Tennessee’s drycleaning cleanup fund covers eligible facilities with cost limits

Owners and operators of eligible facilities can apply to Tennessee’s drycleaning cleanup fund for pollution investigation and cleanup. Registered drycleaners, in-state wholesale distributors, and registered abandoned drycleaners qualify to apply. Current owners or operators of recently abandoned drycleaners may also apply if the facility closed under program rules no more than 180 days before applying. Recently abandoned drycleaners must register before or when they apply. Acceptance requires following program rules and paying required charges. Past noncompliance can lead to denial. Approved sites receive priority based partly on risks to people and the environment. Participants pay 10% of each contractor bill, up to $50,000 per site. Returning to the program requires a new deductible, meaning another participant share of cleanup bills. Spending cannot exceed $500,000 per facility each year or leave the fund below $100,000 unless an emergency poses an imminent and substantial threat to people or the environment. In that emergency, the commissioner must approve reimbursement of reasonable costs to remove the threat. Total spending cannot exceed $2 million per accepted registered facility. These provisions took effect July 1, 2026.

Covered owners and operators must register their facilities annually and pay required charges. Drycleaners planning to operate during any part of the year and in-state wholesale distributors must register. Accepted cleanup participants keep registering after operations stop or may lose coverage. All required fees, surcharges, and penalties must be paid before a registration certificate is issued. Drycleaners must be registered to buy solvent. Sellers cannot sell or deliver drycleaning solvents, supplies, or services to a drycleaner unless it visibly posts a valid registration certificate. Solvent sellers collect and send the surcharge to the state program. For sellers outside Tennessee, either the buyer or seller may do so. The commissioner may adjust fees, surcharges, and deductibles after notice and a chance for public comment. Recently abandoned drycleaners pay no solvent surcharge. Their fees and deductibles cannot exceed those for the largest drycleaner. Violations can bring penalties up to $10,000 each. Unpaid fees or surcharges trigger penalties up to $50 per day. A person must request a hearing within 30 days after a penalty order is served to challenge it. These provisions took effect July 1, 2026.

The law protects eligible owners and operators from liability under other laws for pollution releases, except for their required share of cleanup bills. Protection covers owners or operators of registered facilities and current or former owners or operators of recently abandoned drycleaners. Protection requires payment of all required fees and surcharges, acceptance into the fund, and substantial compliance with program rules and the commissioner’s investigation or cleanup requirements. Claims based solely on personal injuries from solvent exposure remain allowed. The protection also does not limit lenders’ claims under financing agreements. These provisions took effect July 1, 2026.

The commissioner overseeing Tennessee’s drycleaning cleanup program may enter covered properties, inspect and copy compliance records, and request information. These powers cover registered facilities and other properties meeting the evidence requirement. The commissioner may request information about compliance from people or companies. Property entry and record inspections must occur at reasonable times. Entry onto properties other than registered facilities requires substantial evidence that drycleaning or in-state wholesale distribution occurs or occurred there. These provisions took effect July 1, 2026.