TN HB0541

Permits alteration of low-quality isolated wetlands up to 1 acre, moderate-quality isolated wetlands up to 1/4 acre, and artificial isolated wetlands of any size without notice, approval, or compensatory mitigation, provided no toxic discharge occurs and sediment is controlled

Requires a general permit for alterations of low-quality isolated wetlands between 1-2 acres and moderate-quality isolated wetlands between 1/4 acre and 2 acres, with no riparian buffer, cumulative impact analysis, or antidegradation requirements

Establishes mitigation ratios for certain wetland alterations: up to 1:1 for moderate-quality wetlands over 1/4 acre and low-quality wetlands over 1 acre, and up to 2:1 for moderate-quality wetlands between 1-2 acres

Creates a wetland determination process allowing property developers to submit third-party wetland resource inventory reports, with determinations presumed correct unless the commissioner objects within 30-60 days

Requires annual reporting beginning August 1, 2026 to the governor and legislative committees on permit applications and compensatory mitigation mechanisms, including mitigation credits sold and money received by sponsors