SANTA FE — Legislation establishing the New Mexico Strategic Water Supply passed the Senate last night and now heads to the governor’s desk for her signature.

The bill’s final passage marks a milestone in the implementation of Gov. Michelle Lujan Grisham’s 50-Year Water Action Plan that aims to ensure the long-term sustainability of New Mexico’s freshwater resources.

House Bill 137 establishes the Strategic Water Supply program to conserve New Mexico’s limited freshwater resources by promoting the treatment and use of brackish water—naturally occurring underground salty water. By utilizing this largely untapped water supply for manufacturing and clean energy development, the bill supports economic growth while preserving water supplies for other uses.

“The Strategic Water Supply is essential to protecting our most precious natural resource, strengthening our rapidly growing economy, and ensuring that future generations have safe, fresh water supplies,” said Gov. Lujan Grisham. “I look forward to signing House Bill 137 and putting more of our state’s vast brackish water resources to use as soon as possible.”

“This legislation will provide every community with access to a stable freshwater supply at a lower cost,” said senate bill sponsor Sen. George K. Muñoz. “It’s a win-win proposition.”

“The House worked extremely hard on this bill so we could increase statewide water resources while ensuring a rigorous public disclosure and protest process,” said Rep. Susan K. Herrera, bill sponsor. “This bill has been carefully vetted and changed during the legislative process, and it sets another path to secure our water resources in New Mexico.”

The bill also creates the Strategic Water Supply Program Fund, enabling the Environment Department and Office of the State Engineer to award grants and contracts for projects that drive economic development while safeguarding freshwater supplies. The Economic Development Department will also collaborate on the program.

The initiative aims to encourage community utilities, private companies, and other entities to develop projects that make treated brackish water suitable for local needs, preserving freshwater for households, agriculture, livestock, and natural ecosystems.