Amends TCA Title 69, Chapter 3, Part 1.

This bill requires any person who accepts in-lieu fee payments to perform mitigation required under a Water Quality Control Act discharge permit issued to a permittee whose activities will necessarily have an adverse impact on waters in this state to include a provision in the instrument that establishes the in-lieu fee payment arrangement that would allow the department of environment and conservation to compel such person to perform the mitigation or obtain mitigation credits from other persons, if such person does not complete land acquisition and initial physical and biological improvements by the third full growing season after the permittee secures the first advance credit in the service area. The full text of this bill describes extenuating circumstances under which such time period may be extended beyond the third full growing season. This bill also authorizes the commissioner of environment and conservation to assess a penalty against an in-lieu fee sponsor who fails to timely complete land acquisition and initial physical and biological improvements, or orders.