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

SPONSOR Stewart

ORIGINAL DATE

LAST UPDATED

2-13-07

HB 755

SHORT TITLE Endangered Species Collaborative

SB

ANALYST Woods

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY07

FY08

NFI

$2,000.0

Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Department of Game and Fish (DGF)

Office of the State Engineer (OSE)

SUMMARY

Synopsis of Bill

House Bill 755 seeks to appropriate $2,000,000 from the general fund to the Interstate Stream

Commission for expenditure in fiscal year 2008 to support the endangered species collaborative.

Any unexpended or unencumbered balance remaining at the end of fiscal year 2008 shall revert

to the general fund.

FISCAL IMPLICATIONS

DGF notes that this appropriation will go toward meeting the State’s obligation as a participant

in the Rio Grande Collaborative Program. In collaboration with numerous federal agency’s and

other stakeholder, various State agencies (including Interstate Stream Commission, Department

of Game and Fish, Attorney General’s Office, Environment Department, and Department of

Agriculture) have agreed to participate in the program to protect and improve the status of listed

species in the Middle Rio Grande while simultaneously protecting existing and future water uses

and to contribute to recovery of those species, all the while complying with state and federal law,

including compact delivery obligations. As part of the agreement, the state is obligated to

House Bill 755 – Page

2

provide 25 percent of the funding which will then be leveraged with 75 percent federal funds.

The estimated cost of the program is $30,000,000 over the next 10 years.

OSE indicates that the Middle Rio Grande Endangered Species Act Collaborative Program was

established in 2001 for the purpose of protecting and improving the status of endangered species

in the Middle Rio Grande while simultaneously protecting existing and future water uses from

potential court-mandated takings. The Program’s primary goal is to achieve long-term solutions

to Middle Rio Grande endangered species issues while complying with state and federal law

including New Mexico’s Rio Grande Compact delivery obligations. The Program serves as the

basis for compliance with Sections 7 and 9 of the ESA for all middle valley water users. The

program is a consortium of federal, state, local, tribal and non-governmental parties working in a

collaborative manner that has been successful in securing over $50 million from Congress since

2001.

WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL

OSE suggests that the $2,000,000 would not be available for use in fiscal year 2008 for New

Mexico’s share of projects designed to increase the viability of endangered species within the

Middle Rio Grande. Middle valley water users may face liability under Sections 7 and 9 of the

Endangered Species Act and potential court-mandated takings of water.

DGF adds that the state will be unable to meet its financial obligations under the Collaborative

Program agreement, and federal funds will not be leveraged. As a result, the Collaborative

Program may fail and conflicts between water use and availability and the endangered species

requirements may escalate.

PERFORMANCE IMPLICATIONS

DGF states that, the funds, “…will help the State meet its obligations under the agreement that

established the Collaborative Program."

WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL

The State will be unable to meet its financial obligations under the Collaborative Program

agreement, and federal funds will not be leveraged. As a result, the Collaborative Program may

fail and conflicts between water use and availability and the endangered species requirements

may escalate.

AMENDMENTS

OSE proposes that the text of the bill should be amended to accurately reflect the precise name

of the collaborative program:

On page 1, line 18, strike “endangered species collaborative" and insert in lieu thereof

“middle Rio Grande endangered species act collaborative program".

BFW/nt