This Fiscal Note is not an official copy and should not be quoted or cited.
This Fiscal Note is not an official copy and should not be quoted or cited.
Fiscal Note - SB 0542 - Changes calculation of fees on hazardous waste generation and disposal units
COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. NO. 2085-01
BILL NO. SB 542
SUBJECT: Hazardous Waste Fees
TYPE: Original
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS Remedial Fund Net Effect on All State Funds
FUND AFFECTED
FY 1999
FY 2000
FY 2001 General Revenue
($30,000)
($30,000)
($30,000) Hazardous Waste
$930,000
$930,000
$930,000 Total Estimated
$900,000
$900,000
$900,000
|
ESTIMATED NET EFFECT ON FEDERAL FUNDS | |||
| FUND AFFECTED | FY 1999 | FY 2000 | FY 2001 |
| None | $0 | $0 | $0 |
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
|
ESTIMATED NET EFFECT ON LOCAL FUNDS | |||
| FUND AFFECTED | FY 1999 | FY 2000 | FY 2001 |
| Local Government | $0 | $0 | $0 |
Numbers within parentheses: ( ) indicate costs or losses
This fiscal note contains 5 pages.
FISCAL ANALYSIS
ASSUMPTION
The Department of Health and the Department of Transportation assume this proposal would have no fiscal impact on their agency.
The University of Missouri assumes they may have to pay fees totaling $42,500 per year unless the political subdivisions are exempt from these fees.
Based on information provided by the DNR, Oversight assumes three of the universities in the University of Missouri system are Temporary Storage or Disposal (TSD) facilities. As such, each of the TSD facilities would be required to pay approximately $10,000 annually to the DNR.
The Department of Natural Resource (DNR) assumes the proposed legislation will increase the existing revenue target of $1.5 million annually to $2.43 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 $680,000 for the first year.
The DNR assumes the current trend is for businesses to discontinue treating, storing, or disposing of hazardous waste. Therefore, the DNR assumes the revenue from the facility fees will continue to decrease.
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 no person will be required to pay mare than $200,000 in generator and disposal and TSD facility fees annually.
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.
ASSUMPTION (continued)
Oversight assumes annual revenue to the Hazardous Waste Remedial Fund will increase by $930,000.
| FISCAL IMPACT - State Government | FY 1999 | FY 2000 | FY 2001 |
| (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 | $930,000 | $930,000 | $930,000 |
| FISCAL IMPACT - Local Government | FY 1999 | FY 2000 | FY 2001 |
| (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, 1999 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.
DESCRIPTION (continued)
FEES ON HAZARDOUS WASTE FACILITIES - The act imposes fees on hazardous waste disposal facilities 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 paid by December 31 each year. If more than one unit is operated on a site, only the fee on the unit with the highest rate is assessed. Fees on facilities shall be assessed according to the following schedule:
Type of Disposal Fee for Commercial Unit Fee for Private Unit
Land Disposal $42,600 $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.
DESCRIPTION (continued)
If the Hazardous Waste Remedial Fund balance exceeds twelve million dollars, the base rate of the fees shall be reduced so 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
Department of Health
Department of Transportation
University of Missouri
Jeanne Jarrett, CPA
Director
January 29, 1998