HB 109

1AN ACT
2  RELATING TO FINANCE; PROVIDING CRITERIA FOR PRIORITIZING
3  WATER PROJECTS PURSUANT TO THE WATER PROJECT FINANCE ACT;
4  ALLOWING THE NEW MEXICO FINANCE AUTHORITY TO FUND WATER
5  PROJECTS FROM THE WATER PROJECT FUND WITHOUT RECEIVING THE
6  APPROVAL OF THE LEGISLATURE UNTIL DECEMBER 31, 2029.
7
8  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
9SECTION 1.    A new section of the Water Project Finance
10 Act is enacted to read:
11      "PROJECT PRIORITIZATION.--
12A.   The board shall prioritize projects based on
13 the following criteria:
14(1)   urgency of need, as identified in a
15 regional water planning area with a completed regional water
16 plan accepted by the interstate stream commission;
17(2)   availability of federal or local
18 matching contributions;
19(3)   project readiness, including the
20 acquisition of required state and federal permits and
21 authorizations;
22(4)   regional impacts;
23(5)   efforts to mitigate or alleviate a
24 project's potential human health and safety concerns;
25(6)   level of planning and design;  HB 109/a
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1(7)   improvement of water quality or
2  quantity; and
3(8)   other goals established for each project
4  type pursuant to the Water Project Finance Act and rules
5  adopted under that act.
6B.    Pursuant to Subsection A of this section, the
7  board shall give higher priority to projects that:
8(1)   have completed planning and design;
9(2)   provide regional impacts;
10(3)   mitigate or alleviate human health and
11 safety concerns; and
12(4)   improve water quality or quantity and
13 advance project-type specific goals established pursuant to
14 the Water Project Finance Act.
15C.    The board shall develop and use a weighted
16 scoring system that incorporates the criteria provided
17 pursuant to Subsection A of this section to evaluate and rank
18 all applications for loans and grants pursuant to the Water
19 Project Finance Act.    A ten-point score increase shall be
20 granted in the event of an emergency situation.
21 Recommendations for expenditure of money from the water
22 project fund shall be based on the scoring and ranking of
23 applications in accordance with this section."
24      SECTION 2.    Section 72-4A-5 NMSA 1978 (being Laws 2001,
25 Chapter 164, Section 5, as amended) is amended to read:  HB 109/a
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1"72-4A-5.    BOARD--DUTIES.--The board shall:
2A.     adopt rules governing terms and conditions of
3  grants or loans recommended by the board for appropriation by
4  the legislature from the water project fund, giving priority
5  to projects pursuant to Section 1 of this 2026 act;
6B.     authorize qualifying water projects to the
7  authority that are for:
8(1)   storage, conveyance or delivery of water
9  to end users;
10(2)   implementation of federal Endangered
11 Species Act of 1973 collaborative programs;
12(3)   wastewater conveyance and treatment;
13(4)   restoration and management of
14 watersheds;
15(5)   flood prevention; or
16(6)   water conservation or recycling,
17 treatment or reuse of water as provided by law; and
18C.     evaluate projects, including their
19 environmental impacts, and recommend projects to the
20 interstate stream commission pursuant to the provisions of
21 Section 72-14-45 NMSA 1978."
22      SECTION 3.    Section 72-4A-6 NMSA 1978 (being Laws 2001,
23 Chapter 164, Section 6, as amended) is amended to read:
24      "72-4A-6.    AUTHORITY--DUTIES.--
25A.     The authority shall:  HB 109/a
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1(1)   provide staff support for the board;
2(2)   develop application procedures and forms
3  for qualifying entities to apply for grants and loans from
4  the water project fund; and
5(3)   make loans or grants to qualifying
6  entities for qualifying water projects pursuant to the Water
7  Project Finance Act; provided that the service area for the
8  project is wholly within the boundaries of the state or the
9  project is an interstate project that directly benefits New
10 Mexico.
11B.     The loans and grants made pursuant to Paragraph
12 (3) of Subsection A of this section shall require legislative
13 authorization on and after December 31, 2029."
14      SECTION 4.    Section 72-4A-9 NMSA 1978 (being Laws 2001,
15 Chapter 164, Section 9, as amended) is amended to read:
16      "72-4A-9.    WATER PROJECT FUND--CREATED--PURPOSE.--
17A.     The "water project fund" is created in the
18 authority and shall consist of distributions made to the fund
19 from the water trust fund and payments of principal of and
20 interest on loans for approved water projects.    The fund
21 shall also consist of any other money appropriated,
22 distributed or otherwise allocated to the fund for the
23 purpose of supporting water projects pursuant to provisions
24 of the Water Project Finance Act.    The fund shall be
25 administered by the authority.    Income from investment of the    HB 109/a
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1  water project fund shall be credited to the fund.    Balances
2  in the fund at the end of any fiscal year shall not revert to
3  the general fund.   The water project fund may consist of such
4  subaccounts as the authority deems necessary to carry out the
5  purposes of the fund.    The authority may establish procedures
6  and adopt rules as required to administer the fund and to
7  recover from the fund costs of administering the fund and
8  originating grants and loans.    Ten percent of all water
9  project funds shall be dedicated to the state engineer for
10 water rights adjudications, and twenty percent of the money
11 dedicated for water rights adjudications shall be allocated
12 to the administrative office of the courts for the courts'
13 costs associated with water rights adjudications; provided
14 that from July 1, 2024 through June 30, 2029, the lesser of
15 four million dollars ($4,000,000) or eight percent of all
16 water project funds shall be dedicated to the state engineer
17 for water rights adjudications and two percent of all water
18 project funds shall be dedicated to the administrative office
19 of the courts for the courts' costs associated with water
20 rights adjudications.
21B.   Money in the water project fund may be used by
22 the authority to:
23(1)     make loans or grants to qualified
24 entities for projects and water rights adjudications pursuant
25 to the requirements of the Water Project Finance Act; and  HB 109/a
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1(2)   hire contractors to provide financial
2  and administrative capacity development and direct technical
3  assistance on water projects.
4C.   The authority is authorized to issue revenue
5  bonds payable from the proceeds of loan repayments made into
6  the water project fund upon a determination by the authority
7  that issuance of the bonds is necessary to replenish the
8  principal balance of the fund.    The net proceeds from the sale
9  of the bonds shall be deposited in the water project fund.
10 The bonds shall be authorized and issued by the authority in
11 accordance with the provisions of the New Mexico Finance
12 Authority Act."  HB 109/a
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