NOTE:  As provided in LFC policy, this report is intended only 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 for other purposes.

 

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

 

 

 

SPONSOR:

Aragon

 

DATE TYPED:

3/21/03

 

HB

 

 

SHORT TITLE:

Water Trust Board Project Approval

 

SB

843/aHFL#1

 

 

ANALYST:

L. Baca

 

APPROPRIATION

 

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY03

FY04

FY03

FY04

 

 

NFI

See Narrative

 

 

 

 

(Parenthesis ( ) Indicate Expenditure Decreases)

 

Relates to:        HB 95, Enhance Pecos River basin

                        HB 124, Phreatophyte Eradication and Control

                        HB 280, Goats for Phreatophyte Control

                        HB 260, State Water Plan

                        SB 195, State Water Plan

                        SB 769, Salt Cedar Biomass for Electric Generation

                        HB 910, Watershed Restoration

 

SOURCES OF INFORMATION

 

Responses Received From

 

Environment Department. (ED)

Office of the State Engineer (OSE)

Department of finance and Administration (DFA)

New Mexico department of Agriculture (NMDA)

Energy, Minerals & Natural Resources Department (EMNRD)

 

SUMMARY

 

     Synopsis of HFl Amendment

 

House Floor Amendment #1 strikes the $50,000.0 appropriation.  The Office of State Engineer reports the Water Trust Fund currently contains $10,000.0, enough to cover the proposed projects.

 

 

 

     Synopsis of Original Bill

 

Senate Bill 843 provides legislative approval for the Water Trust Board (WTB) to make loans or grants for qualifying water projects on terms and conditions established by the WTB and the New Mexico Finance Authority (NMFA); lists 14 projects as qualifying for grants or loans; and  appropriates $50,000.0 with a non-reversion provision.

 

The bill contains an emergency clause.

 

     Significant Issues

 

The OSE reports that all fourteen projects listed in the bill have been approved as qualifying

projects by the WTB pursuant to Section 72-4A-3 NMSA 1978.  Expenditures for the projects listed total $9,988,055 and would use up almost all of the $10,00.0 currently available in the

Water Projects Fund.

 

All 14 projects in the bill have been reviewed OSE, and 12 have been approved.  The Water Resource Allocation Program (WRAP) was not able to give a formal opinion regarding water rights that would be affected in Section 1 (N) Taos War Chief Watershed Restoration and Management Project), and an analysis of the Santa Fe Regional San Juan–Chama Diversion Project showed a new diversion point would be needed.  Both of these project applications are pending.

 

FISCAL IMPLICATIONS

 

The appropriation of $50,000.0 contained in this bill is a non-recurring expense to the general fund and may be expended in fiscal year 2003 and subsequent fiscal years. Any unexpended or unencumbered balance remaining shall not revert.   The appropriation is for capital projects and, therefore, is presumed to be non-recurring,

 

TECHNICAL ISSUES

 

The Environment Department finds that on page 2, line 17, paragraph J, identifies a project for the Upper Hondo Soil and Water Conservation district for an eradication project along the upper Hondo and Rio Bonito but does not specify what is to be eradicated.

 

AMENDMENTS

 

The OSE suggest the bill could be improved by the following amendment:

 

In Paragraph B, page 1, line 24, insert after “San Juan-Chama” the words “and Rio Grande.”

 

LRB/njw/ls