The General Assembly enacted this fee in 1993 with the Used Oil Collection Act. The fee is collected by Revenue for the Department of Environment and Conservation - who administers and enforces the program. This fund was established to finance recycling centers, giving backyard mechanics a place to dispose of their used oil legally and safely. This is an environmental fee designed to keep oil from being disposed of on the ground, on pavement, or in storm sewers which eventually pollutes the streams and ground waters.
Reference: Tenn. Code Ann. 68-211-1003.