FISCAL NOTE
Date Requested: January 16, 2024
Time Requested: 04:08 PM |
| Agency: |
Environmental Protection, Department of |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2701 |
Introduced |
HB4800 |
|
|---|
| CBD Subject: |
|
|---|
|
FUND(S):
Special Fund
Sources of Revenue:
Special Fund
Legislation creates:
Creates New Expense
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
HB4800 would required the DEP to assume all costs necessary for certification by a registered professional engineer and permit a privately owned dam before the secretary could recover costs for repair or remediation from the owner. This bill requires that certification costs be paid from the Dam Safety Rehabilitation Revolving Fund. This fund is currently inactive and has no revenue, or source of revenue, to cover the costs intended by this bill.
From 2007 to 2013, transfers of more that $1,000,000 were made to the Dam Safety Rehabilitation Revolving Fund, primarily from unexpended General Revenue. However, in 2017, the Legislature swept the entire fund to use for other purposes. Since then, this fund has carried a zero balance and currently the program has no source of funding to pay the costs specified in the bill.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2024
Increase/Decrease
(use"-") |
2025
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
0 |
30,000,000 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
0 |
30,000,000 |
| 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):
The DEP estimates there are 100-110 privately owned dams, with approximately 45 dams not in compliance. This means that they will require extensive engineering analysis to obtain a Certificate of Approval (permit) and most likely construction modifications to bring them into compliance or remove them from jurisdiction (engineer's certification). The engineering and construction costs can vary significantly, depending on many factors including size, location, how well they are constructed, stream/wetland impact, etc.
Engineering costs typically range from $25,000 to well over $100,000. Rehabilitation construction costs usually range from $150,000 for small, lower hazard dams to over $1,000,000 for high hazard (potential for loss of life, if it fails). Some dams could be a couple million dollars or more depending on complexity.
The DEP estimates an average cost per dam would be approximately $650,000 with a total cost of approximately $30,000,000 for the 45 dams not currently in compliance.
Memorandum
None
Person submitting Fiscal Note: Gary Rogers
Email Address: Gary.W.Rogers@wv.gov