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PUBLIC CHAPTER NO. 437
SENATE BILL NO. 670
By Taylor, Hensley
Substituted for: House Bill No. 541
By Vaughan, Faison, Howell, Bricken, Reedy
AN ACT to amend Tennessee Code Annotated, Title 4; Title 11, Chapter 14, Part 4; Title 66; Title
67, Chapter 4, Part 4 and Title 69, relative to wetlands.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 69-3-1 0B(g), is amended by adding the
following as a new subdivision:
(6) On or before August 1, 2026, and on or before August 1 of each year thereafter,
the division of water resources in the department, in collaboration with United States army
corps of engineers, as necessary, shall report the following information to the governor, the
comptroller of the treasury, the chair of the committee of the house of representatives having
jurisdiction over subject matters pertaining to commerce, and the chair of the commerce and
labor committee of the senate the following information for the preceding fiscal year:
(A) The number of applications for permits filed pursuant to this section; and
(B) For permits re quired to have a provision for adequate compensatory
mitigation pursuant to subdivision (g)(4)(E), the mechanism of compensatory
mitigation provided for in the permit, including mitigation banking, permittee
responsible mitigation, or in-lieu fee payments as approved by the department. If the
mechanism of compensatory mitigation is:
(i) An in-lieu fee program, then the report must include the in-lieu fee
instrument sponsor, the number of mitigation credits sold for the permitted
project, and the amount of money received by the sponsor for such credits;
and
(ii) Mitigation banking, then the report must include the mitigation bank
sponsor, the number of mitigation credits sold for the permitted project, and
the amount of money received by the sponsor for such credits.
SECTION 2. Tennessee Code Annotated, Section 69-3-108(r) is amended by designating
the existing language as subdivision (1) and designating the following as a new subdivision (2):
(2)(A) A person desiring to develop real property may request a determination from
the commissioner regarding the presence, extent, and category of wetlands by
submitting a wetland resource inventory report prepared by a third-party wetland
professional, including a delineation and, if applicable, documentation that the
wetland is isolated. The report must also include a determination of the quality of the
wetland. The wetland delineation portion of the report must be prepared in
accordance with the United States Army Corps of Engineers Wetland Delineation
Manual (January 1987) and applicable regional supplements or other such
methodology contained in rules promulgated by the board.
(B) If the wetland resource inventory report contains all required information, is
prepared in accordance with department procedures and guidance, and is certified by
a third-party wetland professional to be true, accurate and complete, then the
determinations made in the wetland resource inventory report are presumed to be
S8670
correct unless the commissioner notifies the person, in writing, within thirty (30) days
of submittal of the report containing ten (10) or fewer wetlands, or within sixty (60)
days of submittal of the report containing more than ten (10) wetlands, that the
commissioner has affirmatively determined there is a significant question about the
presence, extent, status as isolated, or quality of a wetland and states the reasons for
that determination. If such a determination is made, then the commissioner must,
within thirty (30) days following the initial notification, determine the presence, extent,
status as isolated, and quality of wetlands, and notify the person in writing of that
decision and the reasons for the determination.
(C) The person on whose behalf a wetland resource inventory report was
submitted may appeal a determination by the commissioner by filing a petition stating
the basis for the appeal with the board within thirty (30) days of receiving the
commissioner's decision.
SECTION 3. Tennessee Code Annotated, Title 69, Chapter 3, Part 1, is amended by adding
the following as a new section:
(a) As used in this section:
(1) "Artificial isolated wetland":
(A) Means:
(i) A wetland formed in an area that would otherwise be upland
as a result of prior human alterations such as drainage, fill, cropping,
ditching, tile drainage, excavation, tire ruts, silviculture, or
impoundment for which sufficient proof exists providing evidence that a
wetland did not exist five (5) years prior to the submission of a wetland
resource inventory report; or
(ii) A wetland that was intentionally constructed in an upland
area for the purpose of wastewater treatment, stormwater
management, or other engineered use, or was inadvertently created
due to changes in surface hydrology from site development, and
grading or as a result of a beaver dam within the five (5) years prior to
the submission of a wetland resource inventory report; and
(8) Does not include wetlands that serve as fish spawning areas or
wetlands created as a result of mitigation requirements;
(2) "High-quality isolated wetland" means an isolated wetland that provides a
high degree of ecologic, hydrologic, and biogeochemical functions, as measured by
the department's wetland resource assessment tool;
(3) "Isolated wetland" means a wetland that does not have a continuous
surface connection to a relatively permanent body of water that is connected to a
traditional interstate navigable water and, as such, is distinguishable from that body of
water;
(4) "Low-quality isolated wetland" means an isolated wetland that provides
only minimal ecologic, hydrologic, and biogeochemical functions, as measured by the
department's wetland resource assessment tool; and
(5) "Moderate-quality isolated wetland" means an isolated wetland that
provides only modest ecologic, hydrologic, and biogeochemical functions as
measured by the department's wetland resource assessment tool.
(b) Notwithstanding another law or rule to the contrary:
(1) The alteration of a low-quality isolated wetland up to one (1) acre in size, a
moderate-quality isolated wetland up to one-quarter (1/4) acre in size, or an artificial
isolated wetland of any size is permitted by this subdivision (b)(1 ), and notice,
approval, or compensatory mitigation is not required for such alteration if the
alteration is done in accordance with the following conditions:
(A) The activity must not result in the discharge of toxic pollutants;
(8) Sediment must be prevented from entering a stream or other
surface waters; and
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SB670
(C) Appropriate steps must be taken to ensure that petroleum products
or other chemical pollutants are prevented from entering waters of the state. In
the event of a spill, measures must be taken immediately to prevent pollution
of waters of the state, including groundwater;
(2) The alteration of a low-quality isolated wetland that is greater than one (1)
acre up to two (2) acres in size, or a moderate-quality isolated wetland that is greater
than one-quarter (1/4) acre up to two (2) acres in size, must be regulated by a
general permit for aquatic alterations pursuant to § 69-3-108(1). The general permit
required by this subdivision (b)(2) must not impose any requirements related to
riparian buffer, cumulative impact analysis, or antidegradation, within the scope of this
part;
(3) Compensatory mitigation is not required for alteration of a wetland subject
to subdivision (b)(1) or (b}(2), except that mitigation may be required for:
(A) Alteration of a moderate-quality isolated wetland:
(i) For the acreage greater than one-quarter (1/4) acre up to
one (1) acre in size at a ratio not to exceed 1:1; and
(ii) For the acreage greater than one (1) acre up to two (2)
acres in size at a ratio not to exceed 2:1; and
(8) Alteration of a low-quality isolated wetland for the acreage greater
than one (1) acre up to two (2) acres in size at a ratio not to exceed 1: 1;
(4) Unless required by federal law and except as authorized by subdivision
(b)(3), additional permits, authorization, conditions, or requirements related to
cumulative impact analysis, antidegradation, or mitigation are not required for activity
within a wetland subject to subdivision (b)(1) or (b)(2). Notwithstanding any
requirement for reducing pollutants to the maximum extent practicable, riparian
buffers are not required for wetlands subject to subdivision (b)(1) or (b)(2);
(5) An individual aquatic resource alteration permit is required for alteration of
a low-quality isolated wetland or moderate-quality isolated wetland greater than two
(2) acres and a high-quality isolated wetland_of any size; and
(6) The acreage requirements in this subsection (b) must be considered
minimum acreage limits. The commissioner is authorized to increase the acreage of
low-quality isolated wetlands and moderate-quality isolated wetlands permitted by
subdivision (b)(1) and the acreage of low-quality isolated wetlands and moderate-
quality isolated wetlands subject to subdivision (b)(2) as the commissioner deems
appropriate.
(c) Existing onsite permanent stormwater control measures must be accounted for
when determining the amount of mitigation required for alteration to any isolated wetland
where mitigation is required.
(d) Isolated wetlands and artificial isolated wetlands must not be considered when
determining the cumulative impact of a project for purposes of a permit even if the project
contains other wetlands that are deemed jurisdictional by the United States army corps of
engineers (USACE). A water quality certification under§ 401 of the federal Clean Water Act
(33 U.S.C. § 1341) must not consider isolated or artificial isolated wetlands when determining
cumulative impact or common plan of development.
(e) The board has authority to develop criteria for the three (3) classifications of
isolated wetlands as duly promulgated rules. •
(f) The wetland resource assessment tool_ established and utilized by the department
to measure the presence or quality of a wetland is subject to a public notice and comment
period of no less than thirty (30) days. The wetland resource assessment tool must be
approved by the board following the public notice and comment period.
SECTION 4. This act takes effect July 1, 2025, the public welfare requiring it.
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SENATE BILL NO. 670
PASSED: April 21, 2025
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\ RANDY \icNALLY
SPEAKER OF THE SENATE
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CAMERO~XTON,SPEAKER
HOUSE OF REPRESENTATIVES
qtt.. Ma ,d APPROVED this
day of 2025
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