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 available 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 also 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

Snyder

DATE TYPED

01/23/04

HB

 

 

SHORT TITLE

Drinking Water State Revolving Loan Funds

SB

150

 

 

ANALYST

Kehoe

 

APPROPRIATION

 

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY04

FY05

FY04

FY05

$1,600.8

 

 

 

Non-Recurring

Public Project Revolving Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

 

Duplicates House Bill 100.

 

REVENUE

 

Estimated Revenue

Subsequent

Years Impact

Recurring

or Non-Rec

Fund

Affected

FY04

FY05

$1,600.8

 

 

Non-Recurring

DWSRLF

 

 

 

 

 

(Parenthesis ( ) Indicate Revenue Decreases)

 

SOURCES OF INFORMATION

 

New Mexico Finance Authority (NMFA)

LFC Files

 

SUMMARY

 

Synopsis of Bill

 

Senate Bill 150 appropriates $1.6 million from the Public Project Revolving Fund (PPRF) to the Drinking Water State Revolving Loan Fund (DWRLF) to carry out the purposes of the Drinking Water State Revolving Loan Fund Act.  The bill contains an emergency clause.

 

Significant Issues

 

The New Mexico Drinking Water State Revolving Loan Fund Act was enacted by the 1997 Legislature in response to the reauthorization of the federal Safe Drinking Water Act.  The reauthorization requires the Environmental Protection Agency to make capitalization grants to states over the next several years to improve and protect drinking water quality and public health.  The fund provides public authorities in New Mexico with low-cost financial assistance, with a base rate of three percent, for construction, rehabilitation, or expansion of drinking water facilities.  Disadvantaged communities qualify for interest-free loans.

 

The appropriation contained in Senate Bill 150 will provide a 20 percent state match for a federal capitalization grant totaling $8 million for the state’s DWSRLF.

 

FISCAL IMPLICATIONS

 

The bill appropriates $1,600.8 for the Public Project Revolving Fund (PPRF) to the Drinking Water State Revolving Loan Fund.

 

The appropriation contained in Senate Bill 150 is for expenditure in fiscal year 2004 and subsequent fiscal years to carry out the purposes of the Drinking Water State Revolving Loan Fund Act and shall not revert.

 

ADMINISTRATIVE IMPLICATIONS

 

 The responsibilities of administering the loan program are divided between NMFA and the New Mexico Environment Department (NMED).  NMFA administers the financial aspects of the funds, and NMED administers the technical aspects for projects.   The federal Safe Drinking Water Act allows using 31 percent of the funds for set-aside activities.

 

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