Fiscal impact reports (FIRs) are prepared by the Legislative Finance Committee (LFC) for standing finance

committees of the NM Legislature. The LFC does not assume responsibility for the accuracy of these reports

if they are used for other purposes.

Current FIRs (in HTML & Adobe PDF formats) are a vailable on the NM Legislative Website (legis.state.nm.us).

Adobe PDF versions include all attachments, whereas HTML versions may not. Previously issued FIRs and

attachments may be obtained from the LFC 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

Cisneros

DATE TYPED 02/03/05 HB

SHORT TITLE Statewide Aquifer Mapping Project

SB 189

ANALYST Woods

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

$620.0

Non-Recurring General

(Parenthesis ( ) Indicate Expenditure Decreases)

Relates to the appropriation for the New Mexico Institute of Mining and Technology in the Gen-

eral Appropriations Act.

SOURCES OF INFORMATION

LFC Files

Responses Received From

New Mexico Office of the State Engineer (OSE)

New Mexico Energy, Minerals and Natural Resources Department (EMNRD)

No Responses Received From

New Mexico Commission on Higher Education (CHE)

SUMMARY

Synopsis of Bill

Senate Bill 189 – Making an Appropriation for a Statewide Aquifer Mapping Project to be Con-

ducted by the Bureau of Geology and Mineral Resources at the New Mexico Institute of Mining and

Technology – appropriates $620,000 from the general fund to the Board of Regents of New Mexico

Institute of Mining and Technology for expenditure in FY06 and subsequent fiscal years to conduct a

statewide aquifer mapping project by the Bureau of Geology and Mineral Resources. Any unex-

pended or unencumbered balance remaining at the end of a fiscal year shall not revert to the general

fund.

Senate Bill 189 -- Page 2

Significant Issues

The OSE indicates that the state’s ability to administer and manage its water resources is de-

pendent upon the characterization of its aquifers and their interconnections with streams. Fur-

ther, that knowledge of the extents of zones of fresh and treatable saline ground water is vital to

serving the growth of the state’s water demands. To ensure that the Bureau of Geology will di-

rect activities to the state’s highest research priorities, a multi-agency steering committee should

be formed to guide investigations. The bill does not specify the studies to be performed or the

process to prioritize studies. The requested level of funding may be inadequate to address the

aquifer mapping needs within the state.

This program was not included in the CHE’s 2005-2006 Higher Education Funding

Recommendation.

FISCAL IMPLICATIONS

EMNRD indicates that the appropriation of $620,000 contained in this bill is a non-recurring ex-

pense to the general fund designated for expenditure in FY06 and subsequent years.

Any unencumbered or unexpended balance remaining at the end of a fiscal year does not revert

to the general fund.

ADMINISTRATIVE IMPLICATIONS

EMNRD suggests that a statewide aquifer map would be very helpful to a number of administra-

tive bodies, including the Oil Conservation Division (OCD) of EMNRD. The OCD needs to de-

termine the location and depth of groundwater in issuing permits, and currently must research

those issues itself using the available information, which is often incomplete. Having a statewide

aquifer map would provide a consistent, reliable source of information to applicants and regula-

tors, minimizing the differences of opinion that currently crop up in the process. This resource

would save administrative time, make the permitting process more efficient, and help the OCD

protect New Mexico’s groundwater.

OSE indicates that minimal OSE staff time will be required to assist the NMBGMR in develop-

ing priorities. However, OSE believes additional funding may be required to allow work prod-

ucts to be fully utilized by the water resource regulatory agencies and to address uncertainties

associated with the studies.

CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP

Relates to the appropriation for the New Mexico Institute of Mining and Technology in the Gen-

eral Appropriations Act.

TECHNICAL ISSUES

OSE notes that the bill does not specify the studies to be performed or describe who will set

study priorities. Many local areas will claim that the source of their drinking water is of highest

importance. Funds may be allocated to activities other than priority investigations. The State

Water Plan states that the OSE will coordinate the creation of a multi-agency taskforce to iden-

Senate Bill 189 -- Page 3

tify, focus and prioritize studies. Accordingly, OSE believes this avenue for setting study priori-

ties needs to be included within the bill.

AMENDMENTS

The OSE suggests that on Line 21: insert before the last sentence “A steering committee consist-

ing of the Director of the NMBGMR, the State Engineer and the Secretary of the Environment

Department (or their designees) shall be formed to set priorities for the mapping project de-

scribed in this bill.”

BFW/sb