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|
SPONSOR: |
Stell |
DATE TYPED: |
02/08/02 |
HB |
418/aHAGC |
||
|
SHORT TITLE: |
Pecos River Water Rights & Conservation |
SB |
|
||||
|
|
ANALYST: |
Chabot |
|||||
APPROPRIATION
|
Appropriation
Contained |
Estimated
Additional Impact |
Recurring or Non-Rec |
Fund Affected |
||
|
FY02 |
FY03 |
FY04 |
|
|
|
|
$16,000.0 |
$16,000.0 |
$16,000.0 |
|
Recurring |
STB |
(Parenthesis
( ) Indicate Expenditure Decreases)
Relates to SB 267, SB 271, and HB 225
LFC Files
New Mexico Acequia Association (NMAA)
New Mexico Department of Agriculture
New Mexico Environment Department
Office of the State Engineer (OSE)
State Investment Council
Department of Finance and Administration (DFA)
SUMMARY
Synopsis
of HAGC Amendment
The committee changed “conservancy district” to “conservation districts” on page 3, line 17. The amendment provides the correct name for conservation districts. The result is that the Interstate Stream Commission must also consult with the governing board of each conservation district in the lower Pecos basin before determining the need for projects to be funded from revenue from severance tax bonds.
Synopsis
of Original Bill
Senate Bill 267 appropriates up to $48,000.0 at
the rate of $16,000.0 for fiscal years 2002, 2003 and 2004 from severance tax
bonds in accordance with the Severance Tax Bonding Act to the State Board of
Finance for the sale of bonds from which the proceeds are appropriated to the
Interstate Stream Commission for projects on the Pecos River downstream from
the Sumner Dam. The proceeds will be use for the purpose of protecting and
retiring water rights or other measures to correct the imbalances between water
right holders, obligations under the Pecos River compact and water supply of
the lower Pecos River Basin, and water conservation projects including
restoration of native vegetation and water supply enhancement measures. The ISC will not certify any projects
without entering into contracts with the governing bodies of the Carlsbad
Irrigation District and the Pecos Valley Artesian Conservancy District and
consulted with the governing boards of each irrigation district, conservancy
district and artesian conservancy district in the lower Pecos River Basin. Purchases in the Pecos river basin may only
be for projects that meet the following criteria:
1. water
rights shall be purchased from willing sellers in an equal percentage, within a
two-point range, of the total irrigated acreage in each of the following areas
of the Pecos river:
(a) from
Santa Rosa to Macho draw;
(b) from
Macho draw to McMillan delta; and
(c) from
McMillan delta to the Texas state line.
2. the
offer for settlement of the Carlsbad irrigation district water rights adjudication
shall be based upon the full project water or assessment roles of twenty-five
thousand fifty-five acres; and
3. purchases
of water rights shall include the appurtenant land.
If the ISC determines that excess water rights
have been acquired, they can offer the rights for sale and the proceeds will be
deposited in the Irrigation Works Construction Fund.
Significant
Issues
The state is obligated to meet compact water
delivery requirements to Texas and is under a United States Supreme Court
(USSC) decree since 1988 to do so. The
state has been able to meet these requirements; however, it has been barely
able to do. The USSC appointed River
Master will issue an accounting by May 2002 for calendar year 2001. OSE expects the State will meet the requirement
but will have used all accumulated credits in doing so. OSE states that water depletions in the
Pecos river basin must be reduced or water flow increased in order to meet the
compact requirements. If the state
defaults in its compact delivery requirements, OSE will be obligated to manage
the river through priority administration as provided for in the New Mexico
Constitution and required by the USSC decree.
This will cause a major economic impact on southeastern New Mexico. A 1993 study estimated that impact to be
approximately $236 million.
This bill will provide up to $48,000.0 to the
Interstate Stream Commission (ISC) for restoring balance to the Pecos River
system by reducing use from Fort Sumner Dam south to the state line with
Texas. The funds will be used to retire
water rights to reduce water use in order to protect the water rights of the
other holders, and to increase water flow through conservation efforts. This bill would allow the ISC and OSE to
implement plans identified by the Ad Hoc Pecos River Basin Committee
commissioned by the ISC to develop alternatives for reducing water use.
OSE states for the program envisioned by this
bill to work, the Carlsbad Irrigation District, the Pecos Valley Artesian
Conservancy District, other water districts and users and the ISC must agree on
actions to be taken to achieve compliance with New Mexico’s obligations. If the parties elected to take independent
action, especially through the legal process, it could delay and jeopardize the
State’s ability to meet compact delivery obligations.
OSE is also concerned that the bill required
them to recognize the Carlsbad Irrigation District (CID) claim of having 25,055
acres of irrigated land without finalizing adjudications. In addition, they state that having
specified areas for purchase may contribute to an imbalance by purchasing
insufficient rights in one area and more than needed in another. Lastly, the purchases of appurtenance of
land is only appropriate in CID where water rights are tied to the land. In other areas water rights are not tied to the land.
The capital outlay coordinator states that this
bill will obligate approximately 25 percent of the available STBs available for
the next three years reducing the capacity to fund other local projects
statewide.
NMAA is concerned that the provision that allows
the ISC to sell any “excess” water rights purchased makes the ISC a de facto
water bank. They express that this
should be accomplished to other legislation.
FISCAL IMPLICATIONS
The appropriation of $48,000.0 contained in this
bill is a recurring expense to severance tax bonds at a rate of $16,000.0 per
year for 2002, 2003, and 2004. Any
unexpended or unencumbered balance remaining at the end of fiscal year 2006
shall revert to the severance tax bonding fund. These efforts to be funded by the severance tax bonding fund are
part of a larger program that will cost approximately $69 million in total to implement.
(This total includes the $48 million)
ADMINISTRATIVE IMPLICATIONS
ISC will need to develop Requests for Proposals
for purchase of water rights that conform to the requirements of Section 1.D.
of the bill.
RELATIONSHIP
House Bill 418 relates to HB 141, HB 225, HB274,
SB 271, SB 341, SB 343 and SB 393.
POSSIBLE QUESTIONS
1. What assurances exist that the parties on the Pecos River
will work cooperatively to restore the balance to the river ?
2. Are there sufficient water rights for purchase and
retirement to increase river flows sufficiently to meet the interstate compact
delivery requirements with Texas ?
3. If the purchase and retirement of water rights do not
resolve compact delivery shortfalls, how will OSE implement priority
administration ?
4. How will the recognition of 25,050 irrigated acres in the
Carlsbad Irrigation District affect the adjudication efforts in the lower Pecos
River Basin ?
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