New Mexico enacts updated water penalties and funds $522 million in projects

Gov. Michelle Lujan Grisham signed HB111, raising the maximum penalty for water code violations to $3,400 per day (effective May 20), and approved HB63, which puts about $522 million in loans for 113 local and tribal water projects into law (effective March 5).

Gov. Michelle Lujan Grisham signed two bills that update New Mexico's water enforcement and fund local water projects. One law raises penalties for water code violations and expands enforcement powers. The other authorizes loans for dozens of local and tribal water systems. Lawmakers and state officials framed the changes as modernizing rules that had not been fully updated in decades. Key developments: - House Bill 111 raises the maximum penalty for water code violations to $3,400 per day, up from a $100 per day penalty set in 1907. - HB111 gives the New Mexico Office of the State Engineer greater authority to deter illegal well-drilling, which the agency reports has risen to about 40–50 cases a year. - Rep. Kristina Ortez and State Engineer Elizabeth Anderson are quoted as supporting the bill as a modernization of enforcement; the law is set to take effect May 20. - House Bill 63 authorizes the Department of Finance and Administration to provide low- or no-interest loans from the Water Project Fund, subject to required approvals. - The Legislature approved a list of 113 projects across 75 local and tribal water systems, with an estimated cost of about $522 million. - Examples of approved projects include flood prevention work in Sunland Park and drinking water upgrades in Ruidoso; HB63 included an emergency clause and went into effect on March 5. Summary: The laws update long-standing fee and enforcement rules while enabling a large set of funded water projects. HB111 becomes effective May 20 and expands enforcement tools; HB63 is already in effect and establishes loan authority and an approved project list, with funding disbursement to follow the statutory approval process.