FISCAL NOTE
Date Requested: February 13, 2023
Time Requested: 04:16 PM |
| Agency: |
Highways, Division of |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 3553 |
Introduced |
HB3440 |
|
|---|
| CBD Subject: |
Roads and Transportation |
|---|
|
FUND(S):
State Road Fund
Sources of Revenue:
Special Fund
Legislation creates:
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
Summarize in a clear and concise manner what impact this measure will have on costs and revenues of state government.
The proposed Houses Bill 3440 will increase the total dollar
amounts payable to water and wastewater utilities when a
relocation is required by a Highway project. By increasing
the dollar amounts paid to the utility companies, the
quantity of projects in the annual program will be
reduced on a dollar-for-dollar basis.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2023
Increase/Decrease
(use"-") |
2024
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
5,000,000 |
5,250,000 |
5,512,000 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
0 |
0 |
| 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):
Please explain increases and decreases in personal services, current expenses, repairs and alterations, assets, other costs and revenues, including assumptions and data sources and delineation between start-up and ongoing costs. Please also include a long-range schedule of costs and revenues if fiscal impact is expected to vary in future years.
In the early 2000s, West Virginia Division of Highways (DOH) paid for all utility relocations in an effort to expedite the relocation process. During this time, DOH paid approximately $2M to one privately-owned water company. Accounting for inflation and current Federal funding levels, it is estimated that this bill will cost DOH approximately $5M per year in today's dollars (adding for inflation for FY2024 and Full Implementation in the chart above). This is the best estimate that DOH can provide at this time. It is possible that there will be even more reimbursement requests if HB3440 passes from companies that do not currently submit reimbursement requests. The Public Service Commission's (PSC) website lists a total of forty-one (41) privately-owned water and wastewater companies who would be eligible for reimbursement under this proposed bill.
Currently, WVDOH reimburses utility relocations based on prior rights. If the company's
facilities are located on public rights of way (i.e., WVDOH has in the public interest,
allowed the companies to occupy State right of way for free and at no cost to the
company), the relocation is not reimbursable, and the company must move at their own
cost.
If this Bill passes, the estimated $5M per year that will be spent on water/wastewater
relocations will be $5M of Federal funds that will not be spent on bridge replacements,
expansion projects, and other maintenance projects on the highway system each year.
From approximately 2000-2007, WVDOH paid for all utility relocations. The utility
companies pushed for this legislation because they said that if WVDOH paid for
relocations required by WVDOH projects, the time line for completing the relocations
would be much faster, allowing the WVDOH project to proceed to construction in a more
timely manner. During this time, the faster relocations were not realized, and some
utilities actually took longer to complete relocations, which brings us to why WVDOH
does not pay for relocations for utility companies located on public rights of way.
Memorandum
Please identify any areas of vagueness, technical defects, reasons a bill would not have a fiscal impact, and/or any special issues not captured elsewhere on this form.
With HB 3440, Lines 8/9 state "...funded, in whole or in part, from federal funding sources,..."
This language is problematic for DOH because if a proposed project had a phase that
was ever funded with Federal funds (planning, design, right of way, or construction),
the water/wastewater relocations would be 100% reimbursable. There are many projects
that change funding sources during the life cycle of the project, and this wording would require WVDOH to pay regardless of final funding sources.
Person submitting Fiscal Note: Lorrie Hodges
Email Address: lorrie.a.hodges@wv.gov