FISCAL NOTE
Date Requested: February 02, 2026
Time Requested: 01:53 PM |
| Agency: |
Environmental Protection, Department of |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1866 |
Introduced |
HB5039 |
|
|---|
| CBD Subject: |
Environment |
|---|
|
FUND(S):
Special Fund
Sources of Revenue:
Special Fund
Legislation creates:
Decreases Existing Revenue
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
Passage of HB5039 with its proposed repeal of W. Va. Code §22-5-1, et seq. and replacing it with Carbon dioxide; beneficial treatment; state policy will affect revenues and expenditures for the DEP as provided in this fiscal note.
The fiscal note does not include any of the devastating negative impacts to West Virginia industry. Regulated sources in West Virginia will remain subject to all federal regulations; however, DAQ will no longer be in existence and will lose primacy of all federal programs. Each regulated source in West Virginia will be required to apply for their air quality permits directly from the U.S. EPA Region 3 offices located in Philadelphia, PA. The DAQ is unaware of the costs that EPA will charge West Virginia sources. The DAQ is unaware how long it will take the U.S. EPA to issue its permits; however, it certainly will be much longer than it currently takes. It is fair to say costs to industry will skyrocket when all permitting and inspections will be handled through EPA Region 3.
There are also no estimated impacts or assumptions resulting from missed future economic development opportunities by the State as a result of no longer having primacy to permit sources within its borders.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2026
Increase/Decrease
(use"-") |
2027
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
-9,721,252 |
-9,721,252 |
| 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 |
-9,380,773 |
-9,380,773 |
Explanation of above estimates (including long-range effect):
It is assumed that costs and revenues associated with the passage of this bill would be incurred at the beginning of the 2027 fiscal year. The estimates are based on FY2025 actual revenues and expenses. If DAQ ceases to exist, all revenues and expenses will cease as explained below.
The reduction in revenues beginning with the 2027 fiscal year would be the loss of all DEP, Division of Air Quality (DAQ) revenues (-$9,380,773). This includes all federal funds-grants, Air Pollution Control fund-fees (Title V and non-Title V) revenues and interest, Education and Environment fund, penalty payment revenue and interest, and General Revenue allocation.
The reduction in expenses beginning with the 2027 fiscal year would be the elimination of all DEP, Division of Air Quality expenses (-$9,721,252). This includes DAQ salaries & benefits and unclassified expenses, and DAQ’s allocation for DEP Executive - Administration salaries & benefits and unclassified expenses. Unclassified expenses are all other expenses outside of salaries and benefits (rent, utilities, equipment, materials, etc.).
DAQ’s allocation for DEP Executive-Administration central support salaries, benefits, and additional expenses ($1,331,601) would be transferred to the remaining DEP Divisions and Offices and their central support allocations would increase.
Memorandum
None
Person submitting Fiscal Note: Gary Rogers
Email Address: Gary.W.Rogers@wv.gov