Item 54: Department of Agriculture - Analysis - Oregon ...

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Analysis
                              Item 54: Department of Agriculture
                                      Gypsy Moth Eradication

Analyst: John Terpening

Request: Allocate $395,603 from the Emergency Fund for eradication of Gypsy Moths and establish
three limited duration seasonal survey biotechnician positions (0.75 FTE) for this effort.

Analysis: In 2017, four Gypsy moths were caught by the Oregon Department of Agriculture (ODA) in
a neighborhood in Corvallis and traps captured another 15 this year in the delimitation survey
around last year’s positive catches. As a result, ODA is entering the planning phase to eradicate this
infestation, which currently includes an area of about 640 acres of mostly urban neighborhood. The
infestation will be treated with a biological insecticide called Btk, which has been used successfully in
the past and does not have adverse health effects on humans. The aerial application would be
scheduled in April or May of 2019.

The Department reports that the estimated costs of eradication efforts for the rest of the 2017-19
biennium is $645,125, which includes $249,522 of in-kind contribution from ODA. Eradication costs
are not anticipated to continue into the 2019-21 biennium, and delimitation survey traps are already
funded within the Department’s base budget. Previous efforts to eradicate Gypsy moths, which were
first discovered in Oregon in 1979, have been matched by the U.S. Department of Agriculture, and
ODA has submitted a 50:50 match request to the 2019 Farm Bill with the anticipation that federal
approval for funding will occur by the end of 2018 or early 2019.

Without knowing the total federal funding that may be awarded, ODA’s request to the Emergency
Board is for the full remainder of the estimated costs. Included in this amount is the cost of
establishing three limited duration seasonal survey biotechnician positions (0.75 FTE) to assist
eradication efforts. However, given the decades-long historical precedent of federal match, and that
the majority of costs for the eradication effort will not take place until April 2019, the Legislative
Fiscal Office (LFO) recommends only allocating $100,000 General Fund to begin the initial phases of
the eradication plan, and have the Department return to the December meeting of the Emergency
Board for further funding, if necessary.

Legislative Fiscal Office Recommendation: Allocate $100,000 from the Emergency Fund and
authorize the establishment of three limited duration seasonal survey biotechnician positions (0.75
FTE) for the initial phase of the Gypsy moth eradication plan, with the understanding that the agency
may need to return to the December 2018 meeting of the Emergency Board or to the 2019
Legislature for additional General Fund depending on the level of Federal Funds support received.

Legislative Fiscal Office                                                   Emergency Board – September 2018
54
                           Oregon Department of Agriculture
                                       Webb

Request: Allocate $395,603 from the State Emergency Fund for Gypsy Moth eradication
expenses, including three limited duration seasonal survey biotechnician positions (0.25 FTE).

Recommendation: Approve the request, with the following modification:
Allocate $100,000 from the State Emergency Fund for Gypsy Moth eradication expenses,
including three limited duration seasonal survey biotechnician positions (0.25 FTE), with the
understanding that the department may need to return to the December meeting of the
Emergency Board to request additional General Fund, depending on the amount of Federal
Funds known at that time.

Discussion: The Oregon Department of Agriculture has requested funding to implement Gypsy
Moth eradication efforts in the City of Corvallis. Gypsy Moths eat the leaves and needles of trees
and shrubs potentially causing widespread destruction of foliage. The insect has the potential to
negatively impact Oregon’s top agricultural commodities. In a recent risk assessment, the
Department estimated the Gypsy Moth infestations could cost over $14,000,000 annually, if left
untreated. Gypsy Moth infestations can be treated with a biological insecticide called Btk, which
disrupts the insect’s digestive system. The insecticide does not accumulate in the environment
and has shown no adverse health effects in humans.

The Department estimates the total cost of Gypsy Moth eradication efforts to be $645,125 in the
2017-2019 biennium. Expenditures totaling $249,522 are already included in the Department’s
biennial budget and consist of in-kind contributions, including Personal Services costs. The
Department intends to submit a 50:50 cost share request to obtain federal funding as part of the
Fiscal Year 2019 Farm Bill. The amount of available funds related to the Farm Bill is not yet
known and may not be known until early in the 2019 calendar year.

If the maximum 50 percent federal funding is received and $249,522 of in-kind state share
contributions are considered, the additional General Fund need would be $73,040. If no federal
funding is received, the General Fund need would be $395,603. Due to the timing of when
preparation must begin for the BtK applications, the Department believes it needs $100,000
General Fund in the next few months. Due to the uncertainty about the potential federal funding
amount and the timing necessary to begin finalizing commitments for eradication efforts, the
analyst recommendation is to approve the request, but modify it to allocate $100,000 General
Fund, rather than the full $395,603.

Legal Reference: Allocation of $100,000 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 Natural Resources Policy Area, for the 2017-2019 biennium.

Department of Administrative Services      54-i                                September 26, 2018
August 27, 2018

The Honorable Senator Peter Courtney, Co-Chair
The Honorable Representative Tina Kotek, Co-Chair
State Emergency Board
900 Court Street NE
H-178 State Capitol
Salem, OR 97301-4048

Dear Co-Chairpersons:

Nature of the Request
The Oregon Department of Agriculture (ODA) requests permission to appear before the
September meeting of the Emergency Board for the purpose of securing emergency funding for
the eradication of the Gypsy moth infestation in the City of Corvallis.

The estimated eradication cost for the remainder of the 2017-19 biennium is $645,125, which
includes $249,522 in-kind contribution from ODA. A combination of federal and state funding is
needed to fully fund this request and the state amount is dependent on the amount of federal
funding that the department is able to secure from the United States Department of Agriculture
Animal and Plant Health Inspection Service (USDA-APHIS). In the past, Gypsy moth
eradication costs were matched by the USDA. Our intent is to submit a 50:50 cost share request
to the FY2019 Farm Bill Section 10007. Approval of Farm Bill suggestions depends upon
available funds. ODA is requesting up to $395,603 General Fund, dependent upon the Federal
Funds contribution, and would request permission to appear at a subsequent meeting of the
Emergency Board once the federal resources are secured. The department is also requesting three
limited duration seasonal survey biotechnicians (0.75 FTE).

Preparation activities for the Gypsy moth eradication will start in October 2018. Aerial
treatments with a biological control agent, Bacillus thuringiensis var. kurstaki, (Btk), an
organically approved biocontrol insecticide, will occur in April and May of 2019. It is important
to secure commitments for funding as soon as possible, so implementation efforts can begin after
the first of the year.

Agency Action/Background
The Department maintains a high-level detection program for Gypsy moth, Lymantria dispar, and
its Asian strain (Asian Gypsy moth), which is funded by federal funds. Each year approximately
18,000 traps are placed statewide to detect any new introductions of this important invasive pest.
The Department has conducted numerous very successful Gypsy moth eradication programs
since 1981. The Department first detected Gypsy moths in Oregon in 1979 in Lake Oswego.
Several dozen infestations have been detected since. The largest was in 1984-5 when over
The Honorable Senator Peter Courtney, Co-Chair
The Honorable Representative Tina Kotek, Co-Chair
August 27, 2018
Page 2

19,000 moths were caught in Lane County. The biological insecticide Btk is used to eradicate
any Gypsy moth infestations found. Btk is applied to all foliage either by helicopter or by ground
equipment depending on the size and terrain in the eradication area. Foliage treated with Btk
must first be ingested by the caterpillar. Btk disrupts the caterpillar’s digestive system and causes
a bacterial infection. Caterpillars generally stop eating and die within several days. Btk is
effective only on caterpillars and does not accumulate in the environment. Public health
monitoring studies have shown no adverse health effects of Btk in areas where it has been used.
The Department pioneered the use of Btk to combat that infestation; a quarter of a million acres
were sprayed over several years in the largest successful Gypsy moth eradication program
anywhere. These have ranged from large-scale aerial application programs of 225,000 acres in
the mid-1980s to small ground application programs of ten acres. Early detection of new
introductions has allowed eradication programs to remain small and cost less, a benefit for
Oregonians.

Gypsy moth caterpillars are one of the most destructive tree defoliators in the US. They prefer
oak but will eat hundreds of species of trees and shrubs, including conifers. The caterpillars have
defoliated millions of acres of trees and shrubs in the northeastern United States. When the
caterpillars eat the leaves of broad-leaf trees year after year the trees become weak. These trees
become susceptible to disease, fire, and erosion, and may provide poor habitat for other forms of
animal and plant life. Fir trees can die after just one year if the caterpillars strip all of the needles.
Not only do they strip trees and shrubs of foliage, the caterpillars can become a nuisance to
people when they crawl on sidewalks, patios, houses, and other structures. They can also create a
continuous and audible rain of messy droppings under infested trees. In some cases, people
develop an allergy to the hairs of the gypsy moth larvae.

By finding Gypsy moths as soon as possible and quickly eliminating breeding populations, the
Department has successfully prevented economic and environmental losses to Oregon, either by
restrictive quarantines on commodities or by the loss of foliage and even trees due to expanding
Gypsy moth populations.

If established, the Gypsy moth could cause considerable direct damage to many of Oregon's top
forest commodities as well as urban and rural environments, increased production costs and
potential for environmental damage through the increased use of pesticides. Indirect economic
damage through restrictive quarantines on export commodities, particularly nursery stock, would
be significant. In a recent pest risk analysis, we estimate that the damage caused by established
Gypsy moth populations in Oregon could amount to over 14 million dollars a year, including
indirect and direct damages, crop losses and quarantine costs.

The insect has infested several regions of the Eastern and Midwest United States, but is not
considered to be established in Oregon. Since 1979, the Oregon Department of Agriculture
(ODA) has strived to prevent the spread of Gypsy moth into the state. Over the years, through
federal and corporate partnerships, we have succeeded in this endeavor. While many eastern
states in the US are infested, quarantined, and battling this insect, the state of Oregon is still
considered Gypsy moth-free; however, on occasion, we do experience invasions of the Gypsy
moths in Oregon, usually spread through human-assisted movement of out-door furniture or
The Honorable Senator Peter Courtney, Co-Chair
The Honorable Representative Tina Kotek, Co-Chair
August 27, 2018
Page 3

recreational vehicles. Last year, 2017, we trapped a 4 Gypsy moths in a neighborhood of
Corvallis, Benton County. This season, we already have caught 15 Gypsy moths in the
delimitation survey around last year’s positive catches. We are currently in the planning phase to
eradicate this Gypsy moth infestation, which encompasses an area of about 640 acres of a mostly
urban neighborhood. Unfortunately, Oregon Department of Agriculture does not have specific
state revenues for this large-scale Gypsy moth eradication project.

Action Requested
The Department respectfully requests the Emergency Board appropriate up to $395,603 General
Fund to cover the state contribution for the eradication effort and three limited duration seasonal
survey biotechnicians (0.75 FTE). The amount needed is dependent upon the Federal Funds
contribution, and the department will request permission to appear at a subsequent meeting of the
Emergency Board once the federal resources are known.

Legislation Affected
Oregon Law 2017, Chapter 562, Section 1, Subsection (3)

Sincerely,

Alexis M. Taylor, Director
Oregon Department of Agriculture

Attachments:
      Map of Corvallis, Oregon Gypsy Moth detection sites
      Budget estimate for 2017-19
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