Finchem’s Bold Proposal: A New State Agency to Manage Land and Natural Resources

In Arizona, a Republican lawmaker has proposed legislation aimed at creating a new department to manage an unestablished category of land, anticipating potential federal policy shifts under President Donald Trump. Senator Mark Finchem, representing Prescott, introduced a bill to form the Department of Natural Resources, ostensibly to oversee state lands beyond the current state trust lands. However, this proposal encounters a fundamental issue: all state land is designated as state trust land.

Finchem’s initiative stems from signals from the Trump administration suggesting a potential transfer of federal lands back to the states. “The federal government possesses an appetite to divest itself of land management due to years of poor stewardship,” he asserted during a February 17 hearing. “If the federal government returns this land to Arizona, we must be ready.”

Contrarily, environmental advocates argue that this proposal primarily aims to undermine environmental controls set by existing state agencies governing natural resource exploitation. Presently, Arizona consists of approximately 73 million acres of land, with just 13% classified as state trust lands. Profits from these lands support various beneficiaries, including K-12 education, state universities, and state facilities.

The vast majority of Arizona’s land comprises private, public, and tribal properties, with 42% classified as public land according to the U.S. Forest Service. The current oversight structure is clear: the State Land Department manages state trust lands, while the Treasurer’s Office handles the revenue generated. Finchem stated that, should federal lands be transferred to Arizona, the Land Department would lack the authority to manage them effectively.

During a Senate Federalism Committee meeting, Finchem emphasized that his bill would provide the necessary framework for managing any returned federal lands. However, it includes a contentious provision that critics believe reveals its true intent: the proposed Department of Natural Resources would have the power to issue and modify permits for resource extraction, potentially overriding existing permits held by other state agencies.

Senator Priya Sundareshan, a Democrat from Tucson, expressed skepticism about the necessity of creating a new department. “What is the justification for establishing this new Department of Natural Resources?” she questioned. “It seems designed to authorize this new agency to override decisions made by established entities.”

Finchem responded defensively, questioning why his proposed department should adhere to the regulations of other departments when its mission is to manage natural resources. Sundareshan countered, emphasizing that the department Finchem envisions does not currently exist.

Environmental groups, including the Arizona chapter of the Sierra Club, criticize the proposal as a mechanism for increasing Republican control over public lands, opening the door to mining and oil drilling. Sandy Bahr, a lobbyist for the Sierra Club, remarked, “This legislation paves the way for heightened resource extraction while undermining essential protections.”

Bahr also noted the disconnect in Finchem’s plans, arguing that if federal lands were returned to states, the rightful claimants should be Indigenous communities rather than state authorities. “If reclamation of land were to happen, it should primarily benefit the Indigenous peoples, not the state government,” she stated.

Finchem was not available for comment on this developing story. The bill received final Senate approval on March 13, with one Republican lawmaker opposing it. It is now set to advance to the House for further consideration.