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 for other purposes.

 

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

 

 

 

SPONSOR:

Lujan

 

DATE TYPED:

2/03/03

 

HB

302

 

SHORT TITLE:

Water Banking Authority

 

SB

 

 

 

ANALYST:

Chabot

 

APPROPRIATION

 

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY03

FY04

FY03

FY04

 

 

 

 

NFI

 

 

 

(Parenthesis ( ) Indicate Expenditure Decreases)

 

Duplicated SB 124

 

SOURCES OF INFORMATION

 

LFC Files

 

Responses Received From

Office of the State Engineer (OSE)

Energy, Minerals and Natural Resources Department (EMNRD)

 

SUMMARY

 

     Synopsis of Bill

 

House Bill 302 enacts statute allowing acequia and community ditch associations to establish water banks for the purpose of temporarily reallocating water without a change of purpose or point of diversion without requiring approval by the Interstate Stream Commission or the State Engineer.  The new statute incorporates language found in Section 72-1-2.3.C NMSA 1978 which provided for acequia and community ditch water banking in the lower Pecos River Basin only.  Section 72-1-2.3.C would be repealed.

 

     Significant Issues

 

The New Mexico Acequia Association (NMAA) supports this bill because it expands authority for water banks in the lower Pecos River Basin to the entire state.  NMAA was very reluctant to support water banking but helped develop the language for the lower Pecos River Basin.  They now see an advantage to have the existing statute applicable statewide.

 

OSE states that the bill is not necessary as acequias can establish water banks with the State Engineer approval under existing statutes (Sections 72-5-28(G) and 72-12-8(D) NMSA 1978).  The Association de Acequias Norteņas de Arriba has submitted for approval of the State Engineer a plan for a water bank on the Upper Chama stream system and the Tierra Amarilla valley under these provisions.

 

OSE is concerned that having the authority to establish water banks without the approval by the State Engineer has the potential to allow increased depletions of surface stream flows if new water banks are implemented without adequate safeguards.  OSE states that water banks should meet the following minimum requirements as applicable:  a fully metered and gaged irrigation system; a conjunctive surface/groundwater model; a supply of wet water available to serve as a replacement source for compact compliance and drinking water supplies in times of drought; a permanent pool of surface water adequate to meet the increasing demands of municipalities on surface water supplies; the ability to budget and administer annual wet water demand versus annual wet water supply; and procedures for aggrieved water right owners to obtain  judicial review from the district court from actions taken by the director of the bank.

 

TECHNICAL ISSUES

 

OSE recommends that the bill be amended to state that water banking authority is limited to water rights that are finally adjudicated.

 

POSSIBLE QUESTIONS

  1. The current law covering the lower Pecos River basin sunsets at the end on fiscal year 2005, would it be prudent to delay passage of this bill so that the Pecos River efforts can be fully evaluated?

 

GAC/yr