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F I S C A L I M P A C T R E P O R T
SPONSOR Lundstrom
DATE TYPED 2/22/05
HB 725
SHORT TITLE Gallup Water Reclamation Study
SB
ANALYST Hadwiger
APPROPRIATION
(in $000s)
Appropriation Contained Estimated Additional Impact Recurring
or Non-Rec
Fund
Affected
FY05
FY06
FY05
FY06
$500.0
Non-Recurring General Fund
(Parenthesis ( ) Indicate Expenditure Decreases)
Duplicates SB774.
SOURCES OF INFORMATION
LFC Files
Responses Received From
Office of the State Engineer (OSE)
Department of Environment (NMED)
SUMMARY
Synopsis of Bill
House Bill 725 appropriates $500,000 from the general fund to the Department of Environment
for the purpose of matching federal funds for a water reclamation study in Gallup.
Significant Issues
The bill notes that, if successful, the water reclamation study would result in the first project in
the nation to reclaim up to 90% of municipal water supply and provide a model to implement in
municipalities statewide.
Gallup is currently withdrawing more water from the aquifer than is being returned. This is de-
pleting the aquifer and reducing the availability of this drinking water source for Gallup in the
future. HB725 will provide money for a study to evaluate how municipal water can be reclaimed
and re-used to provide a sustainable source of water. The federal funding source for this state
match will come from the Bureau of Reclamation.