State of Alaska
Fiscal Note
Bill Version: SB 158
2020 Legislative Session
Fiscal Note Number: 2
(S) Publish Date: 1/22/2020
Identifier: 2019104111-DEC-DAS-01-06-20 Department: Department of Environmental Conservation
Title: RESOURCE AGENCY FEES: INDIRECT COSTS Appropriation: Administration
Sponsor: RLS BY REQUEST OF THE GOVERNOR Allocation: Administrative Services
Requester: Governor OMB Component Number: 635
Expenditures/Revenues
Note: Amounts do not include inflation unless otherwise noted below. (Thousands of Dollars)
Included in
FY2021 Governor's
Appropriation FY2021 Out-Year Cost Estimates
Requested Request
OPERATING EXPENDITURES FY 2021 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026
Personal Services
Travel
Services
Commodities
Capital Outlay
Grants & Benefits
Miscellaneous
Total Operating 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Fund Source (Operating Only)
None
Total 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Positions
Full-time
Part-time
Temporary
Change in Revenues
None *** *** *** *** *** *** ***
Total *** *** *** *** *** *** ***
Estimated SUPPLEMENTAL (FY2020) cost: 0.0 (separate supplemental appropriation required)
Estimated CAPITAL (FY2021) cost: 0.0 (separate capital appropriation required)
Does the bill create or modify a new fund or account? No
(Supplemental/Capital/New Fund - discuss reasons and fund source(s) in analysis section)
ASSOCIATED REGULATIONS
Does the bill direct, or will the bill result in, regulation changes adopted by your agency? Yes
If yes, by what date are the regulations to be adopted, amended or repealed? 07/01/22
Why this fiscal note differs from previous version/comments:
Not Applicable. Initial Version.
Prepared By: Laura Achee, Legislative Liaison Phone: (907)465-5009
Division: Commissioner's Office Date: 01/15/2020 12:00 AM
Approved By: Ruth Kostik, Acting Administrative Services Director Date: 01/15/20
Agency: Department of Environmental Conservation
Printed 1/22/2020 Page 1 of 2 Control Code: BAtbW
 SB 158 - Fiscal Note 2
FISCAL NOTE ANALYSIS
STATE OF ALASKA BILL NO. LL 2019-104111/2
2020 LEGISLATIVE SESSION
Analysis
This bill would revise one of the primary statutes that govern the fees for wastewater permits and plan review, solid waste
permits, air quality permits, food safety permits, drinking water permits, and laboratory testing, and allow the
Department of Environmental Conservation to recover more of the cost required to provide these regulatory services.
Under this legislation, the Department will have the ability to establish fees that recoup the full direct cost of personal
services salary and benefits, which is currently capped at 149% of base salary. The actual benefit rate varies, but is
generally higher than 49%. The estimated average benefit rate at the Department is 57%, but it can be as high as 79%.
In addition, the Department will be able to recoup some of its overhead costs (accounting, procurement, operations,
information technology, and centralized costs) that relate to fee-supported programs. Under the proposed legislation, the
Department would apply the federal indirect cost rate when calculating the cost and establishing the fee for providing
regulatory services.
There is no additional cost to the Department to implement this bill. Time spent on routinely-required fee studies and
regulation packages are already a part of the existing budget.
There will be increased revenue from fees under this bill, which will allow corresponding program improvements and/or
decreases in the unrestricted general funds that currently subsidize the affected permit programs. The Department
estimates that the maximum additional revenue from fees under this legislation could be as high as $4.3m if fees were
established to capture full allowable costs. This includes an estimated $1.4m from the collection of direct personal
services costs, and $2.9m from the recovery of indirect costs. The actual amount collected will likely be lower than
estimates because economic impacts to the regulated public are taken into consideration as revised fees are proposed.
Under AS 37.10.052, the Department may not unduly burden the private sector with unreasonable fees that would
interfere with the conduct of business in the state.
Air Quality already recovers these costs through separate emissions fees required by the federal Clean Air Act. The result
of this legislation has the potential to increase air quality permit fees with a subsequent reduction to emissions fees.
While this will ultimately net zero revenue for the program overall, it is a more equitable distribution of the costs to the
permittees.
Fee studies on the impacted fees will be required to make adjustments before amended fee regulations are proposed. All
revised fee regulations are subject to public notice, review, and comment. The Department would not anticipate
significant new revenue from this new legislation until FY2022.
(Revised 10/22/19 OMB/LFD) Page 2 of 2
2019104111-DEC-DAS-01-06-20 Page 2 of 2 Control Code: BAtbW


Statutes affected:
SB0158A, AM SB 158, introduced 01/22/2020: 37.10.052, 37.10.050, 37.10.056, 37.10.054, 44.62.220, 44.62.230, 37.10.058, 44.46.025, 46.14.400, 46.14.510, 46.03.720, 46.03.100, U.S.C, 46.03.020, 46.03.320