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





SPONSOR: Leavell DATE TYPED: 02/26/01 HB
SHORT TITLE: Water Conversion Pilot SB 282/aSCONC
ANALYST: Moran


APPROPRIATION



Appropriation Contained
Estimated Additional Impact
Recurring

or Non-Rec

Fund

Affected

FY01 FY02 FY01 FY02
$ 500.0 Recurring General Fund



(Parenthesis ( ) Indicate Expenditure Decreases)



SOURCES OF INFORMATION



LFC Files

New Mexico Department of Agriculture



SUMMARY

Synopsis of SCONC Amendment



The Senate Conservation Committee amendment clarifies the intent of the pilot project in Eddy and Lea counties. Also, the term "potable" has been changed to "usable" .

Synopsis of Original Bill



SB 282 appropriates $500.0 from the general fund in FY2002 to the Eddy and Lea counties manufactured water committee. The purpose of the funds is to finance a pilot project in Eddy and Lea counties to demonstrate the feasibility of converting water used in oil and gas production to potable water.



FISCAL IMPLICATIONS



The appropriation of $500.0 contained in this bill is a non-recurring expense to the general fund. Any unexpended or unencumbered balance remaining at the end of FY02 shall revert to the general fund.



POSSIBLE QUESTIONS



Who would derive the benefit (water rights) from water reclaimed from this process?



RJM/ar/njw