FISCAL NOTE
Date Requested: January 24, 2024 Time Requested: 01:09 PM |
Agency: |
Environmental Protection, Department of |
CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
3084 |
Introduced |
SB532 |
|
CBD Subject: |
Energy |
---|
|
FUND(S):
escrow account
Sources of Revenue:
Other Fund creates an escrow account
Legislation creates:
Creates New Program
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
SB532 will require oil and gas well operators to deposit money in a "plugging money set aside escrow account", to be established by the State Treasurer, for each new well, prior to being issued a permit to operate those wells. These funds are to be used to plug the wells once they are no longer viable. Currently, WV DEP is unable to determine the number of potential new wells that will be applying for permits in the future and therefore cannot provide a reasonable analysis of the expected revenues and expenditures.
Fiscal Note Detail
Effect of Proposal |
Fiscal Year |
2024 Increase/Decrease (use"-") |
2025 Increase/Decrease (use"-") |
Fiscal Year (Upon Full Implementation) |
1. Estmated Total Cost |
0 |
0 |
0 |
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):
Upon full implementation of this bill, WV DEP expects to incur personnel costs to review well operator's compliance with the requirements of this bill prior to issuing permits and approving the release funds from the escrow account. Due to the unknown workload expected, it has not been determined whether a new employee will be hired or a current employee will be assigned these responsibilities. However, section 22-10A-7(c) of the bill provides funding from the escrow account to cover the cost of administering the program, so it is not expected that the current WV DEP funds will be significantly affected.
Memorandum
None
Person submitting Fiscal Note: Gary Rogers
Email Address: Gary.W.Rogers@wv.gov