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Drycleaner Environmental Response Program Annual Registration

Who Needs One?

» Owners or operators of drycleaning facilities conducting or intending to conduct drycleaning operations, during the year, must register. The Act defines "drycleaning operations" as the cleaning of apparel and household fabrics, using one (1) or more drycleaning solvents. The Act specifically excludes coin-operated drycleaning operations, facilities located on a US military base or owned by the United States, commercial uniform services and/or linen supply facilities, and facilities owned by the state.

» Current or prior owners or operators of abandoned drycleaning facilities may register. The Act defines an abandoned drycleaning facility as any real property premises or individual leasehold space on which a drycleaning facility formerly operated. Registration of abandoned facilities is a prerequisite for Fund eligibility and access to the fund for the reimbursement of environmental response activities.

» Owners or operators of instate wholesale distribution facilities (IWDF). An IWDF is a person or company whose primary business (minimum of 20% of gross receipts to drycleaning facilities) is selling drycleaning solvents and supplies to drycleaning facilities from a place of business located in the state.

» Drycleaning solvent suppliers which do not meet the definition of an IWDF and all IWDFs are required to submit quarterly reports of solvent sales and collect and remit the solvent surcharge fees to DCERP.

What Information Must I Provide?

Registrants must submit a completed Registration form:

» On or before October 31st each year
» Two weeks prior to commencement of operations, or
» Within 30 days of a significant change concerning the facility

Active or abandoned drycleaning facilities must submit a completed Drycleaning Facilities Registration form (form CN-1063) and the annual registration fee.

Instate wholesale distribution facilities must submit a completed Drycleaning Solvent Suppliers/Distributors Registration form (form CN-1062) and the annual registration fee. Each solvent supplier including IWDFs are required to submit a quarterly report of solvent sales and remit the solvent surcharges to the DCERP

New drycleaning facilities that are not staffed by a Certified Environmental Drycleaner (CED) or someone with an Environmental Compliance Training (ECT) certificate must request an extension in writing and submit a signed copy of the Temporary Extension Policy. ECT classes are provided, at no charge, by the DCERP staff throughout the year at various locations across the state. CED exam registration forms can be obtained from the Professional Testing Corporation at www.ptcny.com or from the Drycleaning & Laundry Institute at www.ifi.org. A fee is charged for the CED certification.

Form Description
Number
Form
Drycleaning Facilities Registration CN-1063 PDF
Drycleaning Solvent Suppliers/Distributors Registration
CN-1062
PDF
DCERP Reimbursement Application (For Approved Costs)
CN-1125
PDF
Application for Entry into the DCERP Response Program
CN-1124
PDF
Drycleaner Approved Contractor (DCAC) Application
CN-1123
PDF
DCERP Quarterly Solvent Purchase Log
 
PDF
DCERP Annual Registration Notice
 
PDF

How Will My Registration Be Processed?

Upon receipt of a registration form and appropriate fee, the DCERP reviews the form for completeness, and the registrant is notified of any deficiencies. After DCERP approval the location will be assigned a unique facility identification number. DCERP will issue a Certificate of Registration, to the registrant, which is only valid for the address printed on the certificate. It is unlawful to sell or transfer drycleaning solvent to a facility unless the facility has posted a valid certificate evidencing registration.

What Fees Are Required?

The Act requires payment of an annual registration fee and a per gallon surcharge on drycleaning solvent sold to drycleaning facilities. The fees and surcharges are deposited into the Drycleaner Environmental Response Fund. The fund is like an environmental insurance policy which is used for the reimbursement of expenditures for investigation and remediation (cleanup) of sites impacted by a release of drycleaning solvent.

REGISTRATION CATEGORIES
Effective with the calendar year 2012 registration the annual registration fee for all active (petroleum and perchloroethylene) drycleaners will be based as follows:

» Five fee categories will be established for each solvent type; $500.00, $1,000.00, $1,500.00, $2,000.00 or $2,500.00.

» Fee categories will be determined annually based on facility solvent usage. Solvent purchase quantities will be ranked from smallest to largest. The range of solvent quantities is then divided into quintiles (five groupings of 20%). Facilities in the lowest 20% of solvent usage will be invoiced $500, facilities in the next 20% of solvent usage will be invoiced $1,000, etc. Facilities in the highest 20% of solvent usage will be invoiced $2,500.

» For active drycleaner locations that have never used perchloroethylene and who submit a notarized statement attesting that they have never used perchloroethylene the annual registration fee will be $500.00.

» Solvent range categories (quantity of solvent purchased) are not fixed and will be recalculated/adjusted every year.

» Invoices will be mailed in September and fees must be received by October 31st.

CALENDAR YEAR 2014 – ANNUAL REGISTRATION FEES
Active drycleaning facility - The annual fee is based on the amount of drycleaning solvent purchased or obtained between July 1, 2012 - June 30, 2013. The 2014 calendar year fee categories are as follows:

Facilities using light non-aqueous petroleum solvent (DF2000; Eco-Solv; Green Earth; etc):
0.00 – 10 gallons Category 1 $500.00**
14.9 – 35 gallons Category 2 $1,000.00
54 – 65 gallons Category 3 $1,500.00
90 – 165 gallons Category 4 $2,000.00
> 225 gallons Category 5 $2,500.00

**Rule 1200-01-17-.03(c)(1)(iv) establishes a $500.00 annual registration fee regardless of the amount of solvent used for facilities that have never used dense non-aqueous solvents. To qualify for the $500.00 annual fee DCERP must receive a certified statement with a notarized signature from the facility owner stating that dense non-aqueous solvent has never been used at the facility location. DCERP will research the facility records to verify the statement and set the annual registration fee at $500.00. The rule also includes a penalty provision if dense non-aqueous drycleaning solvent or product is discovered to have been used at the facility. The penalty is the amount equal to the net amount of the suspended registration fees that would have been assessed if the facility had reported the use of dense non-aqueous drycleaning solvent or product plus any penalties and interest.

Facilities using dense non-aqueous solvent (Perchloroethylene; PCE; Perc, etc):
0.00 – 20.0 gallons Category 1 $500.00
30 – 40.0 gallons Category 2 $1,000.00
45 – 60.0 gallons Category 3 $1,500.00
68.6 – 120 gallons Category 4 $2,000.00
> 135 gallons Category 5 $2,500.00

Abandoned drycleaning facility - The annual fee for an abandoned drycleaning facility is $2,500. An abandoned drycleaning facility can register after the initial registration period (January 31, 1996) provided that the current or prior owner or operator pays the annual registration fees that would have been imposed if the facility had registered since January 1996 plus $50 per month late penalty.

Instate wholesale distribution facilities - The annual registration fee for an IWDF is $5,500 per facility.

SOLVENT SURCHARGE FEES
Effective January 1, 2011 the solvent surcharge fees are as follows:

» Fifteen dollars ($15) for each gallon of dense non-aqueous solvent or product purchased by a drycleaning facility; and

» One dollar fifty cents ($1.50) for each gallon of light non-aqueous solvent or product purchased by a drycleaning facility.

Rule 1200-1-17 defines dense non-aqueous solvent or product as any chemical or mixture of chemicals other than water-based solvent that is used in the drycleaning of clothes and that does not float on water (in pure form has a specific gravity greater than 1.0)

Rule 1200-1-17 defines a light non-aqueous solvent or product as any chemical or mixture of chemicals other than water-based solvent that is used in the drycleaning of clothes and that floats on water (in pure form has a specific gravity less than1.0)

What Are My Rights And Responsibilities?

Owners and Operators of drycleaning facilities or in-state wholesale distribution facilities must annually register by October 31st. Owners and operators are subject to late/non-payment penalties of up to $50 per day. Owners and operators are responsible for complying with the rules of the Drycleaner Environmental Response Program and other applicable regulations.

It is illegal for drycleaning facilities or in-state wholesale distribution facilities to sell or transfer drycleaning solvent to an unregistered drycleaning facility. Violators are subject to civil penalties of up to $10,000 per incident.

Solvent suppliers who sell or transfer drycleaning solvent to Tennessee drycleaning facilities are responsible for collecting and remitting solvent surcharges to the department on a quarterly basis.

Owners and Operators of drycleaning facilities or in-state wholesale distribution facilities, current or prior owners or operators of abandoned drycleaning facilities and impacted third parties have the right to submit an application for acceptance of a site into the Program (Fund eligibility) to conduct Environmental Response Activity (ERA). After a site is preliminarily accepted into the program the applicant will hire a Drycleaner Approved Contractor (DCAC) who will conduct a Facility Inspection (FI) to determine the Fund eligibility of the site. The DCAC on behalf of the applicant will submit work plans, cost estimates and implementation schedules for each phase of the investigation/remediation. The Program will issue a Notice to Proceed (NTP) which authorizes the DCAC to initiate that particular phase of work. The applicant can periodically submit a DCERP Reimbursement Application (For Approved Costs) form CN-1125, to the Program for reimbursement of the reasonable cost of department-authorized inspection, investigation and remediation. The applicant is responsible for accepting responsibility for incurring costs(deductible) associated with each request for reimbursement. For applicants who entered ERA from Program inception through June 30, 2011, site reimbursement requests are based on the following categories and rates:

» The facility category 1 deductable is 5% to a maximum of $5,000 per site per clean-up.

» The facility category 2 deductable is 10% to a maximum of $10,000 per site per clean-up.

» The facility category 3 deductable is 15% to a maximum of $15,000 per site per clean-up.

» The Abandoned Facilities and In-state Wholesale Distribution Facilities deductable is 25% to a maximum of $25,000 per site per clean-up.

The above rates only apply to sites that entered the program prior to June 30, 2011.

ERA program applicants entering the program beginning on July 1, 2011, are subject to the following rates:

» All site categories have a 10% deductable to a maximum of $50,000 per site per clean-up.

The statute (TCA 68-217-111) provides liability protection to eligible parties for releases under other laws or third party claims, if the site is fund eligible and is in material compliance with program requirements. The liability protection does not apply to personal injury claims or liability under federal laws.

What Are The Division’s Rights And Responsibilities?

Annual Registration
The Department is required to attempt to contact and submit a registration form to each drycleaning facility, in-state wholesale distribution facility and registered abandoned drycleaning facility at least thirty (30) days prior to the registration due date.

The Department is required to provide each person who pays a registration fee with a receipt. The Department is required to deposit the fees and solvent surcharges into the Drycleaner Environmental Response Fund.

The Department may assess late/non-payment penalties of up to $50 per day and/or may proceed to court to obtain a judgment and seek execution of such judgement.

The Department will issue a Certificate of Registration to each properly registered facility.

Environmental Response Activities
Owners or operators who have properly registered, paid their fees and surcharges and maintained their facilities in substantial compliance may be eligible for reimbursement of the costs to investigate and cleanup their site.

After receipt and review of an application the owner, operator, property owner or impacted third party, will be notified by letter of the sites Fund eligibility. If the site is eligible the applicant’s contractor will submit work plans and cost proposals for each phase of the investigation/remediation of the site. Throughout the process the applicant will submit reimbursement request to DCERP. DCERP will evaluate the reimbursement request for reasonableness and consistency with the approved work plan and cost proposal. DCERP will reimburse the eligible costs associated with the investigation and cleanup less the appropriate deductible amount.

Upon completion of all necessary investigative/remedial work or a determination that no further investigation/remediation is necessary the Department will issue a certificate of completion.

Additional Information:

» List of Drycleaner Approved Contractors (DCACs)

Whom Do I Contact For Forms, Assistance And Other Information?

For further information including an informational brochure or DCERP Guidance Document packet, interested parties can send request to:

Drycleaner Environmental Response Program, Program Manager
Division of Remediation
William R. Snodgrass Tennessee Tower
312 Rosa L. Parks Avenue, 14th Floor
Nashville, Tennessee 37243

Contact DCERP program staff at (615) 532-0900 or send a fax to (615) 741-1115.

The following web sites contains many additional references/publications:

» State Coalition for Remediation of Drycleaners
» Small Business Environmental Assistance Program