Revision: Dec. 21, 2021, 1:17 p.m.
SB 379-FN - AS INTRODUCED
2022 SESSION
22-3114
08/11
SENATE BILL 379-FN
AN ACT establishing the solid waste management fund and establishing a solid waste disposal surcharge.
SPONSORS: Sen. Watters, Dist 4; Sen. Perkins Kwoka, Dist 21; Sen. Whitley, Dist 15; Sen. Hennessey, Dist 1; Sen. D'Allesandro, Dist 20; Sen. Sherman, Dist 24; Sen. Kahn, Dist 10; Sen. Prentiss, Dist 5; Sen. Avard, Dist 12; Rep. Ebel, Merr. 5; Rep. Suzanne Smith, Graf. 8; Rep. Grassie, Straf. 11
COMMITTEE: Ways and Means
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
22-3114
08/11
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty Two
AN ACT establishing the solid waste 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 Management Fund. Amend RSA by inserting after chapter 149-Q the following new chapter:
CHAPTER 149-R
SOLID WASTE 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 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 and diversion activities.
149-R:2 Definitions. In this chapter:
I. “Commissioner” means the commissioner of the department of environmental services.
II. "Cover material" means soil or other functionally equivalent material that is placed over solid waste at a landfill. The term does not include materials used to construct a landfill capping system.
III. “Department” means the department of environmental services.
IV. “Disposal” means depositing in a landfill or processing in an incinerator or waste-to-energy facility.
V. "Fund” means the solid waste management fund established under RSA 149-R:3.
VI. “Solid waste” means solid waste as defined in RSA 149-M:4, XXII.
149-R:3 New Hampshire Solid Waste Management Fund Established.
I. There is hereby established the New Hampshire solid waste 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 surcharges collected under RSA 149-R:5 shall be deposited in a separate fund, designated the New Hampshire solid waste 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 to support the administration and implementation of the department's solid waste technical assistance, planning, and regulatory and permitting activities, including waste reduction and diversion technical assistance, reducing the expense to municipalities of hazardous waste materials disposal and recycling, long term solid waste management planning, education and outreach efforts, and administration of payments in accordance with paragraphs II and III.
II. The fund shall be used to provide annual payments to New Hampshire municipalities, for source reduction and recycling efforts to fully 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. Such rulemaking shall specifically address the unique circumstances for municipalities that own and operate a facility that is subject to RSA 149-R:5, or that are part of a solid waste district that owns and operates such a facility, to ensure that the costs incurred by those municipalities are offset consistent with this chapter.
III. The fund shall be used to provide matching grant funding to New Hampshire municipalities, private entities, and businesses for projects that will provide a demonstrated, significant improvement in waste diversion methods and contribute to a reduction of wastes, including hazardous waste materials, requiring disposal, including a regional or municipal materials recovery facility operated by a public or private entity, and other regional recycling efforts. Not less than 50 percent of grant funds shall be made available to private entities and businesses for such projects in New Hampshire.
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, 2023, solid waste disposed of at a New Hampshire landfill, incinerator, or waste-to-energy facility shall be subject to a surcharge of $1.50 per ton. Notwithstanding RSA 149-M:4, XXII, materials used as cover material shall not be subject to the surcharge.
II. Such surcharge shall be paid quarterly to the department by each holder of a permit issued pursuant to RSA 149-M for a New Hampshire landfill, incinerator, or waste-to-energy facility for the solid waste disposed at such facility on forms and with supporting documentation as provided for in rulemaking conducted pursuant to RSA 149-R:6, I.
III. The first payment of the surcharge shall be due to the department no later than October 31, 2023 and within 30 days of each quarter's end thereafter.
IV. The department shall deposit surcharges collected under this section into the fund.
V. 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 New Hampshire 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.
149-R:7 Penalty. 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 this chapter.
149-R:8 Biennial Report. The department shall submit a biennial report commencing on October 1, 2023 to the governor and council, the speaker of the house of representatives, and the 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 RSA 149-M:6, XI is repealed and reenacted to read as follows:
XI. Administer and enforce the provisions of RSA 149-R.
3 New Subparagraph; New Hampshire Solid Waste Management Fund. Amend RSA 6:12, I(b) by inserting after subparagraph (382) the following new subparagraph:
(383) Moneys deposited in the New Hampshire solid waste 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, 2022.
22-3114
12/17/21
SB 379-FN- FISCAL NOTE
AS INTRODUCED
AN ACT establishing the solid waste management fund and establishing a solid waste disposal surcharge.
FISCAL IMPACT: [ X ] State [ ] County [ X ] Local [ ] None
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| Estimated Increase / (Decrease) | ||||
STATE: | FY 2022 | FY 2023 | FY 2024 | FY 2025 | |
Appropriation | $0 | $0 | $0 | $0 | |
Revenue | $0 | $0 | $2,205,000 | $2,940,000 | |
Expenditures | $0 | $0 | $1,697,500 | $2,549,000 | |
Funding Source: | [ X ] General [ ] Education [ ] Highway [ X ] Other - Solid Waste Management Fund | ||||
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LOCAL: |
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Revenue | $0 | $0 | Indeterminable (Should Exceed $352,500) | Indeterminable (Should Exceed $705,000) | |
Expenditures | $0 | $0 | $705,000 | $705,000 | |
METHODOLOGY:
This bill establishes a state solid waste management fund, which would be used to support a variety of solid waste related functions of the Department of Environmental Services, as well as to provide annual payments to municipalities for source reduction and recycling efforts and to provide matching funds to municipalities and private entities for certain improvements in waste diversion methods. Fund revenue would be generated through a $1.50/ton surcharge on solid waste disposals, effective July 1, 2023. The Department has provided the following information and assumptions relative to this bill:
The following revenue and expenditure estimates incorporate the assumptions stated above:
Solid Waste Management Fund Program Revenue and Expenditures -
(Not Including Department of Environmental Services Personnel Related Costs)
Revenue to the Solid Waste Management Fund | FY 2024* | FY 2025 and |
Estimated Disposal Tonnage (Rounded) | 1,470,000 | 1,960,000 |
Surcharge Revenue ($1.50/Ton) | $2,205,000 | $2,940,000 |
* Assumes only nine months of surcharge collected in the first year as first payments to the state are not due until October 31, 2023, with future payments due every quarter.
The Department estimates the fund’s program payments to municipalities will be $352,500 in FY 2024 and $705,000 in each fiscal year thereafter. This is discussed further as part of local revenue below. Also, the Department estimates the matching grant program to total approximately $1,000,000 in FY 2024 and $1,300,000 in FY 2025 and each year thereafter in fund expenditures (based on the assumption that approximately 45% of fund revenue is used for this purpose). These matching grants will be distributed to municipalities and private entities, with not less than 50% going to private entities.
Department of Environmental Services Personnel Related Costs
The Department anticipates utilizing two (2) existing general funded positions to address program ramp up duties, with three (3) additional positions filled by December 1, 2023. It is assumed, effective by December 1, 2023, all five (5) positions, which are detailed above, would be supported by the solid waste management fund:
Personnel Cost* | FY 2024 | FY 2025 |
Solid Waste Management Fund | $345,000 | $544,000 |
General Fund | ($151,000) | ($240,000) |
Net Total New Expenditure | $194,000 | $304,000 |
* Includes other position related costs in addition to salary and benefits (e.g., equipment, information technology, etc…)
Local Revenue and Expenditures
Of the 1,960,000 total tons disposed in 2020, 1,045,000 tons were generated from in-state sources and roughly 45% of this tonnage, or approximately 470,000 tons, is assumed to be from municipal sources. This tonnage represents the quantity of waste for which municipalities would be eligible for payment, totaling $705,000 in annual payments to local governments (470,000 tons x $1.50/ton). Since municipalities are expected to report on a calendar year basis, and because the surcharge would become effective half-way through calendar year 2023 (July 1, 2023), municipal payments disbursed in FY 2024 would total approximately $352,500 (50% of $705,000), with payments estimated at $705,000 in FY 2025 and each year thereafter. Municipalities may also receive revenue via matching grants under the bill, however, said grants are indeterminable at this time as private entities are also eligible (at least 50% of matching grants shall be made available to private entities under this bill).
Municipalities are estimated to incur additional costs of $705,000 per year associated with the surcharge. Municipalities are financially responsible for disposal of approximately 470,000 tons of solid waste annually, which equates to roughly $705,000 in surcharges (470,000 tons X $1.50/ton). A municipality’s expenditures related to the disposal surcharge would be offset by revenue received from municipal payments authorized under this bill outlined above.
AGENCIES CONTACTED:
Department of Environmental Services