Tennessee needs more than $3 billion by 2027 to repair, replace and expand wastewater treatment systems as infrastructure crumbles and population increases, a state analysis released Wednesday found.

The first-of-its-kind snapshot of Tennessee’s aging waste systems by the Tennessee Advisory Commission on Intergovernmental Affairs lays out looming and costly challenges ahead.

Many of the state’s sewage treatment plants are marked by a “failure to maintain or upgrade systems,” the report noted. Local governments have little financial leeway to upgrade and expand public systems. And nearly half of all decentralized waste systems — typically operated by for-profit companies to serve a single entity, such as a subdivision — fail to comply with minimum state environmental standards.

The report found that the state has invested heavily in upgrading wastewater infrastructure in recent years by distributing more than $500 million in federal American Rescue Plan funding, but “it is likely that Tennessee’s wastewater systems will need to spend billions to pay for the repair, replacement and expansion of their infrastructure.”