The Texas Commission on Environmental Quality (TCEQ) is proposing a fee increase of 45% for non-hazardous and hazardous industrial solid waste managed and generated in the State of Texas. The rule is proposed to be adopted in November 2021 and go into effect for the following calendar year and the TCEQ estimates that there are over 2,400 industrial and hazardous waste generators in the state currently paying fees that will be impacted by the increase in waste generator fees.
The proposed fees for Industrial and Hazardous Waste (IHW) would increase as follows:
| Fees for Generators | Current Fee | Proposed Fee |
| Non-hazardous waste | $0.50/ton | $2.00/ton For facilities generating > 50 tpy |
| Hazardous waste | $2.00/ton | $6.00/ton For facilities generating > 25 tpy |
The average annual increase is projected to be $1,586/year/facility for non-hazardous waste generators, and $3,529/year/facility for hazardous waste generators. If a facility generates both types of wastes above the maximum thresholds, this could result in an average annual fee increase of approximately $5,100. Note that the current facility maximum cap on annual generator fees remains at $10,000 for non-hazardous waste and $50,000 for hazardous waste.
The proposed waste management fee increases for facilities that store, process or dispose of hazardous waste affects both non-commercial and commercial facilities, where waste is managed in state or imported from out of state. For non-hazardous industrial waste, only commercial facilities are affected, when waste is landfilled, land treated, deep well injected or incinerated. These commercial facilities will most likely pass this increased cost on to their customers. The average annual increase in management fees is projected to be $1,616/year per facility.
The rationale for the increase is reported by the TCEQ to be the result of declining funds in their Waste Management Account, and the fact that waste management and generator fees have not been increased since 1994. The fee increase is expected to particularly impact small to mid-size businesses, who will see an increase in their own facility fees, but also potentially an increase in pass-through costs from commercial waste vendors. The mid-range of current fee payers accounts for 45% of the regulated community in the state. Possible positive community impacts, while not intended by the proposed action, could be reduced waste generation for cost savings, and additional income to local counties where commercial waste management facilities are located (25% of the collected waste management fees are paid out to counties where the fee payers reside).
The proposed fee increases are expected to generate an additional $4.85M in management fees for the TCEQ, and an additional $3.89M in generator fees, annually for a period of five years. This represents new potential revenue for the agency of up to $8.74M per year for five years. The agency is currently authorized to collect an annual amount of up to $16M.
For more information about the proposed rule, see the following link:
Rule Proposals – Texas Commission on Environmental Quality – www.tceq.texas.gov