Tennessee Senate Bill SB1274

Tennessee 2025-2026 Regular Session

• Introduced: 2/6/25
• Engrossed: 4/15/25
• Enrolled: 4/22/25
• Passed: 5/5/25
• Chaptered: 5/13/25

Caption

AN ACT to amend Tennessee Code Annotated, Title 68, Chapter 203, Part 1 and Title 68, Chapter 211, Part 1, relative to environmental regulatory programs.

Summary

SB1274 revises Tennessee’s environmental regulatory fee and permitting framework for several programs administered under Title 68. The bill changes who sets certain fees for the Safe Drinking Water Act, Water Quality Control Act, oil and gas production, and mineral test holes, and it increases the filing/processing fee and annual maintenance fee for most solid waste landfills. It also adds definitions for coal combustion residuals and coal combustion residuals disposal units, which are the facilities used to manage coal ash and related wastes from power generation. The bill further tightens coal ash disposal permitting by requiring a liner and final cap for new coal ash disposal facilities and expansions, while preserving exceptions for certain beneficial or specialized uses such as fill, agricultural use, engineered feedstock uses, wastewater treatment units, and other department-authorized uses. It also authorizes the Department of Environment and Conservation to recover direct and indirect costs associated with regulating coal combustion residuals disposal units, subject to board rules that must include an annual cap. If the department uses this cost-recovery mechanism, it may not also assess the separate fees otherwise authorized under Title 68, Chapter 203 for those units. In addition, the bill adjusts the funding split for the division of mineral and geologic resources, directing 58% of environmental protection fees and 42% of state appropriations to that division. Overall, the measure updates fee schedules, clarifies regulatory terms, and expands the state’s authority to regulate and fund oversight of coal ash and other environmental permitting programs. The bill appears to have broad support overall, advancing through committee with strong majorities and passing the Senate and House on final consideration. The votes suggest general agreement on the need to update environmental fees and strengthen oversight of coal ash disposal, though the final floor votes show some opposition remained. The main points of contention likely centered on the increased fees for landfill permitting and annual maintenance, the new liner-and-cap requirement for coal ash disposal facilities, and the department’s authority to recover regulatory costs from disposal-unit operators. These provisions affect landfill operators, coal ash disposal facilities, electric utilities, independent power producers, and regulated industries that rely on environmental permits and inspections.

Impact

SB1274 amends Tennessee Code Annotated Titles 68 and 60 to change fee-setting authority, increase certain environmental permit fees, define coal combustion residuals and related disposal units, and impose additional permitting and design requirements for coal ash disposal facilities. It also creates a cost-recovery mechanism for the Department of Environment and Conservation and adjusts the funding allocation for mineral and geologic resources, affecting regulated entities in the solid waste, coal ash, oil and gas, drinking water, and water quality sectors.

Sentiment

The bill’s overall sentiment was favorable, as reflected by strong committee recommendations and large floor majorities in both chambers. The legislative record suggests the measure was viewed as a practical update to environmental regulatory programs and a way to strengthen oversight and funding for state environmental administration. However, the presence of some no votes indicates that not all members supported the fee increases and expanded regulatory requirements.

Contention

The most likely areas of disagreement were the higher landfill fees, the new annual maintenance fee structure, and the added regulatory burden on coal ash disposal units, including the liner and final cap requirement. Operators of landfills, utilities, and coal ash facilities would be most directly affected, while supporters likely emphasized environmental protection, clearer definitions, and improved cost recovery for state oversight. The cost-recovery provision may also have raised concern because it allows the department to shift regulatory costs to operators, though it is paired with an annual cap and a prohibition on duplicative fees.