FISCAL NOTE
Date Requested: January 12, 2022
Time Requested: 03:38 PM |
| Agency: |
Environmental Protection, Department of |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1416 |
Introduced |
HB4055 |
|
|---|
| CBD Subject: |
Environment |
|---|
|
FUND(S):
None
Sources of Revenue:
Other Fund None
Legislation creates:
Creates New Program
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.
HB4055 creates the WV PFAS Action Response Team (VW-PART), an advisory committee made up of representative from six different state agencies. DEP will be primarily responsible for carrying out the actions and recommendations of the committee by establishing a unit within the agency to research, identify and respond to PFAS contaminated sites. This unit will, at a minimum, consist of a manager, two environmental resources specialist, an administrative assistant, and possibly an analyst. Other associated costs would be office space, vehicle purchases and related costs, computer and telephone equipment, training, and general operating expenses. Once contamination is discovered, contractors and consultants will need to be hired to remediate the sites. Sites would need to be tested on a regular basis to confirm successful remediation.
There is currently no source of funding to implement and carry out the requirements of this bill, therefore DEP would need to rely on its current funding sources. This would cause a financial burden on the agency due to the fact that DEP is primarily funded with special revenue. All special revenue and federal funding currently received is restricted funding and must be used for the purpose it was collected.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2022
Increase/Decrease
(use"-") |
2023
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
293,000 |
926,000 |
2,662,200 |
| Personal Services |
198,000 |
396,000 |
541,200 |
| Current Expenses |
15,000 |
530,000 |
2,050,000 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
80,000 |
0 |
71,000 |
| 2. Estimated Total Revenues |
0 |
0 |
0 |
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.
Upon implementation in 2022, a staff will be needed to carry out the directives of the WV-PART committee. The starting staff for the unit will consist of a manager, who will report directly to the committee, two environmental resources specialists, an administrate assistant, and an environmental analyst to oversee testing. The total annual salaries and benefits of this starting staff is expected to be $398,000. During 2022, personnel costs are expected to be only half of this total, due to the enactment of this bill mid year. However, during 2022, equipment costs will be approximately $80,000, for the purchase of two vehicles for the field staff and computer equipment for the entire staff. Current expenses consist of office rent, travel costs, telephone, and general office expenses.
During 2023, personnel costs are expected to be $396,000, which includes salaries and benefits. Current operating costs are expected to be approximately $30,000, due to excessive travel costs for meetings and site assessments, in addition to office rental space, telecommunication costs, and other general operating costs. It is also expected that consultants and contractors will begin working on identified contamination sites. This cost is an estimate at this point, but DEP believes $500,000 is a reasonable estimate for consulting fees and contractor fees for the initial sites identified.
During 2024, full implementation of this program is expected, upon which two additional Environmental Resource Specialist will be hired and several new contaminated sites will be identified. The increase in consulting and contracting work will be significant, which DEP estimates approximately $2 million per year.
No additional revenue is expected for this program.
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.
Person submitting Fiscal Note: Gary Rogers
Email Address: Gary.W.Rogers@wv.gov