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

SPONSOR Moore

ORIGINAL DATE

LAST UPDATED

01/30/08

HB 565

SHORT TITLE NMSU Range Task Force Timber Harvest Study

SB

ANALYST Williams

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY08

FY09

$50.0 Non-Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

Duplicates SB 476

Related to General Appropriation Act appropriations to NMSU Agricultural Experiment Station

SOURCES OF INFORMATION

LFC Files

Responses Received From

Higher Education Department (HED)

Energy, Minerals and Natural Resources Department (EMNRD),

State Forestry

New Mexico State University

SUMMARY

Synopsis of Bill

House Bill 565 appropriates $50,000 from the General Fund to the Board of Regents of New

Mexico State University for the purpose of research by the Range Improvement Task Force on

the impact and unintended consequences of revised commercial timber harvesting requirements.

FISCAL IMPLICATIONS

The appropriation of $50.0 thousand contained in this bill is a non-recurring expense to the

general fund. Any unexpended or unencumbered balance remaining at the end of FY 09 shall

revert to the general fund.

House Bill 565 – Page

2

While research activities would typically be considered recurring, NMSU states “the Range

Improvement Task Force (RITF) will … produce a report within one year analyzing the impacts

and effects of revisions to timber harvesting regulations." Therefore, this bill is shown as

making a non-recurring appropriation.

SIGNIFICANT ISSUES

This proposed funding was not submitted as an expansion proposal by NMSU to the HED for

consideration in fall 2007, and was not included in the Department’s funding recommendation

for FY09. NMSU notes “the RITF did not solicit this support… the request is being made by

stakeholders and producers …who wish to initiate a review of recent revisions to NM State

Forestry timber harvesting regulations. There is a concern that these revisions will limit

restoration activities in woodland habitats throughout the state."

EMNRD notes “The Forest Conservation Act, NMSA 1978, Sections 68-2-1 to 68-2-28 (Laws

1959, Chapter 122) was initially adopted in 1959. NMSA 1978, Section 68-2-15 authorizes the

Forestry Division (Division) to make and enforce rules necessary for the prevention and

suppression of forest fires and for the control of forest pests and the application of commercial

forest practices. This includes the authority to require “commercial forest vegetative types to be

harvested in such manner as to support forest practices that maintain and enhance the economic

benefits of forests and forest resources to New Mexico".

The Forestry Division first developed timber harvesting and forest regeneration rules in 1979 and

adopted the Commercial Timber Harvesting Requirements, 19.20.4 NMAC in 2002 and

amended 19.20.4 NMAC in 2007. According to EMNRD, the purpose of 19.20.4 NMAC is to

require appropriate harvesting practices of commercial forest species on non-municipal and non-

federal lands in the State of New Mexico.

EMNRD continues:

“Since 2002, the interest in using woody biomass, including trees such as piñon and juniper, for

electricity production, cellulosic ethanol fuel and for heating in New Mexico has increased. In

addition, piñon and juniper trees are being commercially harvested on a large scale for fire wood

and to a smaller scale for wood composite manufacturing. Due to the commercial nature of these

existing and planned activities, the Division added these species to the commercial timber

harvesting requirements. The requirements assure that the harvests are silviculturally sound and

that owners and other responsible persons or entities comply with harvesting methods and slash

treatment to reduce fire threat and insect and disease infestations. It is also important for the

Division to compel harvest methods and erosion management standards that ensure harvest

activities do not negatively affect water quality."

ADMINISTRATIVE IMPLICATIONS

EMNRD notes: “During the rulemaking process, some individuals commented that the addition

of piñon and juniper species to the commercial forest species list would prevent the harvesting of

those species and therefore prevent forest and watershed restoration projects. However, the

addition of the species does not prohibit the harvesting of the species, the rule simply requires

that the landowner obtain a permit and comply with the harvesting standards, which reduce the

risk of wildfires and the threat of forest insect and disease epidemics and protect water quality in

associated water courses. In fact, NMSA 1978, Section 68-2-16 specifically provides that

House Bill 565 – Page

3

landowners may convert their forested lands to other uses, which means a landowner could clear-

cut an area provided that they obtain a permit and comply with the associated harvest plan."

According to EMNRD, some statements made during the comment period indicated that some

believed that piñon and juniper species are invasive species and should be eradicated. EMNRD

notes “This is not a biologically sound perspective. In fact, several native plants, such as piñon,

juniper, sagebrush, creosote, etc. have been mislabeled as “invasive species" by some private and

public land managers in New Mexico. Piñon and juniper tree species are native trees and are an

integral part of many ecosystems in New Mexico. It is important that citizens become aware that

these are indigenous (not invasive) species. Management of these species’ habitat should focus

on ecosystem and watershed health and sustainability instead of focusing upon the elimination of

native floristic elements."

OTHER SUBSTANTIVE ISSUES

According to EMNRD, prior to adoption of the revised rules and regulation, the State Forestry

Division reviewed the recent rule amendment for adverse effects to small businesses and found

little potential for significant impacts on small businesses. EMNRD notes that non-commercial

tree cutting is exempt from the permitting requirements. Commercial harvesting under 75 acres

for fire wood a year is also excluded from the permitting requirements. In addition, other

commercial harvesting of less than 25 acres per year does not require a permit.

The State Forestry Division states it will assist landowners with the applications and expects to

issue permits within 30 days. Obtaining the permit will not cause unreasonable expense or delay

for the operator. Landowners harvesting other commercial species, such as ponderosa pine,

Douglas fir and aspen have been required to obtain harvest permits for nearly 30 years.

HED notes: The Range Improvement Task Force (RITF) is an interdisciplinary team of range

ecologists, wildlife experts, agricultural economists and cattle specialists that provides

information for use in resolving environmental conflicts. The task force provides scientific

information that helps ranchers, land managers, and policymakers make decisions about public

land use.

ALTERNATIVES

HED notes an alternative would be to seek other non-state funding sources such as private or

federal grants.

AW/nt