SESSION OF 2023
SUPPLEMENTAL NOTE ON HOUSE BILL NO. 2159
As Recommended by House Committee on
Agriculture and Natural Resources
Brief*
HB 2159 would direct the Secretary of Health and
Environment (Secretary) to deposit the following fees in the
Water Program Management Fund (Water Fund):
●Water well contractor application and license fees;
●Class 1 and Class 5 underground injection control
well permitting, monitoring, testing, inspection, and
regulation fees; and
●Fees, charges, or penalties from the certification of
operators for water supply system and wastewater
treatment facilities.
The bill would authorize the Secretary to remit revenue
from the fees to the State Treasurer who, upon receipt of the
funds, must deposit the entirety of the funds to the credit of
the Water Fund. [Note: Current law requires remittance to the
State General Fund (SGF).]
The bill would require the Secretary to adopt rules and
regulations to establish fees for:
●The permitting, monitoring, testing, inspecting, and
regulating of Class 1 underground injection control
wells. The fees could not exceed the following, but
would require the Secretary to allow for a reduction
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*Supplemental notes are prepared by the Legislative Research
Department and do not express legislative intent. The supplemental
note and fiscal note for this bill may be accessed on the Internet at
http://www.kslegislature.org in such fees for facilities already subject to these
fees:
○$6,500 per active, hazardous waste injection
well;
○$4,500 per active, non-hazardous waste
injection well; or
○$1,000 per any hazardous or non-hazardous
waste injection well in monitoring or inactive
status;
●The permitting, monitoring, testing, inspecting, and
regulating of Class 5 underground injection wells,
which could not exceed $2,000 per well.
The bill would authorize the Secretary to remit revenue
from the new fees to the State Treasurer who, upon receipt of
the funds, would deposit the entirety of the funds to the credit
of the Subsurface Hydrocarbon Storage Fund (Hydrocarbon
Fund).
Background
The bill was introduced by the House Committee on
Agriculture and Natural Resources at the request of a
representative of the Kansas Department of Health and
Environment (KDHE).
House Committee on Agriculture and Natural Resources
In the House Committee hearing, representatives of
KDHE and ONEOK provided proponent testimony, stating
the bill would provide the authority to ensure KDHE can
maintain its strong programs and give the regulatory
community certainty in expectations and conduct.
No other testimony was provided.
2- 2159 Fiscal Information
According to the fiscal note prepared by the Division of
Budget on the bill, KDHE estimates enactment of the bill
would reduce SGF revenues by approximately $102,000 due
to the fees going to the Water Fund. KDHE estimates the new
fees for underground injection control Class 1 and 5 wells are
estimated to generate $205,000 in new revenues to the
Hydrocarbon Fund.
The Kansas Association of Counties and the Kansas
League of Municipalities do not estimate any fiscal effect for
local governments.
Any fiscal effect associated with the bill is not reflected
in The FY 2024 Governor’s Budget Report.
Kansas Department of Health and Environment; Water Program Management Fund;
Subsurface Hydrocarbon Storage Fund; waste injection well; underground injection
control well
3- 2159