ON APRIL 14, 2025, THE SENATE ADOPTED AMENDMENT #2 AND PASSED SENATE BILL 6760, AS AMENDED. AMENDMENT #2 rewrites this bill to: (1) Require the division of water resources in the department of environment and conservation, in collaboration with U.S. army corps of engineers, as necessary, to annually report information concerning compensatory mitigation provisions in aquatic resource alteration permits (ARAPs) issued during the prior fiscal year to the governor, the comptroller of the treasury, and the chairpersons of the commerce committees; and (2) Establish four categories of isolated wetlands for regulatory purposes. Present law generally requires that a person obtain an ARAP from TDEC before altering the physical properties of the waters of the state, including wetlands. Present law specifies a nine-step process by which a person may seek to alter wetlands under a general permit. This amendment defines "isolated wetland" to mean a wetland that does not have a continuous surface connection to a relatively permanent body of water that is connected to a traditional interstate navigable water and, as such, is distinguishable from that body of water. This amendment establishes the following four categories of isolated wetlands, all of which are defined in the full text of this amendment and will be further defined and determined in by TDEC's rules and wetland resource assessment tool: artificial isolated wetlands; low-quality isolated wetlands; moderate-quality isolated wetlands; and high-quality isolated wetlands. This amendment establishes a process whereby a person desiring to develop real property may request a determination from the TDEC commissioner regarding the presence, extent, and category of wetlands by submitting a wetland resource inventory report prepared by a third-party wetland professional, including a delineation and, if applicable, documentation that the wetland is isolated. The full text of this amendment specifies the requirements for a complete report. The commissioner must act on a complete and accurate report containing 10 or fewer wetlands within 30 days, or within 60 days for a report containing more than 10 wetlands. The commissioner's decision may be appealed to the board of water quality, oil and gas. Under this amendment: (1) The alteration of a low-quality isolated wetland up to one acre in size, a moderate-quality isolated wetland up to 1/4 acre in size, or an artificial isolated wetland of any size is permitted and no notice, approval, or compensatory mitigation is required for such alteration; provided, that the alteration is done in accordance with the following conditions: (A) The activity must not result in the discharge of toxic pollutants; (B) Sediment must be prevented from entering a stream or other surface waters; and (C) Appropriate steps must be taken to ensure that petroleum products or other chemical pollutants are prevented from entering waters of the state. In the event of a spill, measures must be taken immediately to prevent pollution of waters of the state, including groundwater; (2) The alteration of a low-quality isolated wetland that is greater than one acre up to two acres in size, or a moderate-quality isolated wetland that is greater than one-quarter acre up to two acres in size, will be regulated by a general ARAP, which must not impose any requirements related to riparian buffer, cumulative impact analysis, or antidegradation; (3) Compensatory mitigation is not required for alteration of a wetland subject to (1) or (2), except that mitigation may be required for: (A) Alteration of a moderate-quality isolated wetland: (i) For the acreage greater than 1/4 acre up to one acre in size at a ratio not to exceed 1:1; and (ii) For the acreage greater than one acre up to two acres in size at a ratio not to exceed 2:1; and (B) Alteration of a low-quality isolated wetland for the acreage greater than one acre up to two acres in size at a ratio not to exceed 1:1; (4) Unless required by federal law and except as authorized by (3), no additional permits, authorization, conditions, or requirements related to cumulative impact analysis, antidegradation, or mitigation are required for activity within a wetland subject to (1) or (2). No riparian buffers are required for wetlands subject to (1) or (2); (5) An individual ARAP is required for alteration of a low-quality isolated wetland or moderate-quality isolated wetland greater than two acres and a high-quality isolated wetland of any size; and (6) The acreage requirements in this (1)-(5) are minimum acreage limits. This amendment authorizes the commissioner to increase the acreage of low-quality isolated wetlands and moderate-quality isolated wetlands permitted by (1) and the acreage of low-quality isolated wetlands and moderate-quality isolated wetlands subject to (2) as the commissioner deems appropriate. This amendment requires that existing onsite permanent stormwater control measures is accounted for when determining the amount of mitigation required for alteration to any isolated wetland where mitigation is required. This amendment prohibits consideration of isolated wetlands and artificial isolated wetlands when determining the cumulative impact of a project for purposes of a permit even if the project contains other wetlands that are deemed jurisdictional by the United States army corps of engineers. A water quality certification under § 401 of the federal Clean Water Act must not consider isolated or artificial isolated wetlands when determining cumulative impact or common plan of development.