FISCAL NOTE
Date Requested: March 15, 2021
Time Requested: 11:51 AM |
| Agency: |
Environmental Protection, Department of |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 3274 |
Introduced |
HB3082 |
|
|---|
| CBD Subject: |
Environment |
|---|
|
FUND(S):
Air Pollution Control Fund / Air Pollution Education & Environmental Fund
Sources of Revenue:
Special Fund
Legislation creates:
Creates New Revenue
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
Summarize in a clear and concise manner what impact this measure will have on costs and revenues of state government.
HB 3082 established the authority for DEP to invest the funds of the Air Pollution Control Fund and the Air Pollution Education & Environmental Fund. The purpose of this bill is to help stabilize funding sources for the DEP DAQ. The financial reality from decreased industrial air emissions have resulted in a decrease in DAQ's revenues. Fees from large industrial sources are based on their emissions rate, therefore, revenues have also been decreasing due to the success of DAQ's efforts. By investing the revenues of DAQ's funds, it would create a revenue stream to supplement the funding for DAQ's operations.
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 |
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 |
278,000 |
278,000 |
Explanation of above estimates (including long-range effect):
Please explain increases and decreases in personal services, current expenses, repairs and alterations, assets, other costs and revenues, including assumptions and data sources and delineation between start-up and ongoing costs. Please also include a long-range schedule of costs and revenues if fiscal impact is expected to vary in future years.
The values above represent an estimate of the average annual interest income, based on the previous three years, if the funds had been invested during FY2018 through FY2020. During FY2018, the two funds had a collective cash balance of nearly $6.7 million which would have generated an estimated $122,400 in interest if invested. Based on an investment of $6 million into the money market and short term bonds, using interest values of FY2019 and FY2020, DEP would have received average annual earnings of nearly $356,000 during each year. Averaged over three years, DEP anticipates an annual investment earning of approximately $278,000 per year.
Memorandum
Please identify any areas of vagueness, technical defects, reasons a bill would not have a fiscal impact, and/or any special issues not captured elsewhere on this form.
None.
Person submitting Fiscal Note: Gary W Rogers
Email Address: gary.w.rogers@wv.gov