FISCAL NOTE
Date Requested: February 13, 2021
Time Requested: 02:33 PM |
| Agency: |
Transportation, WV Department of |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1844 |
Introduced |
SB286 |
|
|---|
| CBD Subject: |
Roads and Transportation |
|---|
|
FUND(S):
State Road Fund
Sources of Revenue:
Special Fund
Legislation creates:
Increases Existing Expenses
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.
SB286 is a proposed legislation to fund the upgrade of the Interstate 73 Corridor throughout the boundaries of the State of West Virginia, basically following the proposed King Coal Highway in combination with the Tolsia Highway. The funding for this project would be handled by the Commissioner of Highways through the issuance of special obligation notes. To subsidize the repayment of the special obligation notes, the Commissioner of Highways would be expected to propose legislation to install and maintain automatic tolling facilities along the 150+ miles of the Interstate 73 Corridor.
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 |
3,900,000,000 |
| 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 |
98,000,000 |
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.
To develop an estimated tolling revenue stream for the Interstate 73 Corridor, two key assumptions must me made. First, it is assumed that the facility would require an estimated construction cost of $25 million per mile of new four-lane facility, causing a total capital cost to approach 3.9 billion. Second, it is necessary to assume a toll rate. Assuming a similar acceptable toll structure of$0.14 per mile for passenger vehicles and $0.46 per mile for trucks as that of the West Virginia Turnpike, daily toll revenues would only approach $98 million per year, based on a May 2009 estimate of Average Daily Traffic of 16,495 along the corridor, rendering this funding mechanism unfeasible.
One possible solution to this legislation would be to provide an additional funding source to help complement the generation of the toll revenue to help complete this project.
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.
A Bond Grade Toll Study is necessary to refine the preliminary costs noted above in the Fiscal Note Detail. The 2018 Transponder Bill (Parkways Authority) that passed is not identified with the cost of revenues, which could reduce the estimated total annual revenues. One possible solution to this legislation would be to provide an additional funding source to help complement to generation of the toll revenue to help complete this project.
This project will need extensive coordination with Federal Highway administration (FHWA).
Person submitting Fiscal Note: Lorrie Hodges
Email Address: lorrie.a.hodges@wv.gov