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

SPONSOR Lundstrom

ORIGINAL DATE

LAST UPDATED

2-2-06

HB 579/aHENRC

SHORT TITLE

NORTHWEST NM ENVIRONMENTAL

PLANNING

SB

ANALYST Hadwiger

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY06

FY07

$75.0 Non-Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

Relates to HB32.

SOURCES OF INFORMATION

LFC Files

Responses Received From:

Department of Finance and Administration (DFA)

New Mexico Department of Environment (NMED)

Energy, Minerals and Natural Resources Department (EMNRD)

SUMMARY

Synopsis of HENRC Amendment

The House Energy and Natural Resource Committee amendment to House Bill 579 would ex-

tend the appropriation period through the end of FY08 and make funds revert at the end of FY09.

Synopsis of Original Bill

House Bill 579 appropriates $75 thousand from the general fund to the Local Government Divi-

sion of the Department of Finance and Administration in FY07 for a demonstration program in

San Juan, McKinley, and Cibola counties designed to help communities understand and reduce

risks due to toxics from all sources. The bill directs this program to encourage communities to

form collaborative partnerships, develop a comprehensive understanding of all sources of risk

from toxics, set priorities and identify projects to reduce risks through collaborative action at the

local level. The program would match state funds with federal funds from the U.S. Environ-

mental Protection Agency’s Community Action for a Renewed Environment Program.

House Bill 579/aHENRC – Page

2

FISCAL IMPLICATIONS

The appropriation of $75 thousand contained in this bill is a non-recurring expense to the general

fund. The bill indicates that federal matching funds will be sought. Any unexpended or unen-

cumbered balance remaining at the end of FY07 would revert to the general fund.

SIGNIFICANT ISSUES

DFA commented that lack of awareness and cooperation among local governments, organiza-

tions and citizens make it hard to address and reduce land, water and air-borne toxins. Education

on these issues by consultants, while an effective approach, can be costly, and resources are often

not available locally. Community Action for a Renewed Environment, a program sponsored by

Northwest New Mexico CARE, aims to implement a program to help communities reduce envi-

ronmental toxins. The two year effort seeks to hire consultants who will work with communities

to educate community members on toxic risks and device effective strategies for addressing

them. Over $81,000 has been received from the US EPA for the program; the state funding in

this bill would help meet the overall budget of $231,168.

The Department of Health (DOH) noted in comments on a similar bill that, in the last two years,

29 out of 37 county and tribal health councils in New Mexico have identified and prioritized

their environmental health concerns. If enacted, HB579 would develop a model for community

collaboration and action on environmental health concerns in New Mexico and provide resources

for sustainable, community-based partnerships aimed at improving local environments, reducing

environmental health risks to communities, and improving health status.

According to EMNRD, EMNRD and other state agencies encourage community involvement in

environmental permitting decisions. The program envisioned in this bill would assist agency ef-

forts in providing information to communities about permitting actions that may impact them.

This collaborative partnership program could help agencies create long term partnerships and

build trust with community and citizen groups, so that potentially divisive issues can be ad-

dressed in a positive manner.

The HENRC amendment allows the funds to be spent in FY07 and FY08; however, there is an

inconsistency by having the funds revert after FY09. This would require any funds remaining

after FY08 to sit idle for one year.

ADMINISTRATIVE IMPLICATIONS

NMED noted that DFA will be responsible for the fiscal administration, while NMED will moni-

tor and coordinate the program’s implementation with local communities in the identified coun-

ties. The program is a multi-media program, so several NMED Divisions/Bureaus will be af-

fected by the program’s implementation including: Ground Water, Surface Water, Air Quality

and the Office of the Secretary.

CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP

This bill is similar to HB32. It is different in that it provides that state funds will be combined

with specified federal matching funds (EPA’s community action) and it expresses a goal for bal-

anced involvement by stakeholders.

House Bill 579/aHENRC – Page

3

TECHNICAL

It would be reasonable to amend the HENRC amendment to make the reversion and appropria-

tion dates consistent, so any funds remaining at the end of FY08 would not have to sit idle for

one year before reverting. Either page 1, line 19 could be amended to replace “2008” with

“2009” or page 2, line 9 could be amended to replace “2009” with “2008”.

DH/yr:nt