Senate Bill 9, a measure to raise New Mexico’s maximum civil penalties for pipeline safety violations to the federal maximums of $200,000 per day and $2,000,000 total. The committee voted 5-2 on a do-pass recommendation.

Sponsor Sen. Schulz told the committee the bill would move state law to the federal maximums so New Mexico “doesn't have to constantly keep changing the New Mexico [statute] as things go up and down” and to remain aligned with federal certification processes. The sponsor introduced her expert, Miranda Mescarenas, to answer technical questions.

The bill drew support from environmental advocates in public comment. Melissa Bernardin of the Sierra Club Rio Grande chapter said SB9 “updates New Mexico pipeline standards to federal rules and regulations.” Charles Goodmacher, representing Healthy Climate New Mexico, said an industry that “prides itself as the cleanest in the world would embrace this bill” because it only increases penalties when safety violations occur.

A PRC pipeline safety division staff member told the committee fines assessed in recent years have been volatile but small relative to the caps: about $24,000 in fiscal 2024, $214,000 in fiscal 2023 and roughly $50,000 in fiscal 2022, depending on reported violations. The staff member said aligning the state fine ceiling with federal levels helps avoid the risk of reduced federal funding during PHMSA certification reviews if state maximums are deemed not substantially similar to federal penalties.

Several committee members questioned the need to set state law equal to federal maximums when actual assessed fines have been far lower. Representative Montoya and Representative Murphy expressed concern about transferring what they described as a legislative determination of penalty levels to a federal standard. Montoya asked whether the state had received any formal notice that federal funding was at risk; the PRC staff replied no formal notice had been received but noted the PHMSA letter attached to the committee packet described possible repercussions.

Sen. Schulz and the expert emphasized that the bill only raises statutory maximums; it does not change the standards for violations or require the state to issue maximum fines. "This really isn't about the pipeline standards. This is about what the maximum penalty would be for violations of that, and it just puts it at the federal level," the sponsor said.

After discussion the committee moved a do-pass recommendation. The record shows a committee roll call of five yes votes and two no votes; the chair announced the motion carried 5-2. The committee did not adopt substantive amendments on the floor of the committee. The bill will proceed in the legislative process per the House rules.

Why it matters: supporters say aligning state penalties with federal levels preserves New Mexico’s eligibility for federal pipeline-safety grants and certification; opponents argued the state should retain discretion over statutory penalty ceilings and noted the assessed fines to date have been far below the proposed maxima.