FISCAL NOTE
Date Requested: February 24, 2021
Time Requested: 04:00 PM |
| Agency: |
Commerce, WV Dept of |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2628 |
Introduced |
HB2667 |
|
|---|
| CBD Subject: |
Taxation |
|---|
|
FUND(S):
General
Sources of Revenue:
General Fund
Legislation creates:
Increases Existing Expenses, Decreases Existing Expenses, Creates New Program
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
Energy Benchmarking refers to measuring a building’s energy use (and in some cases water use) and comparing it to the energy use of similar buildings. A utility bill audit is a comprehensive review of an organization's utility invoices to include Electric, Gas, Water/Sewer and Waste invoices in order to track billing errors and evaluate rate plans to make suggestions for further savings. These two activities can, and will, equal enormous savings to state government operational expenses.
Buildings account for nearly 40% of energy consumption in the United States. Utilities are identified as the 2nd largest operational cost to organizations. Buildings benchmarked on a consistent basis achieved an average annual energy savings of 2.4%. Organizations that conduct utility audits find 3-5% in potential cost reductions, from identified overcharges and billing errors.
The state of WV owns and/or operates approximately 3400 buildings, with an estimated number of utility accounts and meters to be 15,000-20,000 (6000 each of electric, gas and water, etc…). 20% of accounts would be audited per year (600 building and 3-5000 accts), with 100% completed by end of fiscal year 2026.
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 |
51,300 |
256,500 |
| 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 |
51,300 |
256,500 |
Explanation of above estimates (including long-range effect):
Breakdown
Based on salary of $38,000/yr x 5 years $190,000, 35% Fringe would be another $13,300 per year. This can be cost shared with SEP funds. This does not include software needs, this could be anywhere from a few $100 to $20K.
Federal Share State Share Total Project completion
Year 1 2022 $25,650 $25,650 $51,300 20%
Year 2 2023 $25,650 $25,650 $51,300 40%
Year 3 2024 $25,650 $25,650 $51,300 60%
Year 4 2025 $25,650 $25,650 $51,300 80%
Year 5 2026 $25,650 $25,650 $51,300 100%
Total $128,250 $128,250 $256,500
Memorandum
There is really nothing vague about the bill. It has enormous potential to saving tax payer funds.
Person submitting Fiscal Note: Kimberly Miller
Email Address: kimberly.l.miller@wv.gov