FISCAL NOTE
Date Requested: February 24, 2021
Time Requested: 04:00 PM |
| Agency: |
Commerce, WV Dept of |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2628 |
Introduced |
HB2667 |
|
|---|
| CBD Subject: |
Taxation |
|---|
|
FUND(S):
GENERAL
Sources of Revenue:
General Fund
Legislation creates:
Increases Existing Expenses
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
For WVOE to implement the legislation as proposed, the following small increase above existing levels in staffing and funding is necessary. This will allow us to partner with Dept of Admin to scale up current efforts, and focus on state building needs.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2021
Increase/Decrease
(use"-") |
2022
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
60,000 |
60,000 |
| Personal Services |
0 |
40,000 |
40,000 |
| Current Expenses |
0 |
20,000 |
20,000 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
For WVOE to implement the legislation, the follow increases in current levels in staffing and funding are necessary. As WVOE is currently engaged in similar efforts, the only need is one full time staff member at $40,000/yr, to solely focus on state facilities. Another $20,000 for software upgrades and data management is necessary.
None of these expenses will impact 2021, all will accrue to 2022 and ongoing years. There will be no revenue from this effort, however, there will be avoided costs. (See memo below)
Memorandum
The state of WV owns and/or operates approximately 3400 buildings, with an estimated number of utility accounts and meters to be 15,000-20,000 (6000 each of electric, gas and water, etc. 20% of accounts would be audited per year (600 building and 3-5000 accts), with 100% completed by end of fiscal year 2026. This is equal to $100/building cost to the state.
Cost savings potential for a completed audit and benchmark activity is 3-5% reduction of total annual utility costs. A rough estimate for total cost to the state is $88 million. A conservative 3% would be $2 million annually. With a 5-year project cost of $300,000, net benefit to the state will be a 9 to 1 return on investment.
During the 5 year project schedule, WVOE will work with Administration to develop a sustainable, long-term energy efficiency plan and roadmap to address the state building stock.
Person submitting Fiscal Note: kimberly miller
Email Address: kimberly.l.miller@wv.gov