FISCAL NOTE
Date Requested: January 18, 2019
Time Requested: 01:58 PM |
| Agency: |
Environmental Protection, Department of |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1761 |
Introduced |
SB147 |
|
|---|
| CBD Subject: |
County Officials |
|---|
|
FUND(S):
Special Revenue Fund
Sources of Revenue:
Special Fund 3328 CLOSURE COST ASSISTANCE FUND
Legislation creates:
Decreases Existing Revenue
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
Chapter 22, Article 16 of WV State Code, gives the DEP the responsibility to close and maintain State landfills that cannot be operated in an environmentally sound manner and therefore, pose a threat to the environment and the health and safety of our citizens.
To date we have closed 26 sites at a cost of $75,684,588, or an average cost of $2,910,946 per site and have on-going maintenance costs at 27 sites. There are five (5) remaining sites to close and one (1) site that has not applied for assistance.
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% which will impact the DEP’s ability to close and maintain these landfills.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2019
Increase/Decrease
(use"-") |
2020
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
5,416,074 |
5,416,074 |
5,416,074 |
| Personal Services |
936,236 |
936,236 |
936,236 |
| Current Expenses |
4,479,838 |
4,479,838 |
4,479,838 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
0 |
0 |
| 2. Estimated Total Revenues |
9,581,770 |
6,841,384 |
6,841,384 |
Explanation of above estimates (including long-range effect):
The above estimate is based on projecting 2019 actual revenue & expenditures. The estimate does not include the cost to close the remaining landfills, or the on-going costs associated with them. It also does not include any unforeseen extraordinary cost or the cost to replace the earthen caps.
The proposed reduction in revenue is reflected in fiscal years 2020 and beyond based on the proposed legislation not being effective until the start of the 2020 fiscal year.
Currently five landfills remain to be closed at an estimated cost of $27,997,133. Another five closed landfills have earthen caps that need to be replaced with synthetic caps. The estimate to replace these caps is an additional $9,717,510. The landfill that has not applied for assistance is not included in these estimates.
In addition to closure costs, the State has a 30 year obligation for on-going maintenance at closed landfills. Currently the estimated on-going maintenance costs total $3,928,364 per year, an average of $130,945 per site. These on-going costs include water treatment, maintenance, monitoring and repairs. On top of this, 12 sites also incurred one time extraordinary expenses in 2018 of $179,104. Extraordinary costs can vary widely. In 2017, an earthen cap had to be replaced at one site and the total cost was $2,160,830 alone.
Closure costs are based on current conditions. Actual expenditures 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
From fiscal year 2015 to the current, expenditures in the Closure Cost Assistance Fund has almost equaled the revenue received, being only $114,942 less. In fiscal years 2016 and 2017, expenditures exceeded the revenue received by $295,594 and $4,661,118 respectively. Any decrease in revenue could 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 and 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