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Air Pollution Control Bureau seeks 25% fee increase; council and staff ask questions

Chattanooga City Council ยท February 3, 2026

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Summary

City Air Pollution Control Bureau asked council to adopt a roughly 25% increase to emission fees (raising a major-source tonnage fee from $30/ton to about $38.21/ton), add a presumptive minimum recommended by EPA, and permit future CPI-linked annual adjustments; staff presented data and answered council questions about how fees are used and comparisons with other Tennessee agencies.

Ron Drew Miller, executive director of the Air Pollution Control Bureau, asked the council to adopt fee changes the bureau approved internally, saying the last local fee increase occurred in 2017 and that the adjustment would bring major-source fees roughly to EPA's presumptive minimum.

"This is basically a 25% increase to what we charge now to all non part 70 sources as well as a presumptive minimum for the 9 part 70 major sources we recommended by the US EPA," Miller said. He said the board had a 30-day public comment period and no comments were submitted.

Tyler Cantrell, the bureau's air monitoring manager, presented charts showing the proposed change from $30 per ton to approximately $38.21 per ton for major-source tonnage and said the bureau would also institute a late penalty more consistent with other agencies and consider CPI-based annual adjustments so facilities can better plan for gradual increases.

Council members asked how fee revenues are used. Cantrell explained the bureau receives city and county funding plus EPA grant funding and fee revenue; raising fees helps cover rising operational costs, salary increases and grant shortfalls. Councilman Elliott sought clarification on the fee structure and whether allowances are transferrable between firms; the bureau said permits are issued on allowable emissions (a cap) and that caps are not transferable.

Why it matters: the fee change affects regulated facilities in Chattanooga and will alter operating costs for major industrial emitters. The bureau framed the request as a routine adjustment to keep pace with costs and to align with EPA guidance.

What comes next: the bureau requested council action to enact the ordinance (board recommended adoption). Council discussion continued; no final ordinance-adoption vote appears in the transcript of this meeting for the fee ordinance.