Middle Rio Grande Regional Water Plan

3. Allow for the declaration of domestic well management areas when hydrologic conditions
require added protections to prevent impairment to valid, existing surface water rights. In
such areas, the maximum diversion from a new domestic well cannot exceed, and may be
less than, 0.25 ac-ft/yr for a single household and up to 3.0 ac-ft/yr for a multiple household
well, with each household limited to 0.25 ac-ft/yr. The State Engineer has not declared any
domestic well management areas in the planning region.
4.1.1.8 Water Project Financing
The Water Project Finance Act, Chapter 72, Article 4A NMSA 1978, outlines different
mechanisms for funding water projects in water planning regions. The purpose of the Act is to
provide for water use efficiency, resource conservation, and the protection, fair distribution, and
allocation of New Mexico’s scarce water resources for beneficial purposes of use within the
state. The Water Project Finance Act creates two funds: the Water Project Fund, NMSA 1978,
Section 72-4A-9 (2005), and the Acequia Project Fund, NMSA 1978, Section 72-4A-9.1 (2004).
Both funds are administered by the New Mexico Finance Authority. The Water Trust Board
recommends projects to the Legislature to be funded from the Water Project Fund.
The Water Project Fund may be used to make loans or grants to qualified entities (broadly
defined to include public entities and Indian tribes and pueblos). To qualify for funding, the
project must be approved by the Water Trust Board for one of the following purposes:
(1) storage, conveyance or delivery of water to end users, (2) implementation of federal
Endangered Species Act of 1973 collaborative programs, (3) restoration and management of
watersheds, (4) flood prevention, or (5) water conservation or recycling, treatment, or reuse of
water as provided by law. NMSA 1978, § 72-4A-5(B) (2011). The Water Trust Board must give
priority to projects that (1) have been identified as being urgent to meet the needs of a regional
water planning area that has a completed regional water plan accepted by the NMISC, (2) have
matching contributions from federal or local funding sources, and (3) have obtained all requisite
state and federal permits and authorizations necessary to initiate the project. NMSA 1978,
§ 72-4A-5.
The Acequia Project Fund may be used to make grants to acequias for any project approved by
the Legislature.
The Water Project Finance Act directed the Water Trust Board to adopt regulations governing
the terms and conditions of grants and loans recommended by the Board for appropriation by the
Legislature from the Water Project Fund. The Board promulgated implementing regulations,
19.25.10.1 et seq. NMAC, in 2008. The regulations set forth the procedures to be followed by
the Board and New Mexico Finance Authority for identifying projects to recommend to the
Legislature for funding. The regulations also require that financial assistance be made only to
entities that agree to certain conditions set forth in the regulations.
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