HB 291 ALLOW WATER REUSE REQUIREMENTS

Rep Yanira Gurrola

Actions: [5] HAAWC/HTRC-HAAWC

Scheduled: Not Scheduled

 House Bill 291 (HB 291) allows counties and municipalities to require water harvesting, recycling and reuse. It creates the Water Harvesting Income Tax Credit and standards for the design, construction, installation and inspection of rainwater and storm water catchment systems. HB 291 requires permitting and provides matching funds for rainwater and storm water catchment systems in public buildings and facilities.  

 House Bill 291 (HB 291) creates a new section in Chapter 3 NMSA 1978 that allows counties and municipalities to require water harvesting, recycling and reuse based on rules the state engineer (OSE) promulgates. HB 291 does not apply this section to agricultural water users or agricultural water rights owners.
HB 291 allows certain taxpayers who purchase and install permitted rainwater or storm water catchment systems after 1 January 2024 and before 31 December 2034 in a residence or business in New Mexico owned by that taxpayers to obtain a tax credit of up to twenty percent of the purchase and installation costs of the system or five thousand dollars ($5000) whichever is less. It gives the Taxation and Revenue Department (TRD) authority to allow a maximum annual aggregate of two million dollars ($2,000,000) in water harvesting income tax credits per year. It outlines a process for a taxpayer to obtain this credit. 
HB 291 mandates that the Regulation and Licensing Department (RLD), in consultation with the OSE, to adopt rules establishing procedures, technical specifications, safety, code and standards requirements and lists of eligible components  for certification of water harvesting systems in order to obtain this tax credit. HB 291 requires compilation of an annual report on this water harvesting income tax credit including the aggregate amount of tax credits approved and any other information necessary to evaluate the effectiveness of the tax credit. It defines rainwater or storm water catchment system.
HB 291 mandates that Construction Industries Division (CID), with board approval, adopt rules for standards and certification and then requires the Commission to adopt rules requiring permits and wage standards. The CID will also develop rules for monitoring these systems; report best practices on the CID’s website; and develop a list of entities that meet the CIDs standards for providing certification for these systems’ installations. It defines rainwater and storm water catchment system (dual and separate)
HB 291 provides matching funds for rainwater and storm water catchment systems in public buildings and facilities that the Environmental Improvement Department (EID) will administer. The EID will award these funds after review and approval of applications on a first-come, first-served basis with certain conditions concerning wages and workforce criteria. It defines rainwater or storm water catchment system.
HB 291 states that the income tax credit (Section 2 of this act) applies to taxable years beginning on or after 1 January 2024. 

 There is no authority for a municipality or county to require water harvesting, recycling and reuse in Chapter 3 NMSA 1978 and no tax credit or matching funds for the installation of such systems.