N.M. Admin. Code § 3.29.13.11

Current through Register Vol. 35, No. 23, December 10, 2024

Section 3.29.13.11 - APPLICATION OF FEE - USE OF WATER NOT DETERMINATIVE

A. The water conservation fee applies solely to the production of water by a public water supply system.

B. Example 1: Z is an individual who owns and lives alone in a single family residence. Water for the residence is supplied by a well. The well is used by no one else. Although Z extracts water, Z is not a public water supply system, owes no water conservation fee and need not file a water conservation fee return.

C. The use to which water produced by a public water supply system is put has no bearing on the application of the water conservation fee. The fee applies to all water produced by the public water supply system. Section 74-1-13 NMSA 1978 provides no exemptions or deductions of water produced.

D. Example 2: P, a New Mexico municipality, operates a public water supply system, which includes a plant to render the water potable. P extracts water from ground and surface sources which is then piped to the plant. Prior to arrival at the plant, some of the water is diverted for watering vegetation, street cleaning and fire-fighting. P also uses untreated water to flush the system's pipes; the flushed water is discharged into the environment. The remaining water is made potable. Most of the potable water is distributed to businesses and residences for their consumption. Some is used to fill the municipal swimming pool.

(1) P argues that the water conservation fee is intended to provide funds for the testing of water for consumption by humans. Therefore the fee should apply only to water distributed to its businesses and residences for consumption. Water used for other purposes is not subject to the fee.

(2) Regardless of the intended use of the revenues generated by the water conservation fee, Section 74-1-13 NMSA 1978 clearly imposes the fee on the production of water by a public water supply system. Imposition is not conditioned on use of the water. The water conservation fee applies to the total amount of water extracted by P from the subsurface and surface sources.

N.M. Admin. Code § 3.29.13.11

10/15/93, 4/15/97; 3.29.13.11 NMAC - Rn, 3 NMAC 29.13.11, 11/15/01