HB 897 - SB 1141
FISCAL NOTE
Fiscal Review Committee
Tennessee General Assembly
March 1, 2025
Fiscal Analyst: Rebecca Chandler | Email: rebecca.chandler@capitol.tn.gov | Phone: 615-741-2564
HB 897 - SB 1141
SUMMARY OF BILL: Lowers the fluoride threshold in public water systems (PWS) from
1.5 milligrams per liter (mg/L) to 0.4 mg/L. Requires monthly fluoride testing by a certified
laboratory and customer notification if levels exceed 0.4 mg/L. Prohibits fluoridation by July 31,
2025, for systems fluoridating as of May 1, 2025, with 30-day prior customer notice.
FISCAL IMPACT:
LOCAL GOVERNMENT
EXPENDITURES Mandatory
FY24-25 ($655,300)
FY25-26 & Subsequent Years ($3,930,800)
Assumptions:
• Tennessee Code Annotated § 8-221-709(b) currently requires PWS’ to conduct monthly
fluoride testing and notify customers if fluoride levels exceed 1.5 mg/L.
• The proposed legislation lowers the notification threshold to 0.4 mg/L of naturally
occurring fluoride.
• The Division of Water Resources within the Department of Environment and
Conservation (TDEC) currently regulates fluoride concentration and reporting for PWS’
that voluntarily fluoridate. As a result, the proposed changes will not affect the Division’s
costs or responsibilities.
• Based on information provided by TDEC, there are currently 212 PWS’ that add fluoride to
their water.
• Prohibiting the addition of fluoride to PWS’ will result in a decrease in expenditures equal
to the cost of purchasing fluoride.
• PWS’ are generally under the authority of a public or private utility district.
• The exact cost for all PWS’ to procure fluoride is unknown.
• According to information from the Department of Health’s website, in 2023, 88.32 percent
of Tennesseans were served by community water systems in which water was fluoridated.
For purposes of this fiscal analysis, this percentage is assumed to be reflective of
fluoridation levels in 2024 and outlying years.
• According to the U.S. Census Bureau, the estimated population of Tennessee as of July 1,
2024 was 7,227,750.
• An estimated 6,383,549 Tennesseans receive water from community water systems which
add fluoride to its water supply (7,227,750 x 88.32%).
HB 897 - SB 1141 2
• According to the 2017 report Navigating Legal Pathways to Rate-Funded Customer Assistance
Programs, published by the University of North Carolina, Environmental Finance Center,
approximately 224,593 Tennesseans received their water supply from a privately-owned
water system.
• According to the U.S. Census Bureau, the population of Tennessee in 2017 was
approximately 6,715,000; therefore, the population increased approximately 7.64 percent
from 2017 to 2024 [6,715,000 / (7,227,750 – 6,715,000)]. It is reasonably assumed that the
population of Tennesseans receiving their water supply from a privately-owned water
system is currently 241,752 (224,593 x 1.0764).
• Therefore, approximately 6,141,797 Tennesseans (6,383,549 – 241,752) receive water from
a PWS which fluoridates its water supply.
• According to the Texas Department of Health and Human Services, it costs approximately
$0.64 per person per year to fluoridate water.
• The proposed legislation will result in a recurring decrease in local expenditures of
$3,930,750 (6,141,797 x $0.64) in FY26-27 and subsequent years to PWS’ which add
fluoride to the water supply.
• Due to the May 1, 2025 effective date, the estimated decrease in local expenditures is
estimated to be $655,256 ($3,930,750 x 16.67%) in FY24-25.
• The recurring decrease in local expenditures will result in any subsequent decrease in rates
paid by customers of such affected community water systems; therefore, no significant
impact on revenue collected by local governments.
• The proposed legislation will have no significant impact on the duties of PWS’ throughout
the state; therefore, no significant impact on staffing levels of any such systems.
CERTIFICATION:
The information contained herein is true and correct to the best of my knowledge.
Bojan Savic, Executive Director