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(Parenthesis ( ) Indicate Expenditure Decreases)

(Parenthesis ( ) Indicate Revenue Decreases)

Duplicates/Conflicts with/Companion to/Relates to

SOURCES OF INFORMATION

Office of the State Engineer/Interstate Stream Commission (OSE/ISC)

SUMMARY

Synopsis of Bill

SB 585 appropriates $979.0 from the general fund to the OSE for expenditure in FY 2000 for the purpose of funding the implementation of the Estancia Water Basin Plan. Any unexpended or unencumbered balance remaining at the end of FY 2000 shall revert to the general fund.

Significant Issues

The Estancia Basin Regional Water Plan ("Estancia Water Plan") was prepared by the Estancia Basin Water Planning Committee with grants from the ISC, and was recently submitted to the ISC. The agency noted that the next step in the planning process is to implement recommendations, as the anticipated work for FY 2000 is part of a five year program plan of implementation shown in the Estancia Water Plan.

According to the OSE/ISC, the $979.0 is for start up costs only. It estimated from the Estancia Water Plan, that some $2,000.0 could be required annually to keep the program in operation. Also, the agency reported that the plan had not been heard by or considered for acceptance by the ISC.

FISCAL IMPLICATIONS

SB 585 appropriates $979.0 from the general fund to the OSE for expenditure in FY 2000. Any unexpended or unencumbered balance remaining at the end of FY 2000 shall revert to the general fund. The bill appropriates money for"start-up costs" but the total costs for the entire five year water plan could range from $5,000.0 to over $10,000.0.

The OSE/ISC analysis of the bill stated that the water plan is ambitious and in order to maintain the various programs relating to management, conservation, water development and water quality, more funding possibly from the legislature would be required.

ADMINISTRATIVE IMPLICATIONS

The OSE/ISC reported significant administrative staff time would be required for program oversight.

CONFLICT/DUPLICATION/COMPANIONSHIP/RELATIONSHIP

The agency states that the Estancia Water Plan includes $80.0 funding for a water trust which is the subject of HB 455 and SB 512.

OTHER SUBSTANTIVE ISSUES

In the opinion of the OSE/ISC, funding the Estancia Water Plan is an important step for the state to implement the coordinated water management, water conservation and enhancement opportunities envisioned when regional water planning was authorized by Section 72-14-43 and Section 72-14-44 NMSA 1978. The agency believes the implementation plan is capable of being staged, and partial funding of the requested total amount could be used without sacrificing efficiency.

Additionally, the OSE/ISC states that the Estancia Basin Water Planning Committee wishes to use the water plan as a pilot project for implementation of basin water plans. The plan will be presented to the ISC for consideration in late March or early April 1999.

ALTERNATIVES

In its review, the OSE/ISC recommended funding the water plan at a reduced amount to force the re-evaluation of the costs and the degree of implementation of the programs slated for funding. Also, the agency suggested that the ISC comprehensively address the total funding needs for implementation of regional water plans throughout New Mexico.

CONSEQUENCES OF NOT ENACTING THIS BILL

According to the OSE/ISC, the Estancia Basin Water Planning Committee will not have the funds to implement its water plan, as implementation of the region's water plan will be deferred. In addition, the agency states that water management decisions in the basin will continue to be made without regional coordination. As a result, water conservation measures will not be enacted, leading to mining of ground water at present levels instead of preservation of resources for future needs.

RP/njw