Summary:

 House Bill 240 (HB 240) allows the New Mexico Finance Authority to provide grants for the construction or rehabilitation of drinking water facilities and requires the New Mexico Finance Authority, in cooperation with the Department of Environment, to provide annual reports on the Drinking Water State Revolving Loan Fund. It redistributes duties held between the New Mexico Finance Authority and the Department of Environment and extends repayment period requirements for loans made pursuant to the Drinking Water State Revolving Loan Fund Act. HB 240 renews the authority of the New Mexico Finance Authority to transfer up to one-third of certain grants to the Drinking Water State Revolving Loan Fund and to the Wastewater Facility Construction Loan Fund. 

 

Legislation Overview:

 House Bill 240 (HB 240) expands the New Mexico Finance Authority’s powers in (Section 6-21A-4 NMSA 1978) to allow the NMFA to provide grants for the construction or rehabilitation of drinking water facilities.
It clarifies in the definition section of the Drinking Water State Revolving Loan Fund Act that the Safe Drinking Water Act is the federal law (Section 6-21A-3 NMSA 1978). It conforms the section on the Fund’s creation and administration to reference the federal Safe Drinking Water Act. HB 240 requires an annual report to the governor and to the US Environmental Protection Agency (EPA). It transfers the duty to prepare and submit applications for federal capitalization grants to the US EPA in Section 6-21A-5 NMSA 1978 to the NMFA. It makes technical changes.
HB 240 extends the starting and ending dates for the repayment period for a loan from the Drinking Water State Revolving Loan Fund Act to a start date for repayments beginning eighteen months after completion of the approved construction and ending thirty years later. It limits the NMFA’s authority to extend a loan term from the Fund beyond what is stated to those for disadvantaged communities that meet certain criteria. It also makes technical changes to Section 6-21A-6 NMSA 1978.
HB 240 removes the expiration on the authority of the NMED to transfer up to one-third of certain grants from the Wastewater Facility Construction Loan Fund to the Drinking Water State Revolving Loan Fund (Section 6-21A-7 NMSA 1978 ) and the expiration of the authority of the NMFA to transfer up to one-third of certain grants from the Drinking Water State Revolving Loan Fund to the Wastewater Facility Construction Loan Fund (Section 6-21A-8 NMSA 1978). 

 

Current Law:

 Section 6-21A-4 NMSA 1978) only allows the NMFA to provide loans for the construction or rehabilitation of drinking water facilities.
The NMED prepares and submits applications for federal capitalization grants to the US EPA in Section 6-21A-5 NMSA 1978.  There are time limits on the capacity of the NMFA or the NMED to make transfers of certain grant funds between the Drinking Water State Revolving Loan Fund and the Wastewater Facility Construction Loan Fund. (Sections 6-21A-7 and 6-21A-8 NMSA 1978).