HB 612 - SB 664
FISCAL NOTE
Fiscal Review Committee
Tennessee General Assembly
March 13, 2025
Fiscal Analyst: Rebecca Chandler | Email: rebecca.chandler@capitol.tn.gov | Phone: 615-741-2564
HB 612 - SB 664
SUMMARY OF BILL: Expands mitigation exemptions of Aquatic Resource Alteration
Permits (ARAP) by replacing “wetland”' with “area”.
FISCAL IMPACT:
NOT SIGNIFICANT
Assumptions:
• Tennessee Code Annotated § 69-3-141(c) requires the Department of Environment and
Conservation (TDEC) to exempt a portion of compensatory mitigation if an applicant is
disqualified from a general ARAP solely due to the size of the impacted wetland. The
exemption applies to the portion of the wetland that would not have required mitigation
had the applicant qualified under a general permit.
• The proposed legislation expands the scope of the statute by replacing "wetland" with
"area," extending mitigation exemptions beyond wetlands to include stream channels and
other non-wetland impacts.
• Compensatory mitigation for aquatic resource impacts is jointly regulated by the U.S. Army
Corps of Engineers and the Environmental Protection Agency under Section 404 of the
Clean Water Act.
• Expanding state mitigation exemptions for stream channels and other non-wetland areas
does not negate or supersede federal mitigation requirements. Therefore, the proposed
legislation reduces obligations on applicants, but does not impose new expenditures to the
state, alter operations for TDEC, or impact federal funding, resulting in no significant fiscal
impact.
CERTIFICATION:
The information contained herein is true and correct to the best of my knowledge.
Bojan Savic, Executive Director