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

SPONSOR Papen

ORIGINAL DATE

LAST UPDATED

1/24/2007

1/29/2007 HB

SHORT TITLE Salt Cedar Removal & Forest Health Programs

SB 115/aSCONC

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)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Energy, Minerals, & Natural Resources Department (EMNRD)

New Mexico Department of Agriculture (NMDA)

New Mexico Interstate Stream Commission (NMISC)

Environment Department (NMED)

Higher Education Department (NMHED)

SUMMARY

Synopsis of Amendment

The Senate Conservation Committee amendment changes the Soil and Water Conservation

Commission as the recipient, manager, and administrator of the funds to an organization

providing “advice." The appropriation remains with NMSU to manage and administer the

program.

Synopsis of Original Bill

Senate Bill 115 appropriates $10,000,000 from the General Fund to the Board of Regents of

NMSU for expenditure in FY 2009 and FY 2009 for the Soil and Water Conservation

Commission (SWCC) to manage and administer non-native phreatophyte removal and riparian

restoration according to the Non-Native Phreatophyte/Watershed Management Plan program.

Senate Bill 115/aSCONC

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.

SIGNIFICANT ISSUES

NMDA Analysis

An analysis by the NMSU general counsel indicates that SB 115 expands the

authority and powers of the SWCC beyond the statutory provisions which

created the SWCC. The SWCC’s role is advisory to the NMSU board of

regents. The New Mexico department of agriculture (NMDA) works directly

with the SWCC on behalf of the board of regents in carrying out SWCD

programs and in its work with the SWCC

.

Administration and management of the non-native phreatophyte program has

been under the purview of the NMSU board of regents through NMDA since

FY02. As indicated in the significant issues section above, the SWCC has not,

to date, managed and administered funds or programs directly. The language

in SB 115 may inadvertently create unintended conflicts among the soil and

water conservation partnership parties.

EMNRD Analysis

The Non-native Phreatophyte/Watershed Management Plan (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, 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 the lead agency for implementing the

NNPP, which recognizes the SWCDs as primary resources for watershed

projects, and provides administrative and fiscal support to the Soil and Water

Commission. The Soil and Water Conservation Commission itself lacks the

capacity without NMDA to manage this appropriation without additional FTEs

or contract services.

This request was not submitted by NMSU to the HED for review and was not included in HED’s

funding recommendation for FY08.

TECHNICAL ISSUES

The appropriation should be to NMDA, through the NMSU Board of Regents instead of

the Soil and Water Conservation Commission. Additionally, the Commission does not

currently have the technical background to conduct Forest Health Management

Senate Bill 115/aSCONC

Programs, as is indicated in the bill’s title. The EMNRD – Forestry Division would be

the appropriate entity to conduct Forest Health Management Programs.

OTHER SUBSTANTIVE ISSUES

NMISC Analysis

The latest analyses by the United States Academy of Sciences and the

American Council of Civil Engineers indicate that the amounts of water

salvaged by phreatophyte removal programs are much less than predicted and

may even be non-existent unless accompanied by a careful planned program 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 assessments are given by scientists from

national laboratories and academia.

Any funding for this type of work 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.

BM/csd