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

SPONSOR Nunez

ORIGINAL DATE

LAST UPDATED

1-30-06

1-31-06 HB 545

SHORT TITLE Lower Rio Grande Collaborative

SB

ANALYST Woods

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY06

FY07

NFI

$200.0

Non-Recurring

General

(Parenthesis ( ) Indicate Expenditure Decreases)

Duplicates SB494

SOURCES OF INFORMATION

LFC Files

Responses Received From

Department of Finance and Administration (DFA)

Office of the State Engineer (OSE)

SUMMARY

Synopsis of Bill

House Bill 545, which makes an appropriation for the Lower Rio Grande Collaborative, appro-

priates $200,000 from the general fund to the Interstate Stream Commission for expenditure in

fiscal year 2007 to support the lower Rio Grande collaborative and match a federal cost-share

commitment for the collaborative. Any unexpended or unencumbered balance remaining at the

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

FISCAL IMPLICATIONS

The Office of the State Engineer (OSE) indicates that the $200,000 appropriation would be util-

ized primarily to fund contract scientific studies, with a lesser amount for administration of the

collaborative program and for travel and per diem for collaborative program partners’ participa-

tion in meetings and field visits. This appropriation is funded to match a federal cost-share com-

mitment for the collaborative program.

House Bill 545 – Page

2

While the Department of Finance and Administration notes that the agency has the administra-

tive capacity to implement this bill, it indicates that the proposed appropriation is not included in

the Executive recommendation.

SIGNIFICANT ISSUES

OSE notes that a collaborative partnership between Elephant Butte Irrigation District (EBID),

World Wildlife Fund (WWF) and Environmental Defense (ED) was formed in 2004 to address

Rio Grande water management issues. A principal driver for the Collaborative Program’s forma-

tion was the International Boundary and Water Commission’s (IBWC) efforts to change its water

operation procedures based on its June 2004 Lower Rio Grande Canalization Environmental Im-

pact Statement (EIS). The purpose of the Collaborative Program is to work with water manag-

ers, water users, and environmental organizations to resolve management issues in a framework

that protects and safeguards the Lower Rio Grande farmers’ water operations and management,

while achieving the goals of improving the biological functioning of the river.

OSE adds that Governor Richardson and Senator Bingaman provided key support to the Collabo-

rative in 2004 when the Collaborative opposed the International Boundary and Water Commis-

sion’s (IBWC) final EIS on the 105-mile Canalization Project in Southern New Mexico. To im-

plement the Collaborative Program, the Collaborative requested IBWC to fund additional inves-

tigations of ESA safeguards and scientific studies before issuing a Record of Decision.

IBWC has agreed to provide partial funding of up to $450,000 for the additional scientific stud-

ies and investigations necessary to protect the farmers and ascertain the best and sustainable sites

for river enhancement. However, OSE suggests that additional monies are needed for comple-

tion of necessary scientific studies and to ensure full participation and collaboration among all

partners, and the Collaborative would expend these funds on the following activities:

•

legal analysis and drafting and technical review and comment on biologic, hydro-

logic and sediment transport studies undertaken by the IBWC in partnership with

the US Army Corp of Engineers;

•

developing an agreement for EBID’s water delivery and right-of-way in the newly

created Mesilla Valley Bosque State Park;

•

third-party consultants to undertake complementary scientific studies and analyses

of river restoration activities in the 105-mile reach; and.

•

travel and per diem for collaborative partners to participate in collaborative meet-

ings.

OSE concludes by noting that this funding will allow active participation by the State of New

Mexico in the Collaborative Program by bringing in the New Mexico Interstate Stream Commis-

sion, which is actively involved in water management issues in the region, especially those that

may affect interstate water deliveries.

BW/mt