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SB 962

Energy - As introduced, requires an applicant and an electric utility service to perform and submit to the locality a site assessment prior to the approval of a rezoning request, special exception, or special use permit for the siting of a new high energy use facility (HEUF). - Amends TCA Title 5; Title 6; Title 7; Title 13; Title 54; Title 65 and Title 68.

114th Regular Session (2025-2026) Introduced by London Lamar

Tennessee requires site energy assessments from applicants and utilities before approving new high-energy facilities, giving municipalities advance notice of grid demands before zoning approval.

Assigned to General Subcommittee of Senate State and Local Government Committee
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Bill Summary · SB 962

Legislative bill overview

SB 962 requires applicants and electric utilities to conduct and submit site assessments to local governments before approving rezoning requests or permits for new high-energy-use facilities (HEUFs). The bill amends multiple Tennessee statutes governing land use, zoning, and utility regulations to incorporate this assessment requirement into the approval process.

Why is this important

High-energy-use facilities (like data centers, manufacturing plants, or mining operations) can strain local electrical grids, requiring significant infrastructure upgrades that impact municipal planning and budgets. This bill gives communities advance data about energy demands and grid capacity before committing to zoning changes, allowing them to assess feasibility and negotiate infrastructure improvements.

Potential points of contention

  • Cost and delay concerns: Requiring site assessments may increase development costs and extend approval timelines, potentially deterring business investment and making Tennessee less competitive for industrial recruitment compared to states without similar requirements.
  • Definition ambiguity: The bill doesn't clearly define "high energy use facility," which could create disputes about which projects require assessment and lead to inconsistent application across jurisdictions.
  • Utility burden: Placing assessment responsibilities on electric utilities may shift costs to ratepayers and could create conflicts if utilities have financial interests in preventing or approving certain developments in their service areas.

Compiled from official sources — confirm details with the bill’s official record.

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