Critics say ‘wholesale auction’ of Tennessee’s stream quality afoot
By Tom Humphrey
Sunday, February 19, 2012
NASHVILLE — A decade-old, multi-million dollar program for restoring degraded Tennessee streams has come under attack in the state Legislature even as Gov. Bill Haslam’s administration moves to give it new legal status.
Critics of the Tennessee Stream Mitigation Program, which is overseen by a non-profit foundation, characterized it as a “wholesale auction” of the state’s waterways to developers who can pay a fee for their pollution while leaving devastated downstream landowners in a lurch.
Testimony in a hearing before the House Conservation committee also raised questions about whether the non-profit Tennessee Wildlife Resources Foundation faces appropriate financial accountability under the present setup, which was put in place by a 2002 “memorandum of understanding” between state and federal agencies.
“You show me a non-profit, and I’ll show you bloated salaries and padded expense accounts,” said Rep. Frank Niceley, R-Strawberry Plains.
The essence of the 2002 memorandum would be put into state law for the first time under HB2349, introduced by the Haslam administration while a legal battle is underway over a West Tennessee development in which $947,000 was paid as a mitigation fee by a developer and a downstream private airport was devastated by flooding, according to the airport operators.
“What we have here is the Tea Party and the Sierra Club on the same side against a governor’s bill,” observed state Rep. Mike Kernell, D-Memphis, at one point during lengthy arguments.
Joey Woodard, director of the program, said in an interview that the committee was given “misinformation” about an effort that has restored thousands of miles of damaged streams in 23 completed projects with three more currently underway.
“I’m not sure whether it was just a gross misunderstanding or intentional misrepresentation,” Woodard said of the testimony before the committee. “They want you to believe it’s a slush fund. Nothing could be further from the truth.”
State law now authorizes mitigation in general, though Department of Environment and Conservation attorney Alan Leiserson told the committee the actual program “has been run without specific authorization” in state law.
The idea is that, when damage to a stream or wetland is unavoidable by a development deemed to warrant a state-issued permit, the developer can pay an “in lieu fee” to cover the environmental damage. The fee can run from $50 to $200 per foot of damaged stream.
Elizabeth Murphy, a Nashville attorney representing Wolf River Airport in the pending litigation that challenges legality of the mitigation program, told the committee the present system is effectively selling the state’s water quality “outside any regulatory function” of the state.




