New
Mexico Register / Volume XXXVII, Issue 16 / August 25, 2026
This is an amendment to 19.25.10
NMAC, Sections 6, 7, 8, 9, 11, and 14, effective 8/25/2026.
19.25.10.6 OBJECTIVES:
A. Section 72-4A-5, NMSA 1978 provides
that the New Mexico water trust board is required to adopt rules governing
terms and conditions of grants and loans recommended by the board for
appropriation by the state legislature from the water project fund giving
priority to projects [that have urgent needs, that have been identified for
implementation of a completed regional water plan that is accepted by the
interstate stream commission and that have matching contributions from federal
or local funding sources] pursuant to the Water Project Finance Act;
and authorizes 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; (3) wastewater conveyance and treatment;
(4) restoration and management of watersheds; (5) flood prevention; and (6)
water conservation or recycling, treatment or reuse of water as provided by
law. [Additionally, the board shall create a drought strike team to
coordinate responses to emergency water shortages caused by drought conditions.] Section 72-4A-9, NMSA 1978, creates the
“water project fund” within the New Mexico finance authority.
B. [Section
72-4A-5, NMSA 1978, provides that the board shall give priority to qualifying water
projects that (1) have been identified by the board as being urgent to address
public health and safety issues; (2) have matching contributions from federal
or local funding sources available and (3) have obtained all requisite state
and federal permits and authorizations necessary to initiate the qualifying
water project.] The purpose of these rules is to set forth the intent of
the board and to outline, in general terms, the criteria and procedures to be
used in evaluating and funding qualifying water projects.
C. Section 72-4A-5,
NMSA 1978, provides that the board shall evaluate projects, including their
environmental impacts, and recommend projects to the interstate stream
commission pursuant to the provisions of Section 72-14-45, NMSA 1978.
D. Section 72-4A-6, NMSA 1978, provides that the authority
shall provide staff support for the water trust board, develop
application procedures and forms for qualifying entities to apply for grants
and loans from the water project fund; and make loans or grants to qualifying
entities for qualifying water projects [authorized by the state legislature]
pursuant to the Water Project Finance Act, provided that the service
area for the project is wholly within the boundaries of the state or the
project is an interstate project that directly benefits New Mexico.
E. Section 72-4A-6 provides that the loan and grants made
pursuant to Paragraph (3) of Subsection A of Section 72-4A-6 NMSA 1978 shall require
legislative authorization on and after December 31, 2029.
[E.] F. Section 72-4A-9, NMSA 1978, provides that the authority may [adopt
separate] establish procedures and adopt rules for
administration of the water project fund and recover from the water project
fund costs of administering the water project fund and originating grants and
loans.
[19.25.10.6 NMAC - Rp,
19.25.10.6 NMAC, 7/31/2008; A, 4/22/2025; A, 8/25/2026]
19.25.10.7 DEFINITIONS:
A. “Act”
means the Water Project Finance Act, Sections 72-4A-1 through 72-4A-10, NMSA
1978, as the same may be amended and supplemented.
B. “Agreement”
means the document or documents signed by the board and a qualifying entity
which specify the terms and conditions of obtaining financial assistance from
the water project fund.
C. “Applicant”
means a qualifying entity which has filed a water project proposal with the
authority for initial review and referral to the board’s project review
committee.
D. “Authority”
means the New Mexico finance authority.
E. “Authorized
representative” means one or more individuals duly authorized to act on
behalf of the qualifying entity in connection with its financial application,
water project proposal or agreement.
F. “Board”
means the New Mexico water trust board created by the act.
G. “Bylaws”
means the bylaws of the board adopted on September 25, 2001, and amended on
June 27, 2007, and as may be further amended and supplemented.
H. “Financial
application” means a written document filed with the authority by an
applicant for the purpose of evaluating the applicant’s qualifications for
types of financial assistance which may be provided by the board.
I. “Financial
assistance” means loans, grants and any other type of assistance authorized
by the act, or a combination thereof, provided from the water project fund to a
qualified entity for the financing of a qualifying water project.
J. “Policy committee”
means a standing committee, appointed by the [chairman] chair of
the board from the members of the board pursuant to the bylaws to review
policies and policy related matters and make recommendations to the full board.
K. “Political
subdivision” means a municipality, county, land grant-merced
controlled and governed pursuant to Section 49-1-1 through 49-1-18 or 49-4-1
through 49-4-21 NMSA 1978, regional or local public water utility authority
created by statute, irrigation district, conservancy district, special district,
acequia or soil and water conservation district, water and sanitation district,
or an association organized and existing pursuant to the Sanitary Projects Act,
Chapter 3, Article 29 NMSA 1978.
L. “Project review
committee” means a standing committee, appointed by the [chairman]chair
of the board from the members of the board pursuant to the bylaws to review
water projects to be recommended for funding from the water project fund.
M. “Qualifying entity” means a state agency,
a political subdivision of the state, an intercommunity water or natural gas
supply association or corporation organized under Chapter 3, Article 28 NMSA
1978, a recognized Indian nation, tribe or pueblo, the boundaries of which are
located wholly or partially in New Mexico or an association of such entities
created pursuant to the Joint Powers Agreement Act, Chapter 11, Article 1 NMSA
1978 or other authorizing legislation for the exercise of their common powers.
N. “Qualifying water project” means a
project recommended by the board for funding by the legislature which includes
a water project serving an area wholly within the boundaries of the state for
(1) storage, conveyance or delivery of water to end users; (2) implementation
of federal Endangered Species Act of 1973 collaborative programs; (3)
wastewater conveyance and treatment; (4) restoration and management of
watersheds; (5) flood prevention; or (6) conservation, recycling, treatment or
reuse of water as provided by law[ and which has been approved by the state
legislature pursuant to Subsection B of Section 72-4A-9, NMSA 1978].
O. “State” means the
state of New Mexico.
P. “State agency”
means any agency or institution of the state.
Q. “Water project
account” means a fund designated by a qualifying entity exclusively for
receipt of financial assistance.
R. “Water project fund”
means the fund of that name created in the authority by Section 72-4A-9, NMSA
1978.
S. “Water project
proposal” means a written proposal submitted by a qualifying entity for
review by the project review committee.
T. “Water trust fund”
means the fund of that name created in the state treasury by Section 72-4A-8,
NMSA 1978.
[19.25.10.7 NMAC - Rp,
19.25.10.7 NMAC, 7/31/2008; A, 12/30/2013; A, 4/22/2025; A, 8/25/2026]]
19.25.10.8 ELIGIBILITY:
PRIORITIZATION OF WATER PROJECTS: The
board will develop and consider a variety of factors in reviewing and evaluating
water project proposals to determine which water projects to recommend as
qualifying water projects for appropriation by the state legislature. [The
board shall give priority to projects that have urgent needs and that have
matching contributions from federal or local sources as provided for in Section
72-4A-5 NMSA 1978.] Pursuant to
Section 72-4A-5.1 NMSA 1978, the board, in conformance with the state water
plan and pursuant to the provisions of the Water Project Finance Act, shall
prioritize the planning and financing of water projects required to implement
the plan. The board shall identify opportunities to leverage federal and other
funding. The board shall establish policies for prioritization of water projects.
[19.25.10.8 NMAC - Rp,
19.25.10.8 NMAC, 7/31/2008; A, 12/30/2013; A, 4/30/2015; A, 4/22/2025; A,
8/25/2026]
19.25.10.9 WATER
PROJECT PROPOSAL, PROCEDURES AND APPROVAL PROCESS:
A. The authority will administer an outreach
program to notify qualifying entities that water project proposals are being
accepted to identify water projects for review by the project review committee
and the board [for recommendation for funding to the state legislature as
qualifying water projects].
B. The authority
will provide forms and guidelines for water project proposals and financial
applications.
C. The authority staff will forward all
completed water project proposals from qualified applicants for qualified water
projects to the project review committee.
The project review committee will consider the water project and may
confer with outside parties, including any local interdisciplinary teams
familiar with the water project, as necessary to obtain more information on the
feasibility, merit, and cost of the water project. The project review committee will make a
recommendation to the board on each water project proposal.
D. Upon the recommendation of the project
review committee, the board will evaluate the qualifying water projects [for
recommendation to the legislature.
E. After completion of the review
process by the project review committee and the board and receipt of a
favorable recommendation on the water project proposal, the water project will
be recommended by the board for approval by the state legislature, which recommendation
and approval are required by Sections 72-4A-5 and 72-4A-9 NMSA 1978.
F. No later than January of each year, the
board will recommend to the legislature a list of projects recommended for
funding. After the legislature authorizes qualifying water projects, the
project review committee will review evaluations of financial applications and
water project proposals prepared by staff and recommend to the board a final
list of projects to be authorized by the board] for funding by the
authority. The authority will provide financial assistance for qualifying
projects [as authorized by the legislature] under policies jointly
established by the board and authority.
[19.25.10.9 NMAC - Rp,
19.25.10.9 NMAC, 7/31/2008; A, 12/30/2013; A, 4/30/2015; A, 8/25/2026]]
19.25.10.11 QUALIFYING
WATER PROJECTS AND ELIGIBLE COSTS:
A. The board may authorize the authority
to provide financial assistance from the water project fund to qualifying
entities only for qualifying water projects as provided by Section 72-4A-6 and
Section 72-4A-7, NMSA 1978.
B. Financial
assistance shall be made only to qualify entities that:
(1) agree
to provide for the operation and maintenance of the water project so that it
will function properly over the structural and material design life;
(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 authority 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 in accordance with all applicable laws;
and
(6) agree
to pay costs of originating grants and loans as determined by rules adopted by
the authority.
C. Plans and
specifications for a water project shall be approved by the authority after
review and upon the recommendation of the state engineer and the environment
department before grant or loan disbursements to pay for construction costs are
made to a qualifying entity. Plans and
specifications for a water project shall incorporate available technologies and
operational design for water efficiency.
D. Financial
assistance shall be made for eligible items, which include:
(1) matching
requirements for federal and local cost shares;
(2) engineering
feasibility reports;
(3) contracted
engineering design;
(4) inspection
of construction;
(5) special
engineering services;
(6) environmental
or archeological surveys;
(7) construction;
(8) land
acquisition;
(9) easements
and rights of way; and
(10) legal
costs.
E. A qualified
entity [which has had financial assistance approved by the state legislature
for financing a qualifying water project] may apply to the board to redirect
the financial assistance to a different water project made necessary by
unanticipated events. The decision to
redirect the financial assistance to a different qualifying water project will
be at the sole discretion of the board [and subject to approval of the state
legislature as required by Subsection B of Section 72-4A-9, NMSA 1978].
[19.25.10.11 NMAC -
Rp, 19.25.10.11 NMAC, 7/31/2008; A, 5/28/2010; A, 4/22/2025; A, 8/25/2026]
19.25.10.14 RECONSIDERATION OF BOARD DECISIONS: Any applicant or qualifying
entity may request reconsideration of a decision of the board by notifying the
board in writing within 15 days following the meeting at which the decision was
made. Notice of a decision made in an open meeting of the board is deemed to be
given on the date of the meeting, and the time for notification of a request
for reconsideration shall run from that date, regardless whether any written
notice of the decision is given by the board.
A request for reconsideration shall state with particularity the grounds
for reconsideration, including any factual or legal matter on which the
applicant or qualifying entity believes that there was an error by the board.
Upon receiving a timely and proper request for reconsideration, the [chairman]
chair of the board will set the matter for reconsideration at the
board’s next regularly scheduled meeting or at a special meeting called for the
purpose, at the [chairman] chair’s discretion, Upon reconsideration
by the board, the board will notify the applicant or qualifying entity of the
board’s decision, in writing, within five working days of the decision. The decision of the board on reconsideration
is final. A request for reconsideration not timely or properly made
will not be considered by the board.
[19.25.10.14 NMAC -
Rp, 19.25.10.14 NMAC, 7/31/2008; A, 5/28/2010; A, 8/25/2026]