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

SPONSOR King

DATE TYPED 2/15/05

HB 765

SHORT TITLE Estancia Regional Water Plan Implementation

SB

ANALYST Hadwiger

APPROPRIATION

(in $000s)

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

$50.0

Recurring General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

Duplicates SB699.

SOURCES OF INFORMATION

LFC Files

Responses Received From

Department of Finance and Administration (DFA)

Office of the State Engineer (OSE)

SUMMARY

Synopsis of Bill

House Bill 765 appropriates $50,000 from the general fund to the Department of Finance and

Administration to begin implementation by Torrance County of the Estancia Basin regional wa-

ter plan.

Significant Issues

The Office of the State Engineer (OSE) indicated that implementation of accepted regional water

plans is a goal of the New Mexico State Water Plan. Each of the 15 water regions in New Mex-

ico, according to the Regional Water Planning Handbook, is “charged with identifying water

supply, projecting demand, and where water supply is determined to be inadequate to meet pro-

jected demand, which is almost always the case in New Mexico, regions must develop strategic

alternatives to meet their water shortage challenges. Water plans must include recommended al-

ternatives for regional water resources management, water conservation, protection of the re-

House Bill 765 -- Page 2

gional public welfare, and time lines for implementing the water plan."

The Estancia Basin Regional Water Plan was the first of 15 regional water plans to be completed

in New Mexico. The Estancia Basin is classified as a mined basin by OSE. In particular, the

Estancia Basin Regional Water Plan identifies declining water supplies, deteriorating water qual-

ity and increasing demand as issues that create an uncertain future. Specific programs for man-

aging and conserving the water supply are recommended by the regional water plan, including

designation of a special ground water management area, water conservation education, manage-

ment of water rights, and a comprehensive monitoring, metering, and investigation program.

These programs are detailed in the regional water plan.

The OSE observed that recommended alternatives in regional water plans will need continuous

funding to be realized.

FISCAL IMPLICATIONS

The appropriation of $50,000 contained in this bill is a recurring expense to the general fund.

Any unexpended or unencumbered balance remaining at the end of FY06 shall revert to the gen-

eral fund.

ADMINISTRATIVE IMPLICATIONS

DFA and OSE recommended that the appropriation in HB765 be directed to the Interstate Stream

Commission. The Commission has the necessary staff and expertise to help implement the re-

gional water plans it has administered for the past five years.

CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP

HB765 duplicates SB699.

ALTERNATIVES

OSE suggested two alternatives to HB765:

1.

It might be preferable to substitute the Interstate Stream Commission as recipient. The

ISC has requested and will continue to seek the necessary funds to implement regional

water plans on a statewide basis.

2.

The Water and Natural Resources Committee is seeking an appropriation for the Water

Trust Fund that can fund regional water plan implementation projects.

DH/yr