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

SPONSOR Nunez

DATE TYPED 01/24/05 HB 88

SHORT TITLE Goat and Salt Cedar Removal Pilot Program

SB

ANALYST Woods

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

$1000.0

Recurring General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

Relates to the appropriation for New Mexico State University in the General Appropriations Act.

SOURCES OF INFORMATION

LFC Files

Responses Received From

New Mexico Department of Agriculture (NMDA)

New Mexico Environment Department (NMED)

New Mexico Energy, Minerals and Natural Resources Department (NMEMNRD)

SUMMARY

Synopsis of Bill

House Bill 88 appropriates $1 million from the general fund to the Board of Regents of New

Mexico State University for a program that will utilize goats to remove salt cedar and other non-

native phreatophytes to improve water flow within the Rio Grande and to improve the habitat of

endangered species.

Significant Issues

The New Mexico Department of Agriculture indicates there is there is currently a $100,000 goat

pilot project underway to remove salt cedar in the middle Rio Grande conservancy district.

Since salt cedar is known to use more water than native vegetation, removal of such nonnative

House Bill 88 -- Page 2

phreatophytes may result in increased water yield. Furthermore the middle Rio Grande Valley is

known habitat for the endangered willow flycatcher and the silvery minnow, both species requir-

ing riparian habitat for survival. Improvements to riparian habitat may result in better habitat for

the above named species. Several additional issues are reflected in the analyses submitted by the

responding agencies, including:

•

Stands of non-native salt cedar trees are vulnerable to wildfire and are actually invigo-

rated when burned. High intensity bosque fires often damage native riparian vegetation.

•

The New Mexico Environment Department is responsible for ensuring that surface water

quality is protected and water quality standards complied with. Effective post-removal

native species revegetation implementation is critical to ensuring that the quality of the

state’s limited water resources is protected.

•

If not properly implemented, phreatophyte removal could induce bank destabilization that

in turn would increase the risk of erosion leading to water quality impacts, sedimentation

and diminished capacity of the state’s reservoirs.

FISCAL IMPLICATIONS

The appropriation of $1 million contained in this bill is a recurring expense to the general fund.

Any unexpended or unencumbered balance remaining at the end of FY06 shall revert to the gen-

eral fund.

ADMINISTRATIVE IMPLICATIONS

The New Mexico Department of Agriculture would be the pass-through agency for this appro-

priation and would retain oversight of the program.

OTHER SUBSTANTIVE ISSUES

This program was not included in the FY05-06 higher education funding recommendations of

the New Mexico Commission of Higher Education.

BFW/lg/njw