Tennessee General Assembly passes utility review amendment in House Bill 542

House Bill 542, introduced by Representative Vaughan in the Tennessee State Legislature on April 16, 2025, aims to streamline the review process for development plans submitted to utilities, specifically in the areas of water, electricity, and natural gas infrastructure. The bill mandates that utilities complete their review of submitted plans within 30 days. If the review is not completed in this timeframe, the bill allows the plan submitter to hire a third-party plans examiner—an engineer with relevant expertise—to conduct the review instead.

Key provisions of House Bill 542 include the definition of a "third-party plans examiner" and the stipulation that utilities, including county and municipal-owned water utilities, must adhere to the 30-day review deadline. Should a third-party examiner be engaged, the submitter must provide the utility with a stamped and sealed copy of the plans along with relevant details about the development and the examiner.

The bill has sparked discussions among lawmakers and stakeholders regarding its potential impact on the efficiency of utility reviews and the overall development process in Tennessee. Proponents argue that the legislation will reduce delays in project approvals, thereby fostering economic growth and development. Critics, however, express concerns about the implications of allowing third-party reviews, including the potential for increased costs and the adequacy of oversight.

The economic implications of House Bill 542 could be significant, as timely utility reviews are crucial for construction timelines and project budgets. By expediting the review process, the bill may enhance Tennessee's attractiveness for new developments and investments.

As the bill progresses through the legislative process, its future remains uncertain, with ongoing debates likely to shape its final form. If passed, House Bill 542 could mark a notable shift in how utilities manage development plan reviews, potentially setting a precedent for similar legislation in other states.