HB 124 – SB 1274
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
HB 124 – SB 1274
SUMMARY OF BILL: Removes Coal Combustion Residuals (CCR) from the
Environmental Protection Fund statute. Adds the Division of Mining and Geological Resources
(DMGR) to the named divisions under the statute. Authorizes the Air Pollution Control Board
(Board) to raise the maximum per-ton fee for Non-Title V sources from, $18.75 to $38.00.
FISCAL IMPACT:
STATE GOVERNMENT
REVENUE Environmental Protection Fund
FY25-26 & Subsequent Years $1,613,300
Assumptions:
• Tennessee Code Annotated Title 68, Chapter 203 establishes the Tennessee Environmental
Protection Fund (Fund) to support regulatory programs through fees from regulated
entities. It funds monitoring, permitting, inspections, and enforcement for air pollution,
water quality, and waste management. The Tennessee Board of Water Quality, Oil, and Gas
and the Air Pollution Control Board set fees within statutory limits, with revenue allocated
to the Department of Environment and Conservation (TDEC) divisions.
• The proposed legislation modifies current statute by removing CCRs from its scope,
resulting in CCR-related fees from being governed by this Fund.
• Currently, The Tennessee Valley Authority (TVA) reimburses the state for CCR-related
administrative and enforcement activities. The TVA will continue reimbursing the state for
such expenses, maintaining the current $900,000 in annual funding. Since these costs will
still be covered through the TVA reimbursements under a separate program, it is assumed
there will be no increase in compliance costs or loss of state revenue as a result of this
change.
• The proposed legislation adds DMGR to the statute, allowing it to update its name in rules
and collect fees under its own designation. Since state funding was already transferred in
FY24-25, no new funding is required.
• The proposed legislation raises the maximum per-ton fee that the Board is authorized to set
for Non-Title V sources from $18.75 to $38.00 Any fee increase would require Board
approval through the rulemaking process. For the proposes of this analysis, it is assumed
the Board will approve.
• Based on information provided by TDEC, if the Board raise the fees to $38.00 per ton, the
Fund could see an estimated increase in state revenue of $1,613,300 in FY25-26 and
subsequent years.
HB 124 – SB 1274 2
CERTIFICATION:
The information contained herein is true and correct to the best of my knowledge.
Bojan Savic, Executive Director