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(Parenthesis ( ) Indicate Revenue Decreases)

Duplicates/Conflicts with/Companion to/Relates to

SOURCES OF INFORMATION

State Engineer

Department of Environment

SUMMARY

Synopsis of House Energy and Natural Resources Committee Amendment to the Senate Conservation Committee Substitute for Senate Bill84.

The amendment replaces the definition of "person" and inserts the definition of "governmental entity" to mean an Indian nation, tribe or pueblo or state political subdivision, including municipality, county, acequia, irrigation district or conservancy district.

The amendment also clarifies that projects in question must cause no harm to the users of land and water within the area of hydrology or effect and that "water rights" shall include federal reserved water rights accepted by the state engineer.

The amendment provides that the Ground Water Storage and Recovery Act shall not be construed to affect the obligations of the United States to Indian nations, tribes or pueblos or to impair the rights of Indian nations or pueblos.

The amendment states that nothing in the Ground Water Storage and Recovery Act shall exempt stored water from the provision that priority in time shall give the better right (pursuant to Ch. 72 NMSA 1978) or priority of appropriation shall give the better right pursuant to Article 16, Section 2 of the constitution of New Mexico.

Finally, the amendment states that determinations made by the state engineer for purposes of the Ground Water Storage and Recovery Act are not bonding in any other proceedings.

Synopsis of Bill

Senate Conservation Committee substitute for Senate Bill 84 creates the Ground Water Storage and Recovery Act which authorizes any legal entity to apply for and obtain a permit from the State Engineer to transfer existing surface or ground water rights to underground aquifers where the same may be stored and recovered for future use by the permittee through ground water pumping.

Significant Issues

This bill authorizes the State Engineer to receive an application fee of $5.0 plus $5.00 per acre foot not to exceed $50.0 and an annual fee of $.50 per acre foot approved by application. These fees are designed to offset the increase in workload the State Engineer will assume in processing and reviewing such applications.

The State Engineer is vested the authority to review projects to determine if the permittee is complying with the terms and conditions of the permit. After an investigation and a hearing, and for good cause, the State Engineer may permanently revoke or temporarily suspend a permit. Each permittee must submit an annual report to the State Engineer. If one fails to submit a report, then the State Engineer may assess and impose a penalty of $0.5 for each month the report is not filed, with an annual fee not to exceed $5.0. Persons determined to be in violation of the Ground Water Storage and Recovery Act may be assessed civil penalties not to exceed $0.1 per day of violation not directly related to the illegal recovery or use of stored water or $10.0 per day of violation directly related to the illegal recovery or use of stored water.

FISCAL IMPLICATIONS

The SCONC substitute for Senate Bill 84 creates a revenue stream for the State Engineer. It is unknown how much revenue the permit fees will generate, or whether it will be sufficient to offset the State Engineer's increased costs.

ADMINISTRATIVE IMPLICATIONS

The State Engineer will be required to review permit application and grant permits, establish and maintain a storage account for each project, and assess penalties against permittees that are acting in violation of the act.

BOC:MW/gm/njw