The main spending billHB 2, also known as the General Appropriations Act of 20,22, is the central piece of this New Mexico legislative session. It passed the House late last year to much fanfare and congratulations from state representatives. The historic $8.47 Billion budget doesn’t provide enough funding for the two agencies charged with monitoring the operations and largest industries in the state.
Governor. The proposed budgets for the New Mexico Environment Department and the Oil Conservation Division (OCD), came in significantly below the Gov. Michelle Lujan Grisham requested funding for their operations in January. She included new programs to monitor and respond to climate change and a bureau to address climate change.
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If the state wants to achieve the greenhouse gas reduction goals set forth in other bills, funding for both agencies is crucial. Lujan Grishams environmental goals include a 50% reduction in greenhouse gas emissions by 2035 compared with 2005 and a 90% reduction of greenhouse gases by 2050.
New Mexico’s actions in policing the fossil fuel industry has a significant impact on the global climate crisis. The state is now the nation’s second-largest oil producer after Texas.
It is remarkable that the requested funding represents only 0.4% of the total state budget. However, it allows regulation of the oil & gas industry which generates 53% of the states’ revenue and brings in approximately 40%. total greenhouse gas emissions.
When asked about the low-ball budget, both the governors office and Sarah Cottrell Propst, secretary of the Energy, Minerals and Natural Resources Department OCDs boss were carefully measured, with muted calls for better results from the next round of budget negotiations in the state Senate.
It is completely disrespectful to establish a policy agenda for which you are not willing to pay.
~James Kenney, NMED Cabinet Secretary
James Kenney, NMED Cabinet Secretary, reacted sharply to the criticism, calling HB 2 insufficient to meet the policy demands that have already been made before NMED.
Kenneys agency will oversee and implement the Climate Change Bureau. Kenneys department includes oil and gas monitoring programs. Different parts of the bill have different funding proposals. His office claims that HB 2 funds only a small portion of the agency’s new oil- and gas monitoring mandates.
He says that New Mexico needs a fully-funded Climate Change Bureau to be able to implement policies that will help it meet its ambitious greenhouse gas reduction goals. It is a disgrace to create a policy agenda without being able to pay for it.
Similar to the House version of HB 2, OCD is underfunded approximately $12.8 million less than $14.7 million requested in the House version.
The department introduced a new reporting program last May that requires oil and natural gas producers to submit more detailed reports when they spill, leak, emit or emit oil, or other industry-related pollutants. The new reports provide a better picture of the extent of oil-gas field pollution and the companies that are responsible.
Operators can self-report, but OCD must still verify reports. The state has provided $2.5 million more funding to the division, which could allow it to hire more inspectors and purchase software that scans for patterns of abuse or poor compliance in the mountain of data being collected.
The legislature protects the oil and gas industry by underfunding oversight agencies.
~ Erik Schlenker-Goodrich, executive director, Western Environmental Law Center
OCD also sought new staff positions in order to clear a backlog that consists of almost 4,000 cases. A company must report a spillage of five barrels or more of regulated stuff oil, chemicals and produced water. The company must also develop a plan to clean up and restore the area to its pre-spill condition.
The University of New Mexico’s Bureau of Business Economic Research released a study about OCD. It estimated that there were approximately 250,000 cases of OCD. $456 million bumpThe state economy would benefit if the division could hire nine employees to clear the backlog of cases and keep up with new ones.
OCD also requested $400,000 in one-time funding to clear the backlog of 16,000 legacy cases that were pending remediation before 2018.
The House budget includes only a fraction.
It is amazing that the state continues to work to prop up the oil-and-gas industry, but fails to provide state agencies with the critical funding or authority they need to serve public good, says Erik Schlenker Goodrich, executive director of Western Environmental Law Center. HB 2 does make important progress,” he says, but, by underfunding oversight agencies, the Legislature shields the oil and gas industry from accountability.
The future funding and status of OCD, NMED, and the Hydrogen Hub Development Act is still under discussion. They are unlikely to be resolved until February 17, the last day of the legislative session.
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