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 a vailable 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 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 HAGC

ORIGINAL DATE

LAST UPDATED

1-30-06

HB 131/HAGCS

SHORT TITLE Assess Salt Water Basin Resource Development

SB

ANALYST Woods

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY06

FY07

$150.0

Non-Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

Relates to HB175

SOURCES OF INFORMATION

LFC Files

Responses Received From

Office of the State Engineer-Interstate Stream Commission (OSE) (HB131)

Department of Finance and Administration (DFA) (HB131)

SUMMARY

Synopsis of Bill

The House Agriculture and Water Resources Committee substitute for House Bill

131,

Making

an Appropriation for the Interstate Stream Commission to Assess New Mexico’s Options to Put

to Beneficial Use Salt Basin Water Resources, seeks to appropriate $150,000 from the general

fund to the Interstate Stream Commission for expenditure in fiscal year 2007 to assess New

Mexico's options to put salt basin water to beneficial use. Any unexpended or unencumbered

balance remaining at the end of fiscal year 2007 shall revert to the general fund.

SIGNIFICANT ISSUES

The Office of the State Engineer-Interstate Stream Commission (OSE) indicates that studies of

the water resources in the Salt Basin have been made utilizing similar appropriations in recent

years. Preliminary estimates are that 50,000 to 75,000 acre-feet of water per year could be relia-

bly developed from the Salt Basin, or approximately as much water as the San Juan Chama Pro-

ject delivers.

House Bill 131/HAGCS – Page

2

OSE further observes that the southern portions of the state are currently short of water. In the

coming decades, the southern portions of the state are expected to experience the New Mexico‘s

– if not the nation’s – highest growth rates. The water in the Salt Basin currently flows under-

ground across the Texas-New Mexico border where Texas farmers pump it for irrigation. OSE

suggests that this funding will continue the critical investigations necessary to develop that water

in New Mexico, while the Department of Finance and Administration (DFA) adds that it is likely

that the proposed appropriation may qualify for federal matching funds.

DFA additionally suggests that this appropriation would allow OSE to further explore the possi-

bility of developing a substantial water source that could be used in meeting interstate compact

delivery requirement performance or increasing the amount of water available for use within the

state.

CONFLICT, DUPLICATION, COMPANIONSHIP OR RELATIONSHIP

This legislation is related to HB175 which also addresses salt basin water development.

BW/mt:yr