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Committee advances amended bill to tighten state oversight of decentralized wastewater systems
Summary
The Senate Energy, Agriculture and Natural Resources Committee advanced an amended version of Senate Bill 564 requiring TDEC approval of decentralized wastewater systems before operation and adding bonding and operator‑responsibility provisions; the measure moved to the calendar on a 5–4 vote.
Senate Bill 564, sponsored by Senator Pote, would require the Tennessee Department of Environment and Conservation (TDEC) to approve the design and completion of decentralized wastewater systems before the systems may begin operation. Sponsor Senator Pote said the bill responds to a statewide TDEC inspection that found many failing systems and gaps in oversight: “We're saying from now on, before a system like this can go in, TDEC is gonna be the 1 that's gonna say that this system is gonna meet their permits,” he told the committee.
George Nolan of the Southern Environmental Law Center testified that the bill addresses real problems but raised three concerns: the bill’s 100% developer bond for two years (dropping to 10%) is insufficient to cover failures that can appear 10–15 years later; the statutory language is broader than the non‑discharging soil systems at issue and could reach discharging outfall systems; and the bill may allow third‑party operators to encroach on established utility territories. Nolan told the committee the bonding provision “does not provide any real protection because it's only limited to 2 years.”
Committee members discussed a verbal amendment to shift some post‑construction responsibility to an operator and to increase bonding in years three and later to 50% of replacement cost for a longer period (a 10‑year target was discussed). Legal counsel explained the amendment mechanics and the committee adopted the amendment package by voice vote. At roll call the amended measure was moved to the calendar on a recorded 5–4 vote: Harshbarger, Lowe, Pote, Seale and the chairman voted aye; Bolling, Campbell, Oliver and Wally voted no.
The sponsor said the bill sets a statewide baseline and challenges TDEC to promulgate rules by July 31, 2027, so the state uses consistent science and standards while recognizing local variation. The committee did not enact a final law; the calendar action advances the amended bill for later floor consideration.
