Rules & Regulations of the State of Tennessee Title 1740 - Water and Wastewater Financing Board
Here’s a comprehensive overview of Tennessee Rules & Regulations, Title 1740 – Water & Wastewater Financing Board, which oversees the financial health of public water and wastewater systems:
📘 Structure: Chapter 1740‑01
Title 1740 contains a single chapter governing the Board’s operations:
§ 1740‑01‑.01 Definitions – Clarifies terms like “Board,” “Chair,” “Comptroller,” “Counsel,” and “Staff” (regulations.justia.com, capitol.tn.gov)
§ 1740‑01‑.02 Powers, Duties & Authority – Grants the Board authority under T.C.A. §§ 4-5-202 and 68‑221‑1007–1013 to regulate finances of water/wastewater systems (regulations.justia.com)
§ 1740‑01‑.03 Regulatory Procedures – Lays out steps for rulemaking, hearings, notices, subpoenas, and enforcement processes
§ 1740‑01‑.04 Appeals – Describes administrative appeal rights and procedures for affected entities (publications.tnsosfiles.com)
⚙️ Purpose & Authority
The Board was created by the Wastewater Facilities Act of 1987 and expanded in 1997 to include water systems. In 2007, administrative control moved from TDEC to the Office of the Comptroller under Public Chapter 86 of the Acts of 2007 (capitol.tn.gov).
Under Tenn. Code § 68‑221‑1009, the Board is authorized to:
Promulgate and enforce rules under UAPA
Assess the financial condition of systems
Ensure adoption of self-sustaining user rates or negotiate consolidations
Assist low-income ratepayers via subsidies
Issue subpoenas and administer oaths
Investigate technical and managerial capacity in cooperation with TDEC
Define and address "excessive water loss" (capitol.tn.gov)
🧩 Board Composition & Staffing
Chaired by the Comptroller (or designee); includes the TDEC commissioner (or designee) and seven gubernatorial appointees representing utilities, municipalities, environmental/public interests (capitol.tn.gov)
Administered by Comptroller’s Office staff (e.g., John Greer, Utilities Specialist) (capitol.tn.gov)
🏛️ Activities & Oversight
Meets at least twice per year
Reviews financial audits, approves rate changes, investigates water loss, and negotiates interventions—typically informally first; formal orders follow if needed (capitol.tn.gov)
Example activity (FY 16–18): 24–28 water-loss or financial cases handled per year (capitol.tn.gov)
Board enforces reporting timelines (e.g., hearings scheduled within 60 days of referrals) (capitol.tn.gov)
⚖️ Procedures & Enforcement
Can issue subpoenas, enforce compliance via Chancery Court when necessary
Entities may appeal decisions per § .04 procedures
Board members and staff file annual conflict-of-interest disclosures and must recuse when needed (tnsos.org, capitol.tn.gov)
🔄 Regulatory Timeline & Updates
Chapter 1740‑01 moved into place in September 2007
Major revision filed June 29, 2010; repealed and refiled September 27, 2010
Another revision to §§ .01–.03 filed February 1, 2016 (effective May 1, 2016); § .04 likely included then (law.cornell.edu)
Regulations are updated quarterly; current version is effective through at least March 2025 (law.cornell.edu)
🧾 Why It Matters
Ensures financial stability and accountability in public water/wastewater services
Helps safeguard ratepayer interests—especially affordability and equity
Addresses critical infrastructure concerns like water loss and system consolidation
Provides legal and administrative structure for oversight, enforcement, and dispute resolution
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