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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

1-19-06

1/23/06 HB 32

SHORT TITLE

NORTHWEST NM ENVIRONMENTAL JUSTICE

PROGRAM

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)

SOURCES OF INFORMATION

LFC Files

Responses Received From

New Mexico Department of Environment (NMDE)

Department of Health (DOH)

Energy, Minerals and Natural Resources Department (EMNRD)

SUMMARY

Synopsis of Bill

House Bill 32 appropriates $75 thousand from the general fund to the Local Government Divi-

sion of the Department of Finance and Administration for a demonstration program in San Juan,

McKinley, and Cibola counties design to help communities understand and reduce risks due to

toxics from all sources. The bill directs this program to encourage communities to form collabo-

rative 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.

FISCAL IMPLICATIONS

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

fund. Any unexpended or unencumbered balance remaining at the end of FY07 would revert to

the general fund.

House Bill 32 – Page 2

SIGNIFICANT ISSUES

The Department of Health (DOH) noted 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 con-

cerns. If enacted, HB 32 would develop a model for community collaboration and action on en-

vironmental 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. DOH further noted that HB 32 directs the pro-

gram funded to seek matching federal grant funds but does not identify the possible source of the

federal funds.

According to EMNRD, the environmental justice movement seeks to empower local low-income

and minority communities that may be disproportionately impacted by industrial development.

San Juan, McKinley and Cibola Counties contain both a high percentage of low income and mi-

nority populations and significant industrial developments including large power plants, mines

and oil and gas facilities. Significant expansions of these industries are also contemplated for

this area. This program has the potential to increase informed community involvement in the

decisions concerning future development.

EMNRD also noted that DFA will need to determine whether to administer the proposed demon-

stration program itself or work through local governments (e.g., county governments) to estab-

lish the program.

ADMINISTRATIVE IMPLICATIONS

EMNRD solicits public comments on proposed developments within the agency’s jurisdiction

(e.g., oil and gas, mining). This program may allow for increased public involvement in these

permitting processes.

DH/mt