Fiscal Note - SB 0145 - Fees On Hazardous Waste Generation and Hazardous Waste Disposal Units
L.R. NO. 0683-02
BILL NO. SB 145
SUBJECT: Hazardous Waste Generator Fees
TYPE: Original
DATE: January 31, 1997
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
General Revenue ($30,000) ($30,000) ($30,000)
Hazardous Waste
Remedial Fund $1,250,000 $1,250,000 $1,250,000
Total Estimated
Net Effect on All
State Funds $1,220,000 $1,220,000 $1,220,000
ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
Total Estimated
Net Effect on All
Federal Funds $0 $0 $0
ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
Local Government $0 $0 $0
FISCAL ANALYSIS
ASSUMPTION
The Department of Revenue, Department of Health, and the Office of the State
Treasurer assume this proposal would have no fiscal impact on their agency.
The Department of Natural Resource (DNR) assumes the proposed legislation
will increase the existing revenue target of $1.5 million annually to $2.75
million annually. DNR assumes part of the increased fees are dependent on
the number of Treatment, Storage, and Disposal (TSD) facilities in Missouri
who will pay a fee with a fixed base rate of $21,250 per facility times the
fee multiplier rate applicable to that disposal unit. Based on existing
data, the DNR projects this part of the fee will generate approximately $1.0
million for the first year.
DNR assumes the legislation also restructures the generator disposal fees by
basing it on the amount of waste generated and the disposal method used (i.e.
amount of waste generated multiplied by a rate based on disposal method
used). The legislation establishes three rates to be used. There will be a
minimum fee of $50 and a maximum fee of $75,000 per generator per site
annually. No company will be required to pay more than $150,000 in generator
disposal fees.
DNR assumes the proposed legislation reduces the reporting requirement for
all Small Quantity Generators (SQG) from quarterly to annually. The number
of reports managed by the department has grown significantly each year over
the past five years and this growth pattern is not expected to change.
Reducing the SQG reporting from quarterly to annually will provide the same
information, but will result in less of a paperwork burden for both the SQGs
and the department. This reduction in reporting will result in the
department being able to manage the volume of reports received without
requesting additional resources.
Oversight assumes revenue to the Hazardous Waste Remedial Fund will increase
by the maximum allowed, $1.25 million.
Based in information provided by the DNR, Oversight assumes three of the
universities in the University of Missouri system are TSD facilities. As
such, they will each be required to pay approximately $10,000 annually to the
DNR.
FISCAL IMPACT - State Government FY 1998 FY 1999 FY 2000
(10 Mo.)
GENERAL REVENUE FUND
Costs - University of Missouri System
Transfer, Storage and
Disposal facility fees ($30,000) ($30,000) ($30,000)
HAZARDOUS WASTE REMEDIAL FUND
Income - Increased Fee Revenue
Hazardous Waste Generator and
Transfer, Storage and
Disposal facility fees $1,250,000 $1,250,000 $1,250,000
FISCAL IMPACT - Local Government FY 1998 FY 1999 FY 2000
(10 Mo.)
$0 $0 $0
FISCAL IMPACT - Small Business
This proposal will increases hazardous waste generator fees which would have
a fiscal impact on small businesses who are required to pay the fees. Small
businesses that are small quantity generators of hazardous waste will have
reduced paperwork requirements.
DESCRIPTION
This act, with a January 1, 1998 effective date, amends law pertaining to the
generation and disposal of hazardous waste. Small quantity generators of
hazardous waste will not have to report more often than annually.
FEES ON HAZARDOUS WASTE FACILITIES - The act imposes fees on hazardous waste
disposal facilities. The amount of the fee is based on the method of
disposal. The fees shall be assessed on a calendar year basis based on units
authorized to operate on July 1 of the year, and fees shall be paid by
December 31 each year. If more than one unit is operated on a site, then
only the fee on the unit with the highest rate is assessed. Fees on
facilities shall be assessed as according to the following schedule:
Type of Disposal Fee for Commercial Unit Fee for Private Unit
Land Disposal $42,500 $36,125
Incinerator $37,200 $31,600
Energy Recovery $31,875 $27,100
Other $21,250 $10,625
FEES ON GENERATION AND DISPOSAL OF HAZARDOUS WASTE - The act eliminates the
fees on hazardous wastes based upon the method of storage and the waste's
characteristics. The act imposes fees on hazardous waste which is generated
or disposed of in Missouri, or both, but only one fee will be assessed on any
given amount of waste. The fee shall be based upon the method of disposal
according to the following schedule:
Method of Disposal Fee per Ton
Recycling $2.60
Energy Recovery (Fuel Blending) $5.20
Other $7.80
The base rate of the fees shall be adjusted by rule to bring in one and
three-fourths million dollars per year. The minimum annual fee shall be
fifty dollars, and the maximum annual fee shall be seventy-five thousand
dollars per generating site and one hundred and fifty thousand dollars per
company. The total annual fee under the act for facilities and generation
and disposal of hazardous waste shall not exceed two hundred thousand dollars
per company. Fees on generation or disposal of hazardous waste shall not
apply to:
1) wastes generated by hospitals,
2) waste discharged to a publicly-owned treatment works,
3) waste disposed of under an abandoned or uncontrolled hazardous
waste site remedial plan,
4) smelter slag waste, or
5) waste generated by the state or a political subdivision.
If the Hazardous Waste Remedial Fund balance exceeds twelve million dollars,
the base rate of the fees shall be reduced that the balance falls below
twelve million dollars during the next year.
This legislation is not federally mandated, would not duplicate any other
program and would not require additional capital improvements or rental
space. This proposal would increase Total State Revenues.
SOURCES OF INFORMATION
Department of Natural Resources
Office of State Treasurer
Department of Revenue
Department of Health
This Fiscal Note is not an official copy and should not be quoted or cited.