- House Bill 207 would require new rules for using treated oilfield wastewater.
- Regulators would be directed to approve permitted uses by the end of 2026.
- Proposed uses range from industrial activity to crop irrigation and road work.
- Supporters point to water shortages and economic development needs.
- Opponents cite unresolved health, safety, and scientific concerns.
Tuesday, February 3, 2026 — During the 2026 Regular Session, New Mexico lawmakers introduced House Bill 207
, a proposal that would require the Water Quality Control Commission to adopt rules allowing specified uses of treated produced water. Produced water is a wastewater byproduct generated during oil and gas drilling and production.
The bill directs the commission to establish a permitting framework by December 31, 2026. Those permits would apply to uses unrelated to oil and gas extraction and would represent a significant change in how this type of wastewater is regulated in New Mexico.
Uses Listed in the Legislation.
House Bill 207Â outlines a wide range of potential uses for treated produced water. These include industrial operations, hydrogen production, closed-loop geothermal projects, and use as mixing water in concrete. The bill also allows for land applications, road construction and maintenance, roadway ice and dust control, irrigation of industrial crops, ecological restoration, and discharge into surface water or groundwater, subject to future rules.
The legislation also requires the creation of permits for pilot projects intended to evaluate treatment technologies. Supporters describe these provisions as a way to supplement water supplies for industry and infrastructure in an increasingly water-scarce state.
Legislative Status.
Legislative records show that House Bill 207 was not printed on January 28, 2026, and was later withdrawn and ordered printed on January 30, 2026. On that date, it was referred to the House Agriculture, Acequias and Water Resources Committee, with a secondary referral to the House Government, Elections and Indian Affairs Committee.
Governor Michelle Lujan Grisham issued a legislative message in late January 2026 allowing the bill to be considered during the 30-day session after it was initially ruled non-germane.
Opposition from Environmental and Public Health Advocates.
Environmental organizations and public interest groups have voiced strong opposition to House Bill 207. In a statement issued on February 2, 2026, the Western Environmental Law Center argued that the bill would require regulators to authorize reuse and discharge of oilfield wastewater before key scientific questions are resolved.
Opponents point to a rule adopted in May 2025 by the Water Quality Control Commission following an 18-month proceeding led by the New Mexico Environment Department. That rule prohibited discharge of treated or untreated produced water into rivers, streams, and groundwater for five years, citing insufficient evidence that existing treatment technologies can reliably remove all harmful contaminants at scale.
Critics also note that produced water can contain more than one thousand potential contaminants and that New Mexico lacks surface water quality standards for many of those substances. Additional concerns include the energy demands and greenhouse gas emissions associated with large-scale treatment, as well as the possibility of shifting pollution from one part of the environment to another.
Environmental advocates emphasize that current rules already allow non-discharging pilot projects to move forward while research continues. They argue that House Bill 207 would replace that science-based approach with a deadline-driven mandate.
What Comes Next.
If enacted, House Bill 207 would mark a major shift in state water quality policy related to oil and gas wastewater. The bill would expand the role of the Water Quality Control Commission and could influence future decisions about water reuse, industrial development, and environmental protection in arid regions.
The proposal is expected to remain a focal point for debate among lawmakers, industry groups, environmental organizations, and communities concerned about water quality as the 2026 session continues.
Q&A
What is produced water?
Produced water is wastewater generated during oil and gas drilling and production. It often contains salts, chemicals, hydrocarbons, and other contaminants.
What would House Bill 207 require regulators to do?
The bill would require the Water Quality Control Commission to adopt rules allowing specific uses and discharges of treated produced water by December 31, 2026.
Does the bill allow discharge into rivers or groundwater?
Yes. Discharge into surface water or groundwater is listed among the potential uses, subject to rules and permits adopted by the commission.
Why are some groups opposing the bill?
Opponents argue there is not enough scientific evidence to show that produced water can be treated safely at large scales and point to existing rules that prioritize research over discharge.
What is the bill’s current status?
As of February 3, 2026, House Bill 207 is assigned to the House Agriculture, Acequias and Water Resources Committee for consideration.
