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F I S C A L I M P A C T R E P O R T

SPONSOR Nunez

ORIGINAL DATE

LAST UPDATED

1/23/06

1/30/06 HB 139/aHENRC

SHORT TITLE Salt Cedar Removal & Riparian Restoration

SB

ANALYST Earp

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY06

FY07

$10,000.0

Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

New Mexico Department of Agriculture (NMDA)

Energy Minerals & Natural Resources Department (EMNRD)

Higher Education Department (HED)

State Engineer/Interstate Stream Commission (SE/ISC)

Environment Department (ED)

SUMMARY

Synopsis of HENRC Amendments

The House Energy and Natural Resource Committee Amendments change the terminology in the

bill from “salt cedar” to “non native phreatophyte,” extend the expenditure period one additional

fiscal year, and specify that the appropriation to NMSU is to be routed through the New Mexico

Department of Agriculture (rather than the Soil and Water Conservation Commission).

Synopsis of Original Bill

House Bill 139, sponsored by Representative Nunez on behalf of the interim Water and Natural

Resources Committee, appropriates $10 million from the general fund for expenditure in fiscal

year 2007 for the following purposes:

•

$8 million to the Board of Regents of New Mexico State University (NMSU) for the Soil

and Water Conservation Commission for a salt cedar removal and riparian restoration

program.

House Bill 139/aHENRC – Page

2

•

$2 million to the Forestry Division of the Energy, Minerals and Natural Resources De-

partment (EMNMD) for a forest health management program.

FISCAL IMPLICATIONS

The appropriation of $10 million contained in this bill would be a recurring expense to the gen-

eral fund. Any unexpended or unencumbered balance remaining at the end of fiscal year 2007

shall revert to the general fund.

NMDA and EMNRD indicate that it may be difficult to expend the total amount of these appro-

priations within a single fiscal year. They suggest extending the reversion date to allow expendi-

ture over three to four fiscal years.

SIGNIFICANT ISSUES

In Fiscal Year 2006 an interagency work group consisting of the Departments of Agriculture,

Energy, Minerals and Natural Resources, Environment, Indian Affairs and the Office of the State

Engineer, in consultation with the Soil and Water Conservation Commission, completed a state-

wide Non-native Phreatophyte/Watershed Management Plan (NNPP) to guide future treatment

and to provide templates and protocols for monitoring, revegetation, rehabilitation and long-term

watershed management.

In addition to salt cedar removal and riparian restoration, House Bill 139 also recognizes the im-

portance of protecting and restoring the state’s forests and upper watersheds. EMNRD - Forestry

Division would use the $2 million appropriated in this bill to implement the New Mexico Forest

and Watershed Health Plan.

ADMINISTRATIVE IMPLICATIONS

The New Mexico Department of Agriculture (NMDA) provides support to the state’s 47 soil and

water conservation districts (SWCDs) and has historically administered the salt cedar removal

appropriations. NMDA is designated as the lead agency for implementing the NNPP developed

during 2005, which recognizes the SWCDs as primary resources for watershed projects. NMDA

reports that implementation of the NNPP would have significant administrative impact on the

department. The department may require additional staff to provide the degree of oversight de-

sired by the legislature.

The Forestry Division would generate contracts to implement the majority of the forest health

program. Therefore, administrative implications include an increased workload for the Forestry

Division and EMNRD program managers, as well as legal, contract and fiscal staff.

The Environment Department notes that it is the recipient of the federal Clean Water Act Section

319 watershed restoration grant, of which approximately $1 million is made available annually to

local cooperators for watershed restoration projects. Section 319 funds are often used for forest

health projects that have a corollary water quality benefit. Coordination between the various

agencies implementing watershed restoration and forest health projects is critical to ensure that

projects are complimentary and that priority areas are addressed.

House Bill 139/aHENRC – Page

3

OTHER SUBSTANTIVE ISSUES

The NMDA is collaborating on and tasked with the implementation of the New Mexico State-

wide Policy and Strategic Plan for Non-native Phreatophyte/Watershed Management. That stra-

tegic plan was called for by the Legislature in House Bill 2 (2004) and developed by an inter-

agency work group to coordinate and supervise all phreatophyte (salt cedar) removal projects in

the state. This state plans call for NMDA to be the lead on watershed projects and that all fund-

ing for these projects should go to NMDA. The Soil and Water Conservancy Commission, by

statute, is not charged with administration or disbursement of funding for these projects nor for

execution of such projects.

According to the Energy, Minerals & Natural Resources Department (EMNRD), significant is-

sues relate to the importance of restoring native vegetation and enhancing water supplies.

Streamside stands of salt cedar are believed to move significant amounts of water through the

leaves and release the moisture into the atmosphere (evapotranspiration). It may be possible to

improve stream flows by removing these species, but that has not been established to a scientific

certainty.

The analysis submitted by the State Engineer/Interstate Stream Commission also pointed out

that

the latest analyses by the United States Academy of Sciences and the American Council of Civil

Engineers indicate that estimates of water salvaged by phreatophyte removal programs are much

less than predicted and may even be non-existent unless accompanied by a careful planned pro-

gram of reintroduction of low water use native plants. Studies show that in most instances, great

care must be taken or net water consumption can actually increase, not decrease. Similar as-

sessments are given by scientists from national laboratories and academia.

AMENDMENTS

NMSU and EMNRD department suggest consideration of the following amendments to address

issues outlined above:

•

Amend the bill to route the appropriation through the board of regents of New Mexico

state university (through NMDA) rather than through the Soil and Water Conservation

Commission.

•

Amend the bill to require that funded projects comply with the templates and protocols

established in the Non-Native Phreatophyte/Watershed Management Plan.

•

Amend the bill to permit the use of appropriated funds through the end of FY 2010.

DE/nt:yr