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F I S C A L I M P A C T R E P O R T
SPONSOR Crook
ORIGINAL DATE
LAST UPDATED
1-31-2008
HB 579
SHORT TITLE Ute Pipeline Project Studies
SB
ANALYST Woods
APPROPRIATION (dollars in thousands)
Appropriation
Recurring
or Non-Rec
Fund
Affected
FY08
FY09
$1,000.0
Non-Recurring
General
(Parenthesis ( ) Indicate Expenditure Decreases)
SOURCES OF INFORMATION
LFC Files
Responses Received From
Office of the State Engineer (OSE)
SUMMARY
Synopsis of Bill:
House Bill 579 seeks to appropriate $1,000,000 from the general fund to the Interstate Stream
Commission for expenditure in fiscal year 2009 for the design of and environmental studies
related to the Ute pipeline project. Any unexpended or unencumbered balance remaining at the
end of fiscal year 2009 shall revert to the general fund.
SIGNIFICANT ISSUES
OSE indicates that Eastern New Mexico communities currently depend on rapidly diminishing
water supplies from the High Plains aquifers. Ute Reservoir was constructed by the state – $125
million in 2006 dollars – to provide a renewable source of drinking water supplies for Eastern
New Mexico communities. Ute Reservoir is the largest state-owned and operated reservoir in
New Mexico.
OSE further advises that, during 2008, the New Mexico Congressional delegation will introduce
Federal legislation to authorize the pipeline project. In order to secure this Federal funding and
its benefits to the New Mexico communities, an Environmental Impact Statement was initiated in
2007. Continued Bureau of Reclamation support for the project requires that design of the water
system be advanced to the 30 percent design milestone. This appropriation is required to