Fiscal impact reports (FIRs) are prepared by the Legislative Finance Committee (LFC) for standing finance
committees of the Legislature. LFC does not assume responsibility for the accuracy of these reports if they
are used for other purposes.
F I S C A L I M P A C T R E P O R T
SPONSOR Vincen
t/Ortez/Terrazas/Dow
LAST UPDATED
ORIGINAL DATE 1/29/2025
SHORT TITLE Forest & Watershed Buffer Projects
BILL
NUMBER House Bill 175
ANALYST Davidson
ESTIMATED ADDITIONAL OPERATING BUDGET IMPACT*
(dollars in thousands)
Agency/Program
FY25 FY26 FY27
3 Year
Total Cost
Recurring or
Nonrecurring
Fund
Affected
EMNRD
No fiscal
impact
$111.2 to
$222.4
$111.2 to
$222.4
$222.4 to
$444.8
Recurring General Fund
Parentheses ( ) indicate expenditure decreases.
*Amounts reflect most recent analysis of this legislation.
Sources of Information
LFC Files
Agency Analysis Received From
Energy, Minerals, and Natural Resources Department (EMNRD)
Agency Analysis was Solicited but Not Received From
New Mexico Attorney General (NMAG)
SUMMARY
Synopsis of House Bill 175
House Bill 175 (HB175) proposes to add and amend language within the Forest and Watershed
Restoration Act. The bill also proposes to add projects that create or maintain buffers zones in
and around wildland and urban areas to the list of eligible projects for funding from the forest
land protection revolving fund.
This bill does not contain an effective date and, as a result, would go into effect 90 days after the
Legislature adjourns if enacted, or June 20, 2025.
FISCAL IMPLICATIONS
The forest land protection revolving fund (FLPR) receives a recurring $2 million appropriation
as specified in the Forest and Watershed Restoration Act. The current balance of the FLPR is
$5.5 million. If buffer projects are added to the list of eligible projects for FLPR funding, it could
spend down the fund’s balance and could hinder future projects. Further, due to the expansion of
projects to buffer zones, HB175 may increase the workload of the New Mexico Forestry
Division. Due to the possible increased workload, LFC analysis estimates an additional one to House Bill 175 – Page 2
two personnel could be needed for implementation.
SIGNIFICANT ISSUES
Analysis from the Energy, Minerals, and Natural Resources Department (EMNRD) notes that
adding buffer projects to the list of eligible projects for FLPR funding will add a recurring
funding source for wildfire preparation projects. Due to New Mexico’s high wildfire risk,
EMNRD’s analysis points to buffer zone projects as a helpful tool in preparing forests and urban
areas to combat wildfires.
EMNRD analysis also notes House Bill 175 will give the New Mexico Forestry Division
flexibility to fund projects on private land and to supplement gaps in federal funding for buffer
projects.
AD/hj/SR