[1] NOTE:  As provided in LFC policy, this report is intended only for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.

 

Only the most recent FIR version (in HTML & Adobe PDF formats) is available on the Legislative Website.  The Adobe PDF version includes all attachments, whereas the HTML version does not.  Previously issued FIRs and attachments may be obtained from the LFC’s office 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:

Griego

 

DATE TYPED:

02/01/02

 

HB

 

 

SHORT TITLE:

Transport Water from the Mississippi River

 

SB

SJM-57

 

 

ANALYST:

Chabot

 

APPROPRIATION

 

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY02

FY03

FY02

FY03

 

 

 

NFI

 

Substantial (See Narrative)

Non-Recurring

General Fund

 

 

 

 

 

 

 

SOURCES OF INFORMATION

 

LFC Files

New Mexico Environment Department (NMED)

New Mexico Finance Authority (NMFA)

Office of the State Engineer (OSE)

Public Regulation Commission

State Land Office

 

SUMMARY

 

     Synopsis of Bill

 

Senate Joint Memorial 57 resolves that representatives from the office of the Governor, the State Land Office, the Public Regulation Commission and the Office of the State Engineer be requested to form a task force to study the feasibility of buying water rights in the Mississippi River and building a pipeline to transport that water to New Mexico.  It suggests that the Federal Reclamation Fund, which receives large contributions from New Mexico from oil and gas royalties, should be used to pay for the pipeline.  It is further resolved that the task force report its findings to the appropriate committee during the 2003 interim.

 

     Significant Issues

 

Water issues continue to come to the forefront of New Mexico policy issues.  A growing population puts additional strain on existing resources.  Water in the state is fully appropriated with little opportunity to increase the available resources.  In addition, the region has experienced a period of better than average precipitation which maybe coming to an end.  Lack of adjudications in most water basins and interstate compact water delivery requirements to surrounding states, particularly Texas, limit our ability to effectively manage our water resources.  Native American water rights claims have not been resolved and may have a significant impact in many areas of the state.  Endangered species, such as the Rio Grande silvery minnow and Pecos River bluntnose shiner, have created additional demands on river flows.  Water quality issues, particularly in the water crossing the state line to Texas, causes concern in our ability to meet federal clean water standards.  Finally, the state is under a United States Supreme Court decree to meet compact deliveries on the Pecos River and failure to do so may result in the court appointed river master taking control of the river. 

A comprehensive water management strategy for the state must be developed if we are to meet all our legal obligations relating to water and its use.  Innovative ideas are required to resolve our water needs and obligations.

 

However, OSE states that in the 1970s Texas investigated a similar proposal to pump water from the Mississippi through the state to El Paso with delivery options for New Mexico.  “It required the dedicated use of several nuclear power plants to provide energy required to pump the water up from the low elevation of the Mississippi River to the higher elevations of New Mexico.”  OSE says the energy costs for pumping would be thousands of dollars per acre-foot of water plus the capital outlay costs to build the pipeline.  NMFA concludes that revenue could be better spent on projects in the state to develop water resources that we currently have.  NMED mentions that importation of water could introduce potentially nuisance species into the rivers of New Mexico further threatening already endangered species.    

 

FISCAL IMPLICATIONS

 

No appropriation is contained in the Joint Memorial; however, if the feasibility study concluded that this project would be worth pursuing, the cost of a pipeline would be in the billions of dollars.

 

POSSIBLE QUESTIONS

 

  1. What other alternatives exist for importation of water to New Mexico ?   Does Colorado or Utah have unappropriated water they could sell to the state ?

 

GAC/njw

 [1]Begin typing on the * in replace mode.  Do not add or delete spaces.