RD232 - Special Report on Options for the Implementation of a Hazardous Materials Fee To Fund the Commonwealth’s Hazardous Materials Activities


Executive Summary:
The 2008 Session of the Virginia General Assembly directed the Virginia Department of Emergency Management (VDEM) prepare a report on options for the implementation of a hazardous materials fee to fund the Commonwealth’s Hazardous Materials Emergency Response Program pursuant to Section 44-146.34 et seq. of the Code of Virginia. The report was authorized by The Appropriations Act, Item 399.A, 2008 Session.

This special report was commissioned specifically to identify options for the implementation of a hazardous materials fee to fund the Commonwealth’s hazardous materials activities such as the costs of providing funding to local hazardous materials teams and providing hazardous materials training to team members. This report shall include at a minimum the level of fee recommended to be imposed, the industries that would be impacted, the projected revenue generated, and activities the fee would support. The Appropriations Act further directed that VDEM shall provide copies of the report to the Secretary of Public Safety; the Director, Department of Planning and Budget; and to the Chairmen of the Senate Finance and House Appropriations Committees by September 15, 2008.

VDEM surveyed several states that have a program in place similar to the one under study for the Commonwealth of Virginia. With few exceptions, the programs are reportedly working very well and have achieved the intended result. For purposes of this special report, a “sense of community” survey was conducted of several groups that would be impacted by the proposed hazardous materials fee. The questionnaire addressed where in the hazardous materials life cycle the fee should be assessed. Overall, the sense of the community was that it should be assessed at the point of manufacture of the hazardous materials.

As noted in this report, it appears that there may be support for a hazardous materials fee levied on manufacturing and/or transportation intended to collect between $2 million to $3 million per year. This is an approximate amount that would replace the current use of general and special funds in supporting the program.