RELATING TO WATER; AMENDING THE WATER PROJECT FINANCE ACT TO EXPAND THE SCOPE OF PERMITTED PROJECTS TO INCLUDE WATER CONSERVATION MEASURES; ALLOWING INDIAN NATIONS, TRIBES AND PUEBLOS TO RECEIVE DIRECT FINANCIAL ASSISTANCE FROM THE WATER TRUST BOARD; DECLARING AN EMERGENCY.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
Section 1. Section 72-4A-2 NMSA 1978 (being Laws 2001, Chapter 164, Section 2) is amended to read:
"72-4A-2. FINDINGS AND PURPOSE.--
A. The legislature finds that:
(1) New Mexico is in a desert where water is a scarce resource;
(2) the economy depends on reasonable and fair allocation of water for all purposes;
(3) the public welfare depends on efficient use and conservation of water;
(4) New Mexico must comply with its delivery obligations under interstate compacts; and
(5) public confidence and support for water use efficiency and conservation is based on a reasonable balance of investments in water infrastructure and management.
B. The purpose of the Water Project Finance Act is to provide for water use efficiency, resource conservation and protection and fair distribution and allocation of New Mexico's scarce water resources for beneficial purposes of use within the state."
Section 2. Section 72-4A-3 NMSA 1978 (being Laws 2001, Chapter 164, Section 3) is amended to read:
"72-4A-3. DEFINITIONS.--As used in the Water Project Finance Act:
A. "authority" means the New Mexico finance authority;
B. "board" means the water trust board;
C. "political subdivision" means a municipality, county, irrigation district, conservancy district, special district, acequia, soil and water conservation district, water and sanitation district or an association organized and existing pursuant to the Sanitary Projects Act;
D. "qualifying water project" means a project recommended by the board for funding by the legislature; and
E. "qualifying entity" means a state agency,
a political subdivision of the state or a recognized Indian nation, tribe or pueblo, the boundaries of which are located wholly or partially in New Mexico."
Section 3. Section 72-4A-5 NMSA 1978 (being Laws 2001, Chapter 164, Section 5) is amended to read:
"72-4A-5. BOARD--DUTIES.--The board shall:
A. adopt rules governing terms and conditions of grants or loans recommended by the board for appropriation by the legislature from the water project fund, giving priority to projects identified as being urgent to meet the needs of a regional water planning area that has had a completed regional water plan accepted by the interstate stream commission and that have matching contributions from federal or local funding sources available, and that has obtained all requisite state and federal permits and authorizations necessary to initiate the project; and
B. authorize qualifying water projects to the authority that are for:
(1) storage, conveyance or delivery of water to end users;
(2) implementation of federal Endangered Species Act of 1973 collaborative programs;
(3) restoration and management of watersheds;
(4) flood prevention; or
(5) conservation, recycling, treatment or reuse of water as provided by law."
Section 4. Section 72-4A-6 NMSA 1978 (being Laws 2001, Chapter 164, Section 6) is amended to read:
"72-4A-6. AUTHORITY--DUTIES.--The authority shall:
A. provide staff support for the board;
B. develop application procedures and forms for qualifying entities to apply for grants and loans from the water project fund; and
C. make loans or grants to qualifying entities for qualifying water projects authorized by the legislature, provided that the service area for the project is wholly within the boundaries of the state."
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 qualifying entities 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 qualifying entity 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; and
(6) agree to pay costs of originating grants and loans as determined by rules adopted by the board.
B. Plans and specifications for a water project shall be approved by the authority, after review and upon the recommendation of the state engineer and department of environment, before grant or loan disbursements to pay for construction costs are made to a qualifying entity.
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."
Section 6. EMERGENCY.--It is necessary for the public peace, health and safety that this act take effect immediately.