Analysis Item 11: Department of Agriculture Japanese Beetle Eradication

Transcription

1 Analysis Item 11: Department of Agriculture Japanese Beetle Eradication Analyst: Paul Siebert Request: Increase the Lottery Funds expenditure limitation by $298,738, appropriate $2,586,077 General Fund, and establish 13 limited duration positions (5.37 FTE) for emergency funding for eradication of the largest Japanese beetle infestation in Oregon s history. Recommendation: The Legislative Fiscal Office recommends that the Interim Joint Committee on Ways and Means recommend an appropriation of $548,083 General Fund, an expenditure limitation increase of $298,738 Lottery Funds, the establishment of 13 limited duration positions (5.37 FTE), and a special purpose appropriation of $1,359,653 to the Emergency Board for the Department of Agriculture for additional costs related to Japanese beetle eradication efforts be included in a budget reconciliation bill during the 2018 legislative session, with the understanding that the amounts may need adjustment depending on the statewide budget rebalance for the biennium. Analysis: During the 2016 invasive pests trapping season, the Oregon Department of Agriculture (ODA) trapped a record number of 376 Japanese beetles, of which 372 were caught in the Cedar Mill and Bethany neighborhoods in NW Portland. In addition, apple moths were discovered in Polk County. Early in the 2017 legislative session, ODA requested and received $801,380 for the biennium to begin a five-year eradication effort aimed at these two pests. During the same session, ODA requested and received an additional $1,113,115 in state funds for continuing eradication costs. Oregon is currently designated as free of Japanese beetles, which means agricultural and nursery material can be shipped to other states without restriction. A loss of this status could draw quarantine restrictions from Japanese beetle free states like California and Washington. The eradication project began in May 2017 with treatment of over 2,100 residences in the Cedar Mill and Bethany neighborhoods in NW Portland. ODA placed 2,000 traps in the quarantine area and trapped 22,000 beetles in the summer of In addition, beetles were found in the areas surrounding the quarantine area, as well as in sites on Swan Island, at the Portland Airport, and in Douglas County. The larvicide treatment applied a few months earlier did not target beetles hatching during the summer, but will target the new immature larva stages currently in the soil. Due to the discovery of additional sites of infestation, the area of eradication needs to be significantly increased with the potential of doubling the area needing treatment, which greatly increases future project costs. In addition to a new larger treatment area, ODA has experienced additional costs not anticipated in the 2017 project estimates. The majority of these increased costs come from quarantine containment and green waste management expenditures. All green waste must be disposed of in a special landfill site within the quarantine area to prevent the spread of the beetles, which has increased costs more than originally anticipated. While the Legislative Fiscal Office (LFO) worked with ODA on this request, it was determined that not all of the $1,113,115 in state funds provided for were included in the Department s estimated need for additional funding. This reduced the need for additional resources by $678,341. Legislative Fiscal Office Interim Joint Committee on Ways and Means November 2017

2 Due to some uncertainty over how much additional resources will ultimately be needed, LFO worked with ODA on a phased approach to provide additional funds. LFO is recommending funding adequate to cover projected costs through September 2018, with the remaining estimated costs being placed in a special purpose appropriation (SPA) to the Emergency Board. It is expected ODA will request allocation of some of this SPA during a Fall 2018 meeting of the Emergency Board and would seek final project funds during the 2019 legislative session. The Legislative Fiscal Office recommends that the Interim Joint Committee on Ways and Means recommend an appropriation of $548,083 General Fund, an expenditure limitation increase of $298,738 Lottery Funds, the establishment of 13 limited duration positions (5.37 FTE), and a special purpose appropriation of $1,359,653 to the Emergency Board for the Department of Agriculture for additional costs related to Japanese beetle eradication efforts be included in a budget reconciliation bill during the 2018 legislative session, with the understanding that the amounts may need adjustment depending on the statewide budget rebalance for the biennium. Legislative Fiscal Office Interim Joint Committee on Ways and Means November 2017

3 11 Oregon Department of Agriculture Connolly Request: Allocate $2,586,077 from the State Emergency Fund or Lottery Funds for expenses related to the eradication of the Japanese beetle. Increase Lottery Funds expenditure limitation by $298,738 for expenses related to the eradication of the Japanese beetle. Establish 13 limited duration positions (5.37 FTE). Recommendation: Consider the request during the 2018 Legislative Session. Discussion: The Oregon Department of Agriculture (ODA) is requesting funding, expenditure limitation and position authority to be used to eradicate an outbreak of Japanese beetles in the Portland area and in Douglas County. Japanese beetles are an invasive species in Oregon. The insects severely damage the roots and/or foliage of several plant species including turf and lawn grasses, roses, berries, grapes, hops and other crops. Many of the crops impacted are important agricultural products in Oregon and contribute to the state s economy, particularly in rural areas. In addition, if the Japanese beetle becomes widespread, Oregon s commodities would be subject to quarantine and barred from states, which have a pest-free status under the National Japanese Beetle Harmonization Plan for Category 1 states, including California and Washington. ODA estimates the damage, in Oregon caused by an established Japanese beetle population, could be over $45 million per year, including indirect and direct damage crop losses and quarantine costs. Changes to Treatment Plan Costs The agency received $801,380 in Lottery Funds during to attack the pest in the spring of They were also allocated $1,113,115 Lottery Funds to be used during the biennium. Since the initial treatment season in 2017, the agency s estimate of resources needed to eradicate the Japanese beetle has increased for several reasons. First, the area needing treatment has expanded from 1,000 acres in the spring of 2017 to 2,000 acres in the spring of This expansion of the treatment area is being driven by the much larger number of beetles trapped in It should be noted the pesticide used by ODA attacks the insect at the grub stage and so the impact of its 2017 work will not be fully realized until The result of this in-area expansion is an increase in required staffing, traps and lures, photo traps, and telephone equipment. Second, the cost of treatment per acre was estimated at $500 per acre prior to the beginning of treatment. The estimate was based on treatment costs at the Portland International Airport. Most of the area being treated is now residential property and the cost of treatment is estimated at $600 per acre. Third, after beginning treatment in 2017, the agency recognized it would have significant costs for quarantine containment and green waste management. All green waste in the quarantine area must be rerouted to a special landfill site to mitigate the risk of spreading the Japanese beetle. The estimated costs for green waste management for the remaining 18 months of the biennium are $550,000. There were a number of other smaller changes to the treatment plan causing costs to rise. Department of Administrative Services 11-i November 15, 2017

4 Changes to Agency Request and Timing of General Fund Appropriation ODA s letter to the Joint Committee on Ways and Means provided a full picture of the anticipated costs for Japanese beetle eradication from January 2018 through June However, due to a miscommunication, the agency s request did not capture the funding provided during the 2017 Legislative Session, which remains unspent as of January The agency has provided new calculations, which includes the $1,113,115 received in the 2017 Legislative Session Japanese Beetle Eradication Cost of Eradication Program 3,319,589 Funding provided 2017 Leg. Session (1,113,115) Transfer of Lottery Fund cash 2017 Leg. Session (298,738) Projected unfunded costs $ 1,907,736 Project Costs 7/17-12/17 434,774 Project Costs 1/18-9/18 1,525,162 Total funding need through 9/18 $ 1,959,936 Funding provided 2017 Leg. Session (1,113,115) Projected unfunded costs 846, M76 Lottery Funds balance transfer (298,738) Request for General Fund 2018 Leg. Session $ 548,083 Project Costs 10/18-6/19 Place in SPA $ 1,359,653 In total, ODA is requesting an additional $1,907,736 General Fund. The agency continues its requests for an increase in Lottery Funds expenditure limitation of $298,738 and to establish 13 limited duration positions (5.37 FTE). ODA has provided more detailed information on the timing of costs associated with their eradication efforts. For the spring/summer 2018 effort, the agency needs $548,083 in additional General Fund appropriation. Since this is a changeable situation, the Chief Financial Office recommends the balance of the requested General Fund, $1,359,653, be placed in a Special Purpose Appropriation in the Emergency Fund. ODA should return later in the biennium to request the funding needed for the spring/summer 2019 eradication effort. Legal Reference: Allocation of $548,083 from the State Emergency Fund to supplement the appropriation made by chapter 562, section 1(3), Oregon Laws 2017, for the Oregon Department of Agriculture, Division of Natural Resources. Increase the Lottery Funds expenditure limitation established by chapter 562, section 3, Oregon Laws 2017, for the Oregon Department of Agriculture, Division of Natural Resources by $298,738 for the biennium. Allocation of $1,359,653 from the State Emergency Fund to a Special Purpose Appropriation to supplement the appropriation made by chapter 562, section 1(3), Oregon Laws 2017 for the Department of Agriculture, Division of Natural Resources. Department of Administrative Services 11-ii November 15, 2017

5 October 16, 2017 The Honorable Senator Richard Devlin, Co-Chair The Honorable Representative Nancy Nathanson, Co-Chair Interim Joint Committee on Ways and Means 900 Court Street NE H-178 State Capitol Salem, OR Dear Co-Chairpersons: Nature of the Request The Oregon Department of Agriculture (ODA) requests permission to appear before the November meeting of the Interim Joint Committee on Ways and Means to discuss ongoing emergency funding for the eradication of the largest Japanese beetle infestation in Oregon s history. The agency wishes to discuss the project in anticipation of a request for the February 2018 Legislative Session. The department received $801,380 Lottery Funds for the biennium to initiate the first year of the estimated 5-year project. For the current biennium the department received $1,113,115 Lottery Funds. Due to unanticipated costs and a larger than expected infestation, the department estimates an additional $2,884,815 is needed for the Japanese beetle eradication for the current biennium. The department has $298,738 unexpended Lottery Funds from other programs from the prior biennium that could be used if limitation is increased for We respectfully request to increase Lottery Funds limitation by $298,738, to allow the remaining funds to be spent on the Japanese beetle project in The department also requests an additional $2,586,077 in either General Fund or Lottery Funds, and 13 Limited Duration positions (5.37 FTE), including ten Biological Technicians (3.33 FTE), a Natural Resource Specialist 1 (0.54 FTE), a Natural Resource Specialist 2 (0.75 FTE) and a Natural Resource Specialist 4 (0.75 FTE) to continue the project in the current biennium. The Japanese beetle eradication project initiated in early May of 2017 with treatment of over 2,100 residences in the Cedar Mill and Bethany neighborhoods in NW Portland. It is important to secure commitments for funding as soon as possible, so the second year of treatment efforts can begin after the first of the year. This request is for continuation of the Japanese beetle eradication efforts in NW Portland in Washington County and in three other sites in Douglas County and in Portland, which, may take at least five years. The attached budget presents an updated estimate of the Japanese beetle eradication project for the biennium. The department will continue to refine its

6 The Honorable Senator Richard Devlin, Co-Chair The Honorable Representative Nancy Nathanson, Co-Chair October 16, 2017 Page 2 projected estimates and would welcome the opportunity to return with updated projections as the project progresses. Agency Action/Background The Department maintains a base survey and detection program for many invasive pests, including Japanese beetle, Gypsy moth, and light brown apple moth, which is funded, in part, by federal funds and in parts by state funds. The Japanese beetle survey and eradication is entirely funded with state funds. Each year approximately 2,500 traps are placed statewide to detect any new introductions of the Japanese beetle. Since 1945, the Department has conducted Japanese beetle and other invasive pest species surveys. Since 1988, the Department has conducted several successful Japanese beetle eradication projects in various locations in Oregon. Early detection of new introductions has allowed eradication programs to remain relatively small and with manageable costs. Due to budget restraints, our detection survey program for the Japanese beetle (JB) in particular was reduced from an average of 4,900 traps statewide in the early 2000 s to an average of 2,800 traps over the last 8 years. Early Detection and Rapid Response are cornerstones of an effective control program. In 2016, the Japanese beetle detection program in Oregon resulted in a record number of 376 Japanese beetle, of which 372 were caught in the Cedar Mill and Bethany neighborhoods of NW Portland, Washington County. As a result, the Department initiated the largest Japanese beetle eradication project in Oregon s history. In the months of May and June of 2017, over 2,100 residences in NW Portland were treated with a soil larvicide targeting the immature life stage of the Japanese beetle in the soil. The eradication project utilized a granular formulation of Acelepryn G applied using a hand-held seed spreader. Acelepryn G is an EPA designated Reduced Risk product that targets the immature life stage of the beetle. We placed almost 2,000 Japanese beetle traps in the quarantine area and detected 22,000 Japanese beetles in the summer of The larvicide treatment implemented earlier this year did not target the JB generation hatching out this summer, but will target the new immature stages currently in the soil. Therefore, we should see a significant reduction of the Japanese beetle population in However, as indicated in the attached maps, we detected Japanese beetles outside of the treatment area. This will require a significant expansion of the current treatment area for 2018, potentially doubling the area to be treated. In addition, in 2017, we detected new Japanese beetle infestations in Oakland and Winston, Douglas County, and in Swan Island, Portland, and the Portland International Airport that will require treatment in In addition to the larger than expected infestation area, the department has encountered costs that were not anticipated when the original funding request was made in February The majority of the costs are associated with quarantine containment and green waste management. All green waste in the quarantine area must be rerouted to a special landfill site to mitigate the risk of spreading Japanese beetle outside of the quarantine area. Japanese Beetle (Popillia japonica) The Japanese beetle is a very serious plant pest, causing damage to the roots and/or foliage of several plant species, including turf and lawn grasses, roses, berries, grapes, hops, and several other common and specialty crops, including cannabis. As an adult, it feeds on the flowers, fruits

7 The Honorable Senator Richard Devlin, Co-Chair The Honorable Representative Nancy Nathanson, Co-Chair October 16, 2017 Page 3 and foliage of more than 300 species of ornamental and agricultural plants. It has the ability to quickly reproduce and attract small mammals, such as raccoons and skunks that can cause additional turf and lawn damage while searching for grubs as a food source. If allowed to establish, the Japanese beetle could cause considerable direct damage, reducing yields and increasing productions costs of many of Oregon's top agricultural commodities (nursery products, grass seed, grapes, berries, tree fruits, hops, cannabis, etc.) as well as urban and rural environments. It would also increase the potential risk for environmental damage through the increased use of pesticides. Indirect economic damage through restrictive quarantines on export commodities, particularly nursery stock, would be significant, due to the potential loss of the current pest-free status as defined in the National Japanese Beetle Harmonization Plan for Category 1 states, including Oregon, Washington, and California. In a recent pest risk analysis, we estimate that the damage caused by established Japanese beetle populations in Oregon could amount to over $45 million per year, including indirect and direct damages, crop losses and quarantine costs. Oregon has established a quarantine rule on Japanese beetle regulating the import of plants from infested states (OAR ). Should Japanese beetle become established in Oregon, the state would be subject to the same quarantine requirements. ODA has been using an Early Detection and Rapid Response approach for decades to successfully find and eradicate populations of this pest. Since 1988, ODA has conducted several successful small-scale eradication projects of JB in residential areas of Portland and Cave Junction and in and around the Portland International Airport. These eradications have been successful because of federal and cooperative partnerships. While many eastern states in the US are infested, quarantined, and battling this insect, the state of Oregon is still considered Japanese beetle-free; however, on occasion, we do experience invasions of the Japanese beetle in Oregon, through human-assisted movement of cargo aircrafts and soil. The Oregon Department of Agriculture does not have ongoing state revenue nor does it receive any funding from USDA-APHIS for the continuation of this large-scale Japanese beetle eradication project. ODA is continuing to build grassroots and agency partnerships to successfully accomplish eradication of this large infestation. If we were to discontinue treating this incipient Japanese beetle population in NW Portland, the risk of Japanese beetles spreading to an even larger area around the Portland metro area would significantly increase. The 2017 trap catches of over 22,000 Japanese beetles have shown how quickly their population can multiply and spread from the original infestation area. We still estimate that the eradication of this Japanese beetle infestation in NW Portland will take five years. In addition, Oregon could lose its Category 1 status, as defined in the National Japanese Beetle Harmonization Plan. As a Category 1 state, which designates that the state is free of Japanese beetles, Oregon can ship agricultural and nursery material without restrictions to other states. A loss of the Category 1 status could draw quarantine restrictions from Japanese beetle free states, such as California and Washington State.

8 The Honorable Senator Richard Devlin, Co-Chair The Honorable Representative Nancy Nathanson, Co-Chair October 16, 2017 Page 4 Action Requested The Department respectfully requests to come before the November meeting of the Interim Joint Committee on Ways and Means to put its request for additional resources for the Japanese beetle eradication efforts on the record, recognizing that actions would not occur until the 2018 session. Legislation Affected Oregon Law 2017, Chapter 562, Section 1, Subsection (3) Oregon Law 2017, Chapter 562, Section 3 Sincerely, Alexis M. Taylor, Director Oregon Department of Agriculture Attachments: 2018 Proposed Japanese Beetle Treatment NW Portland, Oregon Budget estimate for