Environment and Conservation, Department of

Plain English Breakdown

The bill summary does not provide details about the revenue generated from increased fees or specific costs TDEC may recover.

Environmental Regulatory Program Fee Changes

This bill changes fees and regulations related to environmental programs in Tennessee by increasing air contaminant emissions fees and allowing cost recovery from coal combustion residuals disposal units.

What This Bill Does

• Increases the maximum allowable amount of the air contaminant emissions fee from $18.75 to $38 per ton per year.
• Requires the Tennessee board of water quality, oil and gas to set fees for the production of oil and gas and the commissioner of environment and conservation to set fees under the Mineral Test Hole Regulatory Act.
• Adds a new exception allowing coal ash disposal in connection with certain uses as authorized by TDEC.
• Allows TDEC to recover costs from individuals or entities related to regulating coal combustion residuals disposal units, including permitting, oversight, supervision, investigation, regulation, and remediation activities.
• Limits the filing/processing fee for solid waste landfill permits to $10,000 and the annual maintenance fee to $15,000.

Who It Names or Affects

• Environmental regulatory agencies in Tennessee
• Companies involved in oil and gas production
• Facilities that emit air contaminants
• Individuals or entities disposing of coal combustion residuals

Terms To Know

Coal Combustion Residuals

Fly ash, bottom ash, boiler slag, and flue gas desulfurization materials generated from burning coal for electricity.

Coal Combustion Residuals Disposal Unit

Landfills, lateral expansions of landfills, surface impoundments, or locations used for the disposal, storage, processing, or treatment of coal combustion residuals and minor quantities of other associated industrial wastes.

Limits and Unknowns

• The bill does not specify how much additional revenue will be generated from increased fees.
• It is unclear what specific costs TDEC may recover under the new regulations for coal combustion residuals disposal units.

Official Summary Text

This bill makes the following changes and clarifications to present law concerning fees associated with environmental regulatory programs:

(1) Specifies, for purposes of the Tennessee environmental protection fund, that the Tennessee board of water qu
ality, oil and gas is required to adopt fees for the production of oil and gas and the commissioner of environment and conservation is required to set fees under the Mineral Test Hole Regulatory Act; and

(2) Increases the maximum allowable amount of the
air contaminant emissions fee from $18.75 to $38.00 per ton per year.

Present law generally prohibits the commissioner of environment and conservation from issuing a permit for a coal ash disposal facility unless the plans for the disposal facility inclu
de a liner and a final cap. It is an exception to the general prohibition if the use of coal ash is for:

(1) Fill;

(2) An agricultural use;

(3) An engineered use as a feedstock to produce a product; or

(4) A wastewater treatment unit.

This bill
adds a fifth exception for the disposal of coal ash in connection with a use described in (1)
–
(4) and as authorized by TDEC. This bill specifies that the general prohibition against issuing permits for coal ash disposal facilities that do not have a l
i
ner and a final cap does not prevent the commissioner from issuing a permit for the disposal of coal combustion residuals in a coal combustion residuals disposal unit in accordance with rules adopted by the board.

This bill defines "coal combustion resid
uals" as fly ash, bottom ash, boiler slag, and flue gas desulfurization materials generated from burning coal for the purpose of generating electricity by electric utilities and independent power producers. This bill defines "coal combustion residuals di
s
posal unit" as landfills, lateral expansions of landfills, surface impoundments, and locations used for the disposal, storage, processing, or treatment of coal combustion residuals and minor quantities of other associated industrial wastes, such as nonput
r
escible nonhazardous wastes resulting from operations ancillary to power generation, surface impoundment closure, and landfill construction.

Present law limits the filing/processing fee for a solid waste landfill permit to $10,000.

Present law limits
the annual maintenance fee for a solid waste landfill to $15,000.
This bill authorizes TDEC to recover against a person TDEC's direct and indirect costs, including administrative costs, incurred through the regulation of coal combustion residuals disposal
units as provided by rules adopted by the Tennessee board of water quality, oil and gas. The rules must establish an annual cap and may include costs associated with permitting, oversight, supervision, investigation, regulation, and remediation activiti
e
s relative to coal combustion residuals disposal units. This bill prohibits TDEC from assessing fees for coal combustion residuals disposal units under its general authority to charge fees for the services and functions it performs, if TEDC seeks recover
y
of its costs pursuant to this paragraph.

Under present law, certain divisions of TDEC are prohibited from establishing a fee schedule that results in a ratio between state appropriations and environmental protection fees, exclusive of penalties and dama
ges, in which the environmental protection fees constitute a higher percentage of the total funds expended by the division than certain ratios specified in statute, which represents an approximation of the time spent by the divisions in activity that prot
e
cts the public and the environment generally to that spent addressing a particular entity such as in technical assistance, permitting, inspection or enforcement. This bill adds that, for the division of mineral and geologic resources, the ratio is: Envi
r
onmental protection fees, 58%; and state appropriations, 42%.

Current Bill Text

SENATE BILL 1274
By Johnson

HOUSE BILL 124
By Lamberth

HB0124
000177
- 1 -

AN ACT to amend Tennessee Code Annotated, Title 68,
Chapter 203, Part 1 and Title 68, Chapter 211,
Part 1, relative to environmental regulatory
programs.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 68-203-103(b), is amended by
deleting subdivision (1) and substituting:
(1) The fees under the Tennessee Safe Drinking Water Act of 1983, compiled in
chapter 221, part 7 of this title, and the Water Quality Control Act of 1977, compiled in
title 69, chapter 3, and fees for the production of oil and gas set under title 60, chapter 1,
part 1, shall be set by the Tennessee board of water quality, oil and gas;
SECTION 2. Tennessee Code Annotated, Section 68-203-103(b), is amended by
adding the following as a new subdivision:
( ) The fees under the Mineral Test Hole Regulatory Act, compiled in title 60,
chapter 1, part 5, shall be set by the supervisor in accordance with § 60-1-505;
SECTION 3. Tennessee Code Annotated, Section 68-203-103(h)(7), is amended by
deleting "eighteen dollars and seventy-five cents ($18.75)" and substituting "thirty-eight dollars
($38.00)".
SECTION 4. Tennessee Code Annotated, Section 68-211-103, is amended by adding
the following as new subdivisions:
( ) "Coal combustion residuals" means fly ash, bottom ash, boiler slag, and flue
gas desulfurization materials generated from burning coal for the purpose of generating
electricity by electric utilities and independent power producers;

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( ) "Coal combustion residuals disposal unit" means landfills, lateral expansions
of landfills, surface impoundments, and locations used for the disposal, storage,
processing, or treatment of coal combustion residuals and minor quantities of other
associated industrial wastes, such as nonputrescible nonhazardous wastes resulting
from operations ancillary to power generation, surface impoundment closure, and landfill
construction;
SECTION 5. Tennessee Code Annotated, Section 68-203-103(h), is amended by
deleting subdivision (9) and substituting:
(9) Filing and processing fees for solid waste landfill permits, except those
issued to a coal combustion residuals disposal unit, as that term is defined in § 68-211-
103: ten thousand dollars ($10,000);
SECTION 6. Tennessee Code Annotated, Section 68-203-103(h), is amended by
deleting subdivision (11) and substituting:
(11) Annual maintenance fee for a solid waste landfill, except a coal combustion
residuals disposal unit, as that term is defined in § 68-211-103: fifteen thousand dollars
($15,000);
SECTION 7. Tennessee Code Annotated, Section 68-203-104(d), is amended by
adding the following as a new subdivision:
( ) For the division of mineral and geologic resources: environmental protection
fees, fifty-eight percent (58%); state appropriations, forty-two percent (42%);
SECTION 8. Tennessee Code Annotated, Section 68-211-106, is amended by deleting
subsection (j) and substituting:
(j)

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(1) The commissioner shall not issue a permit under this section for the
disposal of coal ash, or for the expansion of an existing coal ash disposal facility,
unless the plans for the disposal facility include a liner and a final cap.
(2) This subsection (j) does not apply to:
(A) The use of coal ash for fill;
(B) An agricultural use;
(C) An engineered use as a feedstock to produce a product;
(D) A wastewater treatment unit; or
(E) The disposal of coal ash in connection with a use described in
this subdivision (j)(2) and as authorized by the department pursuant to
this part.
(3) This subsection (j) does not prevent the commissioner from issuing a
permit for the disposal of coal combustion residuals in a coal combustion
residuals disposal unit in accordance with rules adopted by the board.
SECTION 9. Tennessee Code Annotated, Title 68, Chapter 211, Part 1, is amended by
adding the following as a new section:
(a) The department may recover against a person the department's direct and
indirect costs, including administrative costs, incurred through the regulation of coal
combustion residuals disposal units as provided by rules adopted by the board pursuant
to this part.
(b) Board rules providing for cost recovery under this section must establish an
annual cap and may include costs associated with permitting, oversight, supervision,
investigation, regulation, and remediation activities relative to coal combustion residuals
disposal units.

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(c) The department shall not assess fees for coal combustion residuals disposal
units under title 68, chapter 203, if the department seeks recovery of its costs pursuant
to this section.
SECTION 10. This act takes effect upon becoming a law, the public welfare requiring it.