Water Pollution - As enacted, expands from wetlands to all areas that an aquatic resource alteration permit may apply to the areas for which the department of environment and conservation is required to exempt from compensatory mitigation an amount of area equal in size to the area for which mitigation would not be required if the permit applicant qualified for coverage under a general permit, if the only factor that disqualifies an applicant for an aquatic resource alteration permit from having the activities for which a permit is sought covered under a general permit is the size of the area that the permit will apply to. - Amends TCA Title 69, Chapter 3.

SB 664 modifies Tennessee's water permit rules to exempt certain applicants from compensatory mitigation requirements. If a project applicant is denied coverage under a simplified "general permit" solely because of the project's size (not other factors), the Department of Environment and Conservation must exempt them from needing replacement wetlands or habitat for an area equal to what would be exempt under the general permit. This directly affects developers or landowners seeking permits for activities impacting water resources who are disqualified only by project scale. The change takes effect July 1, 2025, and applies to permits under Title 69, Chapter 3 of Tennessee law.