HB 660 - SB 970
FISCAL NOTE
Fiscal Review Committee
Tennessee General Assembly
March 6, 2025
Fiscal Analyst: Justin Billingsley | Email: justin.billingsley@capitol.tn.gov | Phone: 615-741-2564
HB 660 - SB 970
SUMMARY OF BILL: Clarifies certain powers provided to water and wastewater treatment
authorities under the Water and Wastewater Treatment Authority Act (Act) are authorized by municipal
energy authorities under the Municipal Energy Authority Act, to the extent that an authority’s exercise
of such powers does not conflict with any ordinance or rules adopted by another local government
having jurisdiction over such matters.
FISCAL IMPACT:
NOT SIGNIFICANT
Assumptions:
• Pursuant to Tenn. Code Ann § 7-36-107(a)(28), municipal energy authorities are provided
all powers now or hereafter authorized for municipal electric, water, and wastewater utilities
within this state.
• This legislation specifically grants to municipal energy authorities those powers granted to
water and wastewater treatment authorities pursuant to Tenn. Code Ann. § 68-221-
607(a)(17)-(20).
• Pursuant to Tenn. Code Ann. § 68-221-607(a)(17)-(20), water and wastewater treatment
authorities are granted the powers to promulgate rules:
o For the installation and maintenance of grease interceptors, the regulation of sewer
discharges from industrial facilities, and the inspection and maintenance of private
or public service laterals;
o That impose on a customer base, region, neighborhood, basin, or area an obligation
on customers, occupants, or property owners to inspect their own respective service
laterals and make necessary repairs;
o That impose penalties for failure to comply with the authority's rules;
o That authorize shutting off water and sewage usage until a property owner or
occupant complies with the authority's rules or pays any penalties imposed by the
authority; and
o As necessary to effectuate the purposes of the Act, or to comply with the
requirements of rules of the Department of Environment and Conservation,
regulations of the United States Environmental Protection Agency, or consent
decrees.
• This legislation will specifically provide municipal energy authorities the power to promulgate
rules and impose monetary penalties for noncompliance, along with the additional
aforementioned authorizations.
HB 660 - SB 970 2
• According to the Comptroller of the Treasury, municipal energy authorities currently hold
the authority to impose monetary penalties specifically authorized by this legislation and do
exercise such authority; therefore, it is assumed that any impact upon penalties assessed and
revenue collected thereby will have no significant fiscal impact upon such authorities.
• According to the Tennessee Municipal Electric Power Association, this legislation clarifies
certain powers currently authorized to be performed by municipal energy authorities.
• Should this legislation result in any shifting of duties performed by local government entities,
it is assumed that any result would have no significant impact on local governments.
• Clarifying certain statutory powers granted to municipal energy authorities will have no
significant impact on state or local government.
CERTIFICATION:
The information contained herein is true and correct to the best of my knowledge.
Bojan Savic, Executive Director