HB 946 - SB 962
FISCAL NOTE
Fiscal Review Committee
Tennessee General Assembly
April 7, 2025
Fiscal Analyst: Justin Billingsley | Email: justin.billingsley@capitol.tn.gov | Phone: 615-741-2564
HB 946 - SB 962
SUMMARY OF BILL: Establishes that local governments must require any high energy use
facility (HEUF) to submit a site assessment to a local government, prior to any approval of a
rezoning request, special exception, or special use permit for the siting of the HEUF. Authorizes a
local government to require that such site assessment examine the effects of the proposed HEUF
facility on water, agricultural resources, parks, registered historic sites, and forestland located on the
HEUF site or immediately contiguous land. Such local government may request that permitting
procedures, if any are required, and site assessment be conducted with guidance and oversight from
the Department of Environment and Conservation (TDEC).
Establishes that local governments must require an electric utility providing service to the new
HEUF to submit a site assessment prior to any approval of a rezoning request, special exception, or
special use permit for the siting of the HEUF.
Requires that local governments use both site assessments to assess consistency with the policies of
the local government’s comprehensive plan and compliance with its noise ordinances, zoning
ordinances, and applicable laws and regulations.
Specifies that this act does not: (1) apply to a site with existing local, legislative, or administrative
approval where an applicant is seeking an expansion or modification of an already existing or
approved facility, and such expansion does not exceed an additional 100 megawatts (MW) or more
of electrical power; (2) repeal or modify the regulatory authority of any administrative agency, nor
any federal, state, or local law; and (3) repeal or modify an existing local government’s authority to
regulate zoning or permitting, or to issue ordinances within the local government’s jurisdiction.
FISCAL IMPACT:
NOT SIGNIFICANT
Assumptions:
• This legislation defines an HEUF as a project requiring 100 MW or more of electrical
power from an electric utility providing retail service to the facility, and includes a data
center project requiring 100 MW or more of electrical power from an electric utility
providing retail service to the facility.
• It is assumed that this legislation applies to a private company, which meets the definition
of a HEUF.
HB 946 - SB 962 2
• Such company would be required to perform site assessments prior to any approval of a
rezoning request, special exception, or special use permit for the siting of the HEUF from a
local government.
• Additionally, local governments will be authorized to request that permitting procedures, if
any are required, and site assessment be conducted with guidance and oversight from the
TDEC.
• TDEC’s Office of Energy Programs can provide guidance and oversight, as requested by a
local government, utilizing existing resources without any increase in state expenditures.
• It is assumed that any cost to perform such site assessments will be borne by the HEUF,
resulting in no significant increase in local expenditures.
• The proposed legislation further requires a locality to require the electric utility providing
retail service to the new HEUF to submit a site assessment to the locality describing:
o New electric generating units that will be required within the jurisdiction to serve
the project;
o New or existing substations that will be used to serve the HEUF; and
o The anticipated transmission voltage required to serve the HEUF.
• It is assumed that an electric utility can complete such site assessment by utilizing existing
staff and resources, without an increase in expenditures.
• This legislation is estimated to have no significant impact on the number of rezoning requests,
special exceptions, or special use permits approved by local governments.
• Any fiscal impact to state or local government is not significant.
CERTIFICATION:
The information contained herein is true and correct to the best of my knowledge.
Bojan Savic, Executive Director