Tennessee House Bill HB0946

Tennessee 2025-2026 Regular Session

• Introduced: 2/4/25
• Refer: 2/10/25

Caption

AN ACT to amend Tennessee Code Annotated, Title 5; Title 6; Title 7; Title 13; Title 54; Title 65 and Title 68, relative to high energy use facilities.

Summary

HB0946 creates a new part in Tennessee law governing the siting of “high energy use facilities” (HEUFs), defined as projects requiring 100 megawatts or more of electric power, including large data center projects. Before a locality can approve rezoning, a special exception, or a special use permit for a new HEUF, the applicant must submit a site assessment addressing the facility’s sound profile and its effects on nearby residential areas and schools within 500 feet. Localities may also require the assessment to consider impacts on water, agricultural resources, parks, registered historic sites, and forestland on or adjacent to the site.

Impact

The bill would add procedural requirements to local land-use and permitting decisions for large energy-intensive projects, especially data centers and other major industrial facilities. It requires both the applicant and the serving electric utility to provide site assessments describing infrastructure needs such as new generating units, substations, and transmission voltage, and directs local governments to use those materials when evaluating consistency with comprehensive plans and compliance with zoning, noise, and other applicable laws. The bill expressly preserves existing state, federal, and local regulatory authority and does not repeal or limit local zoning or permitting powers.

Sentiment

The available vote history suggests the bill faced some hesitation at the committee level, as it was deferred in the House Cities & Counties Subcommittee by a 5-2 vote. No transcript excerpts are available, so there is no direct record of floor debate or sponsor testimony here. Based on the text, the bill appears to be framed as a planning and impact-review measure rather than a prohibition on development, which may appeal to local-government and community-impact concerns while still allowing projects to proceed.

Contention

The main points of contention are likely to be the added permitting burden on developers and utilities versus the desire of local governments and nearby residents to have more information before approving large facilities. Opponents may view the bill as creating another layer of review that could slow or complicate siting of data centers and other high-load projects, while supporters may argue that 100 MW facilities can create significant noise, infrastructure, and land-use impacts that should be evaluated before approval. The explicit preservation of local zoning authority suggests an effort to avoid preemption concerns, but it may also reflect sensitivity around state versus local control.