SB 269 - HB 600
FISCAL NOTE
Fiscal Review Committee
Tennessee General Assembly
February 23, 2025
Fiscal Analyst: Jennifer Grissom | Email: jennifer.grissom@capitol.tn.gov | Phone: 615-741-2564
SB 269 - HB 600
SUMMARY OF BILL: Enacts the Tennessee Waste to Jobs Act (Act). Establishes a producer
responsibility program to manage packaging waste and recycling in Tennessee. Requires specific
producers of packaging materials to join a Producer Responsibility Organization (PRO) by January
1, 2027 and fund recycling programs through PRO dues based on the quantity and recyclability of
their packaging.
Requires the Department of Environment and Conservation (TDEC) to appoint a Producer
Responsibility Program Advisory Board (Board) consisting of 20 members, to be administratively
attached to TDEC; however, authorizes the TDEC to select a third-party facilitator to convene and
provide administrative support to the Board. Requires such Board to oversee the PROs, review
recycling policies, monitor producer compliance, and recommend improvements.
Requires TDEC to consult with PROs and the Board in the development of PRO plans and
proposals, approve or reject such, and administer, review, oversee, and enforce producer
responsibility plans (PRPs). Further requires the TDEC to compile, review, and update reports and
lists on a specific timeline required by this legislation. Requires TDEC to promulgate rules and fees
necessary to implement and administer this Act.
Directs PROs to conduct a statewide needs assessment every five years, submit a five-year Producer
Responsibility Plan, and develop strategies to reduce waste, improve recycling rates, and promote
packaging reuse.
Requires the governing body of a PRO to apply to TDEC for approval by July 1, 2026 and pay an
implementation fee set by rule. Requires PROs to provide public education on recycling and waste
management. Prohibits the sale of packaged goods in Tennessee after January 1, 2030, unless
producers comply with an approved PRO Plan or an Individual Producer Responsibility Plan.
Enforces penalties for non-compliance, with fines up to $100,000 per day.
Mandates funding for local recycling services and infrastructure. Requires Shelby, Davidson, Knox,
Hamilton, Rutherford, Williamson, and Montgomery Counties to participate in a PRP and
authorizes smaller counties and municipalities to opt in voluntarily. Establishes a process for local
governments to receive reimbursement for waste management services. Sets performance goals for
recycling, composting, and waste reduction at 5-year, 10-year, and 15-year intervals.
Requires PROs to be established by July 1, 2026. Mandates compliance for all producers by January
1, 2030. Sunsets Board on June 30, 2028.
SB 269 - HB 600 2
FISCAL IMPACT:
STATE GOVERNMENT
REVENUE General Fund
FY25-26 -
FY26-27 >$2,150,200
FY27-28 & Subsequent Years >$2,060,700
EXPENDITURES General Fund
FY25-26 $280,500
FY26-27 $2,150,200
FY27-28 & Subsequent Years $2,060,700
Total Positions Required: 10
OTHER FISCAL IMPACT
Passage of this legislation will result in a mandatory increase in revenue to six counties and a
permissive increase in revenue to all other counties and municipalities that opt-in for reimbursement
of services beginning in FY26-27. The extent of such revenue cannot be determined with any
reasonable certainty.
Assumptions:
• The proposed legislation requires the 20-member Board meet at least twice a year. For
purposes of this analysis, it is assumed the Board will meet quarterly. Members serve
without compensation, but are eligible for necessary travel. As one of the non-voting
members is the TDEC Commissioner or their designee, it is assumed that 19 members will
be eligible for travel reimbursement. The first meeting must be convened no later than July
15, 2026.
• The recurring increase in state expenditures, beginning FY26-27, is as follow:
Non-Legislative Member Reimbursement FY25-26 and subsequent years
Members Per Mtg Cost/Member Reimbursed Meetings/Yr
Mileage 19 $173 4 $13,148
Per
Diem 19 $379 4 $28,804
Total: $41,952
• Some form of Extended Producer Responsibility (EPR) laws has been enacted in 33 states
with extensively varied products, requirements, provisions, and duties.
• Currently, seven states have ratified legislation packaging-related EPR laws: California,
Colorado, Maine, Oregon, New Jersey, Washington, and Minnesota.
SB 269 - HB 600 3
• No states have reached their legislative deadlines for all producers to be members of a
PRO. However, all states required additional full-time state employees to implement their
laws, the number of which varied by the scope of such.
• Of these state laws, the most similar in scope to the proposed legislation is Minnesota’s
Packaging Waste and Cost Reduction Act, effective January 2025 and Oregon’s Plastic Pollution
and Recycling Modernization Act (PPRMA), effective January 2022.
• Two states, including Oregon, have increased their staff within the first two years of
enactment.
• In FY21-22 and FY22-23, PPRMA was estimated to cost $1,800,000 with seven state
positions. In FY23-24 and FY24-25, the estimate was increased to $10,800,000 with an
additional 11 state positions.
• Based on an analysis of other states’ PRO laws, TDEC is not currently able to carry out the
requirements of the proposed legislation with existing personnel and resources.
• In order to develop regulations, set fee structures, and consult with the Board and PRO
applicants, TDEC will need to hire two employees, one Environmental Manager-4 and one
Environmental Manager-3, beginning in FY25-26.
Title Salary Benefits
#
Positions Total
Environmental Manager-4 $115,212 $27,142 1 $142,354
Environmental Manager-3 $100,440 $24,691 1 $125,131
Total: $267,485
• Each position will also require a one-time expenditure of $6,500 for computer, telephone,
and supplies.
• The total increase in expenditures for FY25-26 will be $280,485 [$267,485 + ($6,500 x 2)].
• Pursuant to the proposed legislation, the governing body of a PRO shall apply to TDEC
for approval by July 1, 2026 and pay an implementation fee set by rule.
• The exact fee that will be set is unknown, but must be sufficient so that the aggregate funds
TDEC’s estimated costs.
• The following additional eight personnel will be required once approved PROs are
established in order to fulfill the requirements of this legislation, beginning in FY26-27:
Title Salary Benefits
#
Positions Total
Environmental Manager-2 $87,036 $22,467 1 $109,503
Environmental Consutant-2 $174,072 $36,907 2 $421,958
Environmental Scientist-2 $241,344 $44,022 4 $1,141,464
Administrative Services Assistant-4 $60,336 $18,038 1 $78,374
Total: $1,751,299
• Each of the eight positions will also require a one-time expenditure of $6,500 for computer,
telephone, and supplies, resulting in a one-time expenditure of $52,000 ($6,500 x 8).
SB 269 - HB 600 4
• Further, as many of these positions are field positions, three vehicles will need to be
purchased at a rate of $12,500 each, resulting in a one-time expenditure of $37,500 ($12,500
x 3).
• The sale of packaged goods in Tennessee after January 1, 2030 is prohibited, unless
producers comply with an approved PRP or an Individual Producer Responsibility Plan.
Civil penalties for non-compliance are as followed:
o Person that is not a PRO or producer – up to $25,000/day; or
o PRO or producer –
▪ First violation – up to $25,000/day;
▪ Second violation – up to $50,000/day; and
▪ Third and subsequent violation – up to $100,000/day.
• It is assumed that there will not be enough civil penalties collected beginning January 1,
2030 to result in any significant increase in revenue.
• The proposed legislation further mandates PROs to fund local recycling services and
infrastructure. Specifically, Shelby, Davidson, Knox, Hamilton, Rutherford, Williamson, and
Montgomery Counties are required to participate in a PRP and all other counties and
municipalities can opt-in voluntarily. It is assumed the required participation will not result
in an increase in local government expenditures.
• The total increase of service reimbursements to local governments beginning January 1,
2026 cannot be determined with any certain reasonability. Any increases in revenue would
offset current local government expenditures.
• The total increase in expenditures to the General Fund in FY25-26 is estimated to be
$280,485 in the first round of TDEC staffing and supplies.
• The total increase in expenditures to the General Fund in FY26-27 is estimated to be
$2,150,236 ($41,952 Board reimbursements + $267,485 first year TDEC staff + $1,751,299
second-year TDEC staff + $52,000 second-year TDEC staff supplies + $37,500 vehicles).
• The total increase in expenditures to the General Fund in FY27-28 and subsequent years is
estimated to be $2,060,736 (($41,952 Board reimbursements + $267,485 first year TDEC
staff + $1,751,299 second-year TDEC staff).
• Annual PRO fees are estimated to result in an increase in state revenue in FY26-27 of at
least $2,150,236 and of at least $2,060,736 in FY27-28 and subsequent years.
CERTIFICATION:
The information contained herein is true and correct to the best of my knowledge.
Bojan Savic, Executive Director