SB 281 - HB 882 FISCAL NOTE Fiscal Review Committee Tennessee General Assembly March 8, 2025 Fiscal Analyst: Rebecca Chandler | Email: rebecca.chandler@capitol.tn.gov | Phone: 615-741-2564 SB 281 - HB 882 SUMMARY OF BILL: Prohibits the Department of Environment and Conservation (TDEC) from regulating or overseeing activities on a farm involving topsoil, rock removal, or the building of a pond when such activities are conducted in an area that is less than three acres in size and the property on which the activities occur has a greenbelt classification pursuant to the Agricultural Forest and Open Spaced Lance Act of 1976. FISCAL IMPACT: STATE GOVERNMENT REVENUE Environmental Protection Fund FY25-26 & Subsequent Years ($8,900) Assumptions: • The number of greenbelt properties the proposed legislation will impact is unknown. • It is assumed that most farms where these activities occur and currently require a permit are already registered and classified as greenbelt properties. • Based on information provided by TDEC, this legislation will reduce permit requirements, leading to fewer issuances of General Construction Permits (GCP) and Aquatic Resource Alteration Permits (ARAP) by the Division of Water Resources (DWR), as well as TN multi-sector permits by the Division of Mining and Geological Resources (DMGR). • Over the past five years, the DWR has issued the following number of permits: • The revenue collected from these permits over the past five years totals $16,300, averaging $3,260 per year ($16,300 / 5 years) from DWR permit issuances. • The DMGR annually issues the following number of permits for areas less than three acres in size: Permit Type Permits Issued Permit Cost Total GCP - Topsoil Removal 22 $250 $5,500 GCP - Pond Construction 40 $250 $10,000 ARAP 16 $50 $800 Total: $16,300 SB 281 - HB 882 2 • The annual revenue collected from such permit issuances total $5,620. • This legislation will result such permittees no longer needing a permit; therefore, there will be a decrease in state revenue. • There will be a recurring decrease in state revenue to the Environmental Protection Fund in FY25-26 and subsequent years of $8,880 ($3,260 DWR permits + $5,620 DMGR permits). • Any impact on state expenditures is estimated to be not significant. CERTIFICATION: The information contained herein is true and correct to the best of my knowledge. Bojan Savic, Executive Director Permit/Fee Type Permits Issued Permit Cost Total National Pollutant Discharge Elimination System 3 $690 $2,070 Multi-Sector Storm Water Permit 8 $350 $2,800 Plan Review 3 $250 $750 Total: $5,620