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

SPONSOR Nuñez

ORIGINAL DATE

LAST UPDATED

2/7/2007

HB 617

SHORT TITLE Salt Cedar Removal & Forest Health Programs

SB

ANALYST McOlash

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY07

FY08

$10,000.0

Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

Duplicates SB 115a/SCONC

SOURCES OF INFORMATION

LFC Files

Responses Received From

New Mexico Department of Agriculture (NMDA)

Energy, Minerals, and Natural Resources Department (EMNRD)

New Mexico Environment Department (NMED)

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

Higher Education Department (HED)

SUMMARY

Synopsis of Bill

House Bill 617 appropriates $10,000,000 from the General Fund to the NMSU Regents for ex-

penditure in FY 2008 and FY 2009 to manage and administer non-native phreatophyte removal

and riparian restoration with the advice of the Soil and Water Conservation Commission

(SWCC) according to the Non-Native Phreatophyte/Watershed Management Plan (NNPP) pro-

gram

FISCAL IMPLICATIONS

The appropriation of $10,000,000 contained in this bill is a recurring expense to the General

Fund. Any unexpended or unencumbered balance remaining at the end of FY 2009 shall revert to

the General Fund.

House Bill 617 – Page

2

SIGNIFICANT ISSUES

NMDA Analysis

Administration and management of the non-native phreatophyte program has

been under the purview of the NMSU board of regents through the New Mex-

ico department of agriculture (NMDA) since FY02. NMDA works directly

with SWCC on behalf of the board of regents in carrying out Soil and Water

Conservation Districts (SWCD) programs.

NNPP was developed to guide future treatment and to provide templates and

protocols for monitoring, revegetation, rehabilitation and long-term watershed

management. This plan is referenced in the bill.

Although not specifically mentioned in the bill, 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 the lead agency

for implementing the NNPP, which recognizes the SWCDs as primary re-

sources for watershed projects, and provides administrative and fiscal support

to the SWCC.

This request was not submitted by NMSU to HED for review and was not included in Depart-

ment’s funding recommendation for FY 2008.

OTHER SUBSTANTIVE ISSUES

NMISC Analysis

Funding for the phreatophyte removal and riparian restoration program would

properly and better go to New Mexico Department of Agriculture, which has

the staffing and technical expertise to administer such a program. In addition,

the NMDA is collaborating on and tasked with the implementation the state’s

FOREST AND WATERSHED HEALTH PLAN and the NEW MEXICO

STATEWIDE POLICY AND STRATEGIC PLAN FOR NON-NATIVE

PHREATOPHYTE/WATERSHED MANAGEMENT. That strategic plan was

called for by the Legislature in HB2 (2005) and developed by an interagency

work group to coordinate and supervise all phreatophyte removal projects in

the state. Both state plans call for NMDA to be the lead on watershed projects

and that all funding for these projects should go to NMDA.

Funding should be expended pursuant to the FOREST AND WATERSHED

HEALTH PLAN and the NEW MEXICO STATEWIDE POLICY AND

STRATEGIC PLAN FOR NON-NATIVE PHREATOPHYTE/WATERSHED

MANAGEMENT and must meet all the requirements, guidelines, templates

and protocols established by those plans.

The New Mexico Environment Department (NMED) is the recipient of the federal Clean Water

Act Section 319 watershed restoration grant, of which approximately $1 million is made avail-

able annually to local cooperators for watershed restoration projects. Funds from the 319 grant

House Bill 617 – Page

3

have been used for non-native phreatophyte removal and riparian restoration projects in order to

improve the chemical, physical and biological health of a watershed. Coordination between the

various agencies implementing watershed restoration projects is critical to ensure projects are

complimentary and that priority areas are addressed

.

According to EMNRD, the NMDA, the SWCDs and the SWCC are the traditional entities to

take a lead role in non-native phreatophyte management and riparian restoration. However, these

agencies do not currently have the statutory responsibility, experience and technical background

to conduct Forest Health Management Programs, as is indicated in the bill’s title. The EMNRD –

Forestry Division would be the appropriate entity to conduct Forest Health Management Pro-

grams.

WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL

If House Bill 617 is not enacted, funding for the non-native phreatophyte program will not be

available. Last year’s funding was vetoed. This means that both non-native phreatophyte removal

and subsequent restoration activities will be interrupted with unknown consequences in light of

work completed and awaiting additional funds for completion. The state has invested signifi-

cantly in this program effort (˜$11.2 million) and the project proponents have established phased

projects which require funding (NMDA).

AMENDMENTS

Line 17, between the words “university" and “for" insert the words “through the Mexico De-

partment of Agriculture".

Remove the words “AND FOREST HEALTH MANAGEMENT PROGRAMS" from the title of

the bill on line 12.

BM/yr