Rules & Regulations of the State of Tennessee
Title 0400 - Environment and Conservation
Subtitle 0400-15 - Division of Remediation
Chapter 0400-15-03 - Drycleaner Environmental Response Program
Section 0400-15-03-.03 - REGISTRATION, FEES AND SURCHARGES, CERTIFICATE ISSUANCE

(a) All operators of drycleaning facilities conducting or intending to conduct drycleaning operations;

(b) All operators of in-state wholesale distribution facilities;

(c) Current or prior owners or operators of abandoned drycleaning facilities;

(d) All wholesale distributors who sell, transfer, or supply drycleaning solvents and supplies to Tennessee drycleaning facilities; and

(e) Impacted third parties.

(a) Duty to Register

(b) Current or prior owners or operators of abandoned drycleaning facilities may register the abandoned drycleaning facility in accordance with T.C.A. § 68-217-106(b). The interest payable shall be in accordance with Article XI, Section 7 of the Constitution of the State of Tennessee.

(c)

(d) All wholesale distributors who supply solvent to Tennessee drycleaners shall register with the Commissioner. Each in-state wholesale distributor shall pay an annual registration fee equal to the highest fee paid by a registered drycleaning facility or $5,500, whichever is higher. In-state and out-of-state wholesale distributors shall pay solvent surcharge fees for all solvent sold to Tennessee drycleaners in accordance with paragraph (6) of this rule.

(e) The Department shall attempt to notify and submit a registration fee payment form to each facility registered in the DCERP at least 30 days before the payment of the registration fee is due. Any failure of the Department to do so is not justification to withhold payment of any registration fee and will not affect the generally applicable due date for fee payment.

(f) Beginning with the calendar year 2001 registration, the registration fee shall be due on October 31 of the preceding year. The registrant shall submit the appropriate registration form and pay the registration fee on or before the due date.

(g) A registration form and other required documents shall be submitted to the Department at least two weeks prior to commencing operations. A revised registration form shall be submitted within 30 days of a change in information that requires filing a revised registration. A change in information that requires filing a revised registration form includes the following: a change in ownership, operation, or management of the facility or real property or a change in the facility name previously reported to the Department. The form shall be submitted by one of the persons described in subparagraphs (2)(a), (b), or (d) of this rule.

(h) An impacted third party that petitions for entry into the DCERP must ensure that all applicable registration fees for the drycleaning or in-state wholesale distribution facility are paid. The registration fee for an impacted third party shall be the same as the drycleaning or in-state wholesale distribution facility would be, provided the facility is currently operating. If a drycleaning or in-state wholesale distribution facility is not currently operating at the property, the impacted third party would pay the abandoned drycleaning facility registration fee, subject to the provisions of subparagraph (4)(d) of Rule 0400-15-03-.05. This subparagraph does not affect any penalties or other liabilities incurred pursuant to the Act or this chapter, except that there shall be no double recovery of registration fees by the Department.

(a) Certificates of Registration for each facility will be issued to the person who demonstrates compliance with the Act and this chapter to the satisfaction of the Department, including but not limited to implementation of applicable BMPs; submits a completed registration form; pays the annual registration fee; and timely submits quarterly solvent reports. The certificate will contain the facility identification number, facility name, and the facility address. The issuance of a certificate does not imply DCERF eligibility or compliance with other regulations.

(b) Beginning with the calendar year 2001, the certificates will be effective for one year, from January 1 through December 31, unless otherwise terminated under this chapter.

(c) It shall be unlawful to sell or transfer drycleaning solvent to any person owning or operating a drycleaning facility unless the operator of the drycleaning facility has conspicuously posted at the facility a valid certificate evidencing registration of the drycleaning facility. Violators of this provision shall be subject to the penalties identified in T.C.A. § 68-217-106(d).

(a) The Commissioner may issue an order to revoke a facility owner or operator's Certificate of Registration for a drycleaning facility or withhold re-issuance due to violations of the Act or this chapter. Such revocation or non-renewal shall be conducted in accordance with the following procedures:

(b) The order to revoke or not renew a registration will state the grounds for the decision, its effective date, and a requirement to surrender the Certificate of Registration.

(c) A person whose registration is revoked shall not be entitled to any refund on the paid registration fee.

(d) After the revocation of a facility's registration, the operator shall surrender the Certificate of Registration, and the Commissioner may notify wholesale distributors of the revocation.

(e) Following revocation or non-renewal of a registration, a person may reapply for registration by submitting a complete and truthful registration form; paying all outstanding fees, surcharges, penalties, and interest; submitting a new registration fee; demonstrating, to the satisfaction of the Commissioner, the ability to maintain compliance with the Act and this chapter; and meeting any other requirements for registration.

(f) Any person receiving an order, in accordance with subparagraph (a) of this paragraph, may appeal by filing a written petition in accordance with Rule 0400-15-03-.10.

(a) The surcharge fee applies to the purchase or transfer of drycleaning solvent. The surcharge fee is $15 for each gallon of dense non-aqueous solvent or product and $1.50 for each gallon of light non-aqueous solvent or product obtained by a drycleaning facility. There will be no solvent surcharge fee on CO2.

(b) The surcharge fee shall be collected by the wholesale distributor and forwarded with completed forms (provided by the Department) to the Department on a quarterly basis for the previous calendar quarter. Each active drycleaning facility shall submit (on forms provided by the Department) quarterly reports of solvent received. Both the wholesale distributor's quarterly solvent sales reports and fees and the active drycleaning facility's solvent reports are due by the end of the month following the reporting quarter. For the reports required by this subparagraph, the date reported shall be the date the solvent is delivered to the facility.

All proceeds from the collection of solvent surcharges shall be deposited into the DCERF.

(c) The operator of a drycleaning facility shall purchase solvent from a wholesale distributor that collects surcharge fees. Where a wholesale distributor fails to collect the surcharge fee on a sale of solvent, the owner or operator shall bring to the attention of the wholesale distributor its obligation pursuant to the Act to collect the surcharge fees. If the wholesale distributor still refuses to collect and remit the surcharge fees to the Department, then the owner or operator shall report such facts to the Department within 72 hours and, if the sale is consummated, shall remit the surcharge fee directly to the Department within 30 days of the sale. Failure of the drycleaner to follow this procedure shall subject it to the penalties prescribed in T.C.A. § 68-217-108 for failure to pay a surcharge fee. This subparagraph does not otherwise affect any penalties or other liabilities incurred by a wholesale distributor pursuant to the Act or this chapter by failing to collect or remit surcharge fees, except that there shall be no double recovery of surcharge fees by the Commissioner.

(d) A sale or transfer of solvent between owner or operators shall require that the purchasing owner or operator collect the surcharge for remittance to the Department, if a surcharge has not already been collected on the sale or transfer of solvent as part of a prior transaction, and if the purchasing owner or operator is subject to the reporting requirements of subparagraph (b) of this paragraph.

(e) Every person responsible for collecting or holding surcharges under the Act has the obligation to hold the collected surcharges in trust for the DCERF until the collected surcharges are paid to the DCERF according to the Act and this chapter. The person holding the collected surcharges shall defend and protect, at the person's own expense, the collected surcharges from all losses and expenses of whatever nature, including but not limited to those occasioned by suits, levies, garnishments, and all other actions, losses, and expenses of whatever description, including all banking fees and charges or similar expenses. The person holding the collected surcharges shall promptly notify the Commissioner of any action or circumstance which causes or threatens the collected surcharges with any loss or diminishment, including the person's insolvency or filing for protection under federal bankruptcy law. All surcharges are the property of the DCERF, and the person has no equitable right or claim to the surcharges. Any use of the surcharges or failure to defend the surcharges from loss or diminishment shall be deemed a violation of the trust relationship and this chapter. The person holding the collected surcharge shall be liable to the DCERF for all losses or diminishment of surcharges, including failure to collect. Surcharges should be deposited in a separate account used only for the purposes of this trust, or in the alternative, the surcharges should be clearly identified as trust property in the records and accounts of the person collecting the surcharge.

(a) Failure or refusal to pay a lawfully levied registration fee or solvent surcharge fee or any part of that registration fee or solvent surcharge will subject the person responsible for such payment to the provisions of T.C.A. § 68-217-108 and result in the denial of DCERF access and the inability to receive DCERF reimbursement.

(b) The Department shall not issue a Certificate of Registration to an owner or operator who has any facility for which fees, surcharges, penalties, or interest lawfully levied by the Department under this chapter have not been paid.