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SENATE BILL 1884
By Johnson
HOUSE BILL 1632
By Lamberth
HB1632
010025
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AN ACT to amend Tennessee Code Annotated, Title 68,
Chapter 217, Part 1, relative to the drycleaner
environmental response program.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 68-217-102, is amended by adding
the following as new subdivisions:
( ) "Recently abandoned" means an abandoned drycleaning facility closed in
accordance with the commissioner's rules no more than one hundred eighty (180) days
prior to the date of submittal of a petition to access the drycleaner environmental
response fund;
( ) "Registered facility" means any registered drycleaning operation, registered
in-state wholesale distribution facility, or a registered abandoned drycleaning facility;
( ) "Wholesale distributor" means a person or company who is engaged in
wholesale distribution;
SECTION 2. Tennessee Code Annotated, Section 68-217-102(5), is amended by
deleting the subdivision and substituting:
(5) "Drycleaner environmental response fund" or "fund" means the fund
established under § 68-217-103;
SECTION 3. Tennessee Code Annotated, Section 68-217-102(10), is amended by
deleting the subdivision.
SECTION 4. Tennessee Code Annotated, Section 68-217-102(13), is amended by
adding ", or soil gas vapor, including sub-slab vapor and indoor air" immediately after
"subsurface soils".
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SECTION 5. Tennessee Code Annotated, Section 68-217-102(14), is amended by
deleting the subdivision and substituting:
(14) "Wholesale distribution" means the sale or delivery of drycleaning solvents,
supplies, or services to in-state or out-of-state drycleaning facilities.
SECTION 6. Tennessee Code Annotated, Section 68-217-105, is amended by deleting
the section and substituting:
(a) The commissioner has the following duties and responsibilities:
(1) Develop and approve investigation and remediation strategies,
including, but not limited to, presumptive remedial responses;
(2) Enter into contracts and use the fund for purposes directly associated
with accepted petitions for the investigation, containment, cleanup, monitoring,
and maintenance of releases from registered drycleaning operations, registered
in-state wholesale distribution facilities, and registered abandoned drycleaning
facilities, including:
(A) Hiring consultants and other contractors;
(B) Purchasing, leasing, or renting necessary equipment; and
(C) Defraying other necessary expenses;
(3) Review and accept or deny a petition for entry of a registered facility
or a registered recently abandoned drycleaning facility into the drycleaner
environmental response fund based on the standards set out in this chapter and
in rules. The commissioner shall prioritize approved petitions according to rules
and established guidelines. In establishing guidelines for site prioritization, the
commissioner shall consider the degree of risk to human health and the
environment and other factors as the commissioner may deem appropriate;
(4) Assess civil penalties in accordance with § 68-217-108; and
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(5) Promulgate rules necessary to effectuate this chapter, and conduct
contested case proceedings, in accordance with the Uniform Administrative
Procedures Act, compiled in title 4, chapter 5. The rules must include, but are
not limited to:
(A) Annual registration with corresponding fees for drycleaning
facilities with categories of drycleaning facilities based on the amount and
type of solvent used;
(B) Requirements and standards for operation, maintenance, and
closure of drycleaning facilities;
(C) Standards for reviewing, accepting, and denying petitions for
entry into the drycleaner environmental response fund;
(D) A process for the commissioner to withdraw a facility from the
drycleaner environmental response fund upon a determination of
ineligibility or that the facility is or has been in noncompliance with this
chapter; and
(E) A process for certification of the completion of all investigation
and remedial work and closure of a petition for access to the drycleaner
environmental response fund.
(b) The commissioner is authorized to enter, at any reasonable time, any
registered facility and any property where the commissioner believes, based on
substantial evidence, that drycleaning operations or in-state wholesale distribution
activities are occurring or have occurred, to conduct investigations, and ensure
compliance with this chapter. The commissioner may inspect and copy, at reasonable
times, any records, reports, test results, or other information relating to compliance with
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this chapter and its rules, and the commissioner may request any person or company to
furnish information relating to compliance with this chapter and its rules.
SECTION 7. Tennessee Code Annotated, Section 68-217-106, is amended by deleting
the section and substituting:
(a) Each year, the owner or operator of a drycleaning facility that intends to
conduct for all or part of the year, drycleaning operations or an in-state wholesale
distribution facility shall register with the department on forms provided by the
department.
(b) The owner or operator of a recently abandoned drycleaning facility shall
register with the department on forms provided by the department before or
simultaneously with submission of a petition to access the fund in order for the petition to
be accepted. After the initial acceptance of a recently abandoned drycleaning facility
into the program, the owner or operator or a recently abandoned drycleaning facility shall
comply with annual registration and payment requirements applicable to drycleaning
facilities and in-state wholesale distribution facilities except as otherwise provided in this
chapter.
(c) Each facility accepted into the drycleaner environmental response fund shall
register annually, even if the facility ceases drycleaning operations or wholesale
distribution activities. Facilities that fail to register may be removed from the drycleaner
environmental response fund.
(d) The owner or operator of a drycleaning facility or in-state wholesale
distribution facility required to register under subsection (a) shall pay to the department
an annual registration fee in accordance with the schedule established pursuant to rule.
(e) It is unlawful to sell or transfer drycleaning solvent or engage in wholesale
distribution to any person owning or operating a drycleaning facility unless the owner or
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operator of the drycleaning facility has conspicuously posted a copy of a valid certificate
evidencing registration of the drycleaning facility pursuant to this chapter at the facility.
(f) It is a violation of this chapter for any drycleaning facility or any person
owning or operating a drycleaning facility to purchase solvent without the drycleaning
facility being lawfully registered in accordance with this chapter.
(g) At least thirty (30) days before payment of a registration fee is due, the
department shall attempt to notify and submit a registration fee payment form to each
owner or operator of a registered facility. The registration fee payment form provided by
the department must accompany the registration fee payment.
(h) The commissioner shall establish a drycleaning solvent surcharge in
accordance with the schedule established pursuant to rule.
(i) The solvent surcharge required by this section must be collected and
forwarded to the department by the seller of the drycleaning solvent, regardless of the
location of such seller. If the seller is located outside of this state, the solvent surcharge
may be collected and forwarded to the department by either the buyer or the seller.
(j) The department shall provide each person who pays a registration fee or
solvent surcharge under this chapter with a receipt. The receipt or the copy of the
receipt shall be produced for inspection at the request of any authorized representative
of the department.
(k) Registration fees and surcharges paid under this section must be collected
by the department and deposited in the drycleaner environmental response fund created
under this chapter.
(l) The registration fees, surcharges, and deductibles prescribed by this chapter
may be adjusted by the commissioner, after notice and opportunity for public comment,
in a manner necessary and appropriate to ensure viability of the fund and in furtherance
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of the purposes of this chapter; provided, that any fees or deductibles applicable to
recently abandoned drycleaning facilities must never be in excess of the fees and
deductibles applicable to the largest drycleaning facility, and there shall be no
surcharges on recently abandoned drycleaning facilities.
SECTION 8. Tennessee Code Annotated, Section 68-217-107, is amended by deleting
the section and substituting:
(a) An owner or operator of a registered facility, or the current owner or operator
of a recently abandoned drycleaning facility, may petition the commissioner to perform
investigation and remediation in connection with a release from a drycleaning facility, in-
state wholesale distribution facility, or abandoned drycleaning facility in accordance with
rules promulgated by the commissioner.
(b) Once a registered facility or recently abandoned drycleaning facility has
petitioned the commissioner and has complied with all the requirements for entry into the
program as established by this chapter, including compliance with applicable rules and
the payment of necessary registration fees and, if applicable, surcharges on drycleaning
solvents, then the commissioner shall accept the petition in accordance with the rules
promulgated under this chapter. Upon acceptance, the commissioner shall inform the
party of the decision to allow the facility into the program established by this chapter and
inform the party of the priority ranking of the site, if sufficient investigative work has been
completed at that time to determine priority ranking. The commissioner may reject any
petition and deny coverage under this chapter if the commissioner determines that the
registered facility or recently abandoned drycleaning facility has been in noncompliance
with this chapter or the rules promulgated pursuant to this chapter.
(c) The commissioner shall not authorize the expenditure of funds from the fund
in excess of five hundred thousand dollars ($500,000) per year for releases from any
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registered facility or recently abandoned drycleaning facility, nor authorize a distribution
of monies from the fund that would result in a diminution of the fund below a balance of
one hundred thousand dollars ($100,000) unless an emergency exists at a registered
facility or recently abandoned drycleaning facility that constitutes an imminent and
substantial threat to human health or the environment. In the event of an emergency as
described in this subsection (c), the commissioner shall approve the reimbursement of
reasonable response costs to remove the imminent and substantial threat to human
health or the environment.
(d) The commissioner shall not expend more than two million dollars
($2,000,000) per registered facility that has been accepted to the program.
(e) The commissioner shall not authorize distribution of funds from the fund to:
(1) Sites that are contaminated by solvents normally used in drycleaning
operations where the contamination at such sites did not result from the
operation of a registered facility or recently abandoned drycleaning facility;
(2) Sites that are not registered facilities, or recently abandoned
drycleaning facilities, that are contaminated by a release that results from
drycleaning solvents being transported to or from a drycleaning facility or in-state
distribution facility;
(3) Any property contaminated by a release from a drycleaning facility,
abandoned drycleaning facility, or in-state wholesale distribution facility, that has
been identified by the United States environmental protection agency (EPA) as a
federal superfund site pursuant to 40 CFR Part 300 et seq.; or
(4) Any drycleaning facility which has obtained a permit pursuant to the
Resource Conservation and Recovery Act (RCRA) (42 U.S.C. § 6901 et seq.).
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(f) Any person granted fund coverage under this section shall pay a deductible of
ten percent (10%) of each contractor billing, not to exceed a total of fifty thousand dollars
($50,000) per site. If an applicant reenters facilities or sites into the program for any
reason, including failure to submit annual registration forms or registration fees on time,
the applicant is required to pay a new deductible.
SECTION 9. Tennessee Code Annotated, Section 68-217-108, is amended by deleting
the section and substituting:
(a) Any person who violates or fails to comply with this chapter or a rule adopted
pursuant to this chapter is subject to a civil penalty of up to ten thousand dollars
($10,000) per violation. The commissioner may assess penalties through an order to be
served upon the alleged violator. Any such order becomes final and not subject to
review unless the person or persons named in the order file a request for a hearing with
the commissioner within thirty (30) days after the date such order is served. Any such
hearing must be conducted as a contested case and be heard by an administrative
judge sitting alone pursuant to §§ 4-5-301(a)(2) and 4-5-314(b), unless settled by the
parties.
(b) In addition to any penalties authorized by subsection (a), any person who
fails or refuses to pay a lawfully levied registration fee or solvent surcharge or any part of
a registration fee or solvent surcharge by its due date shall be assessed a penalty of up
to fifty dollars ($50.00) for each day that passes after the fee or surcharge is due and
before such fee or surcharge is paid. This section does not require the issuance of a
commissioner's order for the payment of a registration fee or a late payment penalty.
(c) An owner or operator shall not receive a registration certificate as required
under § 68-217-106(a) until all fees, surcharges, and penalties required by this chapter
are paid in full.
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SECTION 10. Tennessee Code Annotated, Section 68-217-111, is amended by deleting
the section and substituting:
(a) Notwithstanding another provision of law, an owner or operator of a
registered facility or current or prior owner or operator of a recently abandoned
drycleaning facility is not liable for any release under any other law, including any
common law claim or third-party claims, except to the extent of the deductible set forth in
§ 68-217-107(f), if such facility or distributor has paid all the registration fees and solvent
surcharges required under this chapter, has had its petition accepted by the
commissioner for participation in the fund, and has materially complied with the
requirements of all rules promulgated under this chapter and with any requirements for
investigatory or remedial measures established by the commissioner. This section does
not preclude claims based solely upon personal injuries associated with a claimant's
exposure to drycleaning solvent.
(b) Subsection (a) does not apply to or limit any claim of a lender which arises
under a financing arrangement entered into by the owner or operator prior to, on, or after
June 13, 1995.
SECTION 11. This act takes effect July 1, 2026, the public welfare requiring it.