RELATING TO WATER; REQUIRING MUNICIPALITIES, COUNTIES AND OTHER COVERED ENTITIES TO ADOPT WATER CONSERVATION AND DROUGHT MANAGEMENT PLANS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
Section 1. A new section of Chapter 3, Article 17 NMSA 1978 is enacted to read:
"WATER CONSERVATION AND DROUGHT MANAGEMENT PLANS.--A municipality shall consider ordinances and codes to encourage water conservation and drought management planning pursuant to the provisions of Section 3 of this act."
Section 2. A new section of Chapter 4 NMSA 1978 is enacted to read:
"WATER CONSERVATION AND DROUGHT MANAGEMENT PLANS.--A county shall consider ordinances and codes to encourage water conservation and drought management planning pursuant to the provisions of Section 3 of this act."
Section 3. A new section of Chapter 72, Article 14 NMSA 1978 is enacted to read:
"WATER CONSERVATION PLANS--MUNICIPALITIES, COUNTIES AND WATER SUPPLIERS.--
A. As used in this section, "covered entity" means municipalities, counties and any other person that supplies, distributes or otherwise provides at least five hundred
acre-feet of water annually for domestic, commercial, industrial or government customers for other than agricultural 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.
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:
(1) municipalities and counties shall consider ordinances and codes to encourage conservation measures; covered entities without ordinance or code enforcement ability shall consider incentives to encourage voluntary compliance with a set of conservation guidelines. Covered entities shall identify and implement best practices in their operations to improve conservation of the resources; and
(2) the covered entity shall consider, and incorporate into its plan if appropriate, at least the 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 encourage water-use efficiency and reuse in a fiscally responsible manner; and
(h) incentives to implement water-use efficiency techniques, including rebates to customers or others, to encourage the installation of water-use efficiency and reuse measures.
E. The water conservation plan shall contain a section that references the regional water plans in the area that have been accepted by the interstate stream commission. 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 4. Section 6-21-23 NMSA 1978 (being Laws 1992, Chapter 61, Section 23, as amended) is amended to read:
"6-21-23. PROHIBITED ACTIONS.--The authority shall not:
A. lend money or make a grant other than to a qualified entity;
B. purchase securities other than from a qualified entity or other than for investment as provided in the New Mexico Finance Authority Act;
C. lease a public project to any entity other than a qualified entity; except that the authority may lease a public project to any entity following termination of a lease of the public project to a qualified entity if leasing the public project to an entity other than a qualified entity is necessary to avoid forfeiture or impairment of the public project or a default on bonds whose payment is secured, in whole or in part, by the public project or by lease rentals from the public project;
D. deal in securities within the meaning of or subject to any securities law, securities exchange law or securities dealers law of the United States or of the state or of any other state or jurisdiction, domestic or foreign, except as authorized in the New Mexico Finance Authority Act;
E. issue bills of credit or accept deposits of money for time on demand deposit or administer trusts or engage in any form or manner, or in the conduct of, any private or commercial banking business, or act as a savings bank or savings and loan association or any other kind of financial institution except as authorized in the New Mexico Finance Authority Act;
F. engage in any form of private or commercial banking business except as authorized in the New Mexico Finance Authority Act;
G. lend money, issue bonds, including public-private partnership project bonds, or make a grant for the promotion of gaming or a gaming enterprise or for development of infrastructure for a gaming facility; or
H. after December 31, 2005, except in case of an emergency, accept an application for financial assistance from a municipality, county or other covered entity for a water or wastewater project unless it is submitted with a water conservation plan or a water conservation plan is on file with the state engineer in accordance with the provisions of Section 3 of this 2003 act."
Section 5. Section 72-4A-7 NMSA 1978 (being Laws 2001, Chapter 164, Section 7) is amended to read:
"72-4A-7. CONDITIONS FOR GRANTS AND LOANS.--
A. Grants and loans shall be made only to state agencies or to political subdivisions that:
(1) agree to operate and maintain the water project so that it will function properly over the structural and material design life, which shall not be less than twenty years;
(2) require the contractor of the construction project to post a performance and payment bond in accordance with the requirements of Section 13-4-18 NMSA 1978;
(3) provide written assurance signed by an attorney or provide a title insurance policy that the political subdivision has proper title, easements and rights of way to the property upon or through which the water project proposed for funding is to be constructed or extended;
(4) meet the requirements of the financial capability set by the board to ensure sufficient revenues to operate and maintain the water project for its useful life and to repay the loan;
(5) agree to properly maintain financial records and to conduct an audit of the project's financial records;
(6) agree to pay costs of originating grants and loans as determined by rules adopted by the board; and
(7) except in case of an emergency, submit a water conservation plan with its application if required to do so and one is not on file with the state engineer, pursuant to Section 3 of this 2003 act.
B. Plans and specifications for a water project shall be approved by the authority before grant or loan disbursements to pay for construction costs are made to a state agency or political subdivision.
C. Grants and loans shall be made only for eligible items, which include:
(1) to match federal and local cost shares;
(2) engineering feasibility reports;
(3) contracted engineering design;
(4) inspection of construction;
(5) special engineering services;
(6) environmental or archaeological surveys;
(7) construction;
(8) land acquisition;
(9) easements and rights of way; and
(10) legal costs and fiscal agent fees."