Environment and Conservation, Department of - As introduced, requires the department to submit an annual report regarding the number of applications filed pursuant to the Water Quality Control Act; requires the department to include information on the mechanism of compensatory mitigation provided for in permits that are required to have a provision for adequate compensatory mitigation; requires additional information when the mechanism of compensatory mitigation is an in-lieu fee program or mitigation banking. - Amends TCA Title 69.

SB 665 requires Tennessee's Department of Environment and Conservation to submit annual reports starting July 2025 on water quality permit applications and the compensatory mitigation methods used in those permits. The report must track the number of permit applications and detail how developers offset environmental impacts - such as through wetland restoration projects, in-lieu fee programs, or mitigation banking - including specific financial details like fees collected or credits sold. This affects the department (which must prepare the reports), permit applicants (whose mitigation methods are tracked), and state officials (who receive the reports). The bill aims to increase transparency around how environmental damage from development is compensated, without changing existing permit requirements.