This Fiscal Note is not an official copy and should not be quoted or cited.
Fiscal Note - SB 0736 - Limits fees on hazardous waste land disposal to waste disposed of in Missouri
SB 736 - Fiscal Note

COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. NO. 3291-01

BILL NO. SB 736

SUBJECT: Hazardous Waste Generator and Disposal Fees

TYPE: Original

DATE: February 9, 1998


FISCAL SUMMARY

ESTIMATED NET EFFECT ON STATE FUNDS

FUND AFFECTED FY 1999 FY 2000 FY 2001
Hazardous Waste

Remedial Fund

$0 ($129,000)

to

($414,000)

($129,000)

to

($414,000)

Total Estimated

Net Effect on All

State Funds

$0 ($129,000)

to

($414,000)

($129,000)

to

($414,000)



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 3 pages.

FISCAL ANALYSIS

ASSUMPTION

The Department of Natural Resources (DNR) assumes currently the statutes state that every hazardous waste generator shall pay, in addition to the fees imposed in section 260.380, a fee of twenty-five dollars per ton annually on all hazardous waste which is discharged, deposited, dumped or placed into or on the soil as a final action, and two dollars per ton on all other hazardous waste transported off site. The statutes go on to provide exemptions for the other methods of disposing of hazardous waste. As a result, the department currently does not charge anyone the $2 per ton fee.

This legislation states that anyone that disposes of their hazardous waste into or on Missouri's soil would be required to pay the $25 land disposal fee. Currently there are no landfills in Missouri that accept hazardous waste. Therefore, the department would not be able to collect the $25 per ton fee from businesses that land dispose their hazardous waste in other states.

The generators that would be exempt from the $25 land disposal fee would be subject to the $2 per ton of the hazardous waste transported off-site fee since they would be then included in the category "all other hazardous waste transported off site". Historically the revenues from the $25 per ton fee range from approximately $140,000 to $450,000. Accordingly, the department estimates the revenues from the $2 per ton fee would range from approximately $11,000 ($140,000 / $25 per ton fee x $2 per ton fee) to $36,000 ($450,000 / $25 per ton fee x $2 per ton fee).

The land disposal fee is deposited into the Hazardous Waste Remedial Fund(HWRF). The HWRF is used for operational expenses by the department, the Office of Administration, the Attorney General's Office and the Department of Health. In addition to operation expenses, the fund is used as match for the federal dollars, for remediation of state sites. The state has a large match obligation for existing projects. The decrease in the fee collected may lengthen the cleanup time on existing projects or delay the startup of new cleanup projects.

The department combines the billing of the generator fee and the land disposal fee into one billing that is sent to the hazardous waste generator. We use the same information to determine the amount owed for both fees. Since this process is combined, the elimination of one fee would not significantly impact the resources used in the billing and accounting process.





FISCAL IMPACT - State Government FY 1999 FY 2000 FY 2001
(10 Mo.)
HAZARDOUS WASTE REMEDIAL FUND
Loss - Reduced Hazardous Waste ($129,000) ($129,000)
Generator fees to to
$0 ($414,000) ($414,000)
FISCAL IMPACT - Local Government FY 1999 FY 2000 FY 2001
(10 Mo.)
$0 $0 $0
FISCAL IMPACT - Small Business

This proposal could save small business $23 per ton of hazardous waste that is transported to other states for land disposal.



DESCRIPTION

Current law establishes a $25 dollar per ton fee on all hazardous waste which is generated in this state and finally disposed of in or on the soil. This act limits that fee to hazardous waste generated in this state and which is finally disposed of in or on the soil in Missouri.

This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space.



SOURCES OF INFORMATION

Department of Natural Resources



Jeanne Jarrett, CPA

Director

February 9, 1998