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

SPONSOR Rainaldi

DATE TYPED 2/22/05

HB

SHORT TITLE Gallup Water Reclamation Study

SB 774

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 HB725.

REVENUE

Estimated Revenue

Subsequent

Years Impact

Recurring

or Non-Rec

Fund

Affected

FY05

FY06

See Narrative

Non-Recurring Federal Bureau of

Reclamation

(Parenthesis ( ) Indicate Revenue Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Office of the State Engineer (OSE)

Department of Environment (NMED)

SUMMARY

Synopsis of Bill

Senate Bill 774 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

Senate Bill 774 -- Page 2

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. SB774 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.

FISCAL IMPLICATIONS

The appropriation of $500,000 contained in this bill is a non-recurring expense to the general

fund. Any unexpended or unencumbered balance remaining at the end of FY06 would revert to

the general fund.

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