Governor Michelle Lujan Grisham recently signed a series of bills aimed at enhancing water supply management and environmental protections in New Mexico. These measures have significant implications for business owners, particularly concerning their environmental impact and the necessity for pollution liability insurance policies.

Strategic Water Supply Program

The establishment of the Strategic Water Supply program focuses on utilizing brackish water, naturally occurring underground salty water, to conserve freshwater resources. Using an untapped water supply can benefit businesses in manufacturing and clean energy and this initiative can drive economic opportunities while preserving fresh water supplies for other critical needs. However, it’s crucial for these businesses to monitor their water usage closely and recognize potential pollution risks associated with water treatment processes.

Enhanced Water Quality Protections

Modernizing the Water Quality Act and expanding regulatory authority to protect surface waters previously overlooked by federal law are critical steps in safeguarding water quality. Companies discharging effluents into water bodies must be particularly vigilant about the quality and quantity of their discharges. This bill also addresses polluted groundwater that falls outside of federal jurisdiction. A robust pollution liability insurance policy can offer protection against unintentional pollution incidents and support compliance with new regulations.

PFAS Legislation

The new legislation also targets the phase-out of intentionally added PFAS chemicals in consumer products and designates PFAS-containing firefighting foams as hazardous waste while requiring their use for only emergency situations. This bill demonstrates the state's commitment to addressing pollution and its efforts to reduce resource contamination. Businesses involved with PFAS materials must diligently assess and manage associated risks and prepare for heightened regulations and a greater burden of remediation costs.

The recent legislative measures in New Mexico highlight the importance of proactive environmental risk management for businesses. Pollution liability insurance should be a critical component of every business's strategy to protect against potential financial losses and liabilities stemming from pollution incidents. By staying informed and taking action, businesses can contribute to environmental sustainability while safeguarding their operations.