SENATE FINANCE COMMITTEE SUBSTITUTE FOR
SENATE BILL 335
49th legislature - STATE OF NEW MEXICO - first session, 2009
AN ACT
RELATING TO THE ENVIRONMENT; ENACTING A NEW SECTION OF THE ENVIRONMENTAL IMPROVEMENT ACT; PROVIDING FOR ASSISTANCE TO WATER AND WASTEWATER SYSTEMS; CREATING A FUND; MAKING AN APPROPRIATION.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
Section 1. A new section of the Environmental Improvement Act is enacted to read:
"[NEW MATERIAL] WATER AND WASTEWATER SYSTEM MANAGEMENT ASSISTANCE FUND--CREATED--PURPOSE.--
A. The "water and wastewater system management assistance fund" is created in the state treasury. The department shall administer the fund. The fund is composed of appropriations, donations and transfers of money earned from investment of the fund and otherwise accruing to the fund and transfers of money from the liquid waste fund, the water quality management fund or the corrective action fund. Balances remaining in the fund at the end of a fiscal year shall remain to the credit of the fund. Disbursements from the fund shall be drawn on warrant of the secretary of finance and administration pursuant to vouchers signed by the secretary of environment or the secretary's authorized representative. Money in the fund is appropriated to the department to assist small water and wastewater systems that qualify for funding to pay for:
(1) a certified water or wastewater operator to maintain and manage a small water or wastewater system;
(2) the administrative management of a small water or wastewater system; or
(3) all or a portion of the connection fees to connect a small water or wastewater system to another water or wastewater system so as to create a regional water or wastewater system.
B. System operation, maintenance, construction and administrative activities funded by the water and wastewater system management assistance fund shall be performed by contractors selected through competitive bid pursuant to guidelines provided by the department.
C. No more than five percent of the fund shall be used by the department on an annual basis to pay for the department costs associated with management and implementation of fund activities.
D. As used in this section:
(1) "administrative management" means activities such as rate structure development and other system business management, record keeping, customer service and customer invoicing and collections;
(2) "connection fee" means the fee paid directly to a public water or wastewater system or other water or wastewater management organization and does not include other fees, such as legal fees, related to connecting a small water or wastewater system to another water or wastewater system to create a regional water or wastewater system; and
(3) "small water or wastewater system" means a water or wastewater system that serves no more than three hundred connections, whether public or private, including small systems managed by a political subdivision of the state, including a water and sanitation district, a mutual domestic water consumers association or a public school district and as further established by department qualification criteria."
Section 2. Section 74-1-15 NMSA 1978 (being Laws 2000, Chapter 96, Section 3) is amended to read:
"74-1-15. LIQUID WASTE FUND CREATED.--The "liquid waste fund" is created in the state treasury. On-site liquid waste system fees shall be deposited in the fund. Money in the fund is appropriated to the department for administration of liquid waste regulations, and money in the fund is appropriated to the liquid waste disposal system assistance fund, if enacted into law by the first session of the forty-ninth legislature, and the water and wastewater system management assistance fund. Disbursements from the fund shall be by warrant drawn by the secretary of finance and administration pursuant to vouchers signed by the secretary of environment or [his] the secretary of environment's designee. Any unexpended or unencumbered balance or income earned from the money in the liquid waste fund remaining at the end of any fiscal year shall not revert to the general fund."
Section 3. Section 74-6-5.2 NMSA 1978 (being Laws 1993, Chapter 100, Section 4) is amended to read:
"74-6-5.2. WATER QUALITY MANAGEMENT FUND CREATED.--There is created in the state treasury the "water quality management fund" to be administered by the department of environment. All fees collected pursuant to the regulations adopted by the commission under Subsection [H] J of Section 74-6-5 NMSA 1978 shall be deposited in the fund. Money in the fund is appropriated to the department of environment for the purpose of administering the regulations adopted by the commission pursuant to Section 74-6-5 NMSA 1978, and money in the fund is appropriated to the liquid waste disposal system assistance fund, if enacted into law by the first session of the forty-ninth legislature, and the water and wastewater system management assistance fund. Disbursements from the fund shall be made upon warrants drawn by the secretary of finance and administration pursuant to vouchers signed by the secretary of environment."
Section 4. Section 74-6B-7 NMSA 1978 (being Laws 1990, Chapter 124, Section 7, as amended) is amended to read:
"74-6B-7. CORRECTIVE ACTION FUND CREATED--AUTHORIZATION
FOR EXPENDITURES.--
A. There is created the "corrective action fund". The fund is intended to provide for financial assurance coverage and shall be used by the department to the extent that revenues are available to take corrective action in response to a release, to pay for the costs of a minimum site assessment in excess of ten thousand dollars ($10,000), to pay the state's share of federal leaking underground storage tank trust fund cleanup costs as required by the federal Resource Conservation and Recovery Act [and], to make payments to or on behalf of owners and operators for corrective action taken in accordance with Section 74-6B-13 NMSA 1978 and to transfer money to the liquid waste disposal system assistance fund, if enacted into law by the first session of the forty-ninth legislature, and the water and wastewater system management assistance fund. The legislature may appropriate up to thirty percent of the annual distribution to the fund pursuant to Section 7-1-6.25 NMSA 1978 to the department to match federal funds, for underground contamination cleanup and to address water needs. The owner or operator of a site shall not use the corrective action fund as evidence of financial assurance to satisfy claims of third parties.
B. The board, after recommendations from the storage tank committee, shall adopt rules for establishing priorities for corrective action at sites contaminated by storage tanks. The priorities for corrective action shall be based on public health, safety and welfare and environmental concerns. In adopting rules pursuant to this subsection, the board shall follow the procedures of Section 74-4-5 NMSA 1978. The provisions of that section relating to all other matters in connection with the adoption of rules shall apply. The department shall establish priority lists of sites in accordance with the rules adopted by the board.
C. The department shall make expenditures from the corrective action fund in accordance with rules adopted by the board or the secretary for corrective action taken by the state, owners or operators at sites contaminated by storage tanks; provided that:
(1) payments may be made only for corrective action taken by persons qualified by the department to perform the work pursuant to rules adopted by the board;
(2) no expenditures from the fund shall be paid to or on behalf of an owner or operator for corrective action, other than a minimum site assessment or sampling, if the corrective action is conducted by a person that is a subsidiary or parent of or that is otherwise affiliated with the owner or operator;
(3) expenditures shall be made by the department to perform corrective action, to pay for the costs of minimum site assessment in excess of ten thousand dollars ($10,000) or to make payments to or on behalf of an owner or operator in accordance with Section 74-6B-13 NMSA 1978;
(4) any corrective action taken shall be taken at sites in the order of priority appearing on the priority lists, unless an emergency threat to public health, safety and welfare or to the environment exists;
(5) when available revenues are limited and the fund can no longer be approved as a financial responsibility mechanism, priorities for expenditures from the fund shall also be based on financial need as determined by rules adopted by the board; and
(6) corrective action involving remediation shall follow a competitive bidding procedure based on technical merit and cost effectiveness.
D. No expenditure from the corrective action fund shall be authorized for corrective action at sites owned or operated by the United States or any agency or instrumentality thereof.
E. Nothing in this section authorizes payments for the repair or replacement of a storage tank or equipment.
F. Nothing in this section authorizes payments or commitments for payments in excess of the funds available.
G. The board, by rule, may provide for a specific amount to be reserved in the fund for emergencies. The amount reserved may be expended by the department only for corrective action necessary when an emergency threat to public health, safety and welfare or to the environment exists.
H. Within sixty days after receipt of notification that the corrective action fund has become incapable of paying for assured corrective actions, the owner or operator shall obtain alternative financial assurance acceptable to the department."
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