HOUSE JOINT MEMORIAL 9

54th legislature - STATE OF NEW MEXICO - first session, 2019

INTRODUCED BY

Patricia Roybal Caballero and Jacob R. Candelaria

FOR THE NEW MEXICO FINANCE AUTHORITY OVERSIGHT COMMITTEE

A JOINT MEMORIAL

REQUESTING THAT THE NEW MEXICO CONGRESSIONAL DELEGATION SUPPORT THE NEW MEXICO FINANCE AUTHORITY'S EFFORT TO OBTAIN APPROVAL FROM THE UNITED STATES ENVIRONMENTAL PROTECTION AGENCY TO USE TIER TWO FUNDS OF THE DRINKING WATER STATE REVOLVING LOAN FUND FOR PARTIAL LOAN SUBSIDIZATION.

     WHEREAS, the federal Safe Drinking Water Act Amendments of 1996 authorized the creation of drinking water state revolving loan funds in order to help states manage and protect their drinking water systems; and

     WHEREAS, the drinking water state revolving loan funds capitalization grants are determined by the United States congress and administered by the United States environmental protection agency; and

     WHEREAS, the New Mexico finance authority is responsible for the administration of New Mexico's drinking water state revolving loan fund financing and related functions; and

     WHEREAS, New Mexico has received approximately one hundred ninety-eight million dollars ($198,000,000) in capitalization grants from the United States environmental protection agency; and

     WHEREAS, the New Mexico finance authority has loaned approximately one hundred ninety-six million dollars ($196,000,000) of drinking water state revolving loan funds, including approximately sixty-three million dollars ($63,000,000) loaned to small public water systems that serve populations of ten thousand or fewer and over fifty-four million dollars ($54,000,000) to disadvantaged public water systems; and

     WHEREAS, the United States environmental protection agency allows the New Mexico finance authority to offer partial loan subsidization in the form of principal loan forgiveness for small and disadvantaged public water system borrowers using tier one funds; and

     WHEREAS, initial loans are referred to as "tier one funds"; and

     WHEREAS, principal and interest amounts received by the fund as loan repayments from borrowers are referred to as "tier two funds"; and

     WHEREAS, the United States environmental protection agency currently does not permit tier two funds to be used for partial loan subsidization; and

     WHEREAS, many small and disadvantaged public water associations in need of project funds cannot afford to repay one hundred percent of the principal loan amount and therefore will not utilize financial assistance offered by the New Mexico finance authority and the drinking water state revolving loan fund program unless partial loan subsidization is available; and

     WHEREAS, the uncommitted balances in the drinking water state revolving loan fund have grown to total over sixty million dollars ($60,000,000); and

     WHEREAS, the New Mexico finance authority has made repeated requests to the United States environmental protection agency for permission to use tier two funds for partial loan subsidization; and

     WHEREAS, the United States environmental protection agency to date has not provided guidance to the New Mexico finance authority on the use of tier 2 funds for partial loan subsidization; and

     WHEREAS, the New Mexico finance authority oversight committee has transmitted a letter to the members of the New Mexico congressional delegation communicating the issue and requesting their support in persuading the United States environmental protection agency to allow tier two funds to be used for partial loan subsidization; and

     WHEREAS, allowing use of the uncommitted tier two fund balances for partial loan subsidization would help many small and disadvantaged communities in New Mexico and be consistent with the purpose of the federal Safe Drinking Water Act;

     NOW, THEREFORE, BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO that the New Mexico congressional delegation be requested to support the proposed use of tier two funds for partial loan subsidization in order to improve public water systems in small and disadvantaged communities in New Mexico; and

     BE IT FURTHER RESOLVED that copies of this memorial be transmitted to members of the New Mexico congressional delegation.

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