Wrapping things up in Nashville
At press time, the 113th Tennessee General Assembly has just passed Governor Lee’s more than $55 billion budget and adjourned for this legislative session. We look forward to providing you a final update on our what happened with our priority issues in the next issue, but for this policy post, here are a few key pieces of legislation which will impact agriculture and rural communities in Tennessee.
Rural Brownfield Investment Act:
Although not a priority issue, Farm Bureau strongly supported the Rural Brownfields Investment Act (SB271/HB319), which passed the General Assembly and has been signed by the governor. This legislation restores the use and value to brownfields and in turn boosts economic development in rural communities by bringing life into facilities deemed or perceived to have environmental impacts. Currently, there are 175 known brownfields in 36 counties across the state. The legislation invests in Tennessee communities in three ways:
- Establishes a statewide grant program, the Tennessee Brownfield Redevelopment Area Grant (BRAG), which will direct funding for investigation, assessment and remediation to local governments, economic development agencies, development districts and boards, county land banks, and nonprofit organizations.
- Incentivizes brownfield cleanup in smaller, rural communities (tier 3 or 4 counties) by expanding the Brownfield Franchise and Excise Tax Credit to include both purchase and remediation costs.
- Amends the brownfield tax investment financing law by removing geographical boundaries to use and expand eligible qualified project costs to mirror those authorized under the uniformity in tax investment financing law.
“Our mission is to develop, foster, promote and protect Tennessee agriculture. As farmland loss continues to be a growing statewide concern, Tennessee Farm Bureau Federation is honored to support the Rural Brownfields Investment Act, “said TFBF President Eric Mayberry. “By restoring use and value to brownfields, this investment boosts economic development in our rural communities. We trust this will be a step in reducing farmland conversion pressures and ensuring agriculture, and the land farmers care for, will continue to be Tennessee’s leading industry as the state continues to grow.”
Transportation Modernization Act:
In his annual state of the state address, Governor Bill Lee proposed a $3 billion investment, into transportation modernization, the largest investment in infrastructure history. A separate $300 million has also been proposed for rural transportation projects, and it is projected the Tennessee Department of Transportation’s (TDOT) four regions will receive $750,000 for projects. Farm Bureau monitored this legislation but did not take a position. The legislation, HB321/SB273, which has passed both the House and the Senate is a multi-prong approach and includes:
- Progressive Design Build Methods: Currently, completion time for infrastructure projects can take an excess of twelve years. However, a new progressive design build method will encourage faster delivery for project procurement with results of three-to-five-year accomplishment. To date, TDOT has seen more than $22 million in cost savings and 70% more efficient project turnarounds when compared to traditional projects.
- Choice Lanes: By establishing public-private partnerships (P3s), expensive urban congestion could soon be alleviated. The legislation gives TDOT the authority to partner with the private sector to design, build, finance, operate and maintain new and additional lanes on existing interstates called choice lanes. This is different from toll roads, as choice lanes would be an option for drivers to pay a fee to bypass congestion and travel in a lane with a minimum posted speed. On average, P3s are completed 70% by local contractors and is work over and above the current road and maintenance program.
- Unfilled Position Absorption: More than 500 positions are currently unfilled at TDOT. By absorbing these positions, the unspent salary revenue can be reallocated to increase the salaries of current employees.
- Electric Vehicle Registration: According to the University of Tennessee, combustible engine drivers pay on average $274 in federal and state gas taxes, which contributes directly into the state’s highway fund and thus shared with local governments. Comparatively, electric vehicle owners pay $100 in registration fees, none of which is shared with local governments. (Note: Tennessee Farm Bureau does have policy which supports the provision of this legislation.) The implementation of increasing electric vehicle registrations will be a three-year process. From 2024-2026, the registration will increase to $200, from 2026-2027 it will be raised to $274, the equivalent of what combustion engine drivers pay, and then after 2027 the rate will be adjusted to inflation as needed. Similarly, hybrid electric and hybrid plug in vehicles will be subjected to an additional $100 fee.
