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

 

 

 

SPONSOR:

SCONC

 

DATE TYPED:

0/07/02

 

HB

 

 

SHORT TITLE:

Pecos River Water Rights

 

SB

271/SCONCS

 

 

ANALYST:

Chabot

 

 

APPROPRIATION

 

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY02

FY03

FY02

FY03

 

 

 

 

$0.1

See Narrative

Non-Recurring

Irrigation Works Construction Fund

 

(Parenthesis ( ) Indicate Expenditure Decreases)

 

Relates to  HB225

 

SOURCES OF INFORMATION

 

LFC Files

Office of the State Engineer (OSE)

 

SUMMARY

 

     Synopsis of Substitute Bill

 

The Senate Conservation Committee substitute for SB71 extends the 1988 appropriation from the Irrigation Works Construction Fund (Laws 1998, Chapter 81, Sections 3 and 4 to the end of fiscal year 2004 for the purpose of purchasing and retiring water rights along the Pecos river basin.  The bill also adds Laws 1998, Chapter 81, Section 2 to the sections to be extended, and identifies two previous extensions (Laws 1999 (1st S.S. Chapter 2, Section 84 and Laws 2000 (2nd S.S.) Chapter 23, Section 25).  The original appropriation from the Irrigation Works Construction Fund will be extended to the end of fiscal year 2004 for the purpose of purchasing and retiring water rights along the Pecos river basin. 

 

     Significant Issues

 

The state is obligated to meet compact water delivery requirements to Texas and is under a United States Supreme Court (USSC) decree to do so since 1988.  The state has been able to meet these requirements; however, it has been barely able to do.  The River Master will issue an accounting by May 2002 for calendar year 2001.  The state expects that they will meet the requirement but will have used all reserves accumulated since 1987 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.

 

OSE suggests that this bill would allow implementation of an element of the consensus plan developed for compliance with the USSC decree.  The current water supply in the Pecos River basin is at

 

below-average levels, and this bill would allow actions to reduce use along the river.  Approximately $4 million dollars remains in the original appropriation.

 

FISCAL IMPLICATIONS

 

The bill extends the appropriation until the end of fiscal year 2004.  Any unexpended or unencumbered balance remaining at the end of fiscal year 2004 shall revert to the Irrigation Works Construction Fund.

 

RELATIONSHIP

 

This relates to HB 225.

 

TECHNICAL ISSUES

 

OSE requests the following change:  Section 1, item A, line 21 insert after “Chapter 81” the following:  “Section 2, for retiring water rights along the Pecos river basin; and Laws 1998,”

 

GAC/ar/njw

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