FISCAL NOTE
FUND(S):
STATE ROAD FUND 6700-16
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 bill requires the DOH to use recycled asphalt, concrete and tires.
As a rule, the DOH has found it to be more effective and efficient to utilize a deteriorated concrete roadway as a base and overlay it with asphalt. Thus, there is no cost incurred for removal and rehabilitation of the concrete pavement.
The DOH did a quick research and found that the cost increase varied from 118-360% in Louisiana to an increase of 64-102% in Virginia. The estimate uses 83% increase based on an average of Virginia’s costs.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2010
Increase/Decrease
(use"-") |
2011
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
37,461,879 |
74,923,759 |
74,923,759 |
| 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 |
0 |
Explanation of above estimates (including long-range effect):
Current Cost/Ton $ 80.98
Rate Increase 1.83%
Cost/Asphalt w/RAP $148.19
Difference $ 67.21
Average Tons/Yr (09) l,114,771
Total Cost $74,923,759
Memorandum
1. The DOH does not believe that to “require” the agency to use recycled materials without consideration of the availability or the cost is not in the best interest of the State. The use of recycled materials is often at a higher price than traditionally materials.
2. The requirement to use recycled materials has no quality specifications and the agency may be mandated to use inferior products which may deteriorate at a faster rate or create a potential hazard to a driver.
3. In a quick research of West Virginia, we could not locate any asphalt recyclers. The nearest were in Pennsylvania and Maryland. The cost provided by one was $280/ton per raw crumb rubber without additives to incorporate it into the asphalt.
4. The DOH currently allows contractors to use up to 15% recycled asphalt without modifications to the mix ratio and up to 30% may be used provided that mix ratio is modified to agency’s approval.
5. The agency is currently monitoring a few states (CA, AZ) to determine when the use of waste tires in asphalt is economical, efficient use of the State’s funds.
Person submitting Fiscal Note: Kathy J. Holtsclaw
Email Address: Kathy.J.Holtsclaw@wv.gov