HOUSE ENERGY AND NATURAL RESOURCES COMMITTEE SUBSTITUTE FOR
HOUSE BILL 749
49th legislature - STATE OF NEW MEXICO - first session, 2009
AN ACT
RELATING TO THE ENVIRONMENT; ENACTING THE URANIUM LEGACY CLEANUP ACT; PROVIDING FOR THE ADMINISTRATION OF THAT ACT AND CLEANUP ACTIONS TO BE TAKEN PURSUANT TO IT; AUTHORIZING SEVERANCE TAX BONDS TO FUND URANIUM LEGACY CLEANUP ACTIVITIES; MAKING APPROPRIATIONS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
Section 1. [NEW MATERIAL] SHORT TITLE.--Sections 1 through 6 of this act may be cited as the "Uranium Legacy Cleanup Act".
Section 2. [NEW MATERIAL] DEFINITIONS.--As used in the Uranium Legacy Cleanup Act:
A. "department" means the energy, minerals and natural resources department;
B. "financial assistance" means providing grants or loans on terms and conditions approved by the secretary for qualified projects;
C. "fund" means the uranium legacy cleanup fund;
D. "qualified project" means a project selected by the secretary for financial assistance; and
E. "secretary" means the secretary of energy, minerals and natural resources.
Section 3. [NEW MATERIAL] URANIUM LEGACY CLEANUP FUND--CREATED--PURPOSE--APPROPRIATIONS.--
A. The "uranium legacy cleanup fund" is created as a nonreverting fund in the state treasury and shall be administered by the department. The fund shall consist of the proceeds from severance tax bonds issued pursuant to Section 7-27-10.2 NMSA 1978; money that is repaid from loans approved by the secretary; and money that is appropriated or donated or that otherwise accrues to the fund. Money in the fund shall be invested by the state investment officer in the manner that land grant permanent funds are invested pursuant to Chapter 6, Article 8 NMSA 1978. Income from investment of the fund shall be credited to the fund.
B. The department shall establish procedures and adopt rules as required to administer the fund and to originate grants or loans for qualified projects approved by the secretary.
C. Money in the fund shall be appropriated by the legislature to the department to carry out the purposes of the Uranium Legacy Cleanup Act by providing financial assistance for qualified projects. Money shall be disbursed from the fund only on warrant of the secretary of finance and administration upon vouchers signed by the secretary of energy, minerals and natural resources or the secretary's authorized representative. Any unexpended or unencumbered balance remaining at the end of a fiscal year shall not revert to the general fund.
Section 4. [NEW MATERIAL] DUTIES OF THE SECRETARY.--
A. Expenditures from the fund for financial assistance shall be approved by the secretary for qualified projects directed at the elimination or reduction of actual or potential exposure of persons to contamination that may have resulted from uranium mining or milling activities that occurred prior to July 1, 2009.
B. The secretary shall adopt rules for applying for financial assistance from the fund and for establishing priorities for qualified projects. The priorities for approving qualified projects shall be based upon:
(1) the protection of public health, safety and welfare;
(2) the protection of the environment from existing or potential contamination;
(3) the ability to leverage funds available from other sources to implement qualified projects;
(4) the degree to which a qualified project can be completed with the requested funding;
(5) the size of the area to be included with the qualified project;
(6) the number of persons affected or potentially affected by contamination at the site of the qualified project;
(7) the level of actual or potential radiation exposure at the site of the qualified project;
(8) the potential for an increase of the area contaminated or potential exposure to persons if the site of a qualified project is not cleaned up;
(9) the lack of any potentially responsible party obligated to conduct a cleanup pursuant to any federal, state or tribal law;
(10) the potential uses for the site following the completion of the qualified project; and
(11) the legal authority of the applicant to conduct cleanup activities on the proposed site.
C. Financial assistance may be provided to qualified projects in which the state of New Mexico, other state governments, the federal government, tribal governments and other public and private entities are participating.
Section 5. [NEW MATERIAL] REPORT TO LEGISLATURE.--The secretary shall report to the appropriate interim legislative committee no later than October 1 of each year regarding the total expenditures from the fund for the previous fiscal year, the purposes for which expenditures were made, an analysis of the progress of the projects funded and proposals for legislative action in the subsequent legislative session.
Section 6. A new section of the Severance Tax Bonding Act, Section 7-27-10.2 NMSA 1978, is enacted to read:
"7-27-10.2. [NEW MATERIAL] BONDING CAPACITY--AUTHORIZATION FOR SEVERANCE TAX BONDS--URANIUM LEGACY CLEANUP PROJECTS.--
A. After the board of finance division of the department of finance and administration estimates the amount of bonding capacity available for severance tax bonds to be authorized by the legislature pursuant to Section 7-27-10.1 NMSA 1978, the division shall reserve ten percent of the estimated bonding capacity each year. The legislature authorizes the state board of finance to issue severance tax bonds in the annually reserved amount for use by the energy, minerals and natural resources department to fund uranium legacy cleanup projects.
B. The energy, minerals and natural resources department shall certify to the state board of finance the need for issuance of bonds for uranium legacy cleanup projects. The state board of finance may issue and sell the bonds in the same manner as other severance tax bonds in an amount not to exceed the authorized amount provided for in Subsection A of this section. If necessary, the state board of finance shall take the appropriate steps to comply with the federal Internal Revenue Code of 1986, as amended. Proceeds from the sale of the bonds are appropriated to the uranium legacy cleanup fund for the purposes certified by the secretary of energy, minerals and natural resources to the state board of finance.
C. Money from the severance tax bonds provided for in this section shall not be used to pay indirect project costs. Any unexpended balance from proceeds of severance tax bonds issued for a uranium legacy cleanup project shall revert to the severance tax bonding fund within six months of completion of the uranium legacy cleanup project. The energy, minerals and natural resources department shall monitor and ensure proper reversions.
D. As used in this section, "uranium legacy cleanup project" means a capital outlay project for qualified projects pursuant to the Uranium Legacy Cleanup Act."
Section 7. SEVERABILITY.--If any part or application of the Uranium Legacy Cleanup Act is held invalid, the remainder or its application to other situations or persons shall not be affected.
Section 8. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2009.
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