FISCAL NOTE
Date Requested: January 16, 2023
Time Requested: 08:35 AM |
| Agency: |
Economic Development Authority, WV |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1717 |
Introduced |
HB2254 |
|
|---|
| CBD Subject: |
|
|---|
|
FUND(S):
9061
Sources of Revenue:
Special Fund
Legislation creates:
Creates New Expense, 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.
HB 2254 would create the Natural Gas Fired Electricity Generation Development Act of 2022. The Act would encourage development of natural gas electric generation facilities in West Virginia by (i) directing the West Virginia Economic Development Authority (WVEDA) to identify, qualify, and designate economically viable sites in West Virginia that satisfy certain defined criteria (deemed “Designated Sites” under the Act) that would be suitable to locate natural gas electric generation facilities; (ii) requiring WVEDA to communicate the Designated Sites to the West Virginia Department of Environmental Protection’s (WVDEP) Division of Air Quality as sites suitable for the construction and operation of natural gas electric generation projects; (iii) providing an expedited timeframe for the West Virginia Public Service Commission to issue a final order for an application for a Certificate of Public Convenience and Necessity for a natural gas electric generation project located on a Designated Site; (iv) providing for expedited permitting from WVDEP for such projects on Designated Sites; and (v) providing for expedited consideration of appeals from a permit issued or denied for the construction and operation of a natural gas electric generation facility by the Air Quality Board.
WVEDA primarily provides financial assistance in the form of loans and indirect financing to businesses and industrial development agencies located in West Virginia. WVEDA does not have expertise or existing resources that could absorb the responsibilities necessary to evaluate the property characteristics set forth in the Act to qualify suitable properties as Designated Sites. Because HB 2254 does not provide additional resources to identify such Designated Sites, WVEDA would need to engage the services of a qualified engineer or consultant to satisfy its responsibilities under the Act. WVEDA estimates that it to engage the services of a qualified engineering consultant would cost approximately $50,000, depending on the scope of work, to analyze West Virginia properties for suitability as Designated Sites and to generate a report that could be communicated to WVDEP.
The West Virginia Department of Economic Development (WVDED) has experience in working directly with businesses to identify and qualify sites which are suitable for their desired activities.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2023
Increase/Decrease
(use"-") |
2024
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
0 |
0 |
| Personal Services |
50,000 |
50,000 |
50,000 |
| 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 |
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.
WVEDA does not have expertise or existing resources that could absorb the responsibilities necessary to evaluate the property characteristics set forth in the Act to qualify suitable properties as Designated Sites. Because HB 2254 does not provide additional resources to identify such Designated Sites, WVEDA would need to engage the services of a qualified engineer or consultant to satisfy its responsibilities under the Act. WVEDA estimates that it to engage the services of a qualified engineering consultant would cost approximately $50,000, depending on the scope of work, to analyze West Virginia properties for suitability as Designated Sites and to generate a report that could be communicated to WVDEP.
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.
The West Virginia Department of Economic Development (WVDED) has experience in working directly with businesses to identify and qualify sites which are suitable for their desired activities.
Person submitting Fiscal Note: Caren Wilcher
Email Address: caren.d.wilcher@wv.gov