SB629 (2020) Detail

Establishing the solid waste reduction management fund and establishing a solid waste disposal surcharge.


SB 629-FN - AS INTRODUCED

 

 

2020 SESSION

20-3059

08/06

 

SENATE BILL 629-FN

 

AN ACT establishing the solid waste reduction management fund and establishing a solid waste disposal surcharge.

 

SPONSORS: Sen. Watters, Dist 4; Sen. Birdsell, Dist 19; Sen. Fuller Clark, Dist 21; Sen. Kahn, Dist 10; Rep. Ebel, Merr. 5; Rep. O'Connor, Rock. 6; Rep. M. Murray, Hills. 22; Rep. Wolf, Merr. 5

 

COMMITTEE: Energy and Natural Resources

 

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ANALYSIS

 

This bill:

 

I.  Establishes the solid waste reduction management fund.

 

II.  Establishes a solid waste disposal surcharge.

 

III.  Repeals the existing surcharge on out-of-state waste.

 

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

20-3059

08/06

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Twenty

 

AN ACT establishing the solid waste reduction management fund and establishing a solid waste disposal surcharge.

 

Be it Enacted by the Senate and House of Representatives in General Court convened:

 

1  New Chapter; Solid Waste Reduction Management Fund.  Amend RSA by inserting after chapter 149-Q the following new chapter:

CHAPTER 149-R

SOLID WASTE REDUCTION MANAGEMENT FUND

149-R:1  Findings and Purpose.  The general court finds that the proper and integrated management of solid waste under RSA 149-M, including the enhancement of waste reduction and waste diversion methods, has become a matter of great concern.  The general court hereby declares that the purpose of RSA 149-R is to provide support for the solid waste reduction technical assistance, planning, and regulatory and permitting activities of the department of environmental services; and to assist communities, businesses, and the general public with their efforts to improve solid waste reduction management activities.

149-R:2  Definitions.  In this chapter:

I.  “Commissioner” means the commissioner of the department of environmental services.

II.  “Department” means the department of environmental services.

III.  “Disposal” means depositing in a landfill or processing in an incinerator or waste-to-energy facility.

IV.  "Fund” means the solid waste reduction management fund established under RSA 149-R:3.

V.  “Solid waste” means solid waste as defined in RSA 149-M:4, XXII.

149-R:3  New Hampshire Solid Waste Reduction Management Fund Established.

I.  There is hereby established the New Hampshire solid waste reduction management fund to be used for the purposes of this chapter.

II.  This non-lapsing, revolving special fund is hereby continuously appropriated to be expended by the department in accordance with this chapter.  All moneys not currently needed to meet the obligations of the department shall be deposited  in a separate fund, designated the New Hampshire solid waste reduction management fund.  The state treasurer shall invest the moneys deposited in accordance with RSA 6:8.  Any earnings on fund moneys shall be added to the fund.

149-R:4  Purpose and Use of the Fund.

I.  The fund shall be used for technical assistance and regulatory activities of the department’s solid waste reduction management program, including costs for administration, planning, education and outreach, compliance monitoring, enforcement, and permitting activities directly associated with approved activities in this chapter.

II.  The fund shall be used to provide annual payments to municipalities to offset costs associated with the solid waste disposal surcharge established under RSA 149-R:5, at the rate of $1.50 per ton of solid waste for which the municipality was financially responsible for disposal at a New Hampshire landfill, incinerator, or waste-to-energy facility, in accordance with procedures established by rulemaking under the authority of RSA 149-R:6, I.

III.  The fund shall be used to provide matching grant funding to municipalities or private entities for projects, including a regional or municipal materials recycling facility operated by a public or private entity, and other regional recycling efforts, that will provide a demonstrated, significant improvement in waste diversion methods and contribute to reduction of wastes requiring disposal.

IV.  The fund may be used to hire consultants, contractors, or to pay other necessary expenses directly associated with approved activities in this chapter.

149-R:5  Solid Waste Disposal Surcharge.

I.  Beginning July 1, 2021, each holder of a permit issued pursuant to RSA 149-M for a landfill, incinerator, or waste-to-energy facility in New Hampshire shall pay to the department a quarterly surcharge of $1.50 per ton of solid waste disposed of at such facility.

II.  Such payment shall be made quarterly by each facility permit holder, on forms and with supporting documentation as provided for in rulemaking conducted pursuant to RSA 149-R:6, I.

III.  The department shall deposit surcharges collected under this section into the fund.

IV.  Failure to pay surcharges within 60 days of the date due shall result in the assessment of interest at a rate established by the commissioner.  The commissioner may waive all or any portion of interest for good cause.  The department shall deposit interest collected under this section into the fund.

149-R:6  Rulemaking.  The commissioner shall adopt rules, after public hearing and pursuant to RSA 541-A, relative to:

I.  The time, amount, and manner of payment of solid waste disposal surcharges.

II.  Required records to be kept by facility permit holders of the type and quantity of solid waste disposed.

III.  Certified reports required to be submitted with surcharge payments by facility permit holders.

IV.  The time, amount, and manner of payments to municipalities pursuant to RSA 149-R:4, II.

V.  Certified reports required to be submitted by municipalities requesting payments pursuant to RSA 149-R:4, II.

VI.  Administering matching grants pursuant to RSA 149-R:4, III.

VII.  Uses of the fund and changes to uses of the fund.

149-R:7  Penalty; Fine.  Any facility permit holder shall be guilty of a misdemeanor who:

I.  Does not pay the surcharge required in RSA 149-R:5; or

II.  Knowingly gives or causes to be given any false information in reports, records, or documents required by the department under RSA 149-R.

149-R:8  Annual Report.  The department shall submit a biennial report commencing on October 1, 2021 to the governor and council, speaker of the house of representatives, and president of the senate, relative to the activities and finances of the solid waste management fund.

2  Administration and Enforcement of Solid Waste Reduction Management Fund.  Amend RSA 149-M:6, XI to read as follows:

XI.  [Assess a surcharge on the disposal of out-of-state solid waste in the amount of $1 per ton, which shall be assessed against the person transporting the out-of-state solid waste to the facility and not assessed against the facility.  The surcharge shall be assessed and collected only with respect to the first point of disposal, processing, or treatment within this state.  The proceeds shall be used by the department to reduce and offset general fund expenditures for solid waste management.]  Administer and enforce the provisions of RSA 149-R.

3  New Subparagraph; New Hampshire Solid Waste Reduction Management Fund.  Amend RSA 6:12, I(b) by inserting after subparagraph (358) the following new subparagraph:

(359)  Moneys deposited in the New Hampshire solid waste reduction management fund established in RSA 149-R:3.

4  Repeal.  RSA 149-M:7, VII, relative to rulemaking relative to the out-of-state waste disposal surcharge, is repealed.

5  Effective Date.  This act shall take effect July 1, 2020.

 

LBAO

20-3059

12/23/19

 

SB 629-FN- FISCAL NOTE

AS INTRODUCED

 

AN ACT establishing the solid waste reduction management fund and establishing a solid waste disposal surcharge.

 

FISCAL IMPACT:      [ X ] State              [ X ] County               [ X ] Local              [    ] None

 

 

 

Estimated Increase / (Decrease)

STATE:

FY 2020

FY 2021

FY 2022

FY 2023

   Appropriation

$0

$0

$0

$0

   Revenue

$0

$0

$2,200,000

$2,900,000

   Expenditures

$0

$0

$1,700,000

$2,600,000

Funding Source:

  [    ] General            [    ] Education            [    ] Highway           [ X ] Other - Solid waste reduction management fund

 

 

 

 

 

COUNTY:

 

 

 

 

   Revenue

$0

$0

$0

$0

   Expenditures

$0

$0

Indeterminable Increase

Indeterminable Increase

 

 

 

 

 

LOCAL:

 

 

 

 

   Revenue

$0

$0

$375,000

$750,000

   Expenditures

$0

$0

$750,000

$750,000

 

METHODOLOGY:

This bill establishes the solid waste reduction management fund, establishes a solid waste disposal surcharge and eliminates the existing surcharge on out-of-state waste.

 

The Department of Environmental Services provided the following facts and assumptions regarding the fiscal impact of this bill.

  • In 2018, 1.978 million tons of solid waste was disposed in New Hampshire.
  • The $1.50 surcharge per ton of solid waste established by the bill will be assessed on permitted landfills, incinerators and waste-to energy facilities (waste disposal facilities).
  • The surcharge will be implemented on July 1, 2021.  Payments will be made in arrears following each fiscal quarter, with the first payment due in October 2021.  Revenue in FY 2022 will consist of 3 quarterly payments (October, January and April).  
  • While permitted waste disposal facilities will be responsible for paying the surcharge to the State, it is assumed the surcharge will be passed through to each facility’s customers.
  • In the case of landfill, materials used as alternate daily cover would not be subject to the surcharge.
  • Surcharge payments will be deposited into the dedicated Solid Waste Management Fund created by the bill.
  • Each municipality will be eligible to receive annual payments from the fund equal to the amount of surcharge paid on the solid waste generated by the municipality’s activities, and on waste collected from residents and businesses, but paid for by the municipality.
  • To receive the annual payments, municipalities will submit annual reports verifying their eligibility.  The Department assumes the reports will be due by March 31 for the prior calendar year in alignment with the current reporting schedule required for permitted solid waste facilities.  The first report would be due on March 31, 2022 for waste disposed between July 1, 2021 and December 31, 2021.  Reports in subsequent years will be for a full calendar year.  The annual payments to municipalities will be made before the end of each fiscal year on June 30th.  
  • Facilities owned by a municipality will be required to pay the surcharge on all waste disposed, but the municipality will be eligible to receive payment for the portion for which the municipality was directly responsible for collection and disposal.
  • Roughly 35-45% of the in-state waste disposed at NH disposal facilities originates from municipal sources.  For this analysis, the Department assumes the higher end of this range.  In 2018, 1,089,330 tons of solid waste originated from in-state.  45% of this amount, or roughly 500,000 tons is assumed to have been disposed by NH municipalities in 2018.
  • The fund will be used to provide for solid waste planning, technical assistance, education, and outreach; payments to municipalities; and administration of the grant program to distribute matching funds for projects and infrastructure that support waste reduction and diversion.
  • While the bill does not establish new positions, the Department assumes a portion of the revenue generated by the bill would be used to create and fund five new positions, starting in December 2021, necessary to carry out the provisions of the bill.  These positions include the following:
    • Program Specialist III, LG 23, to administer the solid waste management fund, municipal payments and grant applications.
    • Program Assistant I, LG19, to administer grant applications and other related duties.
    • Environmentalist III, LG24, to provide technical assistance and education.
    • Principal Planner, LG24, to perform solid waste management planning, data management and technical assistance.
    • Administrator II, LG 31, for program management, supervision, solid waste management planning and technical assistance.
  • Approximately 40-50% of the annual revenue deposited in the fund, estimated to be $1.3 million annually, will be used for matching grants as outlined in proposed RSA 149-R:4, III.

 

Based on the assumptions and information provided the Department estimated the fiscal impact as follows:

SOLID WASTE REDUCTION MANAGEMENT FUND

 

 

REVENUE

FY 2022*

FY 2023

Quarterly Surcharge ($1.50 per ton X 1,978 million tons)

$2,200,000

$2,900,000

Payments to Municipalities (Approximately 500 tons X $1.50)

($375,000)

($750,000)

Subtotal (Net Revenue):

$1,825,000

$2,150,000

County Grants/County Revenue (None expected)

$0

$0

Municipal Matching Grants (Indeterminable)

IND

IND

 

 

 

EXPENDITURES

 

 

Salary, benefits and associated costs for five new positions listed above.

$324,000

$528,000

Grant Program (Assuming 40-50% of Annual Revenue)

$1,000,000

$1,300,000

* Revenue in FY 2022 will consist of 3 quarterly payments.  Municipal revenue would be for two quarters in FY 2022 as reports will be due by March 31.  Expenditures for staff in FY 2022 are for half a year since the positions would be filled in December of 2021.  

 

The Department indicates municipalities operating waste facilities may incur minimal administrative costs to complete the annual reporting forms.  Such costs are expected to be minor because of the information would already be recorded for accounting purposes.  In addition, counties may incur costs for the surcharge payment on waste generated by county facilities.  There would be no impact or county revenue.

 

AGENCIES CONTACTED:

Department of Environmental Services

 

Links

SB629 at GenCourtMobile
SB629 Discussion

Action Dates

Date Body Type
Feb. 4, 2020 Senate Hearing
March 12, 2020 Senate Floor Vote
March 11, 2020 Senate Floor Vote
March 11, 2020 Senate Floor Vote
March 12, 2020 Senate Floor Vote
March 19, 2020 Senate Floor Vote

Bill Text Revisions

SB629 Revision: 7954 Date: Jan. 14, 2020, 12:40 p.m.

Docket

Date Status
Jan. 8, 2020 Introduced 01/08/2020 and Referred to Energy and Natural Resources; SJ 2
Feb. 4, 2020 Hearing: 02/04/2020, Room 103, SH, 09:45 am; SC 5
March 11, 2020 Committee Report: Ought to Pass with Amendment # 2020-1055s, 03/11/2020; SC 10
March 12, 2020 Committee Report: Ought to Pass with Amendment # 2020-1055s, 03/12/2020; SC 10
March 12, 2020 Special Order to 03/12/2020, Without Objection, MA; 03/11/2020 SJ 6
March 19, 2020 Special Order to 03/19/2020, Without Objection, MA; 03/12/2020 SJ 7
March 19, 2020 Committee Report: Ought to Pass with Amendment # 2020-1055s SC 11
June 16, 2020 Placed on Laid on Table Consent List and Laid on Table, MA, VV; 06/16/2020; SJ 8
June 16, 2020 Pending Motion Committee Amendment # 2020-1055s; 06/16/2020; SJ 8