Fiscal impact reports (FIRs) are prepared by the Legislative Finance Committee (LFC) for standing finance committees of the Legislature. LFC does not assume responsibility for the accuracy of these reports if they are used for other purposes. F I S C A L I M P A C T R E P O R T SPONSOR Hernandez/Johnson/Duncan/Lente/ Abe yta LAST UPDATED ORIGINAL DATE 2/12/2025 SHORT TITLE Cleanup of Contaminated Sites BILL NUMBER House Bill 333 ANALYST Davidson APPROPRIATION* (dollars in thousands) FY25 FY26 Recurring or Nonrecurring Fund Affected $50,000 Nonrecurring General Fund Parentheses ( ) indicate expenditure decreases. *Amounts reflect most recent analysis of this legislation. Relates to an appropriation in the General Appropriation Act Duplicates Senate Bill 260 Sources of Information LFC Files Agency Analysis Received From New Mexico Environment Department (NMED) SUMMARY Synopsis of House Bill 333 House Bill 333 (HB333) appropriates $50 million from the general fund to the New Mexico Environment Department (NMED) for the purpose of assessing and cleaning up abandoned or neglected contaminated sites, including abandoned uranium mining sites. This bill does not contain an effective date and, as a result, would go into effect 90 days after the Legislature adjourns if enacted, or June 20, 2025. FISCAL IMPLICATIONS The appropriation of $50 million contained in this bill is a nonrecurring expense to the general fund. Any unexpended or unencumbered balance remaining at the end of FY28 shall revert to the general fund. House Bill 333 – Page 2 Analysis from NMED estimates the agency will use 97 percent of the fund for assessing and cleaning up contaminated sites and the remaining 3 percent to hire personnel to facilitate this work. NMED analysis pointed to one site with contaminated soil and groundwater which has estimated cleanup costs around $5 million. The agency also plans to begin cleanup of an abandoned uranium mine with the funds from House Bill 333 and estimates this work to cost between $4 million and $8 million. Overall, NMED estimates each individual mine remediation will run between $4 million and $12 million depending on site features, whether groundwater contamination is present, and method of remediation. SIGNIFICANT ISSUES NMED analysis notes the state has over 350 contaminated sites, each with varying degrees of potential impact to human and environmental health. The agency estimates that approximately $300 million total will be necessary to address all the contaminated sites. Additionally, agency analysis indicates that contaminated sites and abandoned uranium mines are present on the land of sovereign nations. NMED notes that, “The proper mechanisms to allow expenditure of funding and implementation of the work through cooperative agreements will need to be developed.” NMED analysis notes the timeline for expenditure of the $50 million appropriation, between FY26 through FY28, may be too compressed. The agency states that the actualization of funds can take up to 60 days and certain cleanup projects can last several years. CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP House Bill 333 relates to a $50 million nonrecurring appropriation in the executive budget recommendation to support work on neglected and contaminated sites covered by HB2. House Bill 333 also duplicates Senate Bill 260. AD/rl/SR