FISCAL NOTE
FUND(S):
Sources of Revenue:
Special Fund
Legislation creates:
Neither Program nor Fund
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The proposed legislation would reduce by $1.90 per ton, from $8.75 to $6.85, the statutory "tipping" fees required to be collected by state landfills for the disposal of solid waste. The reduction would not take effect until the total tonnage collected state-wide increases by at least 45,000 tons per month from the current annual baseline of 1.73 million tons, such increase to be sustained for three consecutive months. The annual baseline, if the increase is permanently sustained, is projected to rise to 2.27 million tons, which, notwithstanding the reduced rate, would produce an additional $412,000 in revenue ($15,549,500 projected versus $15,137,500 current). Because of the way the revenue would be distributed, however, the State would sustain a net annual loss of $173,000. To explain, a substantial portion of the increased revenues ($270,000) would accrue to county and regional solid waste authorities, which would continue to receive $0.50 per ton pursuant to W. Va. Code 7-5-22. In addition, the McDowell County Commission, whose Capels landfill is expected to account for the increased tonnage, would be entitled to $315,000 annually in accordance with W. Va. Code 22-16-4. The State's share of the tipping fee proceeds would therefore fall by $173,000 per year (412,000 less 270,000 less 315,000 equalling -173,000). The decrease in revenues would be shared among a number of programs: (1) $76,500 to the annual surplus outlined in W. Va. Code 22-15-11; (2) $27,500 to funding and grants made available to county and regional solid waste authorities under the provisions of W. Va. Code 22C-4-30 (those funds being administered by the State through the Solid Waste Planning Fund and the Solid Waste Management Board); (3) $55,000 to programs funded pursuant to W. Va. Code 22-15A-19 (specifically, $27,500 to the Recycling Assistance Fund; $6,875 to conservation officers' salaries and benefits; $6,875 to the Solid Waste Planning Fund; $6,875 to the PPOD open dumps program, and $6,875 to the Hazardous Waste Emergency Response Fund); and (4) $14,000 to the Landfill Closure Assistance Program provided for in W. Va. Code 22-16-4 (76,500 plus 27,500 plus 55,000 plus 14,000 equalling 173,000).
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2008
Increase/Decrease
(use"-") |
2009
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
0 |
0 |
| 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 |
-173,000 |
Explanation of above estimates (including long-range effect):
The above estimates assume that the triggering increase would be certified by the Cabinet Secretary to take effect at the beginning of FY 2010 or later. If earlier certified, there would be a proportional decrease in revenue allocable to FY 2009.
Memorandum
Person submitting Fiscal Note: Raymond S. Franks II, General Counsel, DEP
Email Address: rfranks@wvdep.org