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 Foley

ORIGINAL DATE

LAST UPDATED

1-31-06

2-2-06 HB 553/aHENRC

SHORT TITLE Pecos River Basin Hydrographic Survey

SB

ANALYST Woods

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY06

FY07

NFI

250,000.0

Non-Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Office of the State Engineer-Interstate Stream Commission (OSE)

Department of Finance and Administration (DFA)

SUMMARY

Synopsis of HENRC Amendment

House Energy and Natural Resources Committee amendment to HB553 amends the legislation

as follows:

1. On page 1, line 12, after "BASIN" insert "AND THE RIO GRANDE BASIN".

2. On page 1, lines 15 through 22, strike Section 1 in its entirety and insert in lieu thereof the fol-

lowing new section to read:

"Section 1. APPROPRIATIONS.--

A. Two hundred fifty million dollars ($250,000,000) is appropriated from the general

fund to the following funds and agencies in the following amounts for expenditure in

fiscal year 2006 and subsequent fiscal years for the following purposes:

(1) a final forty-eight million dollars ($48,000,000) to the interstate stream

commission to complete the Pecos River Compact settlement;

House Bill 553/aHENRC – Page

2

(2) one hundred one million dollars ($101,000,000) to the New Mexico irriga-

tion works construction fund for expenditure by the state engineer to support

the completion of hydrographic surveys and the state's prosecution of stream

system adjudications; and

(3) one hundred one million dollars ($101,000,000) to the improvement of Rio

Grande income fund for expenditure by the state engineer to support the com-

pletion of hydrographic surveys and the state's prosecution of stream system

adjudications.

B. Any unexpended or unencumbered balance at the end of a fiscal year shall not re-

vert to the general fund".

House Energy and Natural Resources Committee amendment to HB553 attaches no additional

appropriation to the legislation.

Synopsis of Original Bill

House Bill 553 makes an appropriation for a comprehensive hydrographic survey of the Pecos

River basin. Specifically, the legislation seeks to appropriate $250 million from the general fund

to the Office of the State Engineer for expenditure in fiscal year 2007 and subsequent fiscal years

to fund a comprehensive hydrographic survey of all water resources in the Pecos river drainage

basin. Any unexpended or unencumbered balance remaining at the end of a fiscal year shall not

revert to the general fund.

SIGNIFICANT ISSUES

The Department of Finance and Administration (DFA) notes that this bill would dramatically

increase expenditures on Pecos River hydrology surveys at a time when the Pecos Settlement has

already been reached, and is nearing implementation. It is estimated that only $48,000.0 in addi-

tional appropriations are required to implement the settlement. It is unclear whether the intent of

this appropriation is to assist in implementation of the settlement. What is clear is that this ap-

propriation would allow for much more extensive hydrological understanding of the Pecos River

than is currently available. DFA further indicates that while this appropriation would improve

knowledge regarding the Pecos River, it would not likely assist the agency in meeting its per-

formance goals of which implementation of the Pecos Settlement is one.

The Office of the State Engineer (OSE) notes that while this legislation would appropriate $250

million for the expressed purpose of making a comprehensive hydrographic survey of the Pecos

river drainage basin, major portions of hydrographic survey work have in fact already been com-

pleted on the Pecos, and the remaining elements include hydrographic survey field work in sev-

eral areas that would take an estimated $15,000,000 to $20,000,000 to complete over the next ten

to fifteen years.

ADMINISTRATIVE IMPLICATIONS

OSE notes that the influx of $250 million would require a massive expansion of the State Engi-

neer’s Litigation and Adjudication Program (LAP), specifically the Pecos Adjudication Bureau.

The current operating budget for the LAP is about $6,713,000 for recurring expenses in adjudi-

House Bill 553/aHENRC – Page

3

cating water rights in the twelve stream system adjudication suits currently pending across the

state. The appropriation in this bill would represent a growth in funding of approximately 37

times that amount, and earmarked specifically for only a single adjudication.

CONFLICT, DUPLICATION, COMPANIONSHIP OR RELATIONSHIP

This legislation is related to HB 175 which also addresses salt basin water development.

AMENDMENTS

OSE suggests the following amendments to the legislation:

Strike Section 1 in its entirety, and insert in lieu thereof the following new Section 1 to

read:

“Section 1. APPROPRIATION.—

A. Two hundred fifty million dollars ($250,000,000) is appropriated from the general fund

to the funds and agencies identified below in the following amounts for expenditure in fis-

cal year 2007 and subsequent fiscal years for the following purposes:

(1) a final forty-eight million dollars ($48,000,000) to the interstate stream com-

mission to complete the Pecos River Compact settlement;

(2) one hundred and one million dollars ($101,000,000) to the irrigation works con-

struction fund for expenditure by the state engineer to support the completion of

hydrographic surveys and the state’s prosecution of stream system adjudications;

and

(3) one hundred and one million dollars ($101,000,000) to the improvement of the

Rio Grande income fund for expenditure by the state engineer to support the com-

pletion of hydrographic surveys and the state’s prosecution of stream system adju-

dications

B. Any unexpended or unencumbered balance at the end of a fiscal year shall not revert to

the general fund.”

BW/mt:yr