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Committee advances HB41, shifting $13.25 million from PPRF to state water, planning and cultural-facilities funds
Summary
The Senate Conservation Committee gave HB41 a due pass, approving a $13.25 million transfer from the Public Project Revolving Fund (PPRF): $6.25 million to the Drinking Water State Revolving Fund, $2 million to the Local Government Planning Fund and $5 million to the Cultural Affairs Facilities Infrastructure Fund.
The Senate Conservation Committee gave House Bill 41 a due pass after a committee vote, advancing a $13.25 million transfer from the Public Project Revolving Fund (PPRF) to three identified state programs.
The appropriation directs $6,250,000 to the Drinking Water State Revolving Fund to serve as the 20% state match required for federal Environmental Protection Agency (EPA) capitalization grants; $2,000,000 to the Local Government Planning Fund to support preliminary engineering and planning for water and wastewater projects; and $5,000,000 to the Cultural Affairs Facilities Infrastructure Fund for maintenance and infrastructure at cultural facilities the Department of Cultural Affairs (DCA) operates.
DCA Deputy Cabinet Secretary Michelle Gallagher Roberts told the committee the cultural-affairs allocation is “vital” to maintaining more than 240 DCA-owned buildings and several small drinking-water and wastewater systems. DCA officials said the cultural-affairs fund supplements capital appropriations and is used primarily for maintenance that can avert costlier capital projects later. Director-level testimony said DCA’s capital improvements plan (ICIP) lists identified projects and an overall need far greater than the bill’s $5 million allocation.
Marquita Russell of the New Mexico Finance Authority (NMFA) told the panel the PPRF funds do not come from the general fund; they are monies administered by NMFA and can be dedicated in statutorily allowed amounts (up to 35% of annual governmental gross receipts tax receipts to eligible programs). She stated the $6.25 million figure is the state match needed to secure anticipated EPA capitalization grants and that the local government planning fund supports the flow of preliminary engineering reports required to access federal and state construction dollars.
Committee members questioned DCA and NMFA officials about project lists, oversight, audit processes and program eligibility. Senators asked for a project list tied to the $5 million cultural affairs allocation; DCA said the allocation is tied to its ICIP and that NMFA oversight, state procurement, and standard audit processes apply. DCA identified three drinking-water systems it operates: Fort Selden (Radium Springs, Dona Ana County), Fort Stanton (Lincoln County) and Los Luceros (Alcalde). Committee members pressed whether reductions in federal grant conditions (for example, changes to environmental-justice-related guidance) would affect New Mexico’s access to EPA funds; NMFA and DCA said the capitalization grants’ core uses remain focused on drinking-water projects and that environmental review and cross-cutting requirements still apply on a project-by-project basis.
The committee recorded the motion, called the roll, and advanced HB41 with a due-pass recommendation: seven affirmative votes, one negative and one excused.
Votes at a glance: The secretary recorded seven affirmative votes and one negative; one member was excused. The committee announcement stated: "House Bill 41 has a due pass with 7 in the affirmative, 1 in the negative and 1 excused."
