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 Wirth/Hamblen LAST UPDATED ORIGINAL DATE 2/28/2025 SHORT TITLE Beaver Population & Management Plan BILL NUMBER Senate Memorial 3 ANALYST Gaussoin ESTIMATED ADDITIONAL OPERATING BUDGET IMPACT* (dollars in thousands) Agency/Program FY25 FY26 FY27 3 Year Total Cost Recurring or Nonrecurring Fund Affected EMNRD Indeterminate but minimal Indeterminate but minimal Indeterminate but minimal Nonrecurring General Fund DGF Indeterminate but minimal Indeterminate but minimal Indeterminate but minimal Nonrecurring Game Protection Fund SLO Indeterminate but minimal Indeterminate but minimal Indeterminate but minimal Nonrecurring Land Maintenance Fund Parentheses ( ) indicate expenditure decreases. *Amounts reflect most recent analysis of this legislation. Relates to an appropriation in the General Appropriation Act Sources of Information LFC Files Agency Analysis Received From State Land Office Energy, Minerals and Natural Resources Agency Analysis was Solicited but Not Received From Department of Game and Fish SUMMARY Synopsis of Senate Memorial 3 Senate Memorial 3 asks the Department of Game and Fish (DGF), Forestry Division of the Energy, Minerals and Natural Resources Department (EMNRD), and the State Land Office (SLO) to work jointly on a statewide beaver management plan and present their findings to the appropriate legislative committee or committees by October 1, 2025. FISCAL IMPLICATIONS Memorials contain no appropriation, but studies can represent a cost to state agencies. The Energy, Minerals and Natural Resources Department indicates it would need additional staff to work on the management plan, including legal counsel, while the State Land Office reports it can Senate Memorial 3 – Page 2 absorb the additional staff time within its existing budget. The Department of Game and Fish, which has existing staff with wildlife expertise, did not provide analysis. It is likely that all the agencies can develop a management plan within existing resources. The House version of the General Appropriation Act includes $10.5 million from the government results and opportunity fund to be spent over three years on the conservation of species, including the American beaver. SIGNIFICANT ISSUES The Department of Game and Fish includes the American beaver on its list of “species of greatest conservation need” in the draft of the 2025 State Wildlife Action Plan because it is a keystone species with an important impact on environment and is threatened by climate change and declining populations. North American beavers, which disappeared from many New Mexico areas because of extensive trapping in the 1800s, contribute to healthy ecosystems and watersheds through dam building and associated wetlands, which the memorial says increases groundwater percolation and raises groundwater tables and storage. The memorial says beaver ponds and their wetlands mitigate erosion from heavy rainfall, filter out contaminants, enhance riparian zone resiliency, and support plant, fish and wildlife populations. The Energy, Minerals and Natural Resources Department suggests a management plan may be unnecessary because of the beaver’s inclusion in the action plan: “Beaver management provisions may be incorporated into this plan, in subsequent revisions, which may not require a stand-alone beaver management plan.” Further, the department notes, while the Forestry Division operates under a 10-year Forest Action Plan, scheduled to be revised in 2030, that includes consideration of watershed health and restoration, wildlife management is not within the scope of the division. It notes both the Environment Department (NMED) and the Office of the State Engineer have roles in water source protection and management and should be considered as partners in developing a beaver management plan: “Notably, NMED has extensive experience with beaver and beaver dam analogue projects, developing technical expertise that balances the ecological benefits of beaver activity with human and infrastructure needs to maximize restoration outcomes.” ADMINISTRATIVE IMPLICATIONS While the State Land Office manages 9 million surface acres of trust land, the agency reports it has very few tracts that support beavers or their habitat. While it considers its role as a consulting agency appropriate, it suggests it should not be the lead agency. The Energy, Minerals and Natural Resources Department reports its Forestry Division is already stretched thin with its wildfire prevention and response duties and it “does not currently have the capacity or technical expertise from existing staff to coordinate this effort.” The department also raises concerns about producing the report by the October deadline because the wildfire season is expected to extend into the fall. Senate Memorial 3 – Page 3 CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP SM3 relates to an appropriation in the House version of the General Appropriation Act, which includes $10.5 million from the government results and opportunity fund to be spent over three years on the conservation of species, including the American beaver. ALTERNATIVES EMNRD indicates the memorial is not needed because beaver management could be part of the Department of Game and Fish’s 2025 State Wildlife Action Plan, and the state already has a Forest and Watershed Advisory Board that recommends high-priority forest and watershed restoration projects that include water source protection and fish and wildlife habitat conservation: Furthermore, [the Forestry Division] hosts the State Forest and Watershed Health Coordinating Group, a multi-stakeholder body comprised of federal, state, tribal, local governments, nongovernmental organizations, forest and watershed collaborative groups, private industry and other watershed and associated forest and habitat related stakeholders. This robust stakeholder group represents approximately 50-80 different agencies, organizations, governments, entities, and stakeholders to provide guidance and collaborative statewide strategies to collectively mitigate forest and watershed health concerns and prioritize and implement fire hazard reduction and watershed restoration work across the state. HG/hj/SL2