SB 915 - HB 1129 FISCAL NOTE Fiscal Review Committee Tennessee General Assembly March 7, 2025 Fiscal Analyst: Rebecca Chandler | Email: rebecca.chandler@capitol.tn.gov | Phone: 615-741-2564 SB 915 - HB 1129 SUMMARY OF BILL: Exempts borrow pits from existing restrictions in a Federal Emergency Management (FEMA) certified county if used for Hurricane Helene recovery efforts under a state or local government contract. FISCAL IMPACT: OTHER FISCAL IMPACT Failure to meet federal Clean Water Act and Water Pollution Control Act standards may put federal reimbursements at risk. If found in violation, the Department of Transportation could be required to return federal funds to the Federal Highway Administration. Assumptions: • The proposed legislation defines “FEMA-certified counties” as those declared disaster areas between September 26, 2024, and October 3, 2024. • Tennessee Code Annotated § 54-1-128(b) exempts state road work projects from local and regional zoning and planning regulations for borrow material, provided the borrow pits that meet specific conditions listed below: o Be temporary and cannot be used beyond the state project’s completion date; o Comply with all stormwater runoff requirements; o Meet federal Clean Water Act and Water Pollution Control Act (Act) requirements; o Have an approved reclamation plan from the local municipality or county, but work can begin if approval is delayed beyond 30 days; and o Cannot be on or impact roads operating below a level of service C. • The proposed legislation exempts borrow pits used for Hurricane Helene recovery efforts from these restrictions. • Without containment requirements, borrow pit pollution could lead to cleanup costs for TDOT, including mud and slurry on state facilities. The proposed legislation does not grant TDOT authority to require cleanup. • Failure to comply with the Act could jeopardize federal reimbursements TDOT receives. • To date, TDOT has received $102,000,000 in federal funds for Hurricane Helene recovery efforts, with potential for additional funds. If deemed to be in violation, then the department may have to return an unknown portion of funds to Federal Highway Administration. The extent and timing of which cannot be reasonably determined. SB 915 - HB 1129 2 CERTIFICATION: The information contained herein is true and correct to the best of my knowledge. Bojan Savic, Executive Director