LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: SB 2 SLS 21RS 80
Bill Text Version: ORIGINAL
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: April 26, 2021 6:01 PM Author: FIELDS
Dept./Agy.: Environmental Quality
Subject: Air Quality Monitoring Analyst: Kimberly Fruge
ENVIRONMENTAL QUALITY OR INCREASE SG EX See Note Page 1 of 2
Requires air monitoring systems in certain permitted facilities. (8/1/21)
Proposed law requires that on or before July 1, 2022, the owner or operator of certain facilities shall continuously operate an
air monitoring system. The cost of installation and monitoring shall be at the expense of the owner and not the department.
The air monitoring system shall measure and record air pollutant concentrations and detect when the air fails to meet quality
standards or presents a public health threat. Air quality data shall be collected, processed, and transmitted without delay
with dissemination to the public. Facilities are required to maintain records and report any malfunctions or maintenance to
the Department of Environmental Quality on a semiannual basis.
EXPENDITURES 2021-22 2022-23 2023-24 2024-25 2025-26 5 -YEAR TOTAL
State Gen. Fd. $0 $0 $0 $0 $0 $0
Agy. Self-Gen. INCREASE INCREASE INCREASE INCREASE INCREASE
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total
REVENUES 2021-22 2022-23 2023-24 2024-25 2025-26 5 -YEAR TOTAL
State Gen. Fd. $0 $0 $0 $0 $0 $0
Agy. Self-Gen. INCREASE INCREASE INCREASE INCREASE INCREASE
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total
EXPENDITURE EXPLANATION
Proposed law will result in an indeterminable, but significant, SGR expenditure increase of up to $8.2 M in FY 22 in the
Department of Environmental Quality (DEQ) as a result of the increased monitoring requirements. Proposed law would likely
increase expenditures for additional staff requirements and related costs out of the Environmental Trust Dedicated Fund
Account from fees paid by the impacted facilities. DEQ estimates that there would be an additional 473 facilities (498 Part 70
Facilities, 95% of which are major sources) that would be required to install and maintain air monitoring systems. DEQ
anticipates it would need, at a minimum, an additional 48 T.O. positions and associated operating equipment and supplies to
handle the additional reviewing and monitoring of data for these facilities. DEQ’s estimates are based on its current usage of
7 employees responsible for reviewing and managing the data at DEQ’s 40 existing air monitoring sites. The table below
outlines the additional staffing requirements proposed by DEQ. Estimates are based on midpoint salaries with a 2% annual
increase in salary and related benefits.
FY 22 Salary Breakdown:
Position Midpoint Salary Related Benefits Total Count Total
Environmental Scientist 2 $ 53,903 $ 27,787 $ 81,690 32 $ 2,614,080
Environmental Scientist Staff DCLA $ 75,598 $ 38,971 $ 114,569 3 $ 343,706
Environmental Scientist Senior DCLB $ 92,623 $ 47,747 $ 140,370 3 $ 421,110
Environmental Scientist Supervisor $ 75,598 $ 38,971 $ 114,569 7 $ 801,981
Environmental Scientist Manager $ 92,623 $ 47,747 $ 140,370 3 $ 421,110
Salary/RB Total 48 $ 4,601,987
With the 2% annual increase, salaries would total $4,694,028 in FY 23, $4,787,909 in FY 24, $4,883,667 in FY 25, and
$4,981,340 in FY 26.
SEE EXPENDITURE EXPLANATION CONTINUED ON PAGE TWO
REVENUE EXPLANATION
There will be an indeterminable increase in SGR revenues in the Environmental Trust Dedicated Fund Account due to the
collection associated with the requirements in this measure; the charges would likely vary depending on the size and scope
of each facility. DEQ estimates that the average financial burden in FY 22 on each facility would be $17,271 ($8,169,282/473
Facilities = $17,271 per facility). Proposed law indicates that the burden of cost will be on the facility and not the
department but is unclear on how department fees or recuperation of these costs are determined.
Senate Dual Referral Rules House
x 13.5.1 >= $100,000 Annual Fiscal Cost {S & H} 6.8(F)(1) >= $100,000 SGF Fiscal Cost {H & S}
13.5.2 >= $500,000 Annual Tax or Fee Alan M. Boxberger
6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} or a Net Fee Decrease {S} Staff Director
 LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: SB 2 SLS 21RS 80
Bill Text Version: ORIGINAL
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: April 26, 2021 6:01 PM Author: FIELDS
Dept./Agy.: Environmental Quality
Subject: Air Quality Monitoring Analyst: Kimberly Fruge
CONTINUED EXPLANATION from page one: Page 2 of 2
EXPENDITURE EXPLANATION CONTINUED:
DEQ estimates additional operating and travel costs associated with the new staff. Specifically, DEQ estimates $48,000 per
year in operating costs ($1,000 per employee). For FY 22, the initial visits to facilities will cost $2,000 per employee,
excluding supervisors and managers, for a total of $76,000. For FY 23-26, travel costs decrease to $500 per employee for a
total of $19,000. In addition, DEQ estimates it will need 16 new vehicles (one vehicle for every two Environmental
Scientists) at $25,000 per vehicle, for a total of $400,000 in FY 22.
DEQ further reports assumed total operating expenditures in line with the 66.13% EPA approved overhead rate to provide
sufficient operating and support resources needed by the additional personnel, such as rent for new office space, new office
equipment, human resources, financial services, legal, etc. DEQ estimates, assuming the overhead rate does not change, the
operating expenditures to support 48 T.O. positions will be an additional $3,043,295 in FY 22, $3,104,161 in FY 23,
$3,166,244 in FY 24, $3,229,569 in FY 25, and $3,294,160 in FY 26. This would bring total costs to $8.2 M in FY 22, $7.9 in
FY 23, $8.0 in FY 24, $8.1 M in FY 25, and $8.3 in FY 26. The Legislative Fiscal Office (LFO) cannot corroborate the overhead
rate or needs detailed by DEQ. The LFO presumes DEQ will promulgate rules through the Administrative Procedure Act (APA)
to implement air quality monitoring under this measure and will establish an appropriate fee rate structure to provide for
necessary and appropriate monitoring operations. Appropriate rates cannot be determined until implementation guidelines
are developed and promulgated through the APA process. To the degree that the overhead need is less than the $3.2 M
estimated, costs would decrease proportionally.
The proposed law stipulates any monitoring expense will be the responsibility of the facility owner and not to the
department. The LFO presumes expenditures incurred by DEQ will be mitigated by fees authorized under this measure (see
Revenue Explanation on page one).
Senate Dual Referral Rules House
x 13.5.1 >= $100,000 Annual Fiscal Cost {S & H} 6.8(F)(1) >= $100,000 SGF Fiscal Cost {H & S}
13.5.2 >= $500,000 Annual Tax or Fee Alan M. Boxberger
6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} or a Net Fee Decrease {S} Staff Director