COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. No.:         4082-02

Bill No.:          HB 1597

Subject:           Environmental Protection; Highway Patrol; Natural Resources Dept.; Roads and Highways.

Type:              Original

Date:               March 31, 2007

Bill Summary:            Assesses fee on shippers that transport radioactive waste within Missouri

FISCAL SUMMARY

Numbers within parentheses: ( ) indicate costs or losses.

This fiscal note contains 8 pages.

☐ Estimated Total Net Effect on All funds expected to exceed $100,000 savings or (cost).

☐ Estimated Net Effect on General Revenue Fund expected to exceed $100,000 (cost).

FISCAL ANALYSIS

ASSUMPTION

Officials from the Department of Health and Senior Services (DHSS) assume under this proposal, DHSS would be responsible for inspection of radioactive material and waste shipments that are the subject of this proposal. DHSS will also be involved in the training of public health officials, state and local emergency responders, and others concerned with the transport of radioactive wastes. Finally, Section 192.510, RSMo., requires DHSS to be responsible for responding to all emergencies involving radioactive material. Under this proposal, DHSS would respond to such incidents.

Officials from the Department of Natural Resources (DNR) assume since Missouri does not currently require notification or collect a fee on any low-level radioactive waste shipments, the total number currently transported through the state is unknown. To attempt to predict how many of each type of shipment is reasonable to expect in the upcoming year DNR staff gathered

shipment data from Illinois and Iowa, as well as the federal Department of Energy (DOE). Because Illinois does not collect a fee on low-level waste, no data was available on shipments that might enter Missouri from Illinois. Iowa does track low-level shipments due to their fee on this type of waste, but not all shipments go through Missouri prior to entering Iowa. Information from the DOE indicates that shipments vary based on several factors. Currently, DOE is cleaning up several former nuclear weapons manufacturing facilities. The ultimate disposal site of this waste depends on the outcome of DOE's bidding procedure. Once a disposal facility is selected, DOE selects a shipping company, and the shipping company selects the shipment route. DOE does provide information on an annual basis, with an estimate of what type and number of shipments may come through the various states.

The proposal would establish a fee of $125 for each truck or train transporting or shipping low-level radioactive waste through or within the state.

Using these sources of information, DNR estimates between 430 and 1,400 shipments can be anticipated in any given twelve-month period. The level of anticipated revenue as well as the level of effort needed to implement this proposal would be dependent on the number of shipments that came through Missouri. For purposes of this fiscal note, the department has

shown the income from fees and the associated costs as a range to more accurately reflect potential fiscal impact to the state.

ASSUMPTION (continued)

Option 1 - Income Low End of Range:

High-level: 2 shipments + 3 MURR no fee shipments                      $ 6,100

24 HRCQ shipments 285 miles each                                                  $ 94,200

400 low-level shipments annually                                                      $ 50,000

Estimated Annual Fee Income                                                           $150,300

Option 1 - Expenses:

Escorts: 2 high-level shipments (MURR direct pay)                         $ 2,960

Radiological inspections: 5 high-level shipments                             $ 1,400

Radiological inspections: 40 low-level shipments                            $ 11,200

DNR Fund Administration                                                                 $ 16,984

Environmental Monitoring                                                                 $ 13,500

Training & Notification of Local Responders                                    $ 30,962

Equipment & Supplies for State & Local Responders                       $ 73,294

Total Option 1 Expenses                                                                    $150,300:

Option 2 - Income High End Range

Hihg-level shipments: 2 + 4 MURR no fee shipments                       $ 6,100

45 HRCQ shipments 285 miles each                                                  $176,625

350 non-DOE Lo-level shipments                                                      $ 43,750

1000 DOE low-level shipments                                                         $125,000

Estimated Annual Fee Income                                                           $351,475

Option 2 - Expenses

Escorts: 2 high-level shipments (MURR direct pay)                         $ 2,960

Escorts: 45 HRCQ shipments                                                            $ 66,600

Radiological inspections: 6 high-level shipments                             $ 1,680

Radiological inspections: 45 HRCQ shipments                                $ 12,600

Radiological inspections: 135 low-level shipments                          $ 37,800

DNR Fund Administration                                                                 $ 39,800

Environmental Monitoring                                                                 $ 13,500

Training & Notification of Local Responders                                    $ 72,404

Equipment & Supplies for State & Local Responders                       $104,214

Total Option 1 Expenses                                                                    $351,475

ASSUMPTION (continued)

Monies would be used by DPS, DOH and MDNR for purposes including, but not limited to, inspections, escorts, and security for waste shipment and planning; coordination of emergency response capability; education and training of state, county and local emergency responders;

purchase and maintenance of necessary equipment; emergency responses to any transportation incident involving high-level radioactive waste, transuranic radioactive waste, highway route controlled quantity shipments, spent nuclear fuel or low-level radioactive waste; oversight of an environmental remediation necessary resulting from an incident; and administrative costs attributable to the state agencies which are incurred through their involvement.

To meet the staffing needs from this proposal the department would use existing FTE. The department would restructure the duties to the FTE to implement the requirements of this legislation. For purposes of this fiscal note, the costs for the FTE is charged to the Environmental Radiation Monitoring Fund which is a shift from the Hazardous Waste Fund and Federal funds. Therefore, a corresponding savings is shown to the Hazardous Waste and Federal Funds.

County and local emergency responders would receive training, equipment and supplies as funds are available from this proposal.

Officials from the Missouri Highway Patrol and Department of Transportation did not respond to our request for a fiscal impact from this proposal.

FISCAL IMPACT - Small Business

Potentially, if some radioactive waste haulers would be considered small businesses.

FISCAL DESCRIPTION

The proposed legislation assesses fees on shippers that transport radioactive waste within 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

Department of Health

Department of Revenue

Missouri Highway Patrol

NOT RESPONDING

Department of Transportation

                                                                                                Mickey Wilson, CPA

                                                                                                Director

                                                                                                March 31, 2007