NOTE: As provided in LFC policy, this report is intended for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.



Only the most recent FIR version, excluding attachments, is available on the Intranet. Previously issued FIRs and attachments may be obtained from the LFC office in Suite 101 of the State Capitol Building North.





F I S C A L I M P A C T R E P O R T





SPONSOR: Madalena DATE TYPED: 02/25/01 HB HJM 60
SHORT TITLE: Pipeline Inspection and Maintenance SB
ANALYST: Valenzuela


APPROPRIATION



Appropriation Contained
Estimated Additional Impact
Recurring

or Non-Rec

Fund

Affected

FY01 FY02 FY01 FY02
NFI



(Parenthesis ( ) Indicate Expenditure Decreases)



Relates to SM 12 and HB 279



SOURCES OF INFORMATION



LFC Files

U.S. Governmental Accounting Office (GAO) Report



SUMMARY



Synopsis of Bill



House Joint Memorial 60 requests the U.S. Congress to review the pipeline safety standards in federal law to ensure a pipeline owner practices effective and continual maintenance of the pipeline.



Significant Issues



The issue has become a key priority in Congress and in the New Mexico Legislature since pipeline explosions in Washington and New Mexico killed a total of 15 people. A report by GAO released in June revealed that the rate of pipeline accidents is increasing by four percent a year. This is due in part to aging infrastructure. Almost a quarter of gas transmission pipelines are more than 50 years old. The report also found that the federal Office of Pipeline Safety had not implemented 22 statutory requirements, including 12 provisions from 1992 or earlier.



FISCAL IMPLICATIONS



House Joint Memorial 60 does not carry an appropriation.



MFV/ar