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SB 1657

Water Pollution - As introduced, requires local approval of a tipping fee for application of sludge from water treatment plants onto agricultural lands, with proceeds earmarked for water treatment facilities, as a condition of such applications continuing in a locality; places a moratorium on certain permits in jurisdictions that do not provide such local approval. - Amends TCA Section 1-3-105; Title 5; Title 6; Title 7; Title 13, Chapter 7; Title 43; Title 68 and Title 69.

114th Regular Session (2025-2026) Introduced by Todd Gardenhire

Local governments can approve sludge land application and impose tipping fees, giving them control and revenue use for local wastewater infrastructure.

Assigned to General Subcommittee of Senate Energy, Ag., and Nat. Resources Committee
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Bill Summary · SB 1657

Summary of Bill: SB 1657 / HB 1724 (Tennessee, 114th Legislature)

Purpose and Intent

  • The bill would authorize local governments (counties, municipalities, including metropolitan governments) to regulate the land application of sludge (biosolids) from wastewater facilities by requiring local approval.
  • It creates a framework for local “tipping fees” on sludge applied to agricultural land and limits state permitting activity unless local approval has been obtained.
  • Overall, it aims to give local governing bodies a veto-like control over sludge land application within their jurisdictions and to direct fee revenues toward wastewater infrastructure.

Key Provisions and Changes

Local Approval for Sludge Application

  • Local governments (counties, municipalities, and metropolitan governments) may approve the application of sludge to agricultural land within their borders by adopting a resolution with a two-thirds majority.
  • Such approval is required for sludge applications in unincorporated areas (county), within municipal boundaries, or within metropolitan government boundaries, respectively.
  • If a jurisdiction has not approved the application, sludge may not be applied unless the landowner holds a valid state permit issued under the bill’s framework.

Tipping Fee Mechanism

  • When a local government approves sludge application, it may establish a tipping fee on a per-ton basis for sludge applied to agricultural land.
  • The fee must be collected by the sludge- generating facility and remitted to the local government approving the application.
  • Revenue from the tipping fee must be used exclusively for constructing and maintaining local wastewater treatment or processing facilities in the corresponding jurisdiction.

State Permit Implications

  • The bill would prohibit the Department of Environment and Conservation (TDEC) from issuing or renewing permits that authorize sludge application to agricultural land unless the land has local approval under the new framework.
  • Conversely, existing permits would not be eligible to continue without local approval, creating a moratorium-like effect in jurisdictions that fail to authorize local sludge applications.

Scope and Applicability

  • The provisions apply to all land within the state, with local approval required for unincorporated areas, municipalities, and metropolitan regions respectively.
  • The new requirements take effect in two stages:
    • Sections 1–4: Effective upon becoming law.
    • Section 5 (permit-related provisions): Effective July 1, 2026.

Affected Parties

  • Local governments (counties, cities, and metropolitan governments): empowered to approve sludge applications and impose tipping fees; receive and allocate fee revenue to wastewater infrastructure.
  • Wastewater treatment/processing facility operators: responsible for collecting tipping fees and remitting them to the applicable local government.
  • State regulators (TDEC): would need to enforce the new permitting prerequisite and refrain from issuing/renewing permits absent local approval.
  • Landowners/permittees: subject to local approval requirements and potential permit constraints.

Timelines and Process

  • Local governing bodies must pass a two-thirds vote to authorize sludge applications and set tipping fees.
  • Section 5 establishes a statewide permit constraint, with full state permit restrictions effective beginning July 1, 2026.
  • Local approval decisions can occur during regular council or commission meetings; no specific additional funding or staffing requirements are specified, but fiscal notes indicate uncertain overall local impact.

Fiscal Notes (Summary)

  • Local fiscal impact is uncertain due to variables such as which LGBs approve, tipping rates, and volume of sludge.
  • Potential revenue for wastewater infrastructure exists where tipping fees are adopted, but overall revenue effects are not readily predictable.

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

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