Summary:

 House Bill 581 (HB 581) requires the Department of Environment and local agencies to complete all inspections on existing sources owned or operated by permit applicants before
the issuance of operating or construction permits for new or modified sources to such applicants. It establishes a periodic inspection program in 2025 that shall use the best available technology and requires the Department and local agencies to increase permitting fees to implement the inspection program. It requires the Department to report to the legislature in 2026 and 2027 regarding the inspection program. 

 

Legislation Overview:

 House Bill 581 (HB 581) modifies Section 74-2-7 NMSA 1978 of the Air Quality Control Act to include regulations adopted by the Environmental Improvement Board (EIB) or the local board that prevent violation relating to the venting and flaring of natural gas by oil and gas facilities under the Oil and Gas Act (OGA) through minimum mandatory documentation. It requires the implementation of procedures showing that each of the other facilities are in compliance with all state and federal emissions standards for current and prior inspection periods, if such compliance is a condition precedent to the application, before the permit is issued. 
HB 581 allows the applicant to request accelerated permit processing if the applicant submits proof of compliance that the NMED or local agency accepts. HB 581 directs the NMED or the local agency to deny permits because of lack of compliance relating to the venting and flaring of natural gas by oil and gas facilities under the OGA and to establish conditions on the permit that will result in the most stringent level of performance that is the most protective of health and safety. It adds that the issuance of a permit does not relieve a person of the responsibility of complying with the applicable portions of the OGA 
581 requires the Department of Environment (NMED) and local agencies to complete all inspections on existing sources owned or operated by permit applicants within six months of the application, if the applicant is unable to produce acceptable proof of compliance with emission standards.  HB 581 requires the NMED or the local agency to notify the applicant of all inspections pursuant to this process and to determine the application is complete before it begins the evaluation process for the new source. If the NMED or local agency determines that the application is not in compliance with applicable standards, it will issue a final action denying the permit. It requires the NMED or local agency to only give notification of a final action in a permitting action.  A person participating in the permitting process may only petition for a hearing in front of the EIB or local board after receipt of the final department/agency action.
HB 581 allows for an additional extension of six months for processing permit applications under certain circumstances whether the applicant's facilities are subject to the prevention requirements or not.
It requires the Department and local agencies to increase permitting fees to implement the inspection program required by Section 74-2-13 NMSA 1978.
HB 581 requires the NMED through a joint powers agreement with the Energy, Mineral and natural Resources Department (EMNRD) and local agencies to establish a periodic inspection program through regulations beginning on later than November 2025. It mandates that the inspections will be without prior notice every two years at all sources holding construction and operating permits; that the departments or agencies will use the  best available technology to ensure compliance; and that permitting fees paid by the owners or operators of the permitted sources will fund the inspections.
HB 581directs the NMED to report to the legislature in 2026 and 2027 on the status of the periodic inspections specifying the minimum information to be included. It gives the secretary, director or an authorized representative, upon presentation of appropriate credentials, the right of entry to permitted premises, access to copy all records at reasonable times; and certain rights of inspection and sampling of emissions.