OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

http://www.cga.ct.gov/ofa

sHB-5385

AN ACT CONCERNING THE DEPARTMENT OF ENERGY AND ENVIRONMENTAL PROTECTION'S MATERIALS MANAGEMENT PROGRAMS.

OFA Fiscal Note

State Impact: None

Municipal Impact:

Municipalities

Effect

FY 17 $

FY 18 $

Outyears

Various Municipalities

Potential Savings

None

None

Potential

Explanation

This bill classifies waste conversion facilities as volume reduction plants. Additionally, it allows resources recovery facilities to generate energy with mixed municipal solid waste (MSW) through combustion only, rather than using any other energy generation process.1

As these changes in definition relate to emerging technologies, and does not affect current waste conversion processes, the bill is not anticipated to result in a fiscal impact in FY 17 or FY 18.

However, the bill may result in savings to various municipalities in the outyears, to the extent new technologies result in lower-cost processing of MSW. A reduction in costs by these facilities may be passed on to municipalities through reduced tipping fees.

Lastly, the bill also reduces the amount of information a resources recovery facility must provide the Department of Energy and Environmental Protection with their permit application (known as a “determination of need”). As this process is already being streamlined by the agency, this also does not result in a fiscal impact.

The Out Years

The annualized ongoing fiscal impact identified above would continue into the future subject to inflation.

1 Volume reduction plants convert MSW into electricity, fuel, gas, or chemicals, through thermal, chemical, or biological processes, but they are not resource recovery facilities. There are currently 7 waste conversion and forty volume reduction plants.