Air Pollution Control (APC) Fees

APC Fees

The Tennessee Division of Air Pollution Control (APC) is responsible for monitoring, inspecting, permitting, and regulating most air pollution sources in Tennessee (excluding non-State owned air pollution sources in Davidson, Hamilton, Knox, and Shelby Counties as they are regulated by local air programs in those counties). APC monitors air quality in order to assure compliance with federal clean air standards and alert citizens to potential hazardous conditions such as Ozone Alert days. We regularly inspect facilities to ensure that facilities are operating properly and complying with rules that help protect the air we breathe. Permits provide the conditions that facilities need to operate by and specify what records need to be kept to show that facilities are maintaining compliance with the rules. Currently APC has permitted approximately 7,800 different air emission sources in Tennessee and new ones are regularly being added. The Tennessee Environmental Protection Fund authorizes the Department of Environment and Conservation to assess fees to help defray the costs of administering the regulatory programs under each statute listed in Tennessee Code Annotated (TCA) § 68-203-101(b). The moneys shall be used for improved performance in permitting, monitoring, investigation, enforcement, and administration of the department's functions under each statute listed in TCA § 68-203-101(b), including the payment of salaries and benefits to employees administering the regulatory programs under each statute listed in TCA § 68-203-101(b).

Fees due to the Division of Air Pollution Control may be paid in three different ways: 1) by personal or company check, 2) by credit or debit card, and 3) by Electronic Fund Transfer or Automated Clearing House. Instructions for each type of payment are provided below. For each type of payment, please include a note of what they payment is for (e.g., Construction Application Fee, General Permit Notice of Intent, Smoke School Registration, Annual Non-Title V Fee, Annual Title V Fee (full, partial, or final payment)) and include your facility name and, if available, the six-digit facility ID (e.g., Olivia Road House, Facility ID 19-9999).

Personal or Company Check

Make check payable to “Treasurer, State of Tennessee” and mail it to:

Division of Fiscal Services - Consolidated Fees Section
500 James Robertson Pkwy, 6th Floor
Nashville, TN 37243

Credit or Debit Card

You should complete the Request for Credit Card Payment form  (coming soon) and fax or email it as indicated on the form. Should you need further assistance, you may contact the Tennessee Department of Environment and Conservation, Division of Fiscal Services, Consolidated Fee Section by telephone at (615) 532-0065 or via email at TDEC.fees@tn.gov.

Electronic Fund Transfer (EFT) or Automated Clearing House (ACH)

  • View Information for submitting an EFT or ACH payment. (coming soon)

Should you need further assistance, you may contact the Tennessee Department of Environment and Conservation, Division of Fiscal Services, Consolidated Fee Section by telephone at (615) 532-0065 or via email at TDEC.fees@tn.gov for information on how to set up an EFT or ACH Payment.

APC assesses four types of fees associated with stationary source permits and permitting:

  1. Construction and modification fees
  2. Non-Title V (which includes minor and conditional major) source annual emission fees
  3. Annual conditional major permit review fees
  4. Title V source annual emission fees. Sources required to have a Title V permit are primarily major sources, but some non-major sources must have Title V permits.

APC also trains interested people in how to “read” visible emissions from sources of air pollution through our Visible Emissions Evaluation School (Smoke School), and a fee is charged for receiving this training.

Construction and Modification Application Fees

With the exception of applications for coverage under specific general permits, construction permit application fees for true minor and conditional major sources are based on the anticipated maximum emission rate of all regulated pollutants emitted by the source combined. Emissions are not double-counted if they fall into more than one category, such as a hazardous air pollutant that is also a volatile organic compound. The fees in the table below apply to all sources applying for a construction permit, with the exception of certain general permit notice of coverage applications.

To modify a source, the owner or operator must pay a permit processing fee equal to one-half the fee in the table below, not to exceed $500, based on the change in the anticipated maximum emission rate.

Anticipated Maximum Emission Rate (Tons/Year) Permit Fee
Less than 10 $ 100
10 to less than 100 $ 500
100 to less than 250 $1,000
250 to less than 500 $2,000
500 to less than 1000 $3,000
1,000 to less than 5,000 $4,000
5,000 or greater $5,000

Construction/Modification Fees for General Permit Notices of Coverage (effective July 1, 2024)

General Permit Category Construction and Modification Permit Application Fee
Perchloroethylene and Petroleum Solvent Dry Cleaners
 $100
Concrete batch plants
 $100
Portable rock crushers
 $100
Asphalt plants
 $250
Air Curtain Incinerators
 $500

Non-Title V Source Annual Emission Fees

Non-Title V annual fees are required from sources that have allowable emissions of less than 100 tons of each criteria pollutant/year, less than 10 tons/year of a single hazardous air pollutant, and less than 25 tons per year of a combination of hazardous air pollutants (true minor and conditional major sources). With the exception of sources covered under specific general permits, the current non-Title V fee rate is $18.75 per ton of allowable emissions (excluding carbon monoxide).

Annual Fees for Sources with Coverage Under Specific General Permits

A responsible official of a source operating under a general permit shall pay an annual emissions fee based on the allowable emissions specified in the general permit unless different fee rates are stipulated in the following table.

General Permit Category Combined Annual Emission Fee and Base Fee Permit Review Fee
Perchloroethylene and Petroleum Solvent Dry Cleaners
 $0
 $0
Concrete batch plants with emissions less than 10 tons per calendar year
 $0
 $0
Concrete batch plants with emissions greater than or equal to 10 tons per calendar year
 $400
 $0
Portable rock crushers at true minor facilities
 $1,000
 $0
Portable rock crushers at conditional major facilities
 $1,000
 $500
Asphalt plants
 $1,000
 $500

Conditional Major Permit Review Fees

The services we provide to ensure conditional major sources are operating below the major source emission thresholds are assessed as a conditional major permit review fee.  The technical services provided include, but are not limited to, permit writing with source-specific emission thresholds and compliance conditions, source inspections, and the review of annual reports to ensure compliance with conditional major requirements.  

Allowable Tons Per Year Review Fee
0-50
 $250
50.1-100 TPY
 $500
100.1-250 TPY
 $1,000
250.1 and up
 $2,000

Construction and Modification Application Fees for Title V Sources

On November 9, 2023, the Board of Air Pollution Control adopted changes to Tennessee’s air permit fee rules. These changed included new and increased fees for air quality construction permit applications submitted by owners and operators of Title V facilities. These new and increased fees go into effect July 1, 2024.

The application fee changes are as follows:

  • The fee for non-PSD construction permits goes from the rates listed in Schedule A of rule 1200-03-26-.02(5)(g) to a flat fee of $7000.
  • Revisions to a construction permit application after the application has been deemed complete and that result in an increase in allowable emissions or an increase in actual emissions, as specified in the original application, are subject to a fee of $3500.
  • The fee for PSD construction permits is increased to $70,000. The fee for major source non-attainment new source review construction permits is also $70,000.
  • The fee for a permit to establish a plantwide applicability limit (PAL) is $10,000 per pollutant. (For example, if the PAL is for one pollutant, the fee would be $10,000. If the PAL is for five pollutants, the fee would be $50,000.) There currently is no fee for renewal of a PAL.
  • If an existing Title V facility submits an application to accept voluntary limits to opt out of being a major source to become a conditional major source (“opt-out” application), the fee is $18,000.

Along with these changes, some new deadlines for the Division to issue or deny a permit have been established.

  • The deadline for issuing a PAL permit is 365 days from receipt of a complete application.
  • The deadline for a permit to opt out of being a major source is 365 days.
  • Both of these deadlines contain a provision for an extension of the deadline provided that the applicant agrees to the extension in writing.

There is already a deadline for non-PSD and PSD construction permits of 180 days from receipt of a complete application with a provision for an extension of the deadline.

These increased and new fees and deadlines apply to applications that are complete on or after July 1, 2024. If you have submitted a construction permit application, application for a revision to an issued construction permit, a PAL permit application, or an “opt-out” application and have received an incomplete letter, you should respond to that incomplete letter, properly addressing all issues raised in the incomplete letter, prior to July 1, 2024, in order to avoid being subject to the new and increased fees.

Also, the Tennessee Air Pollution Control Rules provide the Division up to 30 days from receipt to make a completeness determination for a construction permit application. If you submit or have submitted an application to the Division on or after June 1, 2024, and the Division determines that the application is incomplete, you may receive an incomplete letter after July 1st. In such case, the new and increased fees apply.

Please note that a construction permit application is not considered complete until the application fee has been paid. Therefore, if you submit a construction permit application prior to July 1, 2024, but don’t pay the application fee until on or after July 1st, the new and increased fee rates will apply.

2025 Approved Title V Annual Emission Fee Rates

The Dollar Per Ton fees were not changed as part of the fee diversification project.

Fee Structure for Fees Due in 2025

Calculate the Emissions Fee using the following rates.

Emission Fee Rate Chargeable Ton
Allowable Emission Fee Rates $48.50 / Chargeable Ton of Emissions for non-EGU sources
$68.00 / Chargeable Ton of Emissions for EGU sources
Actual Emission Fee Rates $70.50 / Chargeable Ton of Emissions for non-EGU sources
$98.50 / Chargeable Ton of Emissions for EGU sources

ADD the Base Fee determined below to the above calculated Emissions Fee. The Base Fee is determined by the number of federal air standards applicable to the facility.

Number of federal air standards Base Fee
0 $10,000
1 $15,000
2 to 3 $20,000
4 to 5 $30,000
6 to 10 $40,000
11 to 20 $50,000
21 and up $75,000
  • Note that there is not a minimum fee after fiscal year 2024.
  • An emission cap of 4,000 tons per year per regulated pollutant per major source SIC code shall apply to actual or allowable based emission fees. A major source annual emission fee will not be charged for emissions in excess of the cap(s) or for carbon monoxide.

In addition to the annual fee calculated as described above,

  • For each minor permit modification issued in accordance with subpart (11)(f)5(ii) of Rule 1200-03-09-.02 during the calendar year preceding the year in which the annual fee is due, the responsible official shall pay $2,800.
  • For each significant modification issued in accordance with subpart (11)(f)5(iv) of Rule 1200-03-09-.02 during the calendar year preceding the year in which the annual fee is due, the responsible official shall pay $5,000.
  • The Title V modification fee is not required for complete minor permit modification and significant modification applications received prior to July 1, 2024.

Disclaimer: If any differences exist between the information on this page and the effective Tennessee Comprehensive Rules and Regulations, the Tennessee Comprehensive Rules and Regulations take precedence.

Past Stakeholder  Engagement and Webinars

Division of Air Pollution Control Engaged Stakeholders to Develop Sustainable Title V Fee Structure

The Clean Air Act dictates that each state’s Title V program must be self-sustaining. In recent years, Tennessee’s Title V program has undergone significant fee increases to meet this threshold. The Division of Air Pollution Control believes that a more sustainable and diverse fee structure will help alleviate this problem. Its leadership plans to engage the Title V regulated community in 2022 to develop a long-term funding solution.

Tennessee’s Title V program is primarily funded through emissions-based fees. As the regulated community in Tennessee makes major strides in limiting its air pollution emissions, the Title V program has become increasingly underfunded. The Division plans to explore a more diverse fee structure alongside stakeholders to avoid the frequently reoccurring need for the Division of Air Pollution Control to request emission-fee rate increases.

The Division has developed a stakeholder engagement plan, which will include meetings, webinars, and surveys to capture feedback. We look forward to your participation in this process.

Current Title V Fee Structure:

  • Dollar per ton fee – fees paid based on actual or allowable emissions (facilities may choose). Facilities may also choose to pay based on a mix of actual and allowable emissions. Non-EGUs and EGUs have different rates. TDEC considers this a Variable Fee.
  • Base Fee – a flat fee that each facility pays. TDEC considers this a Non-variable Fee.
  • Minimum Fee – A facility calculates its dollar per ton fee and adds it to the base fee. If that amount is less than the minimum fee, they pay the minimum fee. TDEC considers this a Non-variable Fee.
  • Construction Application Permit Fee (graduated scale based on emissions) – A fee that is due when a facility submits an application to construct a new source of air pollution or modify an existing source of air pollution. The amount of the fee is based on the anticipated maximum emission rate and ranges from $100 to $5000. Prior to July 1, 2022, existing Title V facilities were exempt from construction application fees. After July 1, 2022, Title V facilities will pay this fee. TDEC considers this a Variable Fee.

Additional Options:

Re-work Construction Application Permit Fee. TDEC considers this a Variable Fee. It could include:

  • Adjust the graduated scale based on emissions – Similar structure as current construction application fee, but with different rates. TDEC considers this a Variable Fee.
  • Various fees based on type of permit – This option is to modify or add to the construction application permit  fee based on the type of permit (non-PSD construction, PSD construction, and Nonattainment NSR  construction)
  • Individual services within each construction permit – This would include additional fees for specific work activities associated some construction permit applications (e.g., BACT analyses, air quality modeling).

Fees Amendments or Modifications to Permits – APC currently does not charge fees for modifying air quality permits. TDEC considers this a Variable Fee. This includes:

  • Amendments to construction permits
  • Modifications and Amendments to Title V Operating permits:
    • Administrative Amendments
    • Minor Modifications
    • Significant Modifications
    • Re-Opening for Cause
  • Changes at Title V facilities that require notification from the facility but does not require a change to the Title  V operating permit. This includes:
    • 502(b)(10) and Operational Flexibility Changes
    • Insignificant Activities and Insignificant Sources
  • Exempt Sources – Title V facilities are not required to notify APC of exempt sources.  However, facilities sometime request concurrence from APC that a source qualifies as an exemption. APC’s response to such request is referred to as an Exemption Letter.

PAL (Plant-wide Applicability Limit) permit fee
Fees for establishing and or renewing a PAL emission limit. Since PALs are pollutant-specific, this fee would be per-pollutant.  PALs must be renewed every 10 years. TDEC considers this a Variable Fee. 

Source Test Review Fee
Some air quality permits and federal regulations require facilities to conduct tests to measure emissions emitted from a source. This is referred to as a “stack test”. Such facilities are required to submit the test results to APC who reviews and approves the test methods and results. Since many source tests are only required once, TDEC considers this a Variable Fee.

Initial Operating Permit Fee
This would be a fee for a new facility to obtain their first Title V operating permit. It would also be required for an existing Conditional Major source that adds or modifies emission units so that allowable emissions exceed the Major Source Thresholds. It is also required for sources that voluntarily relax production or emission limits that had been in place to make the facility a Conditional Major source. These types of facilities would first have to obtain a construction permit.  Once the source is constructed or modified, the facility would apply for its initial operating permit. Since an initial operating permit would only happen once during the life of a Title V facility, TDEC considers this a Variable Fee.

Requested Board Variance Fee
For when an entity requests a variance from the Air Pollution Control Board that would allow a facility to permanently or temporarily violate a provision of Tennessee’s Air Quality Rules. TDEC considers this a Variable Fee.

Source-Specific SIP Revision Fee
For when an entity requests a revision to a permit that would be in violation of a provision in Tennessee’s State Implementation Plan (SIP). The difference between this and a Board Variance is that the source-specific SIP revision would require public notification and review and approval by EPA. If a Board Variance allows a facility to violate a rule that is part of Tennessee’s SIP, the facility would still be in violation of the SIP unless a source-specific SIP revision is approved by EPA.  TDEC considers this a Variable Fee.

Initial Conditional Major Permit (going from Title V to Conditional Major)
If an existing Title V facility removes emissions sources, reduces production, or otherwise changes its operations so that it can accept voluntary emission or production limits to reduce allowable emissions below major source thresholds, it must apply for a Condition Major Operating permit. Since the transition from Title V to Conditional Major generally occurs once in the life of a facility, TDEC considers this a Variable fee.

Complexity Fee
An additional annual fee collected to represent the complexity of some sources vs. others within the Title V program based on the chosen factor like applicable federal programs or number of sources at the facility. TDEC considers this a Non-variable fee.

AEAR (Actual Emissions Analysis Required) review fee
Facilities that determine Title V fees based on actual or a mixture of actual or allowable fees must submit an AEAR report each year. APC staff must review these reports to determine if they are correct. TDEC considers this a Non-variable fee.

Acid Rain Permit Fee
Facilities subject to EPA’s Acid Rain permit must obtain a permit that includes the requirement of the Acid Rain program every five years. Note that currently, only TVA facilities are subject to the Acid Rain program. TDEC considers this a Non-variable fee.

Report Review Fees
Title V facilities are required to submit Annual Compliance Certification every year and a Semi-Annual Report every six months. Other regular reports may be submitted on a regular basis in accordance with federal regulations. These reports must be reviewed by APC staff to determine completeness and compliance. TDEC considers this a Non-variable fee.

Emissions Inventory Review Fee
 Applies to sources that are major for Criteria Pollutants (see definition of Regulated Pollutant).  All must submit an inventory of emissions every three years and higher emitting sources must submit their inventory every year. APC staff must review these reports to ensure that they are correct and enter the information into EPA’s national emissions inventory database. TDEC considers this a Non-variable fee.

502(b)(10) and Operational Flexibility (op-flex)
Changes at a Title V source that does not require a change to the Title V operating permit. If, however,  the change includes constructing or modifying an emissions source, it would require a construction fee and not qualify for a 502(b)(10) or op-flex.

Acid Rain program
An EPA program established in accordance with the federal Clean Air Act that requires reductions of sulfur dioxide and nitrogen oxides, the primary precursors of acid rain, from the power sector.

Actual
Actual Emissions (usually expressed in tons per year) that are emitted by a facility. Tons per year are expressed either in a calendar year or state fiscal year (July through June).

Administrative Amendment
Simple changes to Title V operating permits, such as name and ownership changes and correcting typographical errors.

AEAR Reports
Facilities that determine Title V fees based on actual or a mixture of actual or allowable fees must submit an AEAR report, including how the actual emissions were calculated, each year.

Allowable
The emission rate that is allowed by an issued air quality permit.  If an air quality permit has yet to be issued, the allowable emission rate is determined by applicable state and federal air quality regulations as well as operational constraints of the facility.

Conditional Major Source
A facility whose allowable emissions would make it a major source, but has taken voluntary limits to make it a non-major source.

Construction Application Fee
A fee that is due when a facility submits an application to construct a new source of air pollution or modify an existing source of air pollution. This includes applications for PSD permits, nonattainment NSR permits, and non-PSD construction permits (all other applications that are not PSD or nonattainment NSR). A construction permit is also required to establish or change an emission or production limit. However, for Title V sources, the construction or modification of many sources can be done through a minor modification.

CPI
Consumer Price Index. A popular measure of inflation (and deflation) published by the federal Bureau of Labor Statistics.

EGU
Electric Generating Units, these are power plants. All EGUs in TN are owned by TVA.

Exempt Sources
There are three lists of types of exempt emission sources listed in Tennessee Air Pollution Control Rule 391-3-1-.04. If a facility adds a source on any of these lists, no permit is required.

GACT
Generally Available Control Technology. This is a common term for a set of federal air quality regulations that apply to non-major sources of HAPs.

Insignificant Activity or Emissions Unit
A source that is not included in one of the three exemption lists but whose emissions are below 5 tons per year (or 1000 pounds per year for HAPs).

MACT
Maximum Achievable Control Technology. This is a common term for a set of federal air quality regulations that apply to major sources of HAPs.

Major Modification
Once a source become a Major Source (see below), projects that increase allowable emissions by a certain amount or greater are major modifications. The major modification threshold differs by pollutant. Common thresholds are 10 tons/year for fine particulate matter, 40 tons per year for NOx, SO2, and VOC, and 100 tons/year for CO. The concept of Major Modification does not apply for HAPs.

Major New Source Review or Major NSR
Includes PSD and Nonattainment New NSR, both of which are defined elsewhere.

Major Source
Sources that have potential emissions of one or more regulated air pollutant that exceed major source thresholds. The major source thresholds vary by industry type and pollutant, as specified below:

  • 100 tons per year of any regulated air pollutant (other than HAPS) for facilities that are in one of 28 named source categories.  The 28 named source categories are specified in state and federal air quality regulations.
  • 250 tons per year of any regulated air pollutant (other than HAPS) for facilities that are NOT in one of 28 named source categories.
  • 10 tons per year of any single HAP (Hazardous Air Pollutants) and 25 tons per year of total HAPs. There are 188 HAPS specified in state and federal air quality regulations.

Minor Modification
Changes to Title V permits that do not involve:

  • changes to existing monitoring, reporting, or recordkeeping requirements (except changes in monitoring parameter ranges can be done through minor modification)
  • require case-by-case determinations (these would normally require a PSD construction permit)
  • change a limit that was established to avoid an applicable requirement, such as PSD or MACT
  • changes to an existing source that would make that source subject to NSPS, MACT, or PSD

For Title V sources, a minor modification can be used to install a new emissions source or modify an existing one, as long as it doesn’t involve one of the criteria listed above.

NESHAP
National Emissions Standards for Hazardous Air Pollutants. This includes MACT standards, GACT standards, both of which are contained on Title 40 Part 63 of the Code of Federal Regulations (40 CFR 63) and a set of older standards contained in 40 CFR Part 61. Note that some people often (incorrectly) refer to the Part 61 standards as NESHAPs and the Part 63 standards as MACTs and GACTs.

Nonattainment NSR
The permitting requirement for new major sources and major modifications in nonattainment areas. Nonattainment NSR only applies for the pollutant for which the area is nonattainment. There is currently only one nonattainment areas in Tennessee (an area around Eastman Chemical in Sullivan County for SO2). Nonattainment NSR is rare. 

Non-EGU
Any facility that is not an EGU.

Non-Variable
An emission fee option that would not significantly change from year to year either for either a specific facility or for the universe of Title V facilities within the state. Currently, the portion of Tennessee’s Title V fee system that are considered non-variable are the base fee (currently $5000 per facility, increasing to $6000 in 2023) and minimum fee (currently $9000, increasing to $10,000 in 2023).

PAL
Plant-Wide Applicability Limit.  An emission limit established through permitting that sets a maximum “plant-wide” limit for an air pollutant that is established using specific state and federal permitting procedures. PALs are pollutant-specific. Thus, if a permit has 10 facility-wide limits, it has 10 PALs. PALs, by definition, are above the major modification thresholds. A PAL allows facilities to make changes at their facility that would be subject to Major NSR if not for the PAL.

PSD
Prevention of Significant Deterioration. The permitting requirement for new major sources and major modifications at existing major sources. PSD permitting have more stringent permitting, public participation, and EPA review requirements than other construction permits and takes at least an order of magnitude more work by APC. TN APC averages 1-2 per year, but have received 12 PSD applications in the past couple of years.

Regulated Air Pollutants
For the purpose of Title V fees, this includes:

  • Nitrogen Oxides (NOx), Particulate Matter (PM), Sulfur Dioxide (SO2), and Volatile Organic Compounds (VOC), Lead (Pb) – These are considered “Criteria Pollutants” because EPA has National Ambient Air Quality Standards (NAAQS) for them. EPA has also established a NAAQS for Carbon Monoxide (CO), but TDEC is prohibited by statute from charging fees for CO. Note that Pb is usually emitted in relatively small amounts that have little impact on Title V fees.
  • Hazardous Air Pollutants or HAPs
  • Any pollutant that is subject to federal regulation that is not a Criteria Pollutant or HAP. Examples of pollutants that fit into this category are hydrogen chloride (HCl), hydrogen fluoride (HF), Hydrogen Sulfide (H2S), total reduced sulfur compounds (TRS), carbonyl Sulfide (COS), and carbon disulfide (CS2). Many of these are regulated by federal New Source Performance Standards (NSPS), so we often refer to them as NSPS pollutants.

Note that for the purpose of fees, we don’t double count emissions. For example, if a pollutant is a HAP and a VOC, they only pay for VOC.

Significant Modifications
A change to a Title V permit that cannot be done through an Administrative Amendment or Minor Modification. Changes at Title V facilities that require a construction permit are incorporated into the Title V permit through a Significant Modification.

Title V
The permit program that applies to major sources of air pollutants or to facilities subject to federal regulations that require applicable facilities to obtain Title V permits. (Note that the primary category of non-major sources that are required to obtain a Title V permit is municipal solid waste landfills.)

TVA
Tennessee Valley Authority

Variable
An emission fee option that can significantly change from year to year for either a specific facility or for the universe of Title V facilities within the state. Currently, the portion of Tennessee’s Title V fee system that is considered variable is the dollar per ton fee ($/ton). Tennessee has different $/ton rates for EGU’s, non-EGUs, actual emissions, and allowable emissions. All of these go up in 2023. Facilities can change between paying allowable and actual fees, or a mixture of the two, from year to year. This flexibility makes the $/ton fee even more variable.

This Page Last Updated: June 26, 2024 at 10:56 AM