Tennessee Senate Bill SB2540

Tennessee 2023-2024 Regular Session

• Introduced: 1/31/24

Caption

AN ACT to amend Tennessee Code Annotated, Title 4; Title 7; Title 12; Title 60; Title 64; Title 65; Title 67 and Title 68, relative to energy.

Impact

One of the critical implications of SB2540 is its focus on bridging the state’s current electrical generation capabilities with future nuclear power advancements. While acknowledging a potential decade-long wait for next-generation nuclear capacity, the bill emphasizes the importance of immediate measures to enhance the state’s electrical grid. The successful implementation of this legislation could position Tennessee as a leader in energy production, particularly given its existing technological advantages and resources.

Summary

Senate Bill 2540 aims to amend various titles in the Tennessee Code Annotated, specifically concerning energy management and production. The bill proposes the establishment of a program by the Department of Economic and Community Development, in coordination with the Public Utility Commission, to negotiate the installation and operation of three combustion turbine power plants. This initiative is designed to increase the state's electric generation capacity in response to growing demands, ensuring that Tennessee maintains its economic competitiveness and energy security.

Contention

Notably, the legislation has generated discussions regarding state versus local control over energy resources. Supporters assert that this bill is a necessary step to secure energy reliability and to attract economic investment, citing the urgency of responding to Tennessee's projected energy demands. Conversely, critics may voice concerns about the potential environmental and social ramifications of increased fossil fuel reliance through new combustion plants. Additionally, the bill's requirement for negotiations with the Tennessee Valley Authority and private cooperatives raises questions about accountability and operational responsibility post-construction.