Senate committee advances bill to give New Mexico control over more surface-water permits and create cleanup fund

A Senate Finance Committee hearing on legislation to give New Mexico primary authority for most surface-water permitting and to create a fund for neglected and contaminated sites ended with a recommendation to advance the Judiciary substitute for Senate Bill 21 (and related language from SB22). Leader Wirth, sponsor and floor leader for the measure, told the committee the bill would bring permitting decisions now handled by the U.S. Environmental Protection Agency back to the New Mexico Environment Department and create a state program to respond to water pollution and to clean up contaminated sites.

Supporters told the committee they want to restore the status quo that existed before the U.S. Supreme Court's 2023 Sackett decision narrowed the federal Clean Water Act's reach. "We're one of only three states that doesn't do that," Wirth said of asserting primacy; he argued New Mexicans should manage New Mexico waters rather than having decisions made out of EPA offices in Dallas.

The bill would do three principal things, Wirth said: establish state primacy for the Federal Clean Water Act permitting program, address regulatory gaps left by the Sackett decision so that ephemeral or noncontinuously flowing waters can be regulated, and create a neglected-and-contaminated-sites fund to pay for cleanups similar to the federal CERCLA model. Wirth said the substitute also includes language to allow a hybrid funding approach — a mixture of fees and potential general-fund support — rather than relying solely on fees.

Shelly Lemon, surface water quality bureau chief at the Environment Department, told senators the department has already received three appropriations to develop the program: $680,000 in 2022, $600,000 in 2023, and $7,000,000 in 2024 to build permitting and permitting‑database capacity. She said the department estimates a full program buildout will require roughly 50 full‑time employees and about $8 million annually to operate; current base support to participate with EPA and the Army Corps is about $900,000.

Tribal leaders, environmental groups and business owners spoke in support during the public-comment period. Anna Hansen, a registered lobbyist speaking for the Pueblo of Pojoaque, and JD Bullington, speaking for Laguna Pueblo, said the bill would ensure applications that might affect waters flowing onto tribal lands are regulated in-state rather than left without federal oversight. Alexa Tubbs, owner of Open Space Brewing, said clean water is essential to her brewery’s operations and local economies.

Opponents raised concerns about fee authority, administrative penalties and potential cost and delay impacts on construction and agricultural businesses. Matt Thompson of the New Mexico Mining Association warned that removing a statutory limit on fees or penalties could reduce legislative appropriation oversight and permit the department to accumulate large balances without returning to the Legislature for review: "This change would relieve this coequal branch legislative body of some of its main appropriation responsibilities," he said. Terry Cole of the Greater Albuquerque Chamber of Commerce said rapid transfer of primacy and quick staff expansion risked missteps: "Adding 50 employees is a real challenge in today's workforce environment," he said.

Committee members pressed the department and sponsor on multiple practical points: how many sites in the state are known to be contaminated (the department cited inventories of dry‑cleaning and other legacy sites), how fees and penalties will be set (fees would be created by rule and the substitute leaves room for a hybrid fee/general-fund model), how the department will staff the program (the department said recent appropriations and pay adjustments reduced its vacancy rate and helped recruitment), and what enforcement standards will look like in practice. Senators also discussed protections for private property and clarified statutory language: the substitute retains a limitation that entry into a private residence without permission would require a court order.

The committee tested a motion to recommend the substitute for passage. The roll call showed six senators in favor and four opposed; the clerk recorded the recommendation as a do-pass (6–4). The committee discussion and public comments showed broad support among tribal governments and conservation groups and persistent concerns from some business and municipal representatives about fees, penalties and implementation costs. If advanced by Senate Finance, the measure will continue to the full Senate and — if enacted — the Environment Department would later apply to EPA for primacy, a multiyear process that would transfer federal NPDES‑type permitting to state administration.

Votes at a glance: The committee recorded a do‑pass recommendation for the SB21 Judiciary substitute on a 6–4 vote. The record lists yes votes from Senators Campos, Padilla, Steinborn, Trujillo, Shandoh and Muñoz; no votes from Senators Brandt, Lanier, Tobias and Woods.

Ending: The department and sponsor said more work on fee schedules and program design would occur in the interim and during rulemaking if the bill moves forward; senators signaled they expect further fiscal review and stakeholder engagement before the program is implemented.