[Federal Register Volume 78, Number 179 (Monday, September 16, 2013)]
[Notices]
[Pages 56980-56983]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-22499]


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TENNESSEE VALLEY AUTHORITY


Muscle Shoals Reservation Redevelopment, Colbert County, Alabama

AGENCY: Tennessee Valley Authority (TVA).

ACTION: Issuance of Record of Decision (ROD).

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SUMMARY: This notice is provided in accordance with the Council on 
Environmental Quality's regulations (40 CFR 1500 to 1508) and TVA's 
procedures for implementing the National Environmental Policy Act 
(NEPA). TVA has decided to adopt the preferred alternative in its final 
environmental impact statement (EIS) for the redevelopment of the 
Muscle Shoals Reservation (MSR) in Colbert County, Alabama. The notice 
of availability (NOA) of the Final Environmental Impact Statement for 
the Muscle Shoals Reservation Redevelopment was published in the 
Federal Register on November 18, 2011. Under this alternative, 
Unrestricted Land Use, after declaring a large portion of the MSR 
surplus, TVA would dispose of the property without land use 
restrictions other than those designed to protect TVA's program 
interests or to meet legal or environmental requirements.

FOR FURTHER INFORMATION CONTACT: Charles P. Nicholson, Principal 
Program Manager, Tennessee Valley Authority, 400 West Summit Hill 
Drive, WT 11D, Knoxville, Tennessee 37902-1499; telephone (865) 632-
3582 or email [email protected].

SUPPLEMENTARY INFORMATION: TVA manages public lands to protect the 
integrated operation of TVA reservoir and power systems, to provide for 
appropriate public use and enjoyment of the reservoir system, and to 
provide for continuing economic growth in the Tennessee Valley. TVA 
assumed custody and control of the 3,036-acre Muscle Shoals/Wilson Dam 
Reservation in Colbert County, Alabama, in 1933 when Congress directed 
its transfer to TVA from the U.S. War Department. TVA has since managed 
2,600 acres of this nonreservoir property as the MSR.
    Since acquisition of the land, TVA's need for this amount of MSR 
property has changed. TVA's programs have changed over time, and TVA 
has greatly reduced its operations and employment at Muscle Shoals. TVA 
has determined that a portion of its MSR is no longer essential to its 
needs. Local public and private sector developers have been requesting 
use of this land for many years. In accordance with its economic 
development mission, TVA believes sale and redevelopment of up to 1,400 
acres of the MSR (the ``MSR study area'') would help stimulate the 
local and regional economy. The sale of this land would also help TVA 
reduce its operations and maintenance costs and help TVA reduce its 
environmental footprint.

Public Involvement

    TVA published a notice of intent to prepare an EIS in the Federal 
Register on June 18, 2009. The NOA of the draft EIS was published in 
the Federal Register by the U.S. Environmental Protection Agency 
(USEPA) on January 14, 2011. TVA accepted comments on the draft EIS 
until February 28, 2011. Approximately 80 people attended a public 
meeting on February 3, 2011, in Muscle Shoals, Alabama. TVA received 
146 comment submissions from 133 individuals and seven federal and 
state agencies. The majority of the commenters did not state a 
preferred future use of the land. Commenters expressed concerns about 
TVA's purpose and need for the proposal; effects on environmental 
resources, including wildlife, woodlands, wetlands, aesthetics, and 
historic buildings and structures; health and safety; socioeconomics 
and environmental justice; specific future land uses; the role of the 
comprehensive master plan; and the adequacy of the environmental 
analysis. Agencies expressed concerns about effects on environmental 
resources, lack of details about future land uses, cumulative effects 
analysis, and public health and safety.
    After considering and responding to all substantive comments, 
clarifying action alternatives, and developing a new alternative, i.e., 
Alternative F, TVA issued the final EIS. The final EIS identifies 
Alternative F, Unrestricted Land Use, as TVA's preferred alternative. 
The NOA of the final EIS was published in the Federal Register on 
November 18, 2011.
    TVA received comment letters on the final EIS from the USEPA and 
the Nuclear Regulatory Commission (NRC). TVA has considered these 
comments, neither of which raised significant new

[[Page 56981]]

issues or provided significant new information, in making its decision.
    The NRC notified TVA that there may be facilities within the MSR 
study area that come under current NRC licenses and guidance. The 
letter stated that coordination with NRC is required prior to the sale 
of the MSR property. TVA will continue to coordinate with NRC in the 
development of the comprehensive master plan and the subsequent sale of 
the MSR property.
    USEPA reiterated its preference for Alternative B, Conservation, 
because it is the most environmentally protective alternative. USEPA 
expressed concerns that there are no binding commitments being made by 
TVA with respect to future land use and development of the MSR and that 
TVA make these binding commitments in the ROD. USEPA also expressed 
concerns that the development of the comprehensive master plan and the 
NEPA process have not been concurrent efforts. It was recommended that 
TVA and stakeholders include protections to environmentally sensitive 
areas/resources and encourage low impact development.
    In response to USEPA's comment about the comprehensive master 
planning process, TVA will release a draft of the comprehensive master 
plan and hold a public meeting to obtain stakeholder comments. TVA will 
then consider these comments, finalize the plan, and make the document 
available on TVA's Web site. TVA will then formally decide whether to 
adopt the comprehensive master plan and document this decision in a 
second ROD in the Winter of 2013. TVA will continue to encourage the 
participation of the environmental justice communities in the public 
review process.

Alternatives Considered

    Based on comments received on the draft EIS, many readers 
misunderstood the Action Alternatives presented in the draft EIS. 
Therefore, TVA added a new Action Alternative and the definitions of 
Alternatives B through E were changed in the final EIS.
    In the final EIS, TVA evaluated six alternatives intended to 
address a reasonable range of likely future land uses of the 1,400-acre 
MSR study area. The alternatives include Alternative A--No Action; 
Alternative B--Conservation; Alternative C--Commercial, Retail, and 
Residential; Alternative D--Industrial; Alternative E--Mixed Use; and 
Alternative F--Unrestricted Land Use.
    Under all Action Alternatives, the MSR study area would be sold at 
public auction in accordance with Section 31 of the TVA Act and would 
be developed in accordance with guidelines described in a comprehensive 
master plan. The sale would not include the phosphate slag storage 
area, which may be made available by easement for a utility corridor. 
Under any of the Action Alternatives, TVA anticipates an approximate 
20-year plus development build-out of this property.
    Under Alternative A, No Action, TVA would not declare the MSR study 
area surplus to its needs, and it would remain in federal ownership. 
TVA would continue to manage the property consistent with its 1996 
Muscle Shoals/Wilson Dam Reservation Land Use Plan. If other future 
land sales, transfers, or disposal actions were considered by TVA, 
those actions would require independent environmental reviews at that 
time.
    Under Alternative B, TVA would declare the MSR study area surplus 
and sell it with the requirement that it be used only for conservation 
of natural resources and/or for sustainable limited impact development 
(LID). Other types of land uses, such as heavy industry, residential 
development, and commercial development, would not be allowed. Types of 
LID likely under this alternative include those that generate minimal 
waste streams and have a small environmental footprint. The reuse of 
existing buildings and infrastructure would be preferred over new 
construction. Some natural resources could be integrated into an 
overall conservation theme. This could involve inclusion of some land 
with valued resources, such as streams, wetlands, floodplains, 
woodlands, into areas of future parks, visual or noise buffers, or 
green space. Typical examples of future land uses under this 
alternative could include recreation, nature and historic 
interpretation, open green spaces, ecotourism, botanical gardens, 
environmental education, and wildlife viewing and management.
    Under Alternative C, TVA would declare the MSR study area surplus 
and sell it with the requirement that it be used only for a mixture of 
commercial, retail and residential uses. Other uses (e.g., heavy 
industrial uses) would be prohibited. Typical examples of future land 
uses likely under this alternative could include mall, theaters, 
government buildings, gas stations, department stores, restaurants, 
self-storage buildings, health care institutes, retail shopping, 
community centers, residential buildings, and religious and educational 
institutes. Most of the MSR study area is suitable for commercial, 
retail and residential uses. Consequently, it could take on a suburban 
or urban character.
    Under Alternative D, TVA would declare the MSR study area surplus 
and sell it with the requirement that it be used only for industrial 
development purposes. Other uses, including residential, commercial, 
retail and conservation, would not be allowed. Industry can be 
generally defined as any type of economic activity producing goods or 
services for consumers. Possible industries could include primary 
(mining, growing, forestry, etc.), secondary (lumber milling, metal 
fabrication, refining oil), tertiary (service industries such as civil 
service, education, etc.), or quaternary (research and development). 
All land within the MSR study area could be used for industrial 
purposes. Under this alternative, the amount of land actually used or 
required by future industries could vary from a few hundred acres to 
the entire MSR study area. Depending on the number of industries and 
the extent of industrial development, the character of the MSR study 
area could range from that of a maintained open area with some 
industrial development to that of an industrial park.
    Under Alternative E, TVA would declare the MSR study area surplus 
and sell it with the requirement that it be used for a mixture of 
conservation and sustainable LID; commercial, retail, and residential; 
and industrial uses. Potential site development under this alternative 
would generally include a mixture of land uses described under 
Alternatives B through D.
    Under Alternative F, TVA would declare the MSR study area surplus 
and dispose of the property without land use restrictions other than 
those designed to protect TVA's program interests or to meet legal or 
environmental requirements. TVA would not specify that land on the MSR 
study area be used for a particular purpose, but instead would allow 
future uses on the property to be driven by environmental resources and 
constraints taken into account in the development of the comprehensive 
master plan and subsequent local zoning or other appropriate land use 
ordinances. Although TVA would not require a particular type of land 
uses under Alternative F, the property likely would be used or 
developed for one or more of the reasonably foreseeable uses identified 
in Alternatives B through E.

Updated Information

    Since the final EIS was published in November 2011, TVA has been 
developing the comprehensive master plan in concert with the local 
community. During this process, TVA

[[Page 56982]]

identified 400 acres of land (mainly around the TVA-retained solid 
waste management units) that should be retained by TVA due to ongoing 
TVA business needs and limited development opportunities due to prior 
industrial operations. TVA also determined that it should retain 
ownership of the Western Area Radiological Laboratory and sell the TVA 
Credit Union site. TVA completed an evaluation of the environmental 
effects of including the 1.8-acre TVA Credit Union in the proposed MSR 
study area in November 2012. TVA staff subsequently proposed to the TVA 
Board of Directors (TVA Board), and the TVA Board approved, the 
disposal of approximately 1,000 acres instead of the 1,400 acres 
analyzed in the final EIS.
    In support of the development of the comprehensive master plan, TVA 
conducted additional wetland and floodplain studies to gain a better 
perspective of the location of these resources. As a result of the 
survey, approximately 177 acres of wetlands were determined to be 
present on the MSR study area, a small increase from the 164 acres 
identified in the final EIS. To ensure compliance with the Clean Water 
Act and Executive Order (EO) 11990 (Protection of Wetlands), the 
disposal of wetlands on the MSR will be subject to the mitigation 
measures described below.
    The final EIS contained floodplain information based on 2010 
Federal Emergency Management Agency (FEMA) data. TVA conducted a flood 
study of Pond Creek on the MSR in September 2012 to update the FEMA 
information. The study results showed that the 100-year and 500-year 
floodplains cover a larger area than identified in the final EIS. To 
ensure compliance with EO 11988 (Floodplain Management), TVA will place 
a requirement in the deed, transfer, or other conveyance document that 
any proposal for future land-based improvements or water use facilities 
in the floodplain would be subject to TVA review and approval prior to 
construction (See Mitigation Measures Section below).
    TVA previously granted agricultural licenses on three areas of the 
MSR study area, as detailed in Section 3.9 of the EIS. TVA has since 
terminated those agricultural licenses in accordance with their terms.

Environmentally Preferred Alternative

    The Environmentally Preferred Alternative is Alternative B 
(Conservation), under which there would be a deliberate effort to 
conserve sensitive resources, i.e., wetlands, historic properties and 
woodlands, and to encourage development with minimal environmental 
impacts.

Decision

    On November 15, 2012, the TVA Board declared 1,000 acres of the MSR 
to be surplus to TVA's needs and authorized the sale of such acreage at 
public auction upon a determination by the Senior Vice President, 
Economic Development, following consultation with the Vice President, 
Property and Natural Resources, that market conditions warrant selling 
the fee simple interest in the 1,000 acres or a portion thereof. TVA 
will develop a comprehensive master plan with the Northwest Alabama 
Cooperative District and other appropriate local, state, or federal 
authorities for the holistic redevelopment of the MSR property; the 
comprehensive master plan is scheduled for completion in Fall/Winter 
2013. The sale of the property would be in accordance with TVA's 
preferred alternative, Alternative F--Unrestricted Land Use in the 
final EIS. This decision incorporates mitigation measures that would 
reduce the potential for adverse impacts to the environment. These 
measures are listed below.

Mitigation Measures

    TVA would comply with the following applicable laws, regulations, 
EOs, and obligations associated with existing agreements.
     TVA would warrant in the sale deed that the property has 
been cleaned up to the extent believed necessary to protect human 
health and the environment and that the U.S. will perform any cleanup 
that becomes necessary in the future as a result of contamination that 
occurred prior to the sale.
     Approximately 17 acres of land has been remediated (i.e., 
cleaned up) to industrial screening level. No land within the 2,260-
acre area covered by the existing Resource Conservation and Recovery 
Act Permit would be sold or transferred from federal ownership unless 
the land is conveyed at the unrestricted use level or with the 
appropriate environmental covenants and restrictions in the deed, 
transfer, or other conveyance document. Additional land use 
restrictions may be applicable as required by Alabama's Uniform 
Environmental Covenants Act.
     Consistent with TVA implementation procedures for EO 
11990, all future owners shall avoid construction within wetland areas 
without TVA approval. Unless there is no practicable alternative, 
development may not occur in identified wetland areas.
     Consistent with TVA implementation procedures for EO 
11988, all future owners shall avoid construction of obstructions 
within the limits of the 100-year floodplain without appropriate local 
government authorization and approval under Section 26a of the TVA Act. 
Unless there is no practicable alternative, development may not occur 
in floodplain areas.
     TVA will comply with the terms and conditions of a 
September 18, 2001 agreement with the Alabama Department of 
Transportation and the Federal Highway Administration regarding use of 
Transportation Enhancement Project funds for construction of the 1-mile 
segment of the National Recreation Trail Complex trail located on the 
south side of Reservation Road.
     Additional land use restrictions may be applicable as 
required by Alabama's Uniform Environmental Covenants Act and would be 
enforced by the Alabama Department of Environmental Management.
    TVA would be responsible for requiring, monitoring, and enforcing 
the following mitigation measures. To the extent practicable, this 
could be accomplished by placing conditions in the land transfer 
agreement and coordinating with Alabama Department of Environmental 
Management's Environmental Covenants Act, where applicable.
     The only permissible use of the phosphate slag storage 
area is for a utility corridor to the Tennessee River to support any 
needed infrastructure development on the MSR study area. TVA would not 
transfer this land for future development but would make it available 
under specific use agreements, such as easements. Because of 
environmental and reservoir operations constraints along the left-
descending (south bank) shoreline of the Tennessee River in the 
vicinity of the utility corridor, TVA would not approve a barge 
terminal, commercial dock, or other similar shoreline facility.
     Total annual exposure to any person within the phosphate 
slag storage area is to remain restricted to no more than 500 hours per 
year.
     If conditions at the phosphate slag storage area are 
altered and it becomes necessary to reevaluate radiation exposure, TVA 
will verify in consultation with the Alabama Department of Public 
Health any change to the phosphate slag storage area that would allow 
increased exposure times. This would include any effort to

[[Page 56983]]

mitigate radioactive levels at the site through the use of soil cover 
or caps of various materials.
     If it becomes necessary through the proposed use of the 
phosphate slag storage area for subsurface infrastructure enhancements 
(e.g., buried pipeline), TVA would conduct further radiological 
measurement and monitoring to determine a worker's potential exposure 
to ensure safety.
     No subsurface disturbance or other excavation of buried 
materials would be allowed within the low-level radioactive waste 
burial site.
     TVA would not allow removal of groundwater for drinking 
water (i.e., potable use purposes) from anywhere on the MSR study area.
     TVA would adhere to the stipulations in the final executed 
Memorandum of Agreement between TVA and the Alabama State Historic 
Preservation Officer to mitigate for the loss of properties eligible 
for inclusion in the National Register of Historic Places. Such 
mitigation includes imposition of architectural controls and design 
guidelines on new owners and consideration of these properties in the 
comprehensive master plan. TVA would adhere to required measures 
through inclusion of requirements in the transfer deed.
     Site 1CT495, the remnants of Wilson Power Plant 
foundations, shall be avoided during any construction in the utility 
corridor to the Tennessee River.
     In the event of construction within the utility corridor, 
TVA would take into account the location of the Rockpile Hiking Trail 
and the paved trail complex on the north side of Reservation Road and, 
to the extent practicable, avoid trail closure or reduce effects of 
trail usage through planning or other design features.
     An approximate 900-foot section of paved National 
Recreation Trail Complex, including a protective corridor, on the 
Multipurpose Building parcel would be (a) retained by TVA, (b) 
preserved and managed for public recreation use under an agreement 
(e.g., easement) between TVA and a new landowner, or (c) relocated to 
skirt the boundaries of the Multipurpose Building parcel.
     Prior to any TVA land or buildings being transferred from 
federal ownership under any of the Action Alternatives, TVA would 
assure that any required environmental due diligence assessments are 
completed.
    The final EIS identified routine and nonroutine measures to which 
future landowners could implement voluntarily or be required by 
agencies to comply with other federal, state, or local regulations. 
These measures along with the above mitigation measures would be taken 
into consideration in the development of the comprehensive master plan, 
which would be completed and finalized by the Northwest Alabama 
Cooperative District and TVA prior to the sale of the MSR property.

    Dated: September 5, 2013.
John J. Bradley,
Senior Vice President, Economic Development.
Bruce S. Schofield,
Vice President, Property and Natural Resources.
[FR Doc. 2013-22499 Filed 9-13-13; 8:45 am]
BILLING CODE 8120-08-P