SB 0334 - Fiscal Note

Fiscal Note - SB 0334 - Regulates contaminated property and groundwater clean-up

COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. NO.: 1453-04

BILL NO.: HCS for SCS for SB 334

SUBJECT: Brown fields - Residential Property

TYPE: Original

DATE: April 12, 1999

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FISCAL SUMMARY

ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED	FY 2000	FY 2001	FY 2002
Hazardous Waste	$0	$0	$0
Total Estimated Net Effect on All State Funds	$0	$0	$0

ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED	FY 2000	FY 2001	FY 2002
None	$0	$0	$0
Total Estimated Net Effect on All Federal Funds	$0	$0	$0

ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED	FY 2000	FY 2001	FY 2002
Local Government	$0	$0	$0

Numbers within parentheses: ( ) indicate costs or losses

This fiscal note contains 4 pages.

FISCAL ANALYSIS

ASSUMPTION

The Department of Natural Resources (DNR) assumes this act would apply the voluntary remediation or "brown field" statutes to residential real property and sites contaminated with petroleum or petroleum products, except where such petroleum and petroleum products were released to the environment from tanks subject to regulation by the DNR or located on property which is eligible for money from the petroleum storage tank insurance fund pursuant to section 319.131, RSMo.

The DNR assumes, due to the large number of residential properties in the state, especially considering large apartment complexes which would most likely participate, the number of sites that would be eligible to enter the Voluntary Cleanup Program (VCP) under the proposed legislation could be substantial. The number of sites that may choose to enter this program is unknown. In addition, as the public is aware that residential sites are eligible even more VCP projects could result from the proposed legislation.

Currently one VCP project manager can oversee approximately 25 projects per year. For purposes of the fiscal note the department would request two Environmental Specialist, realizing these Environmental Specialists could manage only approximately 50 projects per year. If the workload exceeds expectations, the DNR would request additional resources.

The DNR assumes the Environmental Specialists would perform technical evaluations of data. They would review work plans, sampling plans, remedial action plans and risk assessments. They would also make on-site observations and oversight of site investigations and remediations. They would deliver public presentations regarding VCP and assist in development of work plans with support agencies.

The cost associated with this proposal would be reimbursed from cost recovery fees.

Oversight has adjusted DNR's costs to bring them in line with the Office of Administration's guidelines.

The DNR assumes this bill requires the Clean Water Commission to establish procedures for determining if remediation of groundwater is necessary on a site--specific basis. If remediation is necessary and the contaminated groundwater is not impacting a current or potential public or private drinking water supply or a natural spring located in a national or state park or a conservation area or any other factors the commission deems relevant, the DNR will determine a site-specific remediation standard appropriate for the potential risk to human health and the environment, including consideration of natural attenuation.

ASSUMPTION (continued)

The DNR assumes the proposed legislation would establish a process for making remediation decisions at sites with contaminated groundwater when current or potential public or private drinking water sources and/or several additional criteria are not involved. It further allows the development of remediation goals based on standards less stringent than those enforced at sites where groundwater is used or may be used for public or private water supplies. Finally, the DNR must consider natural attenuation.

The DNR assumes the provisions are consistent with the way that some cleanup decisions are currently made in the department. All cleanup decisions are made considering human health and the environment is the primary consideration. Natural attenuation, as well as all viable remediation alternatives, is considered in cleanup decisions.

This proposal allows the DNR to consider other important factors that need to be given weight in the assessment process, such as overall degradation of the state's water resources, the effect on livestock and other agricultural uses, the impact on flora and fauna, and future usage considerations.

Since the provisions are consistent with the way that some cleanup decisions are currently made in the department, the department is assuming that the proposed legislation would not lead to an increase in the number of sites where remediation of groundwater must be negotiated on a site-specific basis. If it does, additional staff resources would be needed.

FISCAL IMPACT - State Government	FY 2000	FY 2001	FY 2002
	(10 Mo.)
HAZARDOUS WASTE FUND
Income - DNR
Cost Recovery fees	$0	$116,817	$110,588
Cost - DNR
Personal Service - (2 FTE)	$0	($74,309)	($76,167)
Fringe Benefits	$0	(22,211)	(22,766)
Expense and Equipment	$0	(20,297)	(11,655)
	$0	($116,817)	($110,588)
Estimated Net Effect on
HAZARDOUS WASTE FUND	$0	$0	$0
FISCAL IMPACT - Local Government	FY 2000	FY 2001	FY 2002
	(10 Mo.)
	0	0	0
FISCAL IMPACT - Small Business
If a small business owns a contaminated residential site that would be eligible for the voluntary clean-up program under these new criteria, they would be able to receive a letter at the conclusion of the clean-up certifying that specific standards have been achieved.

DESCRIPTION

This act would apply the voluntary remediation or "brown field" statutes to residential real property. They would also apply to sites contaminated with petroleum or petroleum products, except where such petroleum and petroleum products were released to the environment from tanks subject to regulation by the DNR. The "brown field" cleanup provisions, Sections 260.565 to 260.575, RSMO, currently apply only to non-residential real property.

The substitute also requires the Clean Water Commission to establish procedures for site-specific remediation of groundwater contamination.

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

April 12, 1999