FISCAL NOTE

Date Requested: February 07, 2018
Time Requested: 02:13 PM
Agency: Environmental Protection, Department of
CBD Number: Version: Bill Number: Resolution Number:
2464 Introduced SB503
CBD Subject: County Officials


FUND(S):

Closure Cost Assistance Fund

Sources of Revenue:

Special Fund

Legislation creates:





Fiscal Note Summary


Effect this measure will have on costs and revenues of state government.


    By the direction of the Legislature, it is in WV State code that the DEP is responsible for closing 31 landfills. To date we have closed 26 of these sites. The money to fund these landfill closures comes from the Closure Cost Assistance fund. This proposed legislation reduces the revenue received in this fund by 28.6%. This will have a detrimental impact on the DEP's ability to close and maintain these landfills. Since 2014, revenues in the program have exceeded expenses by only $649,816 to date. In 2016 and 2017 expenses actually exceeded the revenue received in those years.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2018
Increase/Decrease
(use"-")
2019
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 7,543,480 7,543,480 7,543,480
Personal Services 1,150,235 1,150,235 1,150,235
Current Expenses 6,393,245 6,393,245 6,393,245
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 0
2. Estimated Total Revenues 8,080,299 5,696,039 5,696,039


Explanation of above estimates (including long-range effect):


    The above estimate is based on the average of completed fiscal years 2014-2017 actual revenue and expenditures. The proposed reduction in revenue is reflected in fiscal years 2019 and beyond based on the proposed legislation not being effective until the start of the 2019 fiscal year.
    
    Currently five landfills remain to be closed at an estimated cost of $33,469,044. Another six closed landfills have earthen caps that must be replaced with synthetic caps. The estimate to replace these caps is $11,731,275.
    
    In addition to closure costs, the State has a 30 year obligation for on going costs at closed landfills. Currently these costs total $3,091,098 per year, an average of $118,888 per site (26 sites). These costs include water treatment, maintenance, monitoring and repairs. Three of these sites also incurred one time expenses of $2,328,449; one for the study of a leachate system, one for the repair of a closure cap, and one for the repair of a soil cap and erosion prior to a maintenance contract being issued.
    
    Closure estimates are based on current conditions. Actual expenses can vary greatly because the sites are heavily impacted by weather conditions, land slippages, etc. Revenues can vary widely because they are based on the tonnage disposed of and this is impacted by industry conditions.
    
    



Memorandum


    Currently revenue is almost equal to expenses. Any decrease in revenue would limit the DEP's ability to reclaim and maintain the landfills that are currently in the program.
    
    If the State is not able to pay for the closure or on going costs required at a landfill, the expense would revert back to the permittee. A lot of the permittees are small companies, counties and municipalities and many of these costs can be extremely high and unexpected, making it difficult for the permittee to pay them.



    Person submitting Fiscal Note: Jean Sheppard
    Email Address: JEAN.J.SHEPPARD@WV.GOV