Bill would create separate land-grant and acequia infrastructure funds funded by a 1.1% severance-tax bond set-aside
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Summary
A bill presented to the Water & Natural Resources Committee would set aside 1.1% of severance tax bond capacity for a Land Grant Infrastructure Fund and 1.1% for an Acequia Infrastructure Fund (estimated ~$19M each), with vetting by the Land Grant Council and the Interstate Stream Commission.
Representative Miguel Garcia described proposed legislation to establish two infrastructure funds: a Land Grant Infrastructure Fund and an Acequia (acequia) Infrastructure Fund. Garcia said each fund would receive a 1.1% set-aside of severance tax bond capacity (estimated at about $19 million apiece under current estimates) and be placed among capital-project allocations administered through the state’s existing bonding cycle.
Paula Garcia, executive director of the New Mexico Acequia Association, told the committee the Acequia construction program administered by the Interstate Stream Commission uses two funding cycles (engineering design, then construction), has technical ranking by agency staff and achieves high completion rates; she said recurring, programmatic funding would reduce piecemeal work and address tens of millions in unmet acequia needs across 23 counties.
Arturo Archuleta, director of the New Mexico Land Grant Council, outlined eligible land-grant projects that the fund would support: community multipurpose centers, volunteer fire stations, cultural and historic facilities, renewable-energy retrofits, water and wastewater systems, roads and equipment yards, cemeteries and economic development projects. Archuleta said 28 land grants are political subdivisions and currently lack a single recurring capital source for full projects.
Committee members asked about selection, procurement, trust-fund mechanics and the five-year reversion clause the bill would include to demonstrate performance. Agency witnesses said selection would build on existing Interstate Stream Commission guidelines for acequias and would require new promulgated rules for the Land Grant Council to rank and award projects. The presenters said the severance tax set-aside would fund immediate projects and a separate trust vehicle could be seeded for longer-term continuity once severance-tax revenue declines.
The committee engaged in technical questions about program design, procurement, and how the bill interacts with existing tribal and housing infrastructure allocations. No vote was taken; sponsors and agency staff will provide additional drafting and fiscal detail to the committee.
