FISCAL NOTE
Date Requested: February 23, 2021
Time Requested: 04:09 PM |
| Agency: |
Administration, WV Department of |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2628 |
Introduced |
HB2667 |
|
|---|
| CBD Subject: |
Taxation |
|---|
|
FUND(S):
General Revenue
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.
The energy saving program legislation as currently proposed encompasses roughly 15% of the state-owned buildings. For General Services Division to implement the legislation as proposed the following increases above current levels in staffing and funding will be necessary.
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 |
1,682,000 |
1,682,000 |
| Personal Services |
0 |
682,000 |
682,000 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
1,000,000 |
1,000,000 |
| 2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
For GSD to implement the legislation as proposed the following increases above current levels in staffing and funding will be necessary.
Staffing (contracted) to the Energy Management Section of GSD: one additional contracted mechanical engineer - $250,000/year; one controls technician (contracted) - $105,000/year.
Staffing (state employees) to various sections within GSD to accomplish the energy work being accomplished across GSD: two master electricians - $80,000/year each for $160,000 year total; two journeyman electricians - $51,000/year each for $102,000/year total; one drafter - $65,000/year (these costs include salary (market rate) and benefits.
Equipment/software/construction contracted/inhouse costs: Tools and office equipment for added staff, added seat licenses for Energy Star Portfolio Manager® and AutoCAD for engineers and drafters (nominal costs which can be absorbed in current funding), additional $1,000,000/year of contract costs and in-house materials (combined) to accomplish the tasks needed to reduce energy consumption to target of legislation (see Memorandum Summary for further discussion).
None of these expenses would impact 2021 (hiring lag), all would accrue to 2022 and ongoing fiscal years. There would be NO revenues from this effort only avoided costs.
Memorandum
The buildings under the care, custody, and control of the General Services Division (GSD) make up between 5-20% of the state-owned buildings according to agency reporting within WVOasis. GSD portfolio is 31 buildings for approximately 2.3M (million) square feet (sq. ft.) WV Oasis agency reporting gives over 4000 buildings at over 43M sq. ft.
For this effort we eliminated all state-owned buildings under 5000 sq. ft. to calculate GSD’s percentage of state-owned buildings at approximately 15%. Rationale: Many buildings smaller than 5000 sq. ft. are not significant energy users (pole barns, garages, storage sheds, etc.) as listed in WVOasis. GSD has care, custody, and control of only 2 buildings less than 5000 sq. ft.
GSD is minimally staffed to maintain the portfolio which it has care, custody, and control over in accordance with consensus standard setting facility management organizations (e.g.: International Facility Management Agency).
Due to near impossibility of hiring/retaining a qualified, experienced mechanical engineer within state government GSD has had to add a contracted position to perform the highly technical energy savings work. To implement the legislation as currently written and assuming GSD would be in a consulting role to other agencies wishing to improve their building energy efficiency, we propose staffing and contracted support as indicated in the Cost Impact section of this fiscal note.
Person submitting Fiscal Note: Greg Melton and Misty Peal
Email Address: misty.peal@wv.gov