Water - As enacted, requires the department of environment and conservation to add water system projects located in counties having a population of less than 57,000 according to the 2020 census, or a subsequent census, to the priority list for consideration for loans from the water system revolving loan fund. - Amends TCA Title 68, Chapter 221.

HB 2205 requires Tennessee's Department of Environment and Conservation to prioritize water system projects in rural counties (defined as those with under 57,000 residents based on the 2020 or later census) for loans from the water system revolving loan fund. This directly affects smaller counties struggling to fund water infrastructure improvements. The bill amends existing law to add these rural counties to the priority list, ensuring their projects are considered first for available loan funding. It does not create new money but changes how existing loan funds are allocated.