The House Energy, Environment and Natural Resources Committee on Feb. 22 advanced a committee substitute for House Bill 137, known as the Strategic Water Supply Act, and approved a committee substitute for House Bill 403, which revises distribution and uses of the state oil-and-gas fund.

Representative Susan Herrera, sponsor of HB137, told the committee the substitute removes produced-water language, "expands brackish water to include more shallow water resources," provides funding for statewide aquifer mapping and directs $4,000,000 for research at New Mexico State University. "We're going to need every drop of wet water we can get," Herrera said, describing drought impacts she'd observed in her district.

The bill drew broad public comment and debate. Supporters said desalination of brackish water can diversify supplies for communities facing acute shortages; opponents warned the measure is premature without comprehensive aquifer mapping, stronger tribal consultation and clearer safeguards for disposal of saline byproducts.

Why it matters: HB137 directs state resources toward evaluating and, in some cases, helping finance brackish-water treatment projects and aquifer characterization. Committee proponents emphasized projects already ready to move forward in some communities and the bill's role as one piece of a broader 50-year water plan. Opponents cautioned that brackish-water desalination carries technical, environmental and public-health risks if implemented without adequate mapping and oversight.

Key provisions and fiscal details
- The committee substitute removes produced-water (oil-and-gas wastewater) language from HB137.
- The substitute expands the definition of brackish-water resources to include shallower aquifers.
- The measure provides funding for aquifer mapping; committee witnesses said HB 2 currently includes roughly $19.7 million for mapping in nonrecurring funds and that, across water programs, about $420 million is in the budget for water investments, with $40 million proposed as an initial infusion to a Strategic Water Supply fund contingent on HB137's enactment.
- The substitute includes a $75,000,000 appropriation for brackish-water project development discussed in testimony as a statewide pipeline; opponents criticized that figure as too large without additional feasibility data.
- The bill contains a $4,000,000 appropriation to New Mexico State University for desalination and related research; committee supporters said the appropriation will support brackish-water work that is directly relevant to projects under the substitute.

Arguments for and against
Supporters: John D'Antonio, former state engineer, and representatives of water authorities and engineering consultants testified that inland brackish desalination is an established technology, pointing to existing plants such as El Paso's Kay Bailey Hutchison facility and federal research work in Alamogordo. Proponents said local projects, including a desalination effort in Cuba with an estimated cost of $37 million, are shovel-ready and that project funding plus mapping would help rural communities secure reliable supplies.

Opponents: Tribal and environmental groups, including representatives from Pueblo Action Alliance and New Mexico No Fault Solutions, urged rejection or amendment, arguing the substitute risks commodifying public water, could contaminate fresh aquifers, and lacks required tribal consultation and transparent protections for disposal of saline waste streams. Speakers also cited a recent study on PFAS treatment and warned that advanced treatment can concentrate contaminants if not managed correctly.

Regulatory and procedural points
Witnesses and staff said existing state standards for both drinking water and wastewater would apply to treated brackish-water projects (Water Quality Control Commission rules, the Safe Drinking Water Act framework and permitting regimes administered by the Environment Department and the Office of the State Engineer). The bill includes provisions for contract awards and grants, requires community-benefit plans for contracted projects and directs agencies to notify the State Investment Council of contracts.

Committee action and next steps
The committee adopted a substitute for HB137 and voted to give the substitute a do-pass recommendation to the full House. The panel also considered House Bill 403 (oil-and-gas fund distribution and uses), adopted a committee substitute and moved the substitute forward with a do-pass recommendation.

Votes at a glance
- House Bill 137 (committee substitute): Committee recorded a do-pass recommendation (committee vote recorded during the Feb. 22 hearing).
- House Bill 403 (committee substitute): Committee adopted committee substitute and recorded a do-pass recommendation (committee vote recorded during the Feb. 22 hearing).

What committee members asked for and what will follow
Committee members repeatedly asked for clearer public-engagement steps, stronger tribal consultation, and more detail on how contracts would protect public interests. Staff and sponsors said the substitute narrows the bill away from produced water, pairs early investments in mapping with targeted project support, and will be available for amendment on the House floor. Enactment and appropriations in HB2 would determine when contract or grant funds become available.

The committee adjourned after voting; sponsors and agencies said they would continue to work on technical changes and community outreach prior to floor debate.