House Bill 1509 amends Tennessee Code Annotated to establish new regulations regarding the withdrawal of water by utilities for drinking water services. The bill defines a "utility" as an entity providing drinking water services that is owned or operated by a local government or is under the jurisdiction of the Tennessee board of utility regulation. It stipulates that, generally, the Department of Environment and Conservation cannot prohibit a utility from withdrawing water from natural sources for drinking water purposes, including during the renewal of permits. However, the department may impose such prohibitions if required to comply with specific federal laws, such as the Safe Drinking Water Act, the Water Pollution Control Act, or the Endangered Species Act. In cases where a prohibition is enacted, the department must provide written notice to the utility, detailing the basis for the action.

Additionally, the bill allows utilities to submit complaints to the board if they believe the department has improperly prohibited them from withdrawing water. This legislation is set to take effect on July 1, 2026, and will apply to actions taken on or after that date.