TACIR draft: Tennessee’s wastewater infrastructure improved but gaps remain; staff flag enforcement orders and billions in funding needs

TACIR staff presented a draft report on wastewater systems operations and finance on May 30, describing both investments and continuing challenges across Tennessee's systems.

Research associate Madison Moffett summarized staff findings: Tennessee has invested in upgrades, yet some systems struggle to maintain aging equipment and meet growing service demands. The 2022 American Society of Civil Engineers report card rated Tennessee's wastewater infrastructure C‑. Staff noted that a 2018 TNH2O estimate placed needs at about $8.9 billion through 2040, while TACIR's staff estimate is approximately $3.5 billion in wastewater project needs from fiscal 2022 through fiscal 2042.

Compliance and capacity: As of May 2024, staff reported 57 local governments operating wastewater systems with active enforcement orders from the Tennessee Department of Environment and Conservation (TDEC) and 36 local governments under sewer moratoriums. Thirteen other entities (including private operators and state‑owned systems) also had active enforcement orders.

Recommended practices: Staff highlighted asset management plans to prioritize projects and funding, energy‑efficiency measures (including solar) to reduce operating costs, membrane bioreactor and thermal hydrolysis technologies for better contaminant removal and sludge processing, and a mix of grants, loans and bonds for financing projects. The report also notes staffing challenges: 16% of survey respondents flagged difficulty attracting and retaining certified wastewater operators, driven by an aging workforce and competition for skilled workers.

The draft will be returned to staff for further review and comment; no final vote was taken May 30.