The House Energy, Environment & Natural Resources Committee tabled House Bill 581 on March 1. The measure would have required the New Mexico Environment Department (NMED) and local permitting agencies to complete inspections of all existing sources owned or operated by a permit applicant before issuing new or modified construction or operating air permits.

Sponsor Representative Miguel Roybal Caballero said HB 581 is intended to close “important regulatory gaps” and to give NMED the statutory authority to require compliance with oil-and-gas venting and flaring standards before issuing new air permits. Attorney Jane Yee, who assisted the sponsor, said the measure “creates an incentive for oil and gas companies to be good corporate citizens” and would enable NMED to recommend fee adjustments to fund inspections.

Industry witnesses said the proposal would create substantial permitting delays and administrative burden. Ashley Wagner for the New Mexico Oil and Gas Association told the committee the bill “will increase denials and delays in permits, decrease money to the state's budget, and increase burdens on NMED.” Mike Miller of the Permian Basin Petroleum Association said the requirement that all existing sources be inspected before new permits are issued “could result in significant permitting delays, disrupting planned projects, limiting investment in New Mexico's energy sector, and ultimately hindering job growth.”

Supporters, including community groups and environmental organizations, argued the NMED–EPA joint inspections in 2024 showed widespread noncompliance and that a statutory mechanism is needed to ensure compliance and protect public health. Kathleen Mosley, a retired community health nurse, cited a backlog in inspections she said the department has acknowledged and urged support. Colin Cox of the Center for Biological Diversity said data showed “70% of facilities are violating air quality laws and regulations” and that HB 581 would “ensure that we don't reward bad actors with more permits.”

Committee members questioned whether the bill would apply broadly to many permittees beyond oil and gas, how NMED would fund expanded inspections if the Environmental Improvement Board did not adopt fee increases, and whether the bill duplicated Oil Conservation Division authority over venting and flaring. The sponsor and proponents said the measure was intended to be incremental, to focus on major emitters and to create a pathway for NMED and the Environmental Improvement Board to align fees and capacity with a larger inspection program.

The committee took a substitute motion to table HB 581; the chair announced the motion passed by roll call. The chair said the bill was tabled.

Votes at a glance: the committee announced the substitute motion to table passed 6–3.

What’s next: Tabling ended formal consideration at this meeting; sponsors and staff signaled continued discussions with NMED and stakeholders about inspection capacity and fee structures.

Reporting note: Direct quotations and committee procedural language are taken from the March 1 public hearing before the House Energy, Environment & Natural Resources Committee.