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2005 SESSION

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HB 2777 Retail Sales and Use Tax; increased, creates Water Quality Improvement Restricted Use Fund.

Introduced by: Allen L. Louderback | all patrons    ...    notes | add to my profiles | history

SUMMARY AS PASSED:

 Capitalizing the Water Quality Improvement Fund.  Appropriates $50 million from the general fund to the Water Improvement Quality Fund on July 1, 2005.  The money is to be used solely to finance the costs of design and installation of biological nutrient removal facilities or other nutrient removal technologies at publicly-owned sewage systems.  In addition, beginning July 1, 2005, the annual appropriations to the Fund provided from the 10 percent general fund surplus and the 10 percent of any unreserved general fund year-end balance will have a different distribution formula.  Seventy percent of these moneys will be allocated to the Department of Conservation and Recreation to be used for the implementation of best management practices that reduce nitrogen and phosphorous nonpoint source pollution, and 30 percent will be allocated to the Department of Environmental Quality to make grants to significant dischargers and to treatment works that utilize the Public-Private Education Facilities and Infrastructure Act, to design and install state-of-the-art nutrient removal technology. The amount of financing available to the treatment facility for point source nutrient removal technologies, whether the source of funding is the 10 percent surplus and 10 percent unexpended balance, or the $50 million appropriation, will depend on the financial need of the community, which will be determined by comparing the annual sewer charges expended within the service area to the reasonable sewer costs established for the community.

The bill also directs the chairman of the committees of oversight to develop recommendations for a permanent source of funding that will clean up the Chesapeake Bay and its tributaries, as well as other impaired waters outside the Bay watershed.  This bill is identical to SB 810 and SB 1235.

SUMMARY AS PASSED HOUSE:

Capitalizing the Water Quality Improvement Fund.  Deposits $50 million annually from the state general fund into the Water Quality Improvement Fund beginning July 1, 2005, through July 1, 2015.  These moneys are to be used solely to finance the costs of design and installation of biological nutrient removal facilities or other nutrient removal technology at publicly owned sewage systems.  The amount of financing available to the treatment facility will depend on the financial need of the community, to be determined by comparing the annual sewer charges expended within the service area to the reasonable sewer costs established for the community.

In addition, the moneys currently used to capitalize the Fund, 10 percent of the general fund surplus and 10 percent of the unreserved general fund balance, will be distributed in a different manner than is currently the case.  Seventy percent of these moneys are to be used for implementing best management practices to reduce nitrogen and phosphorous nonpoint source pollution and 30 percent will be disbursed for designing and installing state-of-the-art nutrient removal technologies for publicly owned treatment works that are designated as significant discharges.

SUMMARY AS INTRODUCED:

Capitalizing the Restricted Use Fund.  Establishes the Water Quality Improvement Restricted Use Fund.  The moneys in the Fund are to be used to reduce nitrogen and phosphorous discharges from municipal sewage systems and agricultural land, with any remaining funds used to ensure that surface and ground waters meet water quality criteria and standards. The fund will be capitalized by dedicating one-twelfth of the net revenue generated from the two percent sales and use tax, in an amount up to $160 million annually, to the Fund. A 10-member Water Quality Improvement Restricted Use Advisory Commission is created to review, comment, and advise the Departments of Environmental Quality and Conservation and Recreation on the disbursement and use of moneys in this new Fund.