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HB0149 • 2026

Energy

AN ACT to amend Tennessee Code Annotated, Title 5; Title 6; Title 7, Chapter 51 and Title 65, Chapter 17, relative to utility facilities.

Energy Land Taxes
Active

The official status still shows this bill as active or still awaiting another formal step.

Sponsor
Gant, Walley
Last action
2025-01-28
Official status
Assigned to s/c Agriculture & Natural Resources Subcommittee
Effective date
Not listed

Plain English Breakdown

The official source material does not provide detailed information on the financial impacts of the bill, leaving this aspect uncertain.

Tennessee Utility Facility Regulation Act

This bill amends Tennessee law to include solar energy facilities within the existing regulatory framework for wind energy, requiring permits and setting guidelines for their construction and operation.

What This Bill Does

  • Defines a 'solar energy facility' as devices or structures that collect solar energy for electricity generation, along with related equipment.
  • Expands permit requirements to include utility facilities (including solar) similar to those for wind energy facilities.
  • Establishes minimum setback distances from property lines and requires environmental impact assessments for both wind turbines and solar arrays.
  • Requires local governments to adopt regulations for utility facility siting by a two-thirds vote or majority vote if proposed by an industrial development board.
  • Allows local governments to impose fees related to the permitting process for utility facilities.

Who It Names or Affects

  • Local governments in Tennessee that regulate utility facility siting.
  • People and companies planning to construct solar energy facilities in Tennessee.

Terms To Know

Utility Facility
Includes solar energy facilities, wind energy facilities, or expansions of these facilities.
Setback Distance
The minimum distance required between a utility facility and property lines to protect landowners' rights.

Limits and Unknowns

  • Local governments that have adopted regulations for solar energy siting by July 1, 2025 are exempt from the new framework.
  • Solar facilities constructed before July 1, 2025 are not covered under this bill's provisions.

Bill History

  1. 2025-01-28 Tennessee General Assembly

    Assigned to s/c Agriculture & Natural Resources Subcommittee

  2. 2025-01-16 Tennessee General Assembly

    Ref. to Agriculture & Natural Resources Committee - Commerce Committee

  3. 2025-01-16 Tennessee General Assembly

    P2C held on desk pending appointment of Standing Committees

  4. 2025-01-16 Tennessee General Assembly

    Passed on Second Consideration, refer to Senate Energy, Ag., & Natural Resources Committee

  5. 2025-01-15 Tennessee General Assembly

    Intro., P1C.

  6. 2025-01-15 Tennessee General Assembly

    Introduced, Passed on First Consideration

  7. 2025-01-14 Tennessee General Assembly

    Filed for introduction

  8. 2025-01-14 Tennessee General Assembly

    Filed for introduction

Official Summary Text

Present law provides a regulatory framework for wind energy facility siting. This bill adds solar energy facilities and solar expansion facilities to the wind energy framework as outlined below. This bill defines
"
s
olar energy facility"
a
s, collectively, a device or structure, or series thereof, that provides for the collection of solar energy for electricity generation, together with all facilities and equipment, other than any facility or equipment owned by a public utility
,
located proximate to and in
support of the operation of such electricity generation device or structure
. However, a
"
s
olar energy facility" does not include
,
(i)
a
solar-generating device or structure that is less than 5 MW in size, measured in alternating current at the point of interconnection to the electrical grid, unless the application of this part is expressly provided for in a solar energy facility agreemen
t; or

(ii)
e
quipment that, when installed in connection with a dwelling, transmits or uses solar energy to produce energy
in a useful form for residential purposes
.

APPLICABILITY

The present law framework for wind energy facility siting does not
apply in any local government that has adopted regulations related to
such
siting of wind energy facilities in its jurisdiction on or before January 1, 2019.
Nor does it
apply to any wind energy facility located in this state that was constructed prior to April 24, 2018.
This bill changes these provisions so that the framework regulates a
"
u
tility facility
,
"
which this bill defines as including a
solar energy facility, wind energy facilit
y, or wind energy facility or solar energy facility expansion
.

This bill further d
oes not apply in a local government jurisdiction that has adopted regulations related to the siting of solar energy facilities in the jurisdiction on or before July 1, 2025.
Nor does it apply
to any solar energy facility located in this state that was constructed prior to July 1, 2025.

PERMIT REQUIRED

Present law prohibits a
person
from
undertak
ing
the construction, operation, or redevelopment of a wind energy facility or
such
expansion in this state unless a certificate of public convenience and necessity
("certificate")
is first obtained from the public utility commission and a permit is obtained from the local legislative body of the local government in which the facility or expansion will be located.

The person
must
submit a copy of the certificate with its application for a permit.
This bill expa
nds these requirements to apply to utility facilities as defined above.

LOCAL GOVERNMENT REGULATION

Approval

Present law authorizes a
local government
to
adopt, by action of its local legislative body, local legislation that regulates and establishes the conditions and criteria for the construction,
operation, or redevelopment of wind energy facilities and expansions within the jurisdiction of the local government.

No such local legislation take
s
effect unless it is adopted by a 2/3 vote of the local legislative body
.

However,
if an industrial development board for the local government proposes such local legislation or considers a request for a permit or permit procedures prior to any local legislation being considered by the local legislative body, then the local legislation

must
only be subject to
a majority vote of the local legislative body.
This bill revises these provisions to apply to utility facilities as defined above.

Regulation Criteria

Present law requires

any such adopted
local legislation
to
establish
(i) the m
inimum setback
s

for a
wind energy facility or wind energy facility expansion
; (ii) t
hat
an
environmental impact and wildlife impact assessments
must
be conducted, if applicable, as provided below
; (iii) t
he facility
must
comply with maximum noise levels
; (iv) a
n applicant must submit financial security
; (v) a
permit holder
must
decommission or remove a wind energy facility upon the occurrence of certain events as provided
below; and (vi) a
certified copy of the adopted local legislation to the department

of environment and
conservation
. This bill requires all of the above for utility facilities as defined above.

Permitting

Present law authorizes such

adopted
local legislation
to issue
permits for the construction, operation, or redevelopment of wind energy facilities and wind energy facility expansions within the jurisdiction.

The local legislation
must
specify procedures governing the
permit
application
and may deny
the issuance or renewal of a permit, or revoke, suspend, or modify any existing permit for cause
.

However, t
he local legislation or permit conditions
must
include a six-month cure period during which time the local legislative body may establish financial penalties for noncompliance.
This bill establishes the above procedures for utility facilities as defined above.

Present law requires t
he local legislative body
, or its designated
agency
,
to process permit applications
and to
conduct
a
public hearing
to
review
each
permit application for compliance
before deciding on the application. Notice for the
public hearing
must adhere to certain

timing

requirements and
provide that any comments on the construction, operation, or redevelopment of the wind energy facility, or wind energy facility expansion, must be submitted by a specified date
. This bill establishes that thes
e procedures and requirements apply to applications for utility facilities as defined above.

Fees

Present law authorizes a
local legislative body
to
provide, by local legislation, that a reasonable fee be charged to cover costs
. This bill expands this authorization to the permitting process
for
utility facilities as defined above.

Facility Boundaries and Design

Present law authorizes t
he local legislative body
to
adopt local legislation with any condition, criteria, or other provision it deems necessary for establishing regulations or granting a permit
, including
a general boundary
for the facility and
facility design conditions
,
in order to comply with any conditional approval from the wildlife resources agency and to mitigate potential impacts, as identified by the local legislative body or local agency.
This bill establishes that these provisions apply to uti
lity facilities as defined above.

Setbacks

Present law requires t
he minimum setback for any wind turbine of a wind energy facility from any non-participating landowner's property line be equal to 3.5 times the total height of the turbine structure as measured from the ground at its base to the maximum height of the bla
de tip
, unless the
non-participating landowne
r
elect
s
to sign a waiver to allow any wind turbine or group of turbines of a wind energy facility to be placed up to 1.1 times the total height of the turbine structure from the landowner'
s property line
. This bill changes that these above setbacks apply,
instead, to utility facilities as defined above.

This bill also adds that t
he minimum setback for any solar array of a utility facility from any non-participating landowner's property line be equal to 3.5 times the total width or depth of the solar array, whichever is greater
. However,
a non-participating landowner may elect to sign a waiver to allow any solar array or group of arrays of a utility facility to be placed up to 1.1 times the width or depth of the solar array, whichever is greater, from the landowner's property line
.

Environmental Impact Assessment

Present law requires

an
environmental impact assessment be conducted by qualified, third party experts, paid for by the applicant, of the potential adverse impacts within a maximum of four miles of the perimeter of the facility or expansion
. However,
no such assessment
is required
if an environmental review of the wind energy facility or any portion of the facility is required pursuant to the National Environmental Policy Act
,
which includes public input, a public hearing, an environmental impact statemen
t, and a viewshed analysis.

Any environmental impact assessment conducted
must
include a study of the following:



Economic impacts to individuals, property values, tourism, and agriculture
.



Potential adverse impacts on ecosystems, including domestic animals, and habitat and migratory patterns for wildlife
.



Viewshed analysis for national or state parks or forests, historic or cultural sites, public parks or recreation areas, or private conservation lands
.



Hydrogeological assessment, including water bodies, flowing water sources, stormwater runoff, wetlands, groundwater, aquifers, and private wells within a minimum of two

miles of the perimeter of the facility or expansion
.



Risk assessment and mitigation recommendations for shadow flicker and incidents, such as wind turbine fires, structural damage or failure, ice and blade throw, and hazardous material spills
.



Risk assessment for civil air navigation, military or law enforcement routes or training exercises, emergency medical flights, radar operations, and cell phone services
.

This bill establishes that all of the above requirements apply to utility facilities as defined above. This bill also adds that the risk assessment and mitigation recommendations must include a
rc flashes, including arc flash burn and blast hazards; electric shock; and thermal burn hazards
.

Wildlife Impact Assessment

Present law requires a
wildlife impact assessment be conducted through a comprehensive social, economic, and environmental study
, unless

an environmental review of the wind energy facility
is required pursuant to the National Environmental Policy Act.

Such local legislation
must
also include as a condition of a permit a requirement that the wildlife resources agency review any such wildlife impact assessment and approve, grant conditional approval of, or deny the permit. Any such assessment
must
include

a study of
the potential
adverse impacts to wildlife refuges, preserves and management areas, areas that provide habitat for threatened or endangered species, primary nursery areas designated by the fish and wildlife commission and the wildlife resources agency, and critical fis
heries habitats identified pursuant to applicable state or federal law. No permit
is
effective until the local government has received notification of approval or conditional approval within 120 days of the permit from the wildlife resources agency.

This
bill establishes that all of the above requirements apply to
utility facilities as defined above.

Financial Security

Prior to the start of construction of a wind energy facility,
present law requires that
the applicant for a permit for the construction, operation, or expansion of
such
facility
or
expansion establish financial security in the amount of 100% of the estimate of the total cost to decommission and remove the wind energy facility, as determined by an independent consultant selected and paid for by the applicant
. This bill requires

this financial security for utility facilities as defined above.

Decommissioning Facilities

Present law requires t
he facility is decommissioned or removed if
either of the following events occurs:



A

wind turbine ceases to generate electricity for 180 continuous days, unless the termination of electricity was mandated by state or federal law
. However,
one or more extensions may be allowed for
180
-day periods at a time
.



A wind turbine or group of wind turbines violates the
required
noise level restrictions
,
unless the turbine or group of turbines is brought into compliance within 180

days of the violation
. However,
a single
180
-day extension may be allowed
.

This bill adds that a solar array is decommissioned or removed if it
ceases to generate electricity for 180

continuous days, unless the termination of electricity was mandated by state or federal law
. However, the array may also be granted
one or more extensions for
180
-day periods at a time
.

OTHER LICENSES

Present law provides that the
issuance of a permit
as outlined above

does
not preclude the need for the applicant to obtain any and all other applicable local, state, or federal permits, licenses, or approvals.

Nothing limit
s
the ability of a local government to plan for and regulate the siting or permitting of a wind energy facility or wind energy facility expansion in accordance with applicable land-use regulations
. This bill provides that these provisions apply to utility facilities as defined above.

DISSEMINATION OF MODEL LOCAL LEGISLATION

Present law requires t
he municipal technical advisory service (MTAS) and the county technical assistance service (CTAS)
to
disseminate model local legislation for use by local governments in establishing conditions for the issuance of permits for wind energy facilities and wind energy facility expansions.
This bill requires such dissemination for model local legislation for utility facilities as defined above.

SUPPLEMENTAL LAW

Present law provides that the above provisions
supplement any other
law and
provide additional authority to regulate the siting and permitting of wind energy facilities and wind energy facility expansions.
The above-described provisions

do not
prescribe an exclusive procedure or grants exclusive powers relating to the siting or permitting of wind energy facilities and wind energy facility expansions.
This bill provides that these above-described provisions pertaining to utility facilities are also supplemental to any other law to regulate their siting and permitting.

Current Bill Text

Read the full stored bill text
SENATE BILL 132
By Walley

HOUSE BILL 149
By Gant

HB0149
000156
- 1 -

AN ACT to amend Tennessee Code Annotated, Title 5;
Title 6; Title 7, Chapter 51 and Title 65, Chapter
17, relative to utility facilities.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 7-51-2202(e), is amended by
deleting the subsection and substituting:
This section does not expand or alter the regulation of utility facility siting
provided in title 65, chapter 17.
SECTION 2. Tennessee Code Annotated, Section 65-17-101(1)(A), is amended by
deleting "wind energy" and substituting "utility".
SECTION 3. Tennessee Code Annotated, Section 65-17-101(1)(B), is amended by
deleting "wind and environmental analysis" wherever it appears and substituting "wind, solar,
and environmental analysis".
SECTION 4. Tennessee Code Annotated, Section 65-17-101(6), is amended by
deleting "wind turbine" and substituting "wind turbine or solar array".
SECTION 5. Tennessee Code Annotated, Section 65-17-101(7)(A) and (B), are
amended by deleting "wind energy" wherever it appears and substituting "utility".
SECTION 6. Tennessee Code Annotated, Section 65-17-101(10), is amended by
deleting "wind energy" wherever it appears and substituting "utility".
SECTION 7. Tennessee Code Annotated, Section 65-17-101(11), is amended by
deleting "wind turbine" and substituting "wind turbine or solar array".
SECTION 8. Tennessee Code Annotated, Section 65-17-101, is amended by inserting
the following new subdivisions:

- 2 - 000156

( )
(A) "Solar energy facility" means, collectively, a device or structure, or
series thereof, that provides for the collection of solar energy for electricity
generation, together with all facilities and equipment, other than any facility or
equipment owned by a public utility, as defined by § 65-4-101, located proximate
to and in support of the operation of such electricity generation device or
structure, including, without limitation, all underground and aboveground
electrical collection, distribution, and transmission lines; inverters; transformers;
substations; energy storage facilities; telecommunications equipment and
communication lines; meteorological towers; maintenance yards; switchgear;
fences; and foundations supporting other components of the solar power facility;
and
(B) "Solar energy facility" does not include:
(i) A solar-generating device or structure that is less than five
megawatts (5 MW) in size, measured in alternating current at the point of
interconnection to the electrical grid, unless the application of this part is
expressly provided for in a solar energy facility agreement; or
(ii) Equipment that, when installed in connection with a dwelling,
transmits or uses solar energy to produce energy in a useful form for
residential purposes;
( ) "Solar energy facility expansion" means any activity that:
(A) Adds or substantially modifies a solar energy facility, including
increasing the number of transmission facilities, or other equipment; or
(B) Increases the footprint of the solar energy facility;

- 3 - 000156

( ) "Utility facility" means a solar energy facility, wind energy facility, or wind
energy facility or solar energy facility expansion;
SECTION 9. Tennessee Code Annotated, Section 65-17-102(a), is amended by
deleting "wind energy" and substituting "utility".
SECTION 10. Tennessee Code Annotated, Section 65-17-102(b), is amended by
deleting "wind energy" and substituting "utility".
SECTION 11. Tennessee Code Annotated, Section 65-17-102, is amended by adding
the following new subsections:
( ) This chapter does not apply in a local government jurisdiction that has
adopted regulations related to the siting of solar energy facilities in the jurisdiction on or
before July 1, 2025.
( ) This chapter does not apply to any solar energy facility located in this state
that was constructed prior to July 1, 2025.
SECTION 12. Tennessee Code Annotated, Section 65-17-104, is amended by deleting
"wind energy" wherever it appears and substituting "utility".
SECTION 13. Tennessee Code Annotated, Section 65-17-105(a), is amended by
deleting "wind energy" wherever it appears and substituting "utility".
SECTION 14. Tennessee Code Annotated, Section 65-17-105(c), is amended by
deleting "wind energy" wherever it appears and substituting "utility".
SECTION 15. Tennessee Code Annotated, Section 65-17-105(d), is amended by
deleting "wind energy" wherever it appears and substituting "utility".
SECTION 16. Tennessee Code Annotated, Section 65-17-105(e)(1), is amended by
deleting the subdivision and substituting:
The local legislative body may adopt local legislation with any condition, criteria,
or other provision it deems necessary for establishing regulations or granting a permit for

- 4 - 000156

the construction, operation, or redevelopment of a utility facility or utility facility
expansion under this chapter. The local legislative body may issue a permit for a
general boundary, and the utility facility may elect to move the planned locations of a
utility facility or other utility facility component after permit approval; provided, that the
locations must not be moved outside of the permitted boundary and must comply with all
other requirements pursuant to this chapter. The local legislative body may also institute
utility facility design conditions for granting a permit in order to comply with any
conditional approval from the wildlife resources agency and to mitigate potential impacts,
as identified by the local legislative body or local agency.
SECTION 17. Tennessee Code Annotated, Section 65-17-105(e)(2)(A), is amended by
deleting the subdivision and substituting:
(A)
(i) The minimum setback for any wind turbine of a utility facility from any
non-participating landowner's property line be equal to three and one-half (3.5)
times the total height of the turbine structure as measured from the ground at its
base to the maximum height of the blade tip; except, that a non-participating
landowner may elect to sign a waiver to allow any wind turbine or group of
turbines of a utility facility to be placed up to one and one-tenth (1.1) times the
total height of the turbine structure as measured from the ground at its base to
the maximum height of the blade tip from the landowner's property line;
(ii) The minimum setback for any solar array of a utility facility from any
non-participating landowner's property line be equal to three and one-half (3.5)
times the total width or depth of the solar array, whichever is greater; except, that
a non-participating landowner may elect to sign a waiver to allow any solar array
or group of arrays of a utility facility to be placed up to one and one-tenth (1.1)

- 5 - 000156

times the width or depth of the solar array, whichever is greater, from the
landowner's property line;
SECTION 18. Tennessee Code Annotated, Section 65-17-105(e)(2)(B), is amended by
deleting "wind energy" and substituting "utility".
SECTION 19. Tennessee Code Annotated, Section 65-17-105(e)(2)(B)(v), is amended
by deleting the subdivision and substituting:
(v) Risk assessment and mitigation recommendations for:
(a) Shadow flicker and incidents, such as wind turbine fires, structural
damage or failure, ice and blade throw, and hazardous material spills; and
(b) Arc flashes, including arc flash burn and blast hazards; electric shock;
and thermal burn hazards; and
SECTION 20. Tennessee Code Annotated, Section 65-17-105(e)(2)(C), is amended by
deleting "wind energy" and substituting "utility".
SECTION 21. Tennessee Code Annotated, Section 65-17-105(e)(2)(E)(i), is amended
by deleting "wind energy" and substituting "utility".
SECTION 22. Tennessee Code Annotated, Section 65-17-105(e)(2)(F), is amended by
deleting the subdivision and substituting:
(F)
(i) Any wind turbine or solar array of a utility facility that ceases to generate
electricity for one hundred eighty (180) continuous days must be decommissioned or
removed, unless the termination of electricity was mandated by state or federal law;
provided, that one (1) or more extensions may be allowed for one-hundred-eighty-day
periods at a time; or
(ii) Any wind turbine or group of wind turbines of a utility facility that violates the
noise level restrictions provided in subdivision (e)(2)(D) must be decommissioned or

- 6 - 000156

removed, unless the turbine or group of turbines is brought into compliance within one
hundred eighty (180) days of the violation; provided, that a single one-hundred-eighty-
day extension may be allowed; and
SECTION 23. Tennessee Code Annotated, Section 65-17-107, is amended by deleting
"wind energy" and substituting "utility".
SECTION 24. Tennessee Code Annotated, Section 65-17-110, is amended by deleting
"wind energy" and substituting "utility".
SECTION 25. Tennessee Code Annotated, Section 65-17-111, is amended by deleting
"wind energy" and substituting "utility".
SECTION 26. If any provision of this act or its application to any person or circumstance
is held invalid, then the invalidity does not affect other provisions or applications of the act that
can be given effect without the invalid provision or application, and to that end, the provisions of
this act are severable.
SECTION 27. This act takes effect July 1, 2025, the public welfare requiring it.