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: Gubbels DATE TYPED: 02/25/01 HB HJM 71
SHORT TITLE: Develop Water Banking Legislation SB
ANALYST: Chabot


APPROPRIATION



Appropriation Contained
Estimated Additional Impact
Recurring

or Non-Rec

Fund

Affected

FY01 FY02 FY01 FY02
NFI



(Parenthesis ( ) Indicate Expenditure Decreases)



SOURCES OF INFORMATION



LFC Files

Office of the State Engineer (SEO)



SUMMARY



Synopsis of Bill



A joint memorial resolving that the New Mexico Legislative Council direct the appropriate committee to develop recommendations on water banking and to report its findings to the Legislative Council by January 1, 2002.



Significant Issues



The surface water of nearly all streams in New Mexico are full appropriated and underlying aquifers are being rapidly depleted. New Mexico's population growth has placed greater demands on the limited water supplies; however, current law provides no incentives to reduce consumptive water rights. SEO states that water banking is a tool for providing incentives to reduce consumptive water use and also provide beneficial water uses to be shared, leased or more easily transferred. The 1999, New Mexico Legislative Council Service report, Water in New Mexico, identified barriers to water banking including incomplete adjudication of water rights, the cost of adjudications, the lack of approval of temporary water trades as beneficial uses and the disallowance of water conservation as a beneficial use. SEO states that water banking must not impact the Interstate Stream Commission's ability to meet interstate compact compliance.







DUPLICATION



This joint memorial is the same as SJM-69.



GAC/ar