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TennesseeHB 0803114th General Assembly (2025-2026)House

AN ACT to amend Tennessee Code Annotated, Title 7; Title 8; Title 9; Title 62, Chapter 2; Title 65; Title 68, Chapter 221 and Title 69, relative to utilities.

Sponsored By: Sponsor information unavailable

Signed by Governor

Sewage

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Bill Overview

Analyzed Economic Effects

6 provisions identified: 0 benefits, 1 costs, 5 mixed.

Developers and operators must secure wastewater bonds

Beginning July 1, 2026, local governments must require wastewater performance bonds once at least 50% of development units have occupancy certificates. The developer's bond must cover 100% of the treatment works' total replacement cost for the first two operating years. The operator must obtain a bond covering 50% of total replacement cost for operating years three through ten. The law does not set a household charge or say how these costs are passed on.

Wastewater expansion permits require compliance with orders

Beginning July 1, 2026, the Commissioner cannot issue or change permits to expand land-application wastewater systems for noncompliant applicants. Applicants must substantially comply with the specified wastewater enforcement orders. Noncompliance includes orders that are not final, including during appeals; overdue corrective work; unpaid penalties or damages due; and unfinished required actions. This limits expansion by affected applicants and strengthens enforcement protections for surrounding communities.

Wastewater projects face new approval deadlines

The law applies to conduct or construction on or after July 1, 2026. Covered wastewater plan approvals expire after 12 months unless construction starts or the owner gets an extension. Owners must request extensions in writing before approval expires; extensions last up to 12 months each, capped at 60 months from original approval. Extensions depend on the Department finding no material changes; major changes to design, capacity, treatment, or site conditions require revised plans, reports, and specifications for approval. Land-application wastewater systems must finish construction within 60 months of first approval or submit new plans, reports, and specifications. These systems cannot operate until construction is complete and follows approved plans.

Wastewater systems face stronger safety standards

Beginning July 1, 2026, covered treatment works must meet state and federal requirements, receive Department approval, and follow approved plans. Before ownership or operation transfers, developers and utilities must submit proof of compliance and readiness to operate. Utilities must hold required licenses and meet filing, fee, bond, environmental, and operating requirements. At permit approval, developers must show treatment capability meeting the higher of state minimum limits or actual limits achieved by a similar system within the same utility. By July 31, 2027, the Commissioner must issue design and construction rules for land-application wastewater systems under the specified permits and plan approvals. Rules must cover major plan changes, siting, soil testing and mapping, wastewater loading, backup capacity, reserve areas, and long-term protection of surface water, groundwater, and public health.

Population rule exempts counties from wastewater requirements

Beginning July 1, 2026, the new treatment works part excludes counties with populations from 366,200 through 366,300. Population is measured by the 2020 federal census or a later federal census. Developers, utilities, operators, and local governments there are outside this part's ownership, bond, and compliance requirements. This exemption applies to that part, not all wastewater rules in the law.

Utilities face deadlines for subdivision wastewater

Beginning July 1, 2026, developers must apply to the serving utility after state approval of subdivision or neighborhood treatment works. The utility has 30 days to agree in writing to ownership and operation or refuse; silence counts as refusal. If it agrees, it must approve engineered plans within 90 days. A refusing utility must notify the Tennessee Board of Utility Regulation within seven business days. Refusal releases the utility from future ownership and operating duties unless it later agrees, and developers can contract with another utility. The original utility can negotiate with the current owner for up to two years after application, but cannot limit its own services because it refused.

Sponsors & Cosponsors

Sponsors

There is no primary sponsor on record.

Cosponsors

  • Elaine Davis

    Republican • House

  • Tim Hicks

    Republican • House

  • Greg Martin

    Republican • House

  • Todd Warner

    Republican • House

  • White

    Affiliation unavailable

  • Ryan Williams

    Republican • House

Roll Call Votes

All Roll Calls

Yes: 215 • No: 144

House vote • 4/8/2026

FLOOR VOTE: MESSAGE CALENDAR CONCUR IN SENATE AMENDMENT # 10 4/8/2026

Yes: 59 • No: 33

Senate vote • 4/6/2026

FLOOR VOTE: Motion to Table Amend# 7 by Senator Roberts 4/6/2026

Yes: 22 • No: 9

Senate vote • 4/6/2026

FLOOR VOTE: as Amended Third Consideration 4/6/2026

Yes: 20 • No: 13

House vote • 3/16/2026

FLOOR VOTE: REGULAR CALENDAR AS AMENDED PASSAGE ON THIRD CONSIDERATION 3/16/2026

Yes: 69 • No: 22

House vote • 3/16/2026

FLOOR VOTE: REGULAR CALENDAR MOTION TO CONSIDER AMENDMENT # 2 BY PEARSON AS AMENDED PASSAGE ON THIRD CONSIDERATION 3/16/2026

Yes: 25 • No: 65

House vote • 3/16/2026

HOUSE CALENDAR & RULES COMMITTEE

Yes: 0 • No: 0

House vote • 3/10/2026

HOUSE AGRICULTURE & NATURAL RESOURCES COMMITTEE

Yes: 12 • No: 1

House vote • 3/4/2026

HOUSE AGRICULTURE AND NATURAL RESOURCES SUBCOMMITTEE

Yes: 8 • No: 1

Actions Timeline

  1. Effective date(s) 07/01/2026

    5/5/2026

  2. Pub. Ch. 876

    5/5/2026

  3. Signed by Governor.

    4/27/2026

  4. Transmitted to Governor for his action.

    4/16/2026House

  5. Signed by Senate Speaker

    4/15/2026Senate

  6. Signed by H. Speaker

    4/14/2026House

  7. Enrolled; ready for sig. of H. Speaker.

    4/9/2026House

  8. H. concurred in S. am. no. 10 Ayes 59, Nays 33 PNV 3 HB0803

    4/8/2026House

  9. H. Placed on Message Calendar for 4/8/2026

    4/7/2026House

  10. Passed Senate as amended, Ayes 20, Nays 13

    4/6/2026Senate

  11. Senate adopted Amendment (Amendment 10 - SA0771)

    4/6/2026Senate

  12. Amendment tabled (Amendment 16 - SA0857)

    4/6/2026Senate

  13. Amendment tabled (Amendment 12 - SA0816)

    4/6/2026Senate

  14. Amendment tabled (Amendment 24 - SA0984)

    4/6/2026Senate

  15. Amendment withdrawn. (Amendment 23 - SA0983)

    4/6/2026Senate

  16. Amendment tabled (Amendment 22 - SA0981)

    4/6/2026Senate

  17. Amendment tabled (Amendment 21 - SA0966)

    4/6/2026Senate

  18. Amendment withdrawn. (Amendment 20 - SA0949)

    4/6/2026Senate

  19. Amendment tabled (Amendment 19 - SA0948)

    4/6/2026Senate

  20. Amendment tabled (Amendment 18 - SA0947)

    4/6/2026Senate

  21. Amendment withdrawn. (Amendment 17 - SA0858)

    4/6/2026Senate

  22. Amendment withdrawn. (Amendment 15 - SA0845)

    4/6/2026Senate

  23. Amendment tabled (Amendment 14 - SA0843)

    4/6/2026Senate

  24. Amendment withdrawn. (Amendment 13 - SA0833)

    4/6/2026Senate

  25. Amendment tabled (Amendment 11 - SA0814)

    4/6/2026Senate

Bill Text

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