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Utility officials warn new state law could undercut local control of STEP wastewater systems
Summary
Consolidated Utility District officials told the Rutherford County Planning Commission that recent amendments to SB564/HB803 let developers seek TDEC approval for decentralized STEP systems, could enable private operators to run local systems and shift bonding obligations to local government — raising questions about oversight, costs and long-term liability.
Consolidated Utility District representatives Jason (engineering) and Roger Goodson, CUD general manager, told the Rutherford County Planning Commission on April 27 that state amendments to SB564 and HB803 change how decentralized STEP wastewater systems are approved and financed.
Jason explained the law requires the Tennessee Department of Environment and Conservation to adopt rules by July 31, 2027, but also allows a developer to apply directly to TDEC rather than through the local utility. "Under this amendment ... the developer can bypass the utility and go straight to TDEC for approval," Jason said, warning of a gap between the law's effective date and rulemaking. Roger Goodson added that a private utility could take over a new system if the local utility…
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