[Federal Register Volume 85, Number 60 (Friday, March 27, 2020)]
[Rules and Regulations]
[Pages 17434-17467]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-05964]



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Vol. 85

Friday,

No. 60

March 27, 2020

Part III





 Tennessee Valley Authority





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18 CFR Part 1318





 Procedures for Implementing the National Environmental Policy Act; 
Final Rule

  Federal Register / Vol. 85 , No. 60 / Friday, March 27, 2020 / Rules 
and Regulations  

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TENNESSEE VALLEY AUTHORITY

18 CFR Part 1318


Procedures for Implementing the National Environmental Policy Act

AGENCY: Tennessee Valley Authority.

ACTION: Final rule.

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SUMMARY: This final rule amends the procedures of the Tennessee Valley 
Authority (TVA) for implementing the National Environmental Policy Act 
(NEPA). The final rule is codified in Title 18 of the Code of Federal 
Regulations, as part 1318 of Chapter XIII (Tennessee Valley Authority).

DATES: This final rule is effective April 27, 2020.

FOR FURTHER INFORMATION CONTACT: Matthew Higdon, NEPA Specialist, 
Tennessee Valley Authority, 400 W. Summit Hill Drive #11B-K, Knoxville, 
Tennessee 37902. Telephone: 865-632-8051. Email: [email protected].

SUPPLEMENTARY INFORMATION: 

I. Background

    This final rule revises TVA's implementing procedures for assessing 
the effects of TVA's actions in accordance with NEPA, as amended (42 
U.S.C. 4321 et seq.). The Council on Environmental Quality (CEQ) 
regulations at 40 CFR 1505.1 and 1507.3 require Federal agencies to 
adopt procedures as necessary to supplement CEQ's regulations 
implementing NEPA and to consult with CEQ during their development. TVA 
first established its procedures for implementing NEPA in 1980 (45 FR 
54511-15, August 15, 1980), and amended the procedures in 1983 (48 FR 
19264, April 28, 1983) to incorporate requirements relating to 
floodplain management and protection of wetlands, among other things.
    In 2016, TVA completed an internal review of its NEPA procedures 
and practices and identified the need to revise some of its procedures 
to more accurately address TVA's current mission, program areas, or 
organizational structure. TVA also found that updating the procedures 
is necessary to address the evolving energy market place, current 
communication trends, and CEQ guidance issued subsequent to the initial 
TVA NEPA procedures. In addition, TVA identified opportunities to 
improve its practices and to clarify the procedures to ensure 
environmental compliance and improve the decision-making process. In 
updating its procedures, TVA ensures that the procedures reduce 
paperwork and delay to the extent possible.
    The final rule incorporates: (1) Updates to organizational 
references to clarify roles and responsibilities within TVA; (2) 
acknowledgement of the use of modern notification and communication 
methods to improve public participation; (3) revisions to TVA's list of 
categorical exclusions (CEs) to include common actions that have been 
demonstrated to have no significant effect on the human environment and 
to remove CEs for actions which TVA rarely or no longer undertakes; and 
(4) revisions to improve the clarity of the procedures and remove 
redundant and outdated information.
    When established in 1980, TVA's NEPA implementing procedures were 
contained in TVA Instruction IX (Environmental Review), a section of 
TVA's administrative code of internal policies and procedures. Under 
the final rule, the procedures are codified in Title 18 of the Code of 
Federal Regulations (CFR), as part 1318 of Chapter XIII (Tennessee 
Valley Authority), with the heading of part 1318 as ``Implementation of 
the National Environmental Policy Act of 1969.'' The regulations are 
organized under subparts A through G of part 1318. Incorporating TVA's 
NEPA procedures in the CFR at 18 CFR part 1318 is intended to promote 
greater transparency in the NEPA process.
    On June 8, 2017, TVA published the proposed rule to revise its NEPA 
procedures in the Federal Register, initiating a 60-day public review 
period (82 FR 26620). In response to public requests for an extension, 
on July 28, 2017 (82 FR 35133) TVA extended the comment period for an 
additional 30 days. The extended comment period closed on September 6, 
2017.
    TVA consulted with CEQ on the proposed and final rule. During their 
review of the final rule, CEQ suggested edits to TVA's procedures to 
improve the grammar and clarity of the procedures and to ensure the 
procedures comply with CEQ procedures. After TVA incorporated this 
input, CEQ issued a letter to TVA on February 19, 2020, stating that 
CEQ reviewed this rule and found it to be in conformity with NEPA and 
CEQ regulations implementing NEPA (per 40 CFR 1507.3 and NEPA section 
102(2)(B), 42 U.S.C. 4332(2)(B)). If CEQ finalizes its ongoing 
rulemaking (85 FR 1684), TVA will review and undertake additional 
revisions to its procedures to ensure consistency with the revised CEQ 
regulations as necessary.
    Like TVA's previous NEPA procedures, the final rule supplements the 
CEQ regulations. The rule was drafted with the objective of minimizing 
repetition of requirements already contained in the CEQ regulations and 
with the understanding that the TVA-specific regulations would be 
applied with the CEQ regulations. The final rule includes many words 
and phrases that are defined in either the NEPA statute or CEQ 
regulations (including at 40 CFR part 1508). In addition, the final 
rule includes definitions for certain terms.
    In its Notice of Proposed Rule, TVA addressed the implementation of 
Executive Order (E.O.) 13690, Establishing a Federal Flood Risk 
Management Standard and a Process for Further Soliciting and 
Considering Stakeholder Input. On August 15, 2017, during the public 
comment period on TVA's proposed rule, E.O. 13690 was revoked by 
executive action (E.O. 13807, Establishing Discipline and 
Accountability in the Environmental Review and Permitting Process for 
Infrastructure Projects). TVA made changes to Subpart G of the final 
rule to reflect that E.O. 13690 was revoked.
    After considering the public comments on the proposed rule, 
additional internal review, and consultation with CEQ, TVA made 
numerous changes to the proposed rule that are included in the final 
rule. Public comments and TVA responses are addressed in Section II 
below. The TVA responses explain those changes that are based on public 
input. All changes are summarized in Section III below.

II. Comments on the Proposed Rule and TVA's Responses

    During the 2017 public review period, TVA received 1,572 responses, 
consisting of letters, emails, statements, phone calls, and web-based 
submissions. Of those, 61 responses contained original substantive 
comments. The remaining responses were variations of four form letters 
addressing several general topics, which are addressed below. Comments 
were received from individuals, trade associations, nongovernmental 
organizations, local, State and Federal entities, and a tribal 
government. The comments received by TVA are available on the TVA NEPA 
website (https://www.tva.gov/nepa).
    TVA received substantive comments on all subparts of the proposed 
rule except Subpart B, which addresses the initiation of the NEPA 
process. Most commenters, including those who submitted comments in 
variations of form letters, expressed general opposition to TVA's 
proposal to establish new CEs. The primary reasons cited for this 
opposition were the beliefs that adding CEs would increase the

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potential for adverse environmental impacts and that additional CEs 
would reduce or eliminate the public's ability to be informed of 
proposed TVA actions and their impacts and to participate in the 
decision-making process. TVA also received numerous comments that were 
not substantive because they included statements that were conclusory, 
unclear and/or vague, and statements related to specific TVA projects 
or operations rather than to the proposed rule.
    The following discussion includes the comments received, TVA's 
responses to the comments, and a description of changes made by TVA to 
the rule based on the comments. TVA has also prepared a Comment-
Response document to allow commenters to see how their comments are 
addressed; the identities of commenters are not provided in the 
responses below for the sake of brevity, given the volume of similar 
comments, but are included in the Comment-Response document available 
at the TVA NEPA website (https://www.tva.gov/nepa).

A. General Comments on the Proposed Rule

    Comment: TVA's proposal would reduce transparency, limit TVA's 
obligation to solicit public input about proposed actions, and reduce 
recordkeeping regarding TVA decisions. NEPA requires that TVA inform 
the public on matters that impact people and the environment.
    Response: TVA recognizes that compliance with NEPA and other 
environmental laws and requirements is of great interest to the people 
it serves. TVA remains committed to being a good steward of the 
environment and incorporating appropriate opportunities for public 
review into agency planning and decisionmaking.
    TVA's final rule supplements but does not supersede the CEQ's 
regulations implementing NEPA, which contain public involvement 
requirements. The final rule retains CEQ's requirements to involve and 
consider public and interagency comments during the decision-making 
process and to include such comments and responses in the 
administrative record. CEQ regulations instruct agencies to apply CEs, 
where appropriate, because they can ``reduce paperwork and delay, so 
that EAs or EISs are targeted toward proposed actions that truly have 
the potential to cause significant environmental effects'' (Final 
Guidance for Federal Departments and Agencies on Establishing, 
Applying, and Revising Categorical Exclusions under the National 
Environmental Policy Act, 75 FR 75628, 75631, December 6, 2010; see 
also 40 CFR 1500.5(k)).
    A CE is a form of NEPA compliance, and not an exemption from NEPA. 
A CE is established for a category of actions that TVA has determined, 
based on analysis and experience, do not individually or cumulatively 
have potential to cause significant impacts to the human environment 
and, therefore, do not require the preparation of an environmental 
assessment (EA) or an environmental impact statement (EIS). The final 
rule does not reduce TVA's obligation to comply with NEPA, as some 
commenters assert. Rather, CEs make TVA's compliance with NEPA more 
efficient by allowing TVA to focus its resources on reviewing proposed 
actions that have the potential for significant environmental impacts. 
TVA is committed to conducting thorough, systematic, and 
interdisciplinary reviews of its projects and incorporating those 
findings into its decisionmaking.
    Although there is no requirement under NEPA or CEQ regulations to 
do so, to ensure transparency, TVA has added a paragraph in the final 
rule that addresses the circumstances in which the public should be 
notified before a CE is used. As stated in the final rule (Sec.  
1318.200(f)), TVA may consider public notice before a CE is used if TVA 
determines that the public may have relevant and important information 
relating to the proposal that will assist TVA in its decisionmaking.
    TVA notes that public notice and/or involvement has been and will 
continue to be provided for certain actions for which CEs may be used. 
For instance, TVA routinely conducts public meetings when planning new 
transmission lines, provides notice and comment on certain land actions 
(e.g., land disposals and commercial recreation requests), and, as 
addressed in Subpart G of the final rule, issues notices on certain 
actions impacting wetlands even when those actions come under CEs. 
These notices are listed on TVA's ``Get Involved Stay Involved'' 
website (https://www.tva.gov/About-TVA/Get-Involved-Stay-Involved).
    In addition, TVA will periodically publish to the TVA NEPA website 
a list of completed actions for which TVA has prepared CE documentation 
to improve transparency regarding these minor actions.
    Comment: TVA should continue to uphold the spirit and intent of 
NEPA. TVA's amendments to its procedures weakens the original intent of 
NEPA.
    Response: The final rule does not reduce TVA's obligation to comply 
with NEPA and the establishment of new CEs does not represent a move by 
TVA away from its commitment to comply with NEPA. Rather, CEs make 
TVA's compliance with NEPA more efficient by allowing TVA to focus its 
resources on reviewing proposed actions that have the potential for 
significant environmental impacts. TVA is committed to conducting 
thorough, systematic, and interdisciplinary reviews of its projects and 
incorporating the findings of those reviews into its decisionmaking.
    Comment: We oppose the proposed amendments to the TVA NEPA 
procedures. We do not trust TVA and do not believe TVA is doing what is 
best for those in the Valley.
    Response: TVA regrets that some stakeholders hold this view, and 
remains committed to transparency and involving the public in its 
decisionmaking. TVA's overarching environmental policy is to promote 
proactive environmental sustainability in a balanced and ecologically 
sound manner, support sustainable economic growth in the Tennessee 
Valley, and produce cleaner, reliable and affordable power. The update 
to the NEPA procedures is consistent with this policy and is intended 
to promote environmental stewardship and ensure legal compliance. The 
updated procedures also facilitate the implementation of TVA's mission, 
use of evolving energy industry and communication methods, and 
improvement of its business practices. In addition, TVA is 
incorporating new guidance, directives and legal precedents that are 
relevant to NEPA practices. Nothing in the final rule eliminates TVA's 
obligation to continue to comply with all applicable local, state and 
federal laws addressing environmental protection when conducting its 
activities. TVA remains dedicated to these environmental mandates and 
to being good stewards of the environment and public lands it manages.
    Comment: TVA's proposal to amend its procedures for implementing 
NEPA endangers public health, safety and the environment. The proposed 
rule increases the potential for adverse environmental impacts.
    Response: Protecting public health and safety is among the key 
considerations in all NEPA reviews, including the establishment and 
application of CEs, and is TVA's highest priority. The final rule 
addresses how TVA considers adverse impacts to the environment, 
including impacts to sensitive resources, during its decision-making 
processes. The procedures also address consideration of measures to

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minimize or mitigate such impacts. TVA will continue to adhere to all 
applicable local, state and federal laws and regulations when 
implementing actions that may potentially impact the environment.
    Comment: TVA is completely ignoring NEPA procedures when engaging 
in environmental projects, and TVA has weakened the burden of proof and 
is now considering too many projects to be minor.
    Response: TVA is revising its procedures to improve its NEPA 
compliance by clarifying and updating its procedures (last updated over 
35 years ago) to make them more accurately reflect TVA's mission and 
program activities. CEQ regulations and guidance outline a process by 
which agencies may establish CEs for actions that are unlikely to 
result in significant environmental impacts and encourages their use to 
reduce paperwork and delay, and allow agencies to focus their EAs and 
EISs on proposed actions that truly have the potential to cause 
significant environmental effects. (See response to the first comment 
above). CEQ's regulations also require agencies to ``continue to review 
their policies and procedures and in consultation with the Council to 
revise them as necessary to ensure full compliance with the purposes 
and provisions of NEPA.'' 40 CFR 1507.3(a). TVA has complied with these 
requirements in establishing the additional list of CEs and revising 
other CEs. Many of the new CEs reflect actions that TVA had previously 
excluded under more broadly defined CEs. Newly defined categories and 
revisions to existing CEs provide clarification and transparency 
regarding the type of actions covered by a CE and help limit its use to 
specific actions.
    Comment: The proposed procedures do not address the increased 
uncertainty due to climate change and state that TVA must practice 
caution in relying on the impact findings of past decades as its basis 
for conclusions about potential impacts of future actions.
    Response: TVA notes that CEQ guidance states that an agency's past 
experience should serve as the basis for identifying whether a proposed 
activity is one that normally does not require further environmental 
review (75 FR 75631, December 6, 2010). Although past experience serves 
as the basis for the list of CEs, TVA relied on a variety of supporting 
information in establishing its CEs. TVA recognizes the importance of 
understanding changes in the environment, including climate change, and 
of using high quality information and scientific analyses to inform its 
decisionmaking. For instance, TVA routinely considers climate change 
adaptation and potential greenhouse gas emissions when conducting 
environmental reviews. TVA specialists draw upon experience as well as 
available science to identify potential environmental impacts of 
actions and address any uncertainty.
    Comment: TVA should continue to comply with all applicable state or 
federal regulations during the NEPA process.
    Response: TVA will continue to comply with applicable local, state 
and federal laws when conducting its activities. TVA remains committed 
to coordination and consultation with other government agencies 
throughout the region in the intergovernmental review for assessing 
impacts of its actions. TVA's experience affirms that such coordination 
benefits TVA's decision-making processes and results in fewer 
environmental impacts.
    Comment: We are concerned about the wind energy project proposed to 
be constructed near Crab Orchard, Tennessee. TVA should conduct reviews 
under NEPA of these types of projects and TVA should be the lead 
federal agency on the project.
    Response: The concerns expressed in this comment relate to a 
specific wind energy development project that is no longer under 
consideration. While comments related to the Crab Orchard project are 
outside the scope of this rulemaking process, TVA notes that the final 
rule includes procedures for determining the scope of the federal 
action being proposed, including wind energy projects, and appropriate 
levels of environmental review and public involvement for those 
actions.
    Comment: The Tennessee Wildlife Federation wishes to collaborate 
with TVA to develop and establish policies to fill in any critical gaps 
in public communication and understanding that may result from approval 
of key CE, and to provide important guidance and needed transparency. 
TVA should plan for worst-case scenarios to ensure consistency in the 
future in the absence of the formal NEPA requirements.
    Response: Thank you for expressing interest in collaborating with 
TVA. We will continue to seek opportunities for collaboration with 
stakeholders to improve our decision-making processes.
    Comment: TVA lacks the authority to reinterpret NEPA and CEQ 
regulations in its implementing procedures. TVA impermissibly 
paraphrases the CEQ regulations and improperly constrains its 
obligations to comply with requirements set forth in NEPA and the CEQ 
regulations.
    Response: CEQ instructs agencies to develop their own NEPA 
procedures that supplement CEQ regulations (40 CFR 1507.3(a)). TVA's 
regulations were drafted to minimize repetition of requirements already 
contained in the CEQ regulations and with the understanding that the 
TVA-specific regulations would be applied in conjunction with the CEQ 
regulations. The TVA regulations include many words and phrases that 
are specifically defined in either the NEPA statute or CEQ regulations 
(40 CFR part 1508). TVA's regulations include definitions for certain 
terms to assist in implementing NEPA, not to reinterpret NEPA or CEQ's 
regulations. TVA coordinated the review of its amended procedures with 
the CEQ to ensure compliance with NEPA and CEQ's regulations. On 
February 19, 2020, CEQ notified TVA that the final rule conforms to 
NEPA and the CEQ regulations.
    The commenter asserted that TVA improperly paraphrases CEQ 
regulations with its statement in the proposed rule that EAs should 
address ``important environmental issues.'' CEQ regulations do 
emphasize that agencies concentrate their efforts and attention on 
important issues when completing environmental analysis. Nonetheless, 
because of the emphasis in NEPA on the ``significance'' of 
environmental impacts, TVA revised the sentence in the final rule by 
replacing ``important environmental issues'' with ``issues that are 
potentially significant.''
    Comment: Given the complexity of TVA's proposed rule, TVA did not 
provide adequate time for the public to review the proposed rule.
    Response: The publication of the proposed rule in the Federal 
Register initiated a 60-day public comment period (82 FR 26620, June 8, 
2017). After publication of the notice, TVA received stakeholder 
requests to extend the comment period; in response, TVA extended the 
period an additional 30 days. The 90-day comment period ended on 
September 6, 2017. Just prior to the close of the review period, one 
commenter requested a further extension of the comment period. TVA 
considers 90 days to be adequate; E.O. 13563, Improving Regulation and 
Regulatory Review, establishes 60 days as the standard duration of 
comment periods for informal rulemaking processes (75 FR 3821, January 
21, 2011).
    Comment: TVA has not provided adequate documentation to the public 
to evaluate the basis for TVA's proposed rule.

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    Response: TVA's Federal Register notice provided relevant 
supplementary information associated with the proposed rule, including 
a lengthy statement of the basis and a description of the proposed 
changes to each section of the procedures (82 FR 26620, June 8, 2017). 
TVA also prepared and made available its Proposed Categorical 
Exclusions Supporting Documentation (Supporting Documentation) for the 
proposed CEs to describe its review of the CEs and to support its 
findings that certain categories of actions do not result in 
significant environmental effects. TVA prepared the document to comply 
with CEQ's guidance to agencies on substantiating changes to agency CEs 
(75 FR 75628, December 6, 2010). The organization that made this 
comment submitted a Freedom of Information Act (FOIA) request seeking 
several thousand records associated with almost 700 NEPA reviews. TVA 
fulfilled the request in compliance with FOIA.

B. Comments on Subpart A--General Information

    Comment: TVA cannot define the term ``controversial'' as proposed 
in Subpart A of its proposed rule.
    Response: The language in the rule reflects current case law 
addressing the meaning of ``controversial'' under NEPA. Courts have 
consistently held that controversy refers to disagreement with respect 
to the characterization of the effects on the quality of the human 
environment, rather than opposition to a proposal. See, e.g., Native 
Ecosystems Council v. U.S. Forest Serv., 428 F.3d 1233, 1240 (9th Cir. 
2005) (stating that mere opposition or uncertainty does not render a 
project ``controversial'' under NEPA); River Road Alliance, Inc. v. 
Corps of Engineers, 764 F.2d 445, 451 (7th Cir. 1985) (``[P]ublic 
opposition [to a project] would be the environmental counterpart to the 
`heckler's veto' of First Amendment law.'').
    TVA will continue to consider the context and intensity of a 
potential impact to determine whether the action has the potential to 
significantly affect the environment; the definition of 
``controversial'' clarifies that a dispute as to the size, nature or 
effect of the action's impacts must be supported by scientific 
commentary that casts doubt on the agency's methodology or data.
    Comment: The Commonwealth of Virginia Department of Historic 
Resources encouraged TVA to include a brief statement of the 
possibilities and advantages of the coordinating process and 
documentation required for the preparation of an EA and finding of no 
significant impact (FONSI) or an EIS and Record of Decision (ROD), to 
comply with Section 106 of the National Historic Preservation Act 
(NHPA) in place of the regulations at 36 CFR 800.3 through 800.6.
    Response: TVA occasionally uses the process established under 36 
CFR 800.8 when beneficial and will continue to do so. The final rule 
encourages early coordination and public involvement in the NEPA 
process. TVA prefers not to include specific provisions relating to 
compliance with the NHPA in its NEPA procedures, but would continue to 
use the process in 36 CFR 800.8 to gain efficiencies.

C. Comments on Subpart C--Categorical Exclusions

    Comment: Under its procedures addressing ``extraordinary 
circumstances,'' TVA is adding that ``the mere presence of one or more 
of the resources'' listed does not preclude the use of a CE, and the 
determination of whether extraordinary circumstances exists depends 
upon the existence of a cause-effect relationship between the proposed 
action and the effect on the resources. Regarding threatened and 
endangered species, it is our understanding that consideration of these 
is not specified in the CEs, but the provision (in Sec.  1318.201(b) of 
the final rule) would still allow for an action involving threatened or 
endangered species to be categorically excluded and preclude the 
opportunity for public review and comment. TVA should ensure 
appropriate consideration of species in need of management. If there 
are federally-listed threatened and endangered species on TVA managed 
lands or lands where TVA is working, actions should not be 
categorically excluded.
    Response: TVA's NEPA procedures require that extraordinary 
circumstances be reviewed prior to determining whether an action 
qualifies as a CE. One of the extraordinary circumstances is whether 
there is potential that threatened or endangered species would be 
significantly impacted by the action (Sec.  1318.201(a)(1)(i) of the 
final rule). TVA's final rule incorporates changes to TVA's list of 
extraordinary circumstances to make it clearer that an impact to 
sensitive resources, including threatened or endangered species, is an 
important factor for consideration in determining whether a CE should 
be used.
    Under Sec.  1318.201(b), TVA will review the presence of sensitive 
resources as a factor to consider in making a determination whether the 
resource may be impacted by the action. TVA's final rule also clarifies 
that the determination that an extraordinary circumstance will require 
additional environmental review in an EA or an EIS should depend not 
solely on the presence of sensitive resources, but also on the 
potential that those resources would be impacted by the proposed 
action. When appropriate, TVA will consult with the U.S. Fish and 
Wildlife Service to analyze the potential impacts to threatened or 
endangered species and apply appropriate measures to address those 
impacts. TVA would not apply a CE to any action with potential to 
result in the lethal taking of a threatened or endangered species.
    Comment: The Department of the Interior recommended that TVA modify 
TVA's extraordinary circumstances section (18 CFR 1318.201 of the final 
rule) regarding special status species in a manner that is consistent 
with the Department's language as well as other Federal agencies.
    Response: In response to the Department of the Interior comment, 
TVA has revised this provision on extraordinary circumstances under 
Sec.  1318.201(a) in the final rule. ``Threatened or endangered 
species'' is replaced with ``Species listed or proposed to be listed 
under the Endangered Species Act on the List of Endangered or 
Threatened Species, or designated Critical Habitat for these species.'' 
This change accurately reflects the current practice of TVA to review 
for potential impacts to listed species as well as species proposed to 
be listed, and to the habitat on which such species rely, when 
considering whether it is appropriate to apply a CE to an action.
    Comment: TVA should identify potential wind turbine projects as 
``Extraordinary Circumstances.''
    Response: A commenter who raised concerns about a specific wind 
energy project also stated that a potential electrical transmission 
interconnection to wind turbine projects should be considered an 
extraordinary circumstance. TVA notes the list of extraordinary 
circumstances in the final rule are factors or circumstances in which 
an action listed by TVA as a CE has the potential to cause significant 
environmental effects, thereby requiring further analysis and 
documentation in an EA or an EIS. It would be inappropriate to include 
a specific type of action to the list of extraordinary circumstances; 
however, whether ``extraordinary circumstances'' are present would be 
analyzed for all projects including wind projects. TVA notes that the 
final rule does not include a CE for industrial-scale wind projects of 
the type that are of concern to the commenter.

[[Page 17438]]

    Comment: The proposed procedures regarding the identification of 
extraordinary circumstances are inconsistent with NEPA and CEQ 
guidance.
    Response: Under Sec.  1318.201(a), the final rule provides that an 
action that may otherwise be categorically excluded may not be so 
classified if an extraordinary circumstance is present and cannot be 
mitigated. If any of the extraordinary circumstances listed in Section 
1318.201(a) apply to the proposed action, TVA would consider whether 
the proposal can be modified to resolve the circumstances that are 
considered extraordinary. In some cases, such measures to resolve 
extraordinary circumstances may be required through the application of 
other environmental regulatory processes (e.g., the Clean Water Act or 
NHPA) such that the potential for significant impacts to the resource 
is resolved. Other regulatory processes, including consultation with 
State Historic Preservation Officers or the U.S. Fish and Wildlife 
Service, sometimes provide appropriate measures to resolve 
extraordinary circumstances, which facilitate the identification of 
appropriate mitigations, but do not replace TVA's compliance with NEPA.
    Other agencies have recently promulgated similar procedures for 
extraordinary circumstances, including the National Aeronautics and 
Space Administration, the National Capital Planning Commission, and the 
Air Force Retirement Homes. TVA also notes that the cause-effect 
relationship between a proposed action and the potential effect on 
resources is also considered by the U.S. Forest Service when reviewing 
for extraordinary circumstances (see 36 CFR 220.6(b)(2)).
    As noted above, when issuing its final 2010 guidance on CEs, CEQ 
stated in its preamble that it had received specific comments noting 
that, ``the determination that an extraordinary circumstance will 
require additional environmental review in an EA or an EIS should 
depend not solely on the existence of the extraordinary circumstance 
but rather on an analysis of its impacts.'' In reply to this comment, 
CEQ stated that it agreed with this perspective (75 FR 75629, December 
6, 2010). TVA's rule is consistent with this guidance. A determination 
of the potential effects of an action and its severity should be 
considered by TVA to identify the situations or environmental settings 
when an otherwise categorically excludable action merits further 
analysis and documentation in an EA or an EIS.
    Comment: TVA's definition of ``extraordinary circumstances'' 
improperly segregates consideration of ``controversy'' from determining 
significance.
    Response: The division of the section into separate paragraphs 
(with Sec.  1318.201(a)(1) identifying specific environmental resources 
and Sec.  1318.201(a)(2) addressing controversy) does not segregate 
``controversy'' from the extraordinary circumstances determination. 
Rather, it reflects proper organization: Controversy is included under 
Sec.  1318.201(a)(1) since it is not an ``environmental resource.'' 
Consideration of whether the significance of environmental impacts is 
or may be ``highly controversial'' is still an important consideration 
in determining whether extraordinary circumstances exist, and the 
procedures now more clearly reflect CEQ's significance criteria.
    TVA did not remove consideration of ``other environmentally 
significant resources''; the text of the procedures was revised for 
clarity and TVA added to Sec.  1318.201(a)(1) a statement that it would 
consider whether ``the action has the potential to significantly impact 
environmental resources, including the following resources: . . . .'' 
The purpose of this section was not to exclude consideration of 
environmentally significant resources not specifically enumerated, but 
to identify resources most likely to be encountered.
    Comment: TVA procedures addressing extraordinary circumstances (18 
CFR 1318.201 of the final rule) fail to distinguish between the routine 
mitigation which is a type of best management practice and the more 
expansive mitigation actions described at 40 CFR 1508.20. TVA fails to 
distinguish between actions for which routine procedures address 
impacts and has been overly broad in its discussion of ``mitigated 
actions.'' The procedures contain language about mitigation that would 
allow agencies to downgrade significant impacts that had the potential 
for an EA and public input.
    Response: As previously stated, TVA's procedures do not supersede 
those of CEQ. The use of the term ``mitigation'' in Sec.  1318.201 is 
consistent with the definition of the word in 40 CFR 1508.20. TVA 
considered the comment and does not find it necessary to include in its 
procedures a distinction between routine and the non-routine 
mitigation, as suggested by the commenter.
    TVA disagrees with the comment that a CE cannot be used when it is 
possible to modify a proposal to mitigate (as defined at 40 CFR 
1508.20) a potential impact or to resolve an extraordinary 
circumstance. Under the final rule, TVA may modify a proposed action in 
order to resolve or alleviate the circumstances that are considered 
extraordinary. In other cases, TVA may implement mitigation measures 
that address the circumstances and ensure that no significant impacts 
from the action would occur. Often, the mitigation measures are 
identified through other environmental processes (such as consultation 
under NHPA or the Endangered Species Act (ESA)).
    Comment: TVA's proposed CEs are written so broadly that they would 
apply to almost every activity the utility undertakes and threaten 
public health, public safety and the environment. Several terms used in 
CE definitions are too subjective and lack sufficient specificity.
    Response: TVA disagrees that the changes represent a broad 
expansion in the scope of actions that may be categorically excluded. 
The expanded list still covers only those categories of actions that 
individually or cumulatively do not have a significant impact on the 
environment. Many of the actions specifically addressed in new CEs have 
been covered under the more broadly defined CEs established by TVA in 
1980, as disclosed in the Supporting Documentation. For example, one of 
the CEs established in 1980 (CE 5.2.1, ``Routine operation, 
maintenance, and minor upgrading of existing TVA facilities'') is 
replaced by multiple new CEs. Many of the CEs established in 1980 
lacked specificity and limiting criteria so that they were subject to 
broad interpretation over time by staff. The new and revised CEs 
included in the final rule represent a more detailed list of specific 
activities that are tailored to TVA programs.
    In its 1983 guidance on NEPA regulations, CEQ encouraged agencies 
to ``consider broadly defined criteria which characterize types of 
actions that, based on the agency's experience, do not cause 
significant environmental effects'' (48 FR 34263, July 28, 1983). 
Later, in 2010, CEQ guided agencies to clearly define eligible 
categories of actions and the factors that would constrain their use. 
With the list of CEs in the final rule, TVA has struck a balance 
between these two ends of the guidance spectrum. It has established CEs 
that are not so narrow that they would not allow TVA flexibility to 
consider project-specific issues but that are more specific so as to 
improve clarity and avoid misapplication.
    As discussed in the Supporting Documentation prepared by TVA to

[[Page 17439]]

substantiate its CE revisions, TVA also uses several terms in the 
definition of its CEs as narrative descriptors of parameters 
appropriate for the CE's use. For instance, terms like ``minor,'' 
``limited,'' ``small,'' ``routine,'' and ``small-scale'' are included 
as limitations in some CEs. Several such descriptors have been included 
in TVA's procedures since 1980. TVA has determined that these narrative 
parameters are effective for assessing application of the CEs and will 
continue to apply a reasonable interpretation to such terms on a 
project-specific basis.
    TVA would continue to consider the potential intensity of a 
proposed action when interpreting such descriptors in making CE 
determinations. (In its 2010 guidance, CEQ notes that when identifying 
extraordinary circumstances, agencies commonly use factors similar to 
the intensity criteria for determining significance pursuant to 40 CFR 
1508.27(b).) The term ``minor'' is well understood by TVA staff as 
applying to actions limited in scale and scope; under the final rule, 
the term in some CEs is accompanied by a new spatial limitation. TVA 
notes that procedures of many federal agencies include similar 
narrative descriptions. As with each Federal agency, TVA must ensure 
that the CEs are appropriately used, that staff is adequately trained, 
and that environmental compliance is ensured through the implementation 
of these procedures by responsible staff and managers.
    TVA's use of the term ``generally'' as used in spatial limits 
indicates that the limit is not a strict limit. If a project area 
slightly exceeds the spatial limit, some consideration may be made by 
staff to determine whether the CE may still apply based on 
consideration of potential impacts. TVA would not apply the CE to 
actions that substantially exceed the spatial limit. The term 
``including, but not limited to'' introduces exemplary actions to which 
the CE applies; CEQ has encouraged agencies to identify representative 
examples of the type of activities ``especially for broad categorical 
exclusions'' in order to further clarify the types of actions covered 
(75 FR 75632, December 6, 2010).
    For most activities that could qualify for a CE, TVA specialists 
complete a categorical exclusion checklist (CEC) to document TVA's 
review of the proposed activity. The CEC consists of 60 questions about 
potential site-specific environmental issues associated with an 
activity and is completed by an interdisciplinary team to document 
their findings. The CEC is part of an automated system that prompts TVA 
specialists to consider and document whether there are any 
extraordinary circumstances associated with a proposed activity. Often, 
specialists conduct field visits to make their determinations. Using 
the CEC, TVA specialists verify that a proposed activity falls within 
the definition of the CE and that there are no extraordinary 
circumstances associated with the activity.
    As TVA has always done, some routine activities with no potential 
for environmental effects (training personnel, or changing a bathroom 
faucet) would not require paperwork to check for environmental effects. 
Even for categorically excluded activities, TVA must comply with other 
applicable laws and requirements, including the ESA, the Clean Water 
Act, and NHPA, further ensuring that significant environmental impacts 
would not occur.
    Comment: TVA's justifications for expanding the list of CEs falsely 
rely on the assumption that actions that had insignificant effects in 
the past must therefore have an insignificant effect in the future. 
Past findings are not likely to hold up in these days of climate change 
where ecosystem compositions and their resiliency are threatened.
    Response: CEQ's 2010 guidance on CEs provides direction on how to 
substantiate new or revised CEs: ``An agency's assessment of the 
environmental effects of previously implemented or ongoing actions is 
an important source of information to substantiate a categorical 
exclusion. Such assessment allows the agency's experience with 
implementation and operating procedures to be taken into account in 
developing the proposed categorical exclusion.'' (75 FR 75631, December 
6, 2010) Consistent with this guidance, TVA cited to and relied on 
almost 700 previously implemented activities to support the 
establishment or revisions of CEs. As stated above, although past 
experience serves as the basis for the list of CEs, TVA recognizes the 
importance of understanding changes in the environment, including 
climate change, and of using current high quality information and 
scientific analyses to inform its decisionmaking. The extraordinary 
circumstance provision at Sec.  1318.201 provides TVA the ability to 
consider changes in the environment that would make the use of a CE 
inappropriate.
    Comment: TVA should require that all CEs are documented and should 
promulgate the documentation requirements in the rule.
    Response: TVA notes that a majority of its CEs will require 
documentation in the form of a CEC. Generally, proposed actions that 
carry little probability of significant environmental impacts (e.g., 
those that do not result in ground disturbance) do not require such 
documentation, consistent with CEQ's 2010 guidance that ``there is no 
practical need for, or benefit from, preparing additional documentation 
when applying a categorical exclusion to those activities.'' (75 FR 
75636, December 6, 2010)
    When establishing its NEPA procedures in 1980, TVA did not specify 
in its procedures whether CEs required documentation. Rather, TVA 
provides to staff administrative guidance to establish documentation 
requirements. TVA will continue to determine documentation requirements 
through implementing internal guidance rather than including such 
requirements in the final rule. Such an approach allows TVA flexibility 
to change guidance if the need for additional documentation is 
identified or as the agency acquires experience with implementing the 
new CEs.
    Comment: TVA should engage an expert panel to evaluate scientific 
basis for expansion of CEs and implementation of floodplain management.
    Response: A team of environmental and legal professionals was 
involved in the development of the revised procedures. The team 
included TVA environmental professionals, including a flood plains 
management specialist, as well as external contributors with extensive 
experience in environmental compliance. In addition to these 
professionals, TVA relied on its extensive experience as well as the 
experiences of other federal agencies when defining its CEs.
    Comment: The Commonwealth of Virginia Department of Historic 
Resources recommends that TVA include that CEs under NEPA may still 
require compliance with the NHPA and ESA.
    Response: In response to this recommendation, TVA added a statement 
in the procedures to clarify that the use of a CE does not relieve TVA 
from compliance with other statutes or consultations. This statement 
has been inserted at Sec.  1318.200(e). TVA notes that a majority of 
actions that qualify for a categorical exclusion are also covered under 
a programmatic agreement under Section 106 of the NHPA that was 
developed through a review process involving the public, the Advisory 
Council on Historic Preservation, the State Historic Preservation 
Officers, and the tribes.

[[Page 17440]]

    Comment: The Eastern Band of the Cherokee Indians requested that 
TVA continues to alert the tribes when historic resources or gravesites 
are found while actions under the new proposed CEs are undertaken. In 
these instances, work should be stopped immediately and tribes should 
be consulted.
    Response: This practice is currently observed by TVA and no changes 
to TVA's NEPA procedures affect TVA's continued commitment to comply 
with the requirements of NHPA, the Native American Graves Protection 
and Repatriation Act, or other laws relating to historic properties.
    Comment: Using CEs leads to less thorough environmental reviews and 
less robust decisionmaking (e.g., it does not allow for considerations 
such as mitigation measures).
    Response: A categorical exclusion is not an exemption from 
environmental review under NEPA, but is instead the result of an 
agency's evaluation of a class of actions that, in the absence of 
extraordinary circumstances, do not individually or cumulatively have 
the potential to cause significant environmental impacts. TVA's final 
rule identifies procedures that require TVA staff to conduct reviews of 
the proposed action to determine whether it would be appropriate to use 
a CE for the action and to ensure that extraordinary circumstances are 
not present. Because the vast majority of actions undertaken by federal 
agencies have no significant environmental impacts, CEs are the most 
frequently used approach for federal agencies to comply with NEPA. For 
example, between 2013 and 2018, TVA evaluated over 12,000 actions under 
CEs but less than 200 that required completion of an EA or EIS. CEQ 
considers CEs to be efficient tools for conducting a review process for 
actions which typically do not have significant effects on the human 
environment. In cases where TVA specialists identify the potential for 
adverse impacts and/or the need for mitigation to address the impacts, 
TVA would carefully consider whether it is appropriate to use the CE or 
to complete an EA or EIS.
    Comment: TVA's proposed CEs segment activities in a manner that 
avoids NEPA review of activities that, considered together, would 
require an EA or EIS. TVA may not create CEs for activities that would 
normally tier to programmatic EAs and EISs (e.g., TVA's Natural 
Resource Plan).
    Response: TVA addresses the potential segmenting of actions in 
Sec.  1318.200(c) of the final rule and will continue to comply with 
CEQ regulations requiring that agencies consider connected actions. 
Under TVA's final rule, larger projects may not be broken down into 
small parts such that the use of a CE for a small part commits TVA to a 
plan of action for the larger project. TVA NEPA compliance staff 
responsible for oversight of the procedures will continue to review 
proposals to verify that the action is not an interdependent part of a 
larger proposal that has no independent utility. Further, TVA has taken 
care to define each CE to ensure it covers stand-alone actions that 
have independent utility. TVA programs implement numerous activities to 
meet program goals and objectives. While such activities may be 
implemented to achieve broad goals or missions of TVA, TVA does not 
agree that the implementing actions of TVA programs or missions are, 
necessarily, interdependent, connected or even similar, as asserted by 
the commenter.
    TVA does not agree with the assertion that all natural resource 
management actions are connected actions, nor that all transmission 
development and maintenance actions, all road development and 
management actions, and all electricity regulation actions are 
connected due to ``binding characteristics.'' Such an interpretation is 
unreasonable and inconsistent with CEQ regulations as well as TVA NEPA 
procedures and practices. Further, TVA notes that in the 2011 Natural 
Resource Plan (NRP) EIS, TVA committed to conducting an ``appropriate'' 
level of NEPA review; such reviews may be completed as CEs, EAs or 
EISs, depending on the nature of the proposal, its potential impacts, 
and whether the action meets the definition of an established CE.
    Comment: In its Supporting Documentation, TVA does not take the 
required hard look at the potential direct and indirect environmental 
effects of the individual and cumulative application of the CEs.
    Response: CEQ's guidance to agencies on establishing CEs directs 
the preparation of documentation with sufficient information to 
substantiate the new CEs (75 FR 75628, December 6, 2010). TVA included 
in the Supporting Documentation a summary of the general types of 
impacts that would occur for such actions, based on TVA's experience 
with these actions and input from interdisciplinary experts. This 
information provides important context to TVA's findings that such 
actions do not, individually or cumulatively, result in significant 
environmental effects. The description of impacts in the Supporting 
Documentation is general in nature because CEs are established for 
categories of actions without knowledge of the specific locations of 
these actions. The assessment of site-specific impacts is more 
appropriately undertaken by TVA when applying the CEs.
    Consistent with CEQ's 2010 guidance, the discussions of revised or 
new CEs vary. The amount of information provided by TVA to substantiate 
each revised or new category depends on the type of activities included 
in the proposed category of actions and their potential to result in 
significant environmental effects. For instance, TVA's discussion of 
CEs for administrative actions are less detailed than the discussions 
of CEs that are more likely to result in impacts to the physical 
environment. In addition, TVA's discussion of revisions to existing CEs 
are generally less detailed than the substantiating information 
provided for new CEs because the revisions to existing CEs are 
typically minor.
    Comment: The Supporting Documentation fails to provide any analysis 
of the potential for cumulatively significant effects on any of the 50 
proposed CEs.
    Response: TVA's Supporting Documentation provides information and 
includes a brief description of the common impacts of activities that 
would be covered under new or expanded CEs. As stated in the previous 
response, the documentation is consistent with CEQ's 2010 guidance 
regarding establishing CEs. The covered actions are minor in nature and 
would not result in individually or cumulatively significant impacts. 
TVA considered the frequency with which the categorically excluded 
actions are applied when identifying new CEs. Further, many of the CE 
actions most likely to result in ground disturbance are limited in 
scope and infrequent and would not be conducted as segments of greater 
development proposals, thereby reducing potential cumulative effects.
    Comment: In its Supporting Documentation, TVA does not consider the 
climate-related impacts of any of the proposed CEs; certain categories 
of actions have potential to contribute to climate change and/or be 
affected by climate change.
    Response: As noted above, TVA's Supporting Documentation for the 
CEs provides a summary of findings based on past environmental reviews. 
While the assessment of impacts in the Supporting Documentation is 
necessarily general in nature, TVA will continue to consider the 
potential environmental impacts of proposed site-specific actions, 
including their

[[Page 17441]]

potential to contribute to climate change, prior to applying the CEs. 
TVA notes that CEs that include in-kind replacement of turbines, 
purchase of existing combustion turbine or combined-cycle plants, or 
certain rate changes are defined to limit covered actions to those 
which result in no new emissions or in very minor generation changes, 
thereby ensuring no significant impact to the environment.
    TVA notes that certain shoreline and floodplain impacts of climate 
change may be tempered because TVA actively manages the Tennessee River 
system to reduce flooding. The commenter also noted potential impacts 
of certain activities to bat species. Each proposed action would be 
reviewed for extraordinary circumstances, including the potential to 
impact listed or proposed threatened and endangered species. As noted 
above, TVA revised the CE procedures at Sec.  1318.200(d) to affirm 
that the use of a CE does not relieve TVA from compliance with ESA and 
other statutes.
    Comment: The EAs and EISs cited by TVA in its Supporting 
Documentation do not support the proposed CEs. Many of TVA's cited EAs 
and EISs included mitigation measures; an agency must ensure that 
mitigation measures in cited EAs and EISs are ``integral components'' 
of the actions included in a CE.
    Response: The Supporting Documentation provided by TVA cites to 
almost 700 NEPA reviews (CEs, EAs, and EISs). TVA listed many NEPA 
records and described others in greater depth when they were 
particularly relevant to the category of actions. In addition to the 
support provided by the vast array of cited EAs and EISs in the 
documentation, the expertise acquired by TVA through the implementation 
of NEPA over four decades also substantiates the proposed CEs. TVA's 
Supporting Documentation represents a sufficient summary of the 
relevant information to substantiate its determinations that these 
categories of actions do not normally result in significant 
environmental impacts.
    Many of the EAs and associated FONSIs cited by TVA in its 
Supporting Documentation include mitigation measures to address 
impacts; some of these mitigation measures resolve potentially 
significant impacts. The most commonly listed mitigation measures in 
TVA FONSIs include standardized best management practices implemented 
by TVA (e.g., to address storm water runoff at a construction site); 
although listed as mitigating measures, TVA considers these to be 
standard practices that are incorporated into TVA's project design. TVA 
considers all mitigation measures and best management practices that 
are incorporated into a proposed action in its decision whether to 
apply any CE to that action. This approach is supported by the CEQ 
final guidance on the ``Appropriate Use of Mitigation and Monitoring 
and Clarifying the Appropriate Use of Mitigated Findings of No 
Significant Impact'' (76 FR 3843, January 21, 2011). In its guidance, 
CEQ noted that ``[m]any Federal agencies rely on mitigation to reduce 
adverse environmental impacts as part of the planning process for a 
project, incorporating mitigation as integral components of a proposed 
project design before making a determination about the significance of 
the project's environmental impacts. Such mitigation can lead to an 
environmentally preferred outcome and in some cases reduce the 
projected impacts of agency actions to below a threshold of 
significance. An example of mitigation measures that are typically 
included as part of the proposed action are agency standardized best 
management practices such as those developed to prevent storm water 
runoff or fugitive dust emissions at a construction site'' (Id.).
    Several mitigation measures identified in the cited EAs and FONSIs 
were developed through other environmental compliance processes (e.g., 
through consultation with U.S. Fish and Wildlife Service regarding 
endangered species or through coordination with the U.S. Army Corps of 
Engineers to address impacts to wetland resources). TVA considers such 
measures to be integral components of the proposed action because TVA's 
action could not be implemented without compliance with these other 
environmental laws and regulations.
    Commenters request that the mitigation measures listed in the cited 
EAs and FONSIs be included in the definition of the CE because they are 
integral components of the category of actions. Because the majority of 
mitigation measures listed in the cited EAs and FONSIs are included in 
the project design or derive from TVA's compliance with other 
environmental laws, TVA does not consider it necessary to include 
potential mitigations in a CE's definition. Rather, what is integral is 
the review by TVA of proposed actions to determine whether mitigation 
measures are needed. In addition to the limits included in the 
definitions, which are intended to eliminate the potential for 
significant impacts, TVA's consideration and review for extraordinary 
circumstances prior to use of a CE address the same or similar 
environmental concerns that are commonly addressed when applying 
mitigation to proposed actions. The review by TVA for extraordinary 
circumstances will allow TVA to determine whether mitigation measures 
are necessary and to consider whether additional environmental review 
at the EA or EIS level is necessary.
    Based on public input, TVA again reviewed the 215 EAs and FONSIs 
cited in the Supporting Documentation and confirmed that the vast 
majority of EAs and FONSIs provide support for the proposed CEs. 
However, TVA found that it would not be appropriate to rely on some of 
the cited EAs and FONSIs to support the proposed CEs. TVA updated the 
Supporting Documentation by removing 30 EA and FONSI citations; the 
updated document is available for public review at the TVA NEPA website 
(https://www.tva.gov/nepa). TVA believes that the information provided 
in the updated Supporting Documentation complies with CEQ's 1983 and 
2010 guidance on establishing CEs and adequately supports our 
determinations regarding the proposed CEs.
    Comments addressing the segmentation of actions addressed under 
programmatic EISs are address above. TVA notes that the most frequently 
cited EIS in its Supporting Documentation is the NRP EIS. The 
documentation notes that at the completion of the EIS, TVA determined 
that no significant adverse impacts would result from implementing the 
plan and many beneficial impacts were described. In numerous sections 
of the Supporting Documentation, TVA highlighted several EISs that were 
representative NEPA documents of the relevant analyses conducted by TVA 
that supports its findings for specific CEs and provided a summary of 
the EIS and its findings in the narrative.
    Comment: The CEs of other agencies that TVA uses as benchmarking 
examples in the Supporting Documentation do not support the CEs as 
written.
    Response: The inclusion in TVA's Supporting Documentation of the 
CEs of other agencies as benchmarks for the CEs in the final rule is 
appropriate. The documentation includes a short discussion of how 
comparable the agency's CE is to the TVA category and describes 
supporting information, when available, from the administrative records 
issued by the agencies when the CEs were established. TVA noted in the 
documentation the extent to which the CEs were similar and supported 
its CE, highlighting which were more relevant to the TVA CE and which 
provided less or only partial support. The

[[Page 17442]]

benchmarked CEs were intended to provide additional support for the TVA 
CE; TVA relied primarily on its own experience in identifying 
categories of actions that do not typically result in significant 
environmental impacts.
    Comment: By proposing to categorically exclude electricity 
contracts (under CE 6) without limiting application to situations where 
the contract will definitively not have such impacts, TVA undermines 
the CEQ requirement that agencies consider reasonable alternatives to a 
proposed action.
    Response: The proposed revision to the CE established by TVA in 
1980 was intended to clarify that transactions that spur expansion or 
development of facilities and/or transmission infrastructure are not 
covered under the CE. Upon further internal deliberation, however, TVA 
determined that no clarification was needed to the CE, as staff shared 
that understanding of the existing CE. In the final rule, TVA carries 
forward the existing CE without revision as CE 6.
    Comment: Proposed CE 15, which addresses transmission line 
maintenance actions, violates and contravenes the injunction of the 
United States District Court in Sherwood v. TVA. There should be no CE 
for vegetation management due to the adverse impacts it has on the 
environment.
    Response: TVA has withdrawn the proposed CE pertaining to right-of-
way maintenance actions from the final rule. TVA is currently 
undertaking a programmatic environmental review of these actions.
    Comment: The implementation of proposed CEs 15 and 19, both of 
which deal with the vegetation management decisions in TVA transmission 
corridors, have the potential to impact high natural resource land that 
contain habitation for plant and wildlife as well drinking water 
supplies.
    Response: As noted above, TVA has not carried the proposed CE 15 
pertaining to right-of-way maintenance actions into the final rule. TVA 
notes that CE 19 pertains to ending vegetation management activities, 
as transmission lines are retired. Under CE 19, TVA would conduct a 
complete and thorough review of the proposed action using its CEC to 
determine whether extraordinary circumstances exist that would require 
TVA to conduct additional environmental review. The CEC review is 
conducted by a qualified multidisciplinary team of experts. Existing 
current resource data will be used when available, or new field data 
will be obtained when needed. The CEC review will verify that no 
extraordinary circumstances exist that would preclude the use of CE 19.
    Comment: Proposed CE 16, which includes the construction of new 
transmission lines and substations, would allow TVA to construct new 
transmission line infrastructure in increments of ``generally'' 10 
miles, as long as they ``generally'' require no more than 125 acres of 
new rights-of-way, no more than 1 mile of new access road construction, 
and support facilities that physically disturb no more than 10 acres. 
The inclusion of the term ``generally'' means that the explicit 10-mile 
limitation is meaningless. TVA provides no rationale for why a 10-mile 
transmission line does not have significant environmental effects, 
while an 11-mile transmission line would. Without limiting the 
contiguous application of CE 16, TVA could simply break up a 150-mile; 
1,000-mile; or 10,000-mile stretch of new transmission infrastructure 
into 10-mile increments and categorically exclude all of its 
activities.
    Response: CEQ regulations and guidance and TVA's final rule (Sec.  
1318.200(c)) prohibit the use of a CE on a segment or interdependent 
part of a larger proposed action. The TVA environmental compliance 
staff remains responsible for screening proposed actions and ensuring 
that larger projects are reviewed in their entirety. As noted above, 
TVA would not categorically exclude contiguous proposals as asserted by 
the commenter.
    TVA explains that the 10-mile and 125-acre limits are established 
based on extensive TVA experience and provides a discussion of these 
limits in the CE Supporting Documentation (background discussion of CE 
16). For instance, in its 2015 and 2019 Integrated Resource Plans (IRP) 
EIS, TVA reviewed dozens of TVA projects and their impacts. For those 
EIS reviews, dozens of EAs completed since 2005 were identified that 
address new transmission line construction, including 11 EAs addressing 
new transmission construction over 10 miles. See Table 5-2 of the 2019 
Final EIS (available at https://www.tva.gov/irp).
    As stated in the Supporting Documentation, the CE limits actions to 
no more than 10 miles in length and no more than 125 acres of new ROWs. 
This CE's acreage limit applied to actions involving new 500-kV 
transmission line construction would limit the length of such lines to 
less than 5.9 miles.
    Comment: TVA has conceded that an EIS must be prepared for tree 
clearing and vegetation management for existing transmission lines, 
however, under CE 16 constructing new transmission infrastructure falls 
under an exemption. The commenter asserts that the category of actions 
has significant direct, indirect and cumulative effects, and TVA has 
not taken a ``hard look'' at the environmental effects of activities 
applicable to CE 16, simply citing its own NEPA analyses and ignoring 
the effects of CE 16.
    Response: TVA did not propose CE 16 as a means to avoid tiering 
such site-specific analyses to the programmatic EIS it is currently 
preparing to address rights-of-way vegetation management. That EIS does 
not address the impacts associated with construction of new 
transmission infrastructure, but vegetation maintenance on existing 
lines.
    TVA's experience supports the determination that construction of 
new transmission lines, when limited, would not result in significant 
environmental impacts. As noted in TVA's Supporting Documentation, CE 
16 would not cover the construction of a 500-kV transmission line up to 
10 miles, as asserted by the commenter, because 500-kV lines have a 
wider right-of-way. Rather, with the acreage limit included in the CE 
(125 acres), less than 5.9 miles of new 500-kV transmission line 
construction would be allowed.
    In its Supporting Documentation, TVA included a summary of common 
impacts associated with such actions. TVA's review of potential impacts 
of such actions, as limited, is based on decades of experience, dozens 
of NEPA records, benchmarking to other federal agencies, and the 
professional expertise and knowledge of staff. TVA agrees that when 
considering these actions, a review must be conducted to determine the 
potential impacts to resources; TVA would complete a CEC for each 
action, allowing qualified TVA specialists to review the proposals and 
identify potential extraordinary circumstances. Use of the CE for such 
actions does not relieve TVA from compliance with other statutes, 
including ESA. If the extraordinary circumstances cannot be resolved, 
TVA would complete an EA or EIS.
    As stated in TVA's Supporting Documentation, there are CEs of other 
agencies that provide support for TVA's findings that such actions do 
not typically result in significant environmental impacts. TVA 
acknowledges that these CEs are not identical to CE 16 and notes that 
TVA bases its spatial limits in CE 16 on its own experience.
    Comment: In CE 16, TVA does not define what types of mitigation 
would be required for wetland impacts and

[[Page 17443]]

what parameters are needed for reviewing the area of impacted wetlands. 
Proposed CE 16 should be limited to construction of new transmission 
lines less than 4 miles in length that do not require offsite 
mitigation of wetland impacts.
    Response: TVA did not find it appropriate to include the list of 
the types of mitigation measures it would implement to address wetlands 
in its NEPA procedures. TVA notes that its wetland biologists take part 
in the review process of actions that may be categorically-excluded to 
determine whether extraordinary circumstances exist. These biologists 
conduct desktop reviews and field surveys to determine whether wetlands 
may be affected by an action. If wetlands may be impacted, TVA 
coordinates with the U.S. Army Corps of Engineers and state agencies in 
compliance with Sections 401 and 404 of the Clean Water Act and 
determines whether impacted wetlands require mitigation. If avoidance 
or minimization of wetland impacts is not possible, appropriate 
mitigation generally refers to compensatory mitigation via purchase of 
credits from an offsite wetland mitigation bank to offset loss of 
wetland function. The level of NEPA review does not affect the 
determination of compensatory mitigation. Offsite mitigation is a 
common practice implemented to resolve wetland impacts. TVA's 
experience has shown that the potential for wetlands impacts, while 
real, is small and insignificant for actions that would fall under CE 
16. TVA uses assessment methods for quantifying wetland functional 
capacity and projecting loss of wetland function from proposed 
disturbances.
    When considering the extent of a proposal's wetland impacts, TVA 
wetland biologists apply standard analytical approaches and practices 
that are based on professional judgment, scientific norms, 
administrative guidance, and regulatory compliance. TVA addresses such 
parameters in other forms of guidance and administrative policy 
documents outside of NEPA.
    Comment: Construction actions such as those under CE 16 should not 
be exempted from NEPA due to the projects' potential to impact the 
environment and surrounding citizens negatively.
    Response: As stated in a previous response, CEs are not exemptions 
from or waivers of NEPA review; they are a type of NEPA review. Under 
CE 16, TVA will conduct a review of the proposed action using its CEC 
to determine whether extraordinary circumstances exist and to confirm 
that the action would not have significant impacts. Should 
extraordinary circumstances or the potential for significant effects be 
identified during this review, TVA would not use a CE, but would 
prepare an EA or an EIS.
    TVA notes that its process for siting new transmission projects is 
designed to allow public input at various stages. Typically, TVA issues 
public notifications and conducts public open house meetings for new 
transmission line proposals to ensure that members of the public that 
may be affected by the project have an opportunity to learn more about 
the proposal and provide feedback. These opportunities for public input 
often precede the NEPA process and are conducted regardless of the 
level of NEPA review.
    As previously noted, TVA has added Sec.  1318.202 (Public Notice) 
to Subpart C of the final rule to clarify that public notice and 
involvement may be provided by TVA for CEs ``if TVA determines that the 
public may have relevant and important information relating to the 
proposal that will assist TVA in its decisionmaking.''
    Comment: Proposed CE 17 would allow TVA to exclude the 
modification, repair, and maintenance of all existing infrastructure, 
without limitation based on the activities' geographic scope or 
environmental effects. The broad language allows TVA to exclude any and 
all changes without incorporating the NEPA process.
    Response: As presented in the Supporting Documentation, CE 17 is 
based on TVA's experience with hundreds of similar projects, 
categorized as TVA's CE 5.2.17 under TVA's previous NEPA procedures, 
amended by this rule. The extensive records show that while the 
activities contemplated under CE 17 could have localized, minor, short-
term adverse effects, they do not cause significant environmental 
effects. Through the development of several new CEs for transmission-
related actions, TVA is providing more specific definitions of these 
activities to clarify for TVA staff which activities may be 
categorically excluded. The special limitations and review for 
extraordinary circumstances conducted by TVA when these actions are 
proposed ensure that these actions would not result in significant 
effects.
    Transmission system CECs are typically prepared for small and 
isolated projects. Any system-wide effort to uprate a portion of the 
TVA transmission system would, by the requirements of this procedure, 
be assessed under a higher level of NEPA review. TVA NEPA compliance 
staff responsible for oversight of the procedures will continue to 
review proposals to verify that the action is not an interdependent 
part of a larger proposal that has no independent utility. To clarify 
the limitations of this CE, TVA revised the beginning of the definition 
of CE 17 to clarify that the category includes only ``routine'' 
modifications, repairs or maintenance actions and only ``minor'' 
upgrade of and addition to existing infrastructure.
    CEQ guidance affirms that CEs are not exemptions or waivers of NEPA 
review; they are simply one type of NEPA review. Under CE 17, TVA will 
conduct a complete and thorough review of the proposed action using its 
CEC to identify extraordinary circumstances that may require the 
preparation of an EA or EIS. The CEC review is conducted by a qualified 
multidisciplinary team of experts. Existing, current resource data will 
be used when available, or new field data will be obtained when needed. 
Should the potential for significant effects be identified during this 
review, a higher level of NEPA review would be initiated.
    TVA made two edits to the Supporting Documentation after reviewing 
the comments. In section 3.17.3.3, TVA removed the reference to 
communication-related equipment and structures because its inclusion 
was in error. In section 3.17.3.4, TVA removed the Department of 
Homeland Security CE as a benchmark CE for CE 17. An earlier draft 
version of CE 17 included actions relating to communication equipment 
that were later removed and the Supporting Documentation had not been 
properly revised to remove the information relating to communication 
equipment. TVA finds that the CEs of the Departments of Energy and 
Commerce support TVA's conclusion that actions under CE 17 do not 
result in significant environmental impacts; thus, these benchmark CEs 
were retained.
    Comment: Proposed CEs 15, 16, and 17 do not adequately address 
cumulative impacts, which should be considered in siting.
    Response: TVA has considered the potential cumulative impacts of 
these categories of actions. Consistent with CEQ's 2010 guidance on 
establishing CEs, TVA considered the frequency with which the 
categorically-excluded actions may be applied and the dispersed 
geographic area across which actions would occur across the seven-state 
TVA region. The CEs include spatial limitations to constrain the use of 
the CE and ensure that cumulative impacts are not significant (as noted 
above, TVA has withdrawn CE 15 from the final rule). CE 16 has a 
greater potential for cumulative impacts than

[[Page 17444]]

CE 17, due to the new disturbances associated with the actions. TVA 
notes that cumulative impacts associated with CE 17, which addresses 
modification, repair, maintenance, or upgrade of existing transmission 
infrastructure, would be limited, as most of this infrastructure 
already exists.
    In the Supporting Documentation, TVA cites to numerous NEPA reviews 
that have occurred primarily since 2005. These NEPA documents likewise 
serve as a record of TVA's consideration of cumulative impacts. In 
addition, TVA relies on its integrated resource planning efforts to 
review actions needed to ensure the transmission of power through the 
TVA region and consider their regional impacts. The IRP was completed 
in 2011 and supplemented in 2015. A new IRP was completed by TVA in 
2019. The 2015 and 2019 IRP Final EISs provide important supporting 
information for the establishment of CE 16 and 17 and are referenced in 
TVA's Supporting Documentation.
    Comment: Proposed CEs 15, 16 and 17 should be withdrawn because TVA 
is currently doing a programmatic EIS on its transmission systems.
    Response: As noted above, TVA has withdrawn from the final rule the 
proposed CE (CE 15) pertaining to right-of-way maintenance actions. The 
programmatic EIS currently underway is focused on right-of-way 
vegetative maintenance. TVA considers actions falling under CEs 16 and 
17 to be outside the scope of that programmatic EIS.
    Comment: Proposed CE 18 contains no limit to the length, geographic 
scope, or environmental impacts that the installation of fiber optics, 
electricity transmission control devices and supporting towers could 
have under the CE. The CE does not set forth specific criteria for and 
identification of the actions that it proposes to categorically exclude 
(40 CFR 1507.3(b)(2)).
    Response: TVA does not consider the revision of this CE to expand 
the scope of covered actions. Rather, the revision is intended to 
clarify and add additional examples of activities, as recommended by 
CEQ in their 2010 guidance. TVA's examples are not intended to be 
exhaustive of all possible activities that fit within the subject class 
of activities. TVA anticipates that the inclusion of examples will more 
clearly define for TVA staff the activities associated with this CE.
    TVA notes that installation of optical ground wire would have been 
covered under the previous, broadly defined version of this CE 
(established in 1980). TVA's NEPA procedure at Sec.  1318.200(c), 
specifies that TVA will ensure that a larger project is not 
impermissibly broken down into small parts such that the use of a CE 
would irreversibly and irretrievably commit TVA to a particular plan of 
action for the larger project. Further, Sec.  1318.200(d) provides that 
TVA has determined that the classes of actions qualifying for CEs do 
not individually or cumulatively have a significant effect on the human 
environment, subject to review for extraordinary circumstances. Section 
1318.201 of the final rule specifies that actions normally qualifying 
as a CE cannot be reviewed at this level if an extraordinary 
circumstance is present that cannot be mitigated. These requirements in 
TVA's NEPA regulations set the boundaries for use of all of TVA's CEs.
    Comment: Regarding CE 19, tree clearing and vegetation management 
practices for existing transmission infrastructure have significant 
environmental indirect, direct, individual, and cumulative effects, 
thereby requiring an EIS. If the tree clearing for maintaining rights-
of-way and existing transmission has significant environmental effects, 
surely the same is true for new transmission infrastructure. TVA has 
not shown that a 25-mile standard for rebuilding transmission lines 
will not have an insignificant impact on the environment. In its 
Supporting Documentation, TVA incorrectly states that the three 
benchmarked CEs of other federal agencies are ``comparable.''
    Response: Categorical exclusion 19 addresses the common activities 
TVA conducts to retire transmission lines or to rebuild transmission 
lines that may require a limited right-of-way expansion. The definition 
of the CE 19 includes spatial limitations such that no action would 
exceed 25 miles in length or constitute an expansion of more than 125 
acres of an existing right of way. Expansions of larger transmission 
lines (e.g., 500kV) would be shorter in length because of the 125-acre 
limit. These spatial limitations are not arbitrary. TVA relied on a 
combination of its extensive experience to identify a proper linear 
distance limit to ensure that the category of actions would not result 
in significant environmental impacts.
    As explained in the Supporting Documentation, the 25-mile limit for 
redevelopment along existing ROWs is supported by previous 
environmental reviews conducted by TVA that resulted in findings of no 
significant impacts; since 2002, TVA has reviewed 108 such projects by 
completing CECs and 16 projects by completing EAs. TVA considered and 
reviewed the analysis conducted in its IRP EIS to determine the average 
impacts associated with new or upgraded transmission infrastructure 
projects.
    The spatial limit for area of disturbance (125 acres) is consistent 
with the limitation included in CE 16, which is also supported by TVA 
experience and environment reviews (as explained in the Supporting 
Documentation discussion of CE 16). Therefore, actions under CE 19, as 
circumscribed by the spatial limitation, would not result in 
significant environmental impacts. TVA again notes that specialists 
will complete a CEC for every application of CE 19 to ensure that the 
proposed CE would not be applied when there are extraordinary 
circumstances requiring additional NEPA review.
    The summary of potential impacts in the Supporting Documentation is 
consistent with CEQ's 2010 guidance and adequately substantiates the 
creation of CE 19. TVA disagrees with the opinion of commenters 
regarding the benchmarked CEs of other agencies; the CEs of other 
agencies cited by TVA in the Supporting Documentation are comparable to 
CE 19 and address similar activities involving similar methods, 
occurring with similar frequency, timing and context.
    Comment: Proposed CE 20 should not include surplus transmission or 
generation properties that have recreational and/or natural resource 
value.
    Response: This CE does not apply to generation properties. It 
applies only to existing transmission-related equipment and facilities. 
Generally, any properties addressed in CE 20 are industrial in 
character and, thus, are not suitable for recreational use and have 
limited natural resources value.
    Comment: The definition of proposed CE 20 does not set forth 
``specific criteria for and identification of'' the actions that it 
proposes to categorically exclude, as instructed by CEQ (40 CFR 
1507.3(b)(2)). CE 20 must be rewritten to describe specific activities.
    Response: TVA's revision to this CE does not broadly expand the 
scope of the actions covered. The primary change to this CE is that 
existing substations, switchyards, and transmission equipment would be 
included in existing properties that may be transferred or leased under 
the CE. Because covered actions are limited to existing infrastructure 
or rights-of-way, the actions are unlikely to alter the environmental 
status quo and unlikely to result in any new environmental impacts. 
TVA's experience supports its

[[Page 17445]]

determination that transactions or agreements to acquire or transfer 
existing infrastructure do not typically change the environmental 
status quo.
    The replacement of the word ``sale'' with the word ``disposal'' in 
the definition of the CE clarifies that the action includes any 
transfer of ownership, rather than just monetary purchases. The word 
``disposal'' refers to the transfer of the property, not the 
destruction or demolition of the infrastructure; this definition of 
disposal is well understood within TVA by staff and decision makers. In 
the context of the CE, where other types of real estate actions are 
addressed, this term is not unclear. The CE would not apply to 
proposals to demolish such infrastructure.
    These actions are distinct from other actions relating to TVA's 
transmission system for which TVA may use a CE. Under the final rule, 
TVA will ensure that a larger project is not impermissibly broken down 
into small parts (Sec.  1318.200(c)).
    Comment: Proposed CE 21 lacks the specificity required by NEPA and 
the CEQ regulations to ensure that no significant environmental impacts 
will occur as a result of application of the CE. TVA must evaluate the 
potential impacts of its action against the actual baseline conditions 
(and level of emissions), rather than the permitted levels.
    Response: In response to this comment, TVA revised the CE to 
reflect that the planned operation by TVA of purchased or leased 
facilities should be consistent with the ``normal operating levels'' of 
the existing facilities rather than the limits identified in the 
facilities' environmental permits. This revision will further ensure 
that impacts to the environment are insignificant because the category 
of actions would effectively be limited to the continuing operation of 
an existing facility.
    Under the final rule, TVA would consider whether an action has the 
potential to significantly impact environmental resources due to 
extraordinary circumstances before a CE can be used. Before using the 
CE, consideration would be given to potential air resource impacts and 
whether greenhouse gas emissions are significant.
    TVA disagrees with the assertion that the generic EA completed by 
TVA and cited in its Supporting Documentation does not substantiate 
TVA's finding that the category of actions do not have significant 
impacts. The generic EA addresses the purchase or lease and operation 
of existing combustion turbine or combined-cycle combustion turbine 
plants located in or near the Tennessee Valley. TVA notes that the 
purchase or lease of an existing facility would only take place if it 
were in keeping with the IRP. The TVA IRP and the types of generation 
choices that TVA would consider would have already been assessed in the 
IRP and its EIS prior to the use of this CE.
    Comment: TVA should withdraw proposed CE 22 because it is 
unreasonably broad and may be used to inappropriately develop its 
public lands. TVA's documentation does not support its findings. TVA 
should not categorically exclude any natural resource management 
activities.
    Response: The definition of the CE sufficiently defines discrete 
and routine types of actions in well-defined settings. TVA staff is 
familiar with the terms included in the CE and have experience in 
applying such terms. The term ``generally'' does not negate the spatial 
limit but serves to provide TVA staff some discretion for an activity 
that may slightly exceed the limit. If a project area would slightly 
exceed the spatial limit, project staff would consult with TVA NEPA 
staff to determine whether the CE may still apply based on 
consideration of potential impacts. As noted in the supporting 
document, TVA has previously excluded such actions under several CEs. 
The new CE is more specifically defined than the previous, broadly 
defined CEs and provides clarity and transparency regarding the types 
of actions covered. The actions identified in the text of the CE are 
provided as examples to improve clarity and transparency.
    The discussion of impacts in each section of the Supporting 
Documentation is, as noted in the document, a summary of TVA's findings 
that further demonstrate how TVA made its determination that such 
actions do not typically result in significant environmental effects. 
Prior to conducting some actions, TVA would review each proposal to 
determine if extraordinary circumstances exist. If they do, an EA or 
EIS would be prepared if the extraordinary circumstances cannot 
otherwise be resolved.
    As noted above, TVA would not categorically exclude any segment or 
interdependent part of a larger proposed action and TVA has no 
intention of establishing thousands of dispersed recreation sites 
across hundreds of thousands of acres of public lands as suggested by 
the commenter; such development is inconsistent with TVA's objectives 
to provide quality dispersed recreation experiences and opportunities 
on undeveloped lands.
    TVA disagrees that the eight CEs of other agencies do not support 
the new CE. The CEs of other agencies need not be identical to TVA's CE 
to provide support; these CEs are comparable, similar and relevant to 
TVA's CE because they address the same types of actions.
    An example action listed in the proposed CE 22 was the 
``stabilization of sites.'' TVA notes that dispersed recreation sites 
such as trails or primitive campsites are more likely to be much 
smaller in size than developed TVA recreation sites that are more 
accessible to the public (e.g., campgrounds, picnic areas, trailheads). 
Establishing and maintaining a dispersed recreation site typically 
requires less intense, smaller-scale activities. The stabilization of 
dispersed recreation sites or facilities differs from the stabilization 
of shoreline addressed in the NRP. The term ``stabilization of sites'' 
in the context of dispersed recreation management may apply to minor 
actions at a discrete site or portion of a site or facility to address 
overuse or erosion or to make the site or facility more resilient to 
impacts. For instance, rock cribbing may be added along a trail to 
address erosion or wear from use. To stabilize the trail section or 
campsites, TVA would ``harden'' the site to concentrate impacts to one 
area (e.g., a tent pad) and reduce impacts to adjacent vegetation and 
soils consistent with Leave No Trace principles. Because the term 
``hardening of sites'' is a term more often used by TVA specialists and 
outdoor recreation professionals than ``stabilization of sites,'' TVA 
has revised the CE to include both ``hardening'' and ``stabilization'' 
of site. The change would be a better example of a covered action 
because it is more familiar.
    Comment: TVA should either adjust CE 23 so that it complies with 
the requirements of NEPA, or it should withdraw it as a CE.
    Response: TVA revised this CE to include example activities and to 
add a spatial limitation on activities. The examples improve clarity 
and transparency regarding the types of actions that fall under the CE; 
the spatial limitation is included to ensure that the CE is not used 
for projects that would result in significant environmental impacts. 
Because these are the only revisions proposed by TVA for this CE, TVA 
did not provide additional analysis in the Supporting Documentation as 
it did for new CEs. TVA has not developed and does not foresee the 
potential development of public use areas in the manner described by 
the commenter. Further,

[[Page 17446]]

under CEQ regulations and the final rule (Sec.  1318.200(c)), any use 
of CEs that would result in the impermissible segmentation of a larger 
project into smaller parts is prohibited.
    Comment: Proposed CE 24 lacks specificity and should be either 
revised by TVA so that it complies with the requirements of NEPA or 
withdrawn.
    Response: The revisions to this CE do not expand its scope. TVA has 
changed the definition to improve clarity and added an example of 
recreational use that has commonly been covered under this CE in the 
past, as discussed in TVA's Supporting Documentation. The term 
``minor'' will remain in the CE to serve as a limit; a reasonable 
interpretation will continue to be applied to the term. Because the 
changes to the definition are minor and the scope of the category is 
not expanded, the Supporting Documentation provided only a summary of 
the changes.
    Comment: Proposed CE 25 would allow TVA to sell, lease, or transfer 
land, as well as the accompanying mineral rights, land rights, and 
structures, as long as TVA determines that these acts are ``minor,'' a 
term that, left undefined and without appropriate context or other 
limits, provides TVA unfettered discretion. TVA should revise the CE to 
comply with NEPA or withdraw the CE.
    Response: TVA's changes to the definition of this CE are intended 
to clarify the actions covered and to add examples of actions (e.g., 
rights in ownership of permanent structures); CEQ encourages the 
inclusion of examples in the definitions of CEs. The definition 
includes ``lease'' to reflect that all transfers of property or rights 
would be covered; impacts of leases of properties are substantially 
similar to property transfers. The term ``minor'' remains in the 
definition of the CE as a narrative limitation. TVA will continue to 
apply a reasonable interpretation to this term and will ensure that the 
CE is not applied to major actions with significant environmental 
effects. The use of the term ``minor'' does not give TVA unfettered 
discretion to apply the CE without context or limits. The plain meaning 
of this term as well as the ``extraordinary circumstances'' provision 
would limit TVA's discretion. TVA notes that the other agency CE 
definition identified by the commenter includes stipulations to review 
proposals for impacts and extraordinary circumstances. Because TVA's 
process for determining whether it is appropriate to apply any CE to a 
proposed action requires a review of extraordinary circumstances and 
the proposed action's impacts, adding such text to this CE definition 
is unnecessary. TVA has adopted the final rule to ensure that its 
decisions are made in accordance with the policies and purposes of 
NEPA.
    Comment: Proposed CEs 24 and 25 are too broad and could be 
misconstrued. TVA should break the CEs into multiple, separate CEs to 
improve clarity.
    Response: Based on TVA's experience in applying CEs 24 and 25 since 
1980, the types of actions that may be covered under the CEs are not 
too broad or subject to misapplication. Actions of each category are 
reasonably similar in nature and potential impacts from actions in each 
category are generally similar. In revising its procedures, TVA weighed 
each CE to determine whether the category should be broken into 
separate CEs to improve clarity. In some cases, TVA identified a need 
to split categories but in other instances, had no reason to create new 
CEs based on past experiences. TVA determined that while some 
clarification may be found in splitting certain CEs, it must also 
consider the merit of minimizing changes to its list of CEs. Where a 
need was not evident, as in the case of these two CEs, TVA opted to not 
make additional revisions to its procedures.
    Comment: Proposed CE 26 lacks specificity; it should be revised to 
comply with NEPA or withdrawn.
    Response: The comments do not specifically address the addition by 
TVA of an example action covered by the CE. The only proposed change to 
this CE is the replacement of the term ``boat docks'' with ``boat docks 
and ramps.'' This is needed to clarify the types of actions addressed 
by this CE. TVA's Supporting Documentation addresses this change; TVA 
did not provide additional analysis in the documentation because no 
other changes were proposed. The term ``minor'' has been used in this 
CE since 1980 and is understood by TVA staff. CEQ and TVA procedures 
forbid segmentation of activities. For reasons stated above, TVA did 
not establish documentation requirements for its CE.
    Comment: The Department of the Interior expressed concern over the 
potential damage to existing shoreline habitation for vegetation and 
other aquatic life resulting from new boat ramps and the installation 
of minor shoreline structures or facilities (covered under CEs 26 and 
27).
    Response: Approvals of minor shoreline structures and facilities 
are among TVA's most commonly reviewed actions. As explained in the 
Supporting Documentation for the CEs, TVA reviews up to 2,000 approvals 
under Section 26a of the TVA Act annually. Many such actions have 
included construction by TVA or others of boat ramps. Boats ramps are 
included in the text of CEs 26 and 27 to provide clarity about their 
inclusion in actions covered under these CEs. TVA specialists complete 
an environmental review checklist (i.e., CEC) for each of these actions 
to ensure that there are no extraordinary circumstances associated with 
the proposal. The impacts to shoreline habitation for vegetation and 
other aquatic life is considered during the review. The standard permit 
conditions applied to permit holders further reduce the potential for 
adverse impacts.
    Comment: TVA should either revise or withdraw CE 27 because it 
lacks specificity and does not comply with the requirements of NEPA. 
The CE should be revised to correct that bank stabilization is a 
management practice.
    Response: As noted above, TVA reviews up to 2,000 actions a year 
involving installation of shoreline structures, primarily in response 
to applications by private homeowners residing along reservoir 
shorelines. This CE was added to TVA's procedures because the CE 
established for such actions in 1980 did not explicitly allow TVA to 
apply the CE for its own actions, despite the fact that the impacts of 
such TVA projects are substantially the same. Such actions, whether 
conducted by applicants or TVA, are very common, as noted in TVA's 
Supporting Documentation.
    The spatial limitation of 0.5 mile for stabilization projects is 
intended to ensure that actions under this CE are minor in nature. To 
identify a spatial limit for the definition of this CE, TVA reviewed 
environmental records of over 800 separate actions to identify an 
appropriate limit to the distance for the length of stabilization 
projects. The Supporting Documentation notes that over two dozen EAs 
completed by TVA for shoreline or streambank stabilization and/or 
installation of riprap materials were reviewed, with an average length 
of over 1.5 mile of riprap per project. When considering past projects 
that were categorically excluded, the average length of projects was 
found to be smaller than 1.5 miles. Rather than establish a 1.5-mile 
limit based on TVA's evaluation of past EAs for shoreline or streambank 
stabilization, TVA establishes a shorter linear distance as a limit 
because most of the projects it reviews are much shorter than 1.5 miles 
in distance. TVA identified 0.5 mile as the spatial limit for the CE 
because TVA experience in

[[Page 17447]]

numerous projects supports at least this distance.
    Based on the suggestion by a commenter, TVA made a minor 
grammatical revision to the definition of CE 27 in the final rule to 
improve clarity.
    Comment: The Department of the Interior requested that TVA consider 
modifying Proposed CEs 27 and 33 due to the impact they may have on 
aquatic life along the shorelines. The proposed CEs may not encompass 
all problems that would face construction on the shorelines. For 
significant projects TVA might even be able to consult the U.S. Fish 
and Wildlife Service without the use of CEs.
    Response: TVA acknowledges that stabilization actions under the CE 
have the potential to directly impact benthic fauna and other aquatic 
habitat. TVA reviews each proposal for potential impacts to sensitive 
resources, including federally protected species. Such reviews would 
continue under the CEs as TVA reviews for extraordinary circumstances 
(as noted above, TVA has revised its extraordinary circumstances as 
suggested by the Department of the Interior to clarify the review for 
impacts to federal special status species). TVA has revised its 
Supporting Documentation to address potential impacts to benthic fauna 
and other aquatic habitat; the draft Supporting Documentation released 
for public review should have addressed these potential impacts. Based 
on experience and extensive environmental review of past projects, TVA 
has determined that such actions would not result in significant 
environmental impacts.
    Comment: TVA should either revise proposed CE 28 so that it 
complies with the requirements of NEPA or withdraw it.
    Response: The scope of CE 28 is limited to minor land allocation 
modifications and would not affect broad swaths of lands. TVA has made 
several revisions to the CE in the final rule.
    TVA revised the definition of the CE to clarify that the only 
modifications to land use plans covered by the CE are changes to land 
use allocations. In addition, the CE would only apply to such 
allocation modifications that are proposed ``outside of a normal 
planning cycle.'' This clarification is added because TVA only 
considers minor allocation changes outside of a normal planning process 
under limited circumstances. TVA's land plans and policies (e.g., NRP, 
Comprehensive Valleywide Land Plan, Land Policy, and Shoreline 
Management Policy) limit the types of revisions that can be made to 
land plans prior to development of the next plan for that reservoir. 
Outside of a normal land planning cycle, revisions to land use 
allocations in land plans can be made to correct administrative errors 
that occurred during the planning process. Further, land use allocation 
changes occurring outside of a normal planning cycle are to be made 
consistent with TVA's Land Policy. Specifically, the Land Policy 
provides, ``TVA shall consider changing a land use designation outside 
of the normal planning process only for water-access purposes for 
industrial or commercial recreation operations on privately owned 
backlying land or to implement TVA's Shoreline Management Policy.'' 
Allocation changes for other purposes would occur during the normal 
land planning process. Updates to land plans within the normal land 
planning cycle, whether it be for a portion of a reservoir, an entire 
reservoir, or a group of reservoirs, involves the preparation of an EA 
or EIS. The new CE would apply to land use allocations outside of a 
normal planning cycle and would not apply to land planning efforts 
within the normal planning process.
    Also, TVA made minor revisions to the scope of the CE. The proposed 
CE addressed four types of land use plan modifications: Changes to 
address minor administrative errors; changes to incorporate new 
information (when consistent with a previously-approved decision); 
allocation changes to a more restrictive or protective allocation; and 
minor allocation changes to implement TVA's shoreline and land 
management policies. Upon further review of the CE and after 
considering the public comments, TVA removed from the scope of the CE 
the amendments to land use allocations to a more restrictive or 
protective allocation (if consistent with other TVA plans and 
policies). Such proposals are unusual and would not generally occur 
outside of the normal planning process. In addition, TVA added a 
spatial limitation of 10 acres to the final action covered by the CE, 
thereby limiting the amount of land affected by a land use allocation 
modification that occurs outside of a TVA planning cycle. The acreage 
limit is similar to the general limitation applied to other CEs in the 
final rule.
    TVA notes that the ``shoreline or land management policies'' 
referenced in this CE are those relating to the Shoreline Management 
Policy and TVA's Land Policy. TVA has revised its discussion of this CE 
in its Supporting Documentation to provide additional explanation and 
background information on its land use planning practices and the types 
of actions and requests that may precipitate the need to consider such 
minor land use allocation changes.
    TVA disagrees that the cited EAs and EISs and the benchmarked CEs 
of other agencies do not provide support for this CE. TVA finds that 
because those EAs, EISs and other agency CEs concern similar project 
with similar scopes, they provide additional support for TVA's 
determination that allocations changes that are minor and limited in 
scope do not result in significant environmental impacts. Other 
assertions made regarding the segmenting of actions contemplated in a 
tiered programmatic document and the need for documentation 
requirements are addressed by TVA in other responses.
    Comment: TVA should either revise CE 29 so that it complies with 
the requirements of NEPA or withdraw it. The acreage limitation is too 
large for actions in these habitats. In addition, TVA may segment such 
activities, which is not appropriate, and does not provide sufficient 
information in its Supporting Documentation to substantiate the new CE.
    Response: Based on extensive experience in conducting minor natural 
resource management actions, TVA has determined that certain actions 
would not result in significant environmental impacts. As noted in the 
Supporting Documentation, TVA has proposed this CE to more efficiently 
implement projects to maintain or restore the natural functions of 
these resources, consistent with objectives in its NRP and other TVA 
policies.
    After publication of the Notice of Proposed Rule, TVA staff had 
further deliberations about the acreage figure identified in the 
definition of CE 29 that was intended as a spatial limitation for this 
category of actions. TVA had proposed that a 125-acre limitation would 
generally apply for the CE because, as discussed in the Supporting 
Documentation, the limitation would be consistent with limitations of 
other proposed CEs. Based on additional consideration, a limitation of 
10 acres is more appropriate given the sensitive nature of wetland, 
riparian and aquatic ecosystems. In addition, the 10-acre limitation 
more accurately reflects TVA's past experiences in implementing 
projects in these types of ecosystems. The definition of CE 29 was 
revised accordingly in the final rule.
    When applying CE 29, TVA would use a CEC to determine whether 
extraordinary circumstances exist for each proposed action. Qualified 
TVA specialists will review whether the actions have the potential to 
significantly impact environmental

[[Page 17448]]

resources and will consider whether measures are necessary to mitigate 
impacts and resolve extraordinary circumstances. Existing current 
resource data will be used or new field data will be obtained when 
needed. The final rule provides that during this review TVA may resolve 
the potential impacts through mitigation. The CEC review ultimately 
determines whether it is appropriate to use a CE for the action or 
whether additional environmental review is needed. The use of a CE for 
an action does not relieve TVA from compliance with other statutes or 
consultations, including, for example, the ESA or NHPA.
    CEQ regulations prohibit the practice of segmenting projects into 
smaller components in order to avoid finding a significant impact of a 
project considered as a whole. TVA complies with this regulation, as 
reflected in Sec.  1318.200, which includes direction to avoid 
segmenting larger projects into small parts when applying CEs. 
Environmental staff is responsible for screening out this type of 
activity and ensuring that larger projects are reviewed in their 
entirety. TVA staff would not use CE 29 for restoration or enhancement 
activities that are proposed across a wide area, as asserted; the CE 
would be used for discrete actions within the same area or immediate 
vicinity.
    TVA disagrees that the Supporting Documentation is insufficient. 
The NRP EIS and other cited NEPA records provide important support that 
these restoration and enhancement actions do not typically result in 
significant environmental impacts. The NRP EIS states that TVA would 
conduct ``appropriate'' levels of review when specific implementing 
actions are proposed; it does not state that EAs or EISs would be 
necessary to review minor, implementing activities. As previously 
stated, the Supporting Documentation is intended to provide information 
to substantiate TVA's determination that certain actions do not result 
in significant impacts. CEQ's 2010 guidance affirms that agencies may 
rely on previously implemented actions and associated NEPA records to 
substantiate new CEs; TVA does not find that it is inappropriate to 
cite only to TVA EAs or EISs to support this and other CEs. TVA notes 
that the Supporting Documentation also provides supporting information 
from very similar CEs promulgated by other federal agencies, including 
agencies with land management and conservation responsibilities (e.g., 
the Forest Service, Department of Homeland Security, Fish and Wildlife 
Service, and the Natural Resources Conservation Service).
    Comment: TVA should either revise CE 30 so that it complies with 
the requirements of NEPA, or withdraw it.
    Response: TVA cites to previous responses regarding the potential 
for segmentation of actions, the NEPA documents cited by TVA in its 
Supporting Documentation, and the appropriateness of using a CE for NRP 
implementing actions.
    In addition, comments also asserted that two of the 19 CEs cited by 
TVA in benchmarking provide insufficient support for CE 30. TVA 
included several examples of actions in CE 30, as was done by the 
Bureau of Land Management for its CE C8. TVA cites to six Forest 
Service CEs and addresses the comparability in the Supporting 
Documentation, acknowledging that certain Forest Service CEs do not 
directly address certain TVA actions in CE 30. When benchmarking to 
other agencies' experiences, as described in the Supporting 
Documentation, TVA found numerous applicable and comparable CEs that 
provide additional support to TVA's determination that such actions 
qualify for a CE.
    Comment: Proposed CE 31 lacks specificity, impacts of such actions 
are significant, and cited EAs, EISs, and benchmarked CEs do not 
support TVA's determination. TVA did not take a hard look and is 
playing a shell game by establishing a CE for actions addressed under 
programmatic NEPA, and documentation should be defined in the final 
rule. For these reasons TVA should revise or withdraw the CE.
    Response: The comments relating to the definition of the CE (e.g., 
use of the limiting terms and failure to specify the geographic area 
when conducting actions), the potential that such actions may result in 
significant impacts, the adequacy of the EAs and EISs cited in the 
Supporting Documentation, and the appropriateness of using CEs for 
certain natural resource program actions have been previously asserted; 
the responses above are equally applicable here.
    Again, TVA notes that information in the Supporting Documentation 
includes a summary of relevant NEPA documents to substantiate CE 31. 
The experiences of TVA and the implemented projects cited by TVA in the 
document support TVA's determination that such activities, when 
limited, would not result in significant impacts. The CEs of other 
agencies cited in the document provide further support; TVA notes that 
the Forest Service and Bureau of Land Management CEs are similar in 
nature but acknowledges in the Supporting Documentation that there are 
differences (e.g., in spatial limitations). TVA believes, however, that 
these CEs of the other federal agencies address similar activities as 
TVA's CE 31 and provide additional support for TVA's determination.
    Comment: TVA should either revise CE 32 so that it complies with 
the requirements of NEPA or withdraw it.
    Response: TVA disagrees that the CE lacks sufficient specificity or 
clarity. TVA staff in NEPA, Environmental Operations and Compliance, 
and Natural Resources reviewed the definition of the CE and found that 
actions specified therein are clear and well-understood. The CE is 
defined to describe common actions conducted by TVA to manage invasive 
plants. These actions do not result in significant environmental 
impacts if conducted in adherence to the spatial limits. TVA has 
extensive experience in conducting these types of vegetation management 
actions and, as noted in the Supporting Documentation, has reviewed 
similar actions under a CE in the past. TVA has determined that for 
many natural resource management actions that would implement its NRP, 
the CE provides an appropriate level of site specific environmental 
review.
    As previously stated, TVA would conduct a review of all actions 
falling under this CE using a CEC to determine whether extraordinary 
circumstances exist and document its findings. Qualified TVA 
specialists will review whether the actions have the potential to 
significantly impact environmental resources, including sensitive bat 
species, and will consider whether measures are necessary to mitigate 
impacts and resolve extraordinary circumstances. The CEC checklist 
review ultimately determines whether it is appropriate to use a CE for 
the action or whether additional environmental review under an EA or 
EIS is needed. TVA also disagrees with assertions relating to the 
relevance of the benchmarked CE of the Forest Service; the Forest 
Service CE includes vegetation control activities, including the 
application of herbicides.
    Comment: TVA's procedures for project planning under proposed CEs 
29, 30, 31 and 32 are unclear. TVA stated in its NRP EIS that it would 
perform ``site and/or activity-specific environmental reviews'' for 
such activities. If the activities are covered under the CEs, what 
environmental review process will TVA use?
    Response: TVA's determination that certain natural resource 
management actions would not result in significant environmental 
impacts is based on extensive experience in conducting

[[Page 17449]]

these minor actions. As noted in the Supporting Documentation, TVA has 
conducted many of these actions under CEs in the past. TVA has 
determined that for many actions addressed under its NRP, the CE 
provides an appropriate level of site-specific environmental review. As 
noted above, CEs are not exemptions or waivers of NEPA reviews and TVA 
would conduct a review of all actions falling under CEs 29, 30, 31, and 
32 using a CEC. Qualified TVA specialists review each action to 
determine whether it is appropriate to use a CE for the action or 
whether additional environmental review in an EA or EIS is needed due 
to any extraordinary circumstances. The use of a CE for an action does 
not relieve the TVA entity from compliance with other statutes or 
consultations, including, for example, the ESA or NHPA.
    Comment: Proposed CE 35 lacks the specificity required by CEQ and 
NEPA to ensure that actions would have little potential for significant 
impacts. Commenters suggested various changes, including eliminating 
the CE entirely, removing groundwater supply wells from the category of 
actions, applying a low volume limit on covered water supply wells, 
eliminating its applicability to other types of wells (e.g., oil and 
gas), and providing clarification for determining what is ``low 
potential'' during site characterization. The water quality incident in 
Shelby County, Tennessee, reflects the need for more stringent reviews 
under NEPA and it would be inappropriate to apply a CE for water wells.
    Response: Based on consideration of the comments received, TVA has 
revised this CE to apply a limit to the installation or modification of 
low-volume groundwater withdrawal wells. TVA had not intended the CE, 
as proposed, to be used for installing wells for high volumes of water 
withdrawal. For wells with such high volumes of withdrawal, TVA would 
complete an EA or EIS of such actions, as was done at TVA's Allen 
Fossil Plant.
    By comparison, TVA has extensive experience installing small-scale 
groundwater monitoring and withdrawal wells, including low-volume wells 
for potable water use at facilities in remote locations (e.g., 
campgrounds). TVA does not agree with one commenter's assertion that 
there is a substantial difference in the types of potential 
environmental impacts associated with establishing and operating 
groundwater withdrawal wells for supply and groundwater withdrawal 
wells for monitoring, based on TVA's experience in installing and 
conducting environmental reviews for low-volume groundwater withdrawal 
wells. As noted in the Supporting Documentation, the digging, drilling, 
boring and associated activities that occur when wells are installed do 
not vary greatly based on the well's purpose. The scope of work is 
similar whether the well is installed for water withdrawal or water 
monitoring.
    Regarding comments on plugging of wells, TVA agrees that there are 
differences in the nature of plugging of groundwater wells and oil or 
gas wells at the end of their operating lives. However, the commenter's 
specific concerns about oil or gas wells relate to the potential for 
adverse effects that these wells pose if not properly plugged, rather 
than the impacts associated with TVA's actions to plug groundwater 
wells. The intent of plugging groundwater wells is to address the 
threat to public safety and water and air quality posed by the wells. 
To reduce the potential for confusion regarding what the 
``abandonment'' of a well involves, TVA revised the text of the CE in 
the final rule by deleting ``and abandonment'' from the text and adding 
clarification that wells would be plugged at the end of their operating 
life.
    The CE includes a statement limiting its use to circumstances when 
there is ``low potential for seismicity, subsidence, and contamination 
of freshwater aquifers.'' The inclusion of this text ensures that TVA 
reviews for the potential for such circumstances prior to determining 
whether a CE may be used for an action. Those qualified to make such 
determinations would be employed to make such determinations. 
Information provided in the Supporting Documentation provides an 
adequate summary of TVA's experience, previously implemented actions, 
and benchmarking to other agency CEs.
    Finally, TVA received numerous comments stating that the water 
quality incident at its Allen plant in 2017 is a result of its 
installation of wells for cooling water. Studies do not show a link 
between the TVA action and the poor water quality findings. Equally 
important, this CE is not for high-volume withdrawal wells such as 
those at the Allen plant. To ensure its application only to small, 
local groundwater withdrawal wells, the definition of the CE was 
revised to further limit the application of this CE to ``low-volume'' 
withdrawal wells, ``provided that there would be no drawdown other than 
in the immediate vicinity of the pumping well and that there is no 
potential for long-term decline of the water table or degradation of 
the aquifer.''
    Comment: CE 36 sweeps in far too much, and would exempt from NEPA 
review exactly the sort of activities that should be reviewed under 
NEPA. CE 36 should be withdrawn, or at the very least, TVA should 
promulgate requirements that would require that application of CE 36 be 
documented and be made publicly available on TVA's website.
    Response: As previously noted, CEs are not exemptions from or 
waivers of NEPA review; they are simply one type of NEPA review. Among 
the actions falling under CE 36 are some of TVA's most common, 
routinely implemented actions to maintain operations of its facilities 
and equipment. Covered actions are very minor, with little or no new 
ground disturbance, and a minor potential for new pollutant emissions 
streams. This CE only applies to existing buildings, infrastructure 
systems, facilities and grounds, and operating equipment at TVA 
locations; actions that require new or revised permits are not covered 
by this CE.
    As demonstrated in the Supporting Documentation, TVA has many years 
of experience with the routine operation, repair or in-kind 
replacement, and maintenance activities for existing buildings, 
infrastructure systems, facility grounds, and operating equipment. Many 
of these activities are considered so routine, and have been repeated 
so often that TVA estimates it has documented the lack of significant 
impacts of these types of actions in hundreds of CEs. Based on over 30 
years of experience with assessing the impacts of the actions covered 
in CE 36, TVA believes that in the absence of extraordinary 
circumstances, these are repetitive actions that have been shown to 
have negligible effects. Decisions about the appropriate level of NEPA 
review for TVA actions are made by qualified environmental specialists, 
staff attorneys, and informed project managers, based on project 
descriptions including maps, photographs and drawings as appropriate. A 
project screening review team facilitates this process.
    The terms used in the definition of the CE (e.g., routine, in-kind, 
replacement, maintenance) are well understood by TVA staff. The CE 
provides clarification of how these terms are used and terms are given 
context through the examples. In the third sentence, the term 
``substantial change'' is used when describing a limitation: The 
category does not include actions that result in a substantial change 
in the design

[[Page 17450]]

capacity, function, or operation of a facility, system, or equipment. 
TVA notes that this term refers to the extent to which an existing 
facility, system or equipment is changed, rather than the extent to 
which those changes would affect the environment. As stated in the 
second sentence of the CE, actions would be limited to those which do 
not alter the current condition or location of the facilities, systems 
or equipment for use for designated purposes. TVA notes that portions 
of these statements are based on the definition of the Department of 
Energy (DOE) CE (B1.3), which includes similar factors that constrain 
its use. Nevertheless, TVA has deleted the term ``substantial'' from 
this sentence to avoid potential confusion by TVA staff in the 
application of the CE. Likewise, TVA also reviewed the use of the word 
``substantially'' under item (a) of CE 36 and has deleted it from the 
description of the example action to avoid confusion.
    Commenters also assert that ``a category of action is only 
appropriate for a CE if those activities are incapable of causing 
significant environmental impact'' and that ``[f]or something to be 
categorically excluded, it should never have significant environmental 
effects.'' However, Federal agencies, in developing their NEPA 
procedures, are required to consider extraordinary circumstances in 
which a normally excluded action may have a significant environmental 
effect.'' See 40 CFR 1508.4. CEQ describes such extraordinary 
circumstances as ``factors or circumstances in which a normally 
excluded action may have a significant environmental effect. . . .'' 
(75 FR 75629, December 6, 2010). CEQ's recognition that there are 
circumstances in which a category of actions that are categorically 
excluded may nevertheless result in significant impacts serves to 
caution agencies to use the ``extraordinary circumstances'' provision 
to cull out any particular action from a CE category that may have a 
significant effect. In TVA's Supporting Documentation, TVA described 
categories of actions that do not have significant impacts, but was 
mindful that extraordinary circumstances may exist that apply an 
exception to the rule.
    In the June 2017 release of the document, TVA's use of the terms 
``typically'' or ``normally'' in some CEs was apparently misinterpreted 
by some commenters. TVA's intent for each of its conclusions for each 
category of actions is to affirm that it has determined that the 
actions do not result in significant impacts, under normal 
circumstances. The use of terms like ``typically'' or ``normally'' 
should not be interpreted as determinations by TVA that these 
activities have significant impacts. The Supporting Documentation has 
been revised, where appropriate, to avoid such confusion.
    Comment: The Virginia Department of Historic Resources expressed 
concern with the wording in CE 36 that refers to structures less than 
50 years old that will receive routine maintenance. This official 
suggested that TVA include the need to consider historic properties in 
the introductory section on ``extraordinary circumstances.''
    Response: Under the final rule, TVA has included the potential for 
an action to significantly impact cultural or historic resources as an 
extraordinary circumstance to consider prior to use of a CE (Sec.  
1318.201(a)(1)(iii)). Because actions under CEs 36 and 37 pertain to 
maintenance and potential modifications to buildings and structures, 
TVA included text to the examples listed under CEs 36 and 37 that limit 
the application of these CEs to activities at structures and buildings 
that are less than 50 years old. This limitation is intended to ensure 
proper consideration of potential impacts to cultural or historic 
resources and of the possible need to conduct consultation under 
Section 106 of NHPA. As noted above, TVA also added to the final rule a 
statement that the use of a CE for an action does not relieve TVA from 
compliance with NHPA.
    Comment: Proposed CE 37 is inconsistent with the requirements of 
NEPA, and the actions covered by proposed CE 37 are exactly the sort 
that should be subjected to NEPA analysis. It is inappropriate to 
benchmark to the DOE's CEs. TVA should withdraw the CE.
    Response: TVA has extensive experience in completing routine and 
minor actions to modify, upgrade, uprate and complete other activities 
at its existing facilities, grounds and equipment. The covered actions 
are necessary to maintain current facility infrastructure, grounds, and 
equipment. In addition to the spatial limitation (10 acres) applying to 
this CE, several additional limitations are included in the definition 
of actions listed under items (a) through (g).
    Since 1980, activities under CE 37 have been categorically excluded 
under 5.2.1 of TVA's previous procedures. TVA believes that replacing 
the very broadly defined and widely used CE 5.2.1 is necessary to 
provide more specific definitions and examples to TVA staff of 
categorically excluded actions. Generally, TVA's consideration of such 
activities would not change; the level of review would be similar under 
the final rule. Under CE 37, TVA will conduct a review of the proposed 
action using its CEC. The determination of the potential for any 
significant impact due to extraordinary circumstances is made during 
the completion of the CEC review by a qualified multidisciplinary team 
of experts. Should extraordinary circumstances reflecting the potential 
for significant effects be identified during this review, TVA staff 
would complete a higher level of NEPA review.
    TVA's statement in its Supporting Documentation that such actions 
``under normal circumstances'' do not have a significant effect on the 
human environment articulates TVA's determination that a CE is 
appropriate for these actions, if TVA verifies that no extraordinary 
circumstances exist that may require TVA to conduct additional 
environmental review. TVA notes that the examples given by the 
commenter (such as boiler expansions that would dramatically change the 
output of a generator or the lifespan of the unit) are not covered 
under this CE because such components are major pieces of equipment 
(under item (a) of the CE). Further, the definition of the CE 
specifically limits its use under item (b) to modifications that do not 
substantially change emissions or discharges beyond current permitted 
levels. Other limitations are included in items (e), (f) and (g), which 
provide additional factors for consideration prior to use of the CE. 
TVA found that the DOE CE is similar in nature and provides additional 
support for TVA's determination that such actions, as limited, do not 
result in significant impacts.
    Comment: The current language of proposed CE 38 is too broad and 
would allow TVA to construct new facilities anywhere without the 
completion of an EA or public input.
    Response: The construction of new buildings and associated 
infrastructure in small areas are activities common to TVA. TVA has 
extensive experience in conducting environmental reviews of actions 
impacting less than 10 acres of land previously not disturbed by human 
activity or 25 acres of land so disturbed. TVA's extensive experience 
and environmental records support its conclusion that such actions, as 
limited in the CE, would not result in significant impacts. TVA notes 
again that CEs are not exemptions or waivers of NEPA review; rather, 
they are simply a type of environmental review. TVA will continue to 
review proposed actions to ensure that extraordinary circumstances are 
not present that would prevent the application of this CE. The 
appropriate reliance on CEs to

[[Page 17451]]

consider minor actions with little potential for significant effects 
provides a reasonable, proportionate, and effective analysis of the 
impacts of the action.
    CE 38 would not apply to the siting, construction, and use of new 
power generating facilities. The CE is intended to address only 
buildings and associated infrastructure (e.g., parking areas, utility 
lines serving the building). To improve clarity, TVA added an example 
of associated infrastructure to the definition of the CE. After 
considering the comment, TVA reviewed its Supporting Documentation and 
revised the discussion to clearly express TVA's intent that the CE 
would not apply to new construction of power generation facilities.
    Comment: TVA should change the 10-acre limit in proposed CEs 38 and 
43 to 5 acres and the 25-acre limit to 10 acres, respectively.
    Response: The suggestion is noted. The commenter did not explain 
why the suggested limits would be more appropriate. TVA's own 
experience provides adequate justification for the use of these limits.
    Comment: The Department of the Interior recommended adding the 
installation or replacement of small scale bridges to the listed 
actions under this CE (when such structures may facilitate improved 
fish and wildlife passage) and suggested that TVA evaluate potential 
modifications to existing roadways that intersect aquatic resources as 
to make sure a beneficial impact is occurring for aquatic resources. 
The Department also noted that TVA should evaluate how it will address 
the potential impacts from constructing or replacing culverts and 
consider modifying CE 42 concerning the issue. Finally, the Department 
noted that CE 42 allows for ground disturbance pertaining to TVA 
projects, and recommends modifying the language to encompass parameters 
when the CE can be used.
    Response: TVA's CE for improvements to existing roads, trails, and 
parking areas includes several example actions; however, covered 
actions are not limited to the example actions listed. A reasonable 
interpretation of the CE would allow for limited improvements to 
roadways that include small-scale bridge installation, particularly if 
the bridge installation may result in fewer impacts to aquatic 
resources than culvert installation. TVA acknowledges that road 
improvement activities may result in impacts to the environment but 
limits the use of the CE only to minor expansions of existing roads, 
trails and parking areas, thereby limiting the extent of such impacts. 
TVA would complete a review using a CEC for each action under CE 42 to 
ensure extraordinary circumstances and potential impacts of the action 
are considered.
    Comment: Several commenters expressed concern with the scope of 
actions covered under CE 45. Two commenters recommended that TVA revise 
its proposed CE 45 and delete items (c) and (d) from the list of 
covered actions, which address a small number of wind turbines and 
small-scale biomass power plants, respectively.
    Response: Upon further consideration, TVA has removed items (c) and 
(d) from the list of covered actions of CE 45. TVA reviewed these 
actions again and concluded that it is unlikely to pursue the 
installation of wind turbines at its facilities in the foreseeable 
future. Further, lack of extensive experience assessing the impacts of 
wind turbines cautioned TVA against placing this category of actions 
under a CE. For the same reasons, TVA removed actions associated with 
small-scale biomass power plants from this CE in the final rule.
    Comment: TVA should either adjust CE 45 so that it complies with 
the requirements of NEPA or withdraw it as a proposed CE. CE 45 is too 
broad in its current language regarding several potential renewable 
energy activities that would fall under the new CE. According to this 
commenter, the broad language does not encompass projects that should 
fall under the NEPA process.
    Response: TVA does not consider the CE to be too broadly defined. 
TVA notes that actions may only be implemented at an existing TVA 
facility to limit its impacts and reduce the likelihood for conflicts. 
When reviewing whether an action falls within a CE, TVA must ensure 
that no extraordinary circumstances relating to the proposed action are 
present and whether the action has the potential to significantly 
impact environmental resources (see Sec.  1318.201(a)). Because the 
potential for significant impacts is considered when determining 
whether to use a CE, adding such a limit to the definition would be 
redundant. A TVA interdisciplinary team would review each proposal and 
complete a review checklist before using the CE.
    TVA's Supporting Documentation summarizes TVA's findings and 
information that supports the establishment of the CEs. Actions covered 
under CE 45 would only take place if they are consistent with TVA's 
IRP. The TVA IRP and the types of generation choices that TVA would 
consider would have already been assessed in the IRP and its EIS. Use 
of CE 45 (through the completion of a CEC) allows TVA to verify that 
the site-specific impacts of particular generation choices comports 
with the analysis in the IRP and its EIS.
    As described in the Supporting Documentation, this CE is 
benchmarked closely with those of other federal agencies, primarily the 
Department of Energy. TVA grouped different energy actions under one CE 
because all such actions are renewable energy actions and would only be 
permitted at existing TVA facilities. Further, CE 45 has limitations: 
it applies to projects covering less than 10 acres of land previously 
not disturbed by human activity or up to 25 acres of lands so 
disturbed, consistent with other spatial limits identified by TVA. As 
noted above, TVA revised this CE in the final rule and removed the wind 
turbine and biomass power plants from the list of renewable energy 
actions covered by the category.
    Comment: Proposed CE 45 item (b), which addresses solar 
photovoltaic systems, should be revised to remove the reference to on-
the-ground systems, thereby limiting the category to solar system 
mountings on existing buildings or structures.
    Response: The comment expressing this preference is noted. TVA 
notes that covered actions would only occur at an existing TVA facility 
and a spatial limitation would apply.
    Comment: We are opposed to any green field development.
    Response: Comment noted.
    Comment: Commenters expressed opposition to the proposed CE 46 
because TVA does not have experience with the construction of drop-in 
hydroelectric systems. Without this experience, these commenters stated 
that TVA could not substantiate the CE. According to these commenters, 
the installation of these hydroelectric systems would disrupt the 
native biodiversity within the Tennessee River and should not be 
categorically excluded.
    Response: Based on public comment and additional internal 
consideration, TVA withdrew the proposed CE 46 from the final rule. TVA 
had proposed the CE to include the installation, modification, 
operation and removal of small, drop-in, run-of-the-river hydroelectric 
systems. TVA determined that such actions are not foreseeable.
    Comment: Several commenters expressed concern with proposed CE 47, 
regarding modifications of TVA rate structure. According to two

[[Page 17452]]

commenters, TVA bases its claim that actions in this category would not 
have any significant impacts off previous internal reviews of four NEPA 
filings, wherein TVA stated that the proposed changes could have 
``negligible or minor effects on environmental resources.'' While the 
scope of those prior rate structure modifications may have been minor, 
these commenters assert, TVA's intention to pursue a broad rate 
adjustment and rate change in 2018 may have impacts that are more 
dramatic.
    Response: During the public review period for this rulemaking, TVA 
made public its intention to consider modifications to its rate 
structure in 2018. TVA received numerous comments expressing concerns 
that CE 47 would be used for the 2018 rate change. Although such 
comments relating to a specific proposal are not within the scope of 
this rulemaking, TVA notes that it did not propose the CE with any 
specific proposed modifications to the rate structure in mind. The new 
CE was proposed based solely on past experience. In the case of the 
proposed 2018 rate change, TVA completed an EA for the proposal and 
provided opportunity for public review of the analysis; the EA further 
supports TVA's conclusion that such actions would not normally result 
in significant environmental impacts.
    Comment: CE 47 would reverse TVA's longstanding practice of 
analyzing rate changes with rigorous environmental analysis and EISs. 
The timing of proposing the CE is concerning, given TVA's plan to 
update their rate structure in 2018 to specifically address the 
proliferation of distributed energy resources and energy efficiency 
across their service territory. It is worrisome that TVA would try to 
exempt rate changes from environmental analysis just months before a 
proposed rate change that might affect how renewables and energy 
efficiency are priced.
    Response: As noted above, TVA did not propose the CE with any 
specific future proposed modifications to rate structure in mind and 
completed an EA in 2018 to consider the 2018 rate change proposal. TVA 
NEPA staff first identified the category for consideration as a 
potential CE more than five years ago, after completing numerous 
reviews of similar proposals that TVA concluded would result in no 
significant impacts.
    TVA's experience in reviewing prior rate changes serves to support 
the conclusion that such actions do not typically result in significant 
environmental impacts. According to CEQ, such longstanding practices 
can be used to provide supporting information for the establishment of 
a CE.
    Based on further internal deliberation and consideration of public 
input, TVA revised CE 47 to simplify it and to omit from the CE's scope 
any modification that results in minor increases in energy generation. 
TVA had proposed to apply a reasonable interpretation of the term 
``minor increases'' when applying the CE in the future. However, TVA 
determined that further limiting the use of the CE to only actions that 
result in no predicted increase overall TVA-system electricity 
consumption is more appropriate and ensures that no significant impacts 
would result from the action.
    Although a proposed action may meet the definition of a CE (i.e., 
may fall within the category of actions), TVA may determine that it 
would be more appropriate to conduct a more thorough review. According 
to the final rule, TVA staff would first review the proposal to ensure 
that it meets the definition of the CE and its limitations. Then, TVA 
would review the proposal and determine whether any of the 
extraordinary circumstances defined in Sec.  1318.201 may occur. As 
described in the Supporting Documentation, TVA interdisciplinary staff 
completes a Categorical Exclusion Checklist to verify that there are no 
extraordinary circumstances and to ensure that the action has no 
potential for significant environmental impacts. If extraordinary 
circumstances are present and cannot be resolved or the potential for 
significant impacts exist, TVA would complete a more rigorous analysis 
in an EA or EIS of the proposed action. Under the final rule, TVA may 
consider providing public notice when a CE is used if it is determined 
that the public may have relevant and important information relating to 
the proposal that will assist TVA in its decisionmaking.
    Comment: The definition of CE 47 lacks specificity for ``minor'' 
increases and the scope of extraordinary circumstances that would 
constitute the need for an EA or EIS.
    Response: As noted above, TVA has revised the CE's definition to 
exclude proposals that may result in increases in overall energy use. 
TVA's procedures directing staff to consider whether the ``significance 
of the environmental impacts . . . is or may be highly controversial'' 
are consistent with CEQ's significance criterion (40 CFR 1508.27(4)), 
which directs agencies to consider ``the degree to which the effects on 
the quality of the human environment are likely to be highly 
controversial.'' Guided by existing case law as to what constitutes 
``highly controversial'' actions, TVA will consider controversy over 
the nature and scale of the impacts (e.g., scientific disagreement 
relating to the potential impacts), as opposed to mere opposition to a 
federal project. TVA agrees that it may not be appropriate to use a CE 
for certain rate change proposals if extraordinary circumstances are 
present, if TVA finds there to be potential for significant impacts, or 
if additional review is needed to improve the decision-making process.
    Comment: TVA's claim in its Supporting Documentation that CE 47 
would have similar scope as the DOE CE is inaccurate because the DOE CE 
includes limitations that CE 47 does not include (referring to DOE CE 
B1.1 and DOE CE B3.4).
    Response: The new CE established by TVA for minor rate 
modifications is based on TVA's own past experience. The DOE's 
experience provides additional support for the establishment of a CE 
for TVA rate change proposals with certain limitations applied. TVA 
acknowledges that the DOE's mission differs from its own, and the 
Bonneville Power Authority region differs from the Tennessee Valley 
region. TVA acknowledges that there are differences in the scope of the 
DOE CEs and TVA's CE 47. As addressed in the Supporting Documentation, 
DOE analysis of its CEs draws similar conclusions as TVA's analysis of 
CE 47: That impacts to the environment would occur only if the rate 
change involved changes to the operation of generation resources. 
Accordingly, TVA has limited use of this CE to actions that result in 
no predicted increases in overall energy use (including any change that 
may result in system-wide demand reduction). Because of the limitation, 
and based on its own experience, TVA has determined that such actions 
do not result in significant environmental impacts.

D. Comments on Subpart D--Environmental Assessments

    Comment: TVA's NEPA procedures addressing the circulation of 
findings of no significant impacts for public comment are inconsistent 
with the CEQ Regulations and guidance.
    Response: To ensure consistency with CEQ regulations at 40 CFR 
1501.4(e)(2), TVA revised Sec.  1303(d)(1) in the final rule. As 
previously noted, TVA's procedures do not supersede the CEQ 
regulations.
    Comment: TVA's NEPA procedures for EAs discourage early public 
involvement in projects and are contrary to the CEQ Regulations, which 
requires agencies to consider whether public

[[Page 17453]]

comment is ``practicable,'' not whether the public has already been 
involved. TVA procedures do not reflect CEQ requirements to provide 
public review of an EA. Where TVA decides that an action described in 
Sec.  1318.400(a) does not need an EIS, the agency must discuss the 
basis for this decision in a document that is made available to the 
public ``upon request.'' Under Sec.  1318.301(c), the EA will be 
circulated to the public for review and comment, but under Sec.  
1318.400(b), the public has to request the document containing the 
basis for the agency's decision not to prepare an EIS (normally 
provided for in an EA), and no public comment occurs. TVA should fix 
this contradiction.
    Response: The comments address a contradiction between Sec. Sec.  
1318.301(c) and 1318.400(b). TVA has deleted the phrase ``upon 
request'' from Sec.  1318.400(b) to make clear that the EA that forms 
the basis for not preparing an EIS for actions falling within the 
categories specified in Sec.  1318.400(a) will be made available for 
public review.
    Further, Sec.  1318.301(a) of the proposed rule has been revised to 
include text from TVA's previous procedures, established in 1980, 
regarding public involvement in the preparation of an EA that TVA had 
proposed to remove from this section. After considering public input on 
Sec.  1318.301(a), TVA decided to include the text (with minor edits) 
because it provides general guidance for determining the appropriate 
level of public involvement in the EA process. In the final rule, TVA 
also retains the sentence providing that the public's prior involvement 
may be also considered because often, a TVA EA process occurs 
concurrently with another regulatory process or environmental review by 
another agency. During other regulatory processes, the public is often 
provided a meaningful opportunity to comment on the environmental 
impacts of a proposal. When this occurs, TVA will integrate the public 
review opportunity provided by the other regulatory process into its 
NEPA review. Consideration of this is consistent with CEQ's regulations 
requiring an agency to involve environmental agencies, applicants and 
the public to the extent practicable (40 CFR 1501.4(b)), to reduce 
delays in the NEPA process (40 CFR 1500.5), and to integrate the 
requirements of NEPA with other planning and environmental review 
procedures (40 CFR 1500.2).
    Comment: TVA's procedures for supplementing EAs are inconsistent 
with NEPA and the CEQ regulations.
    Response: TVA revised Sec.  1318.304(a) in the final rule to 
clarify that TVA would consider supplementing an EA when there are 
``important components of the proposed action that remain to be 
implemented.'' This text was also added under Sec.  1318.406 addressing 
supplementing EISs. TVA will continue to comply with CEQ regulations 
addressing the supplementation of NEPA documents, including those 
relating to circulating supplemental documents for public review.
    Comment: TVA's procedures are flawed because TVA arbitrarily and 
inaccurately paraphrases the scope of analysis required in EAs and 
EISs.
    Response: TVA's NEPA implementing procedures supplement but do not 
supersede CEQ's NEPA regulations. Under Sec.  1318.302(b) of the 
procedures, TVA elaborates on the requirements for EAs and addresses 
each of the CEQ requirements. TVA's use of the term ``reasonable 
alternatives'' is consistent with CEQ guidance on the consideration of 
alternatives (see CEQ's Forty Most Asked Questions (questions 1 and 2) 
and Attachment A of its 2016 guidance regarding ``Emergencies and the 
National Environmental Policy Act'').
    CEQ regulations describe EAs as ``concise'' documents that offer 
brief discussions of environmental impacts, sufficient to determine 
whether preparation of an EIS is required and to aid in compliance with 
NEPA when no EIS is necessary. TVA agrees that determining whether 
significant impacts may occur from an action is the proper scope of the 
EA. In the final rule, TVA revised the statement of the proposed rule 
that EAs should address ``important environmental issues'' (Sec.  
1318.300(a)) to state that EAs should address ``issues that are 
potentially significant.'' TVA will continue to conduct reviews that 
avoid discussions of trivial or irrelevant matters, consistent with CEQ 
regulations and guidance.
    The final rule does not substantively revise procedures relating to 
the scope of EISs. TVA notes that Sec.  1318.400(d) cites to CEQ 
regulations addressing the scope and detail of the EIS (40 CFR 1502.10-
1502.18).

E. Comments on Subpart E--Environmental Impact Statements

    Comment: Contrary to the requirements of NEPA and the CEQ 
regulations, TVA proposes to prepare EISs only for a very narrow 
category of major Federal actions.
    Response: When determining the scope of its revision to these 
procedures, TVA considered whether additional categories of actions 
should be added to the list of actions normally requiring an EIS. Some 
revisions were proposed and included in the final rule under Sec.  
1318.400(a). After further consideration and review of public comments, 
TVA includes two new actions that will normally require an EIS in the 
final rule: the development of integrated resource plans for power 
generation and system-wide reservoir operations plans.
    TVA notes that the first two actions listed under Sec.  1318.400(a) 
include a variety of types of projects. TVA also notes that examples 
provided by the commenter of categories of projects addressed by TVA in 
recent NEPA reviews include several that TVA found would result in no 
significant impacts to the environment.
    Comment: Wind turbine projects are actions that should normally 
require an EIS.
    Response: Comment noted. The appropriate level of NEPA review would 
be determined by TVA in accordance with Sec. Sec.  1318.101 and 
1318.400. The size and location of proposed generating facilities would 
be considered prior to determining whether an EIS would be required.
    Comment: The procedures addressing the adoption of environmental 
reviews of other agencies are inconsistent with NEPA and the CEQ 
regulations. TVA applies under Sec.  1318.407(b), the wrong factors in 
determining whether an EIS may be adopted, and TVA's procedure relating 
to what it must do if it is determined that the EIS may not be adopted 
is inconsistent with CEQ regulations. TVA's procedure under Sec.  
1318.407(c), when serving as a cooperating agency, conflicts with CEQ 
regulations (40 CFR 1506.3(c)).
    Response: Based on this comment as well as further deliberation, 
TVA has revised Sec.  1318.407 in the final rule to ensure that the 
procedures conform to CEQ regulations. TVA agrees with the commenter 
that the last sentence of the proposed procedure under Sec.  
1318.407(b), which addressed what action TVA would take if it 
determines that it is not appropriate to adopt an agency's EIS, 
conflicted with CEQ requirements. TVA revised this statement in the 
final rule to conform to CEQ requirements. Regarding the comment 
relating to Sec.  1318.407(c) of the proposed rule, TVA does not find 
it necessary to restate the CEQ regulation in this case. When TVA 
concludes that another agency's EIS adequately addresses TVA's proposed 
action, it is implicit that TVA has determined that the agency 
addressed TVA's input in a satisfactory manner. Because of revisions, 
Sec.  1318.407(c) of the proposed rule is now Sec.  1318.407(d) in the 
final rule.

[[Page 17454]]

    Comment: The procedures addressing records of decision is 
inconsistent with NEPA and the CEQ regulations.
    Response: TVA made the requested edit in the final rule, omitting 
the word ``normally'' in Sec.  1318.405(d). TVA notes that Sec.  
1318.405(d) and CEQ regulations allow certain preliminary activities 
that do not result in adverse impacts or limit the choice of reasonable 
alternatives to occur prior to the issuance of the Record of Decision 
(40 CFR 1506.1(a)).
    Comment: The procedures for developing EISs inappropriately give 
TVA unfettered discretion and deprive the public of input into key 
portions of the NEPA process, including scoping, alternatives analysis, 
and RODs.
    Response: Except for minor edits to reflect current TVA 
organization names, TVA proposed no substantive changes to Sec.  
1318.402(a). TVA notes that its procedures clearly state that the 
initial descriptions of alternatives, environmental issues, and 
schedules for environmental review are ``tentative.'' Such early 
descriptions provided by TVA are essential to initial project planning 
(including identifying needed resources of funds or staff to conduct 
the review) and represent good governance; they are critical as well in 
verifying whether an EIS is appropriate.
    Based on TVA's experience, it is usually ineffective to initiate 
scoping for public input without providing the public with basic 
information about a project or how TVA intends to review the proposal. 
TVA and other federal agencies find that providing such information 
during scoping improves the public scoping process and, ultimately, the 
decision-making process. When conducting scoping, TVA will continue to 
communicate to the public that its determinations about the proposal 
are preliminary and that scoping is intended to inform and engage the 
public in order to receive input. In addition, TVA will continue to 
comply with CEQ regulations by determining when it is appropriate to 
hold scoping meetings.
    Comment: The procedures addressing the supplementation of EISs are 
not consistent with NEPA or CEQ's regulations.
    Response: In response to this comment, TVA revised the first 
sentence under Sec.  1318.406. The phrase ``and important decisions 
related to the proposed action remain to be made'' has been changed to 
``and important components of the proposed action remain to be 
implemented . . . .'' As noted above, TVA made a similar change to 
Sec.  1318.304(a) for consistency. TVA will continue to comply with CEQ 
regulations addressing the supplementation of NEPA documents, including 
those relating to circulating supplemental documents for public review.
    Comment: TVA arbitrarily and inaccurately paraphrases the 
alternatives analysis required in EAs and EISs. Limiting alternative 
analysis to merely address ``key action alternatives'' is inconsistent 
with CEQ regulations.
    Response: TVA notes that the term ``key action alternative'' was 
included in TVA procedures promulgated in 1980 and was not used to 
limit alternative analysis. In the final rule, TVA changed the term 
``key action alternatives'' to ``reasonable action alternatives'' 
(Sec.  1318.402(g)) to ensure consistency with CEQ regulations. TVA 
will continue to comply with CEQ regulations and guidance addressing 
the need to consider reasonable alternatives. The comment also 
addresses the inclusion of a definition of ``practicable'' in the final 
rule. TVA notes that its minor revision to this definition is intended 
to clarify its use in Subpart G of the final rule.

F. Comments on Subpart F--Miscellaneous Procedures

    Comment: Procedures addressing mitigation are inconsistent with 
NEPA and the CEQ regulations.
    Response: TVA's revision to this section of the procedures was 
limited to minor changes to clarify roles and responsibilities and to 
clarify considerations taken into account when determining whether to 
modify or delete previously-made mitigation commitments. TVA will 
continue to comply with CEQ requirements and guidance relating to 
mitigation. Paragraphs (a), (b), (c) and (d) of Sec.  1318.501 reflect 
the obligation to identify, disclose, implement and monitor these 
mitigation commitments. Occasionally, circumstances have arisen that 
require reconsideration of mitigation commitments (in fact, CEQ 
addresses some of these circumstances in its 2011 guidance relating to 
mitigation). In those cases, as stated in the final rule, TVA would 
consider the environmental significance of changes to commitments 
before modifying or deleting the mitigation commitments (Sec.  
1318.501(e)). This would ensure that TVA considers whether additional 
NEPA review is needed, including supplementing a NEPA document. prior 
to modifying the commitment.
    TVA notes that Sec.  1318.501 also addresses the identification of 
mitigation measures in FONSIs and, under Sec.  1318.501(a), all 
measures that mitigate expected significant adverse impacts must be 
identified in the EA and FONSI. The section also addresses the roles 
and responsibilities associated with tracking and monitoring the 
progress of implementing the commitments. If TVA makes changes to 
mitigation measures that serve as a basis of a FONSI, TVA would 
reevaluate the FONSI and post the revised FONSI for public review.
    Comment: The procedures addressing programmatic NEPA reviews are 
inconsistent with NEPA and the CEQ regulations because they would allow 
TVA to implement actions prior to completion of the NEPA review and 
they do not address CEQ guidance relating public involvement and 
transparency while conducting environmental reviews.
    Response: It is not the intent of the final rule to allow interim 
actions under consideration to be implemented prior to the conclusion 
of a NEPA review. Section 1318.503(c) addresses implementing actions 
that have been previously planned and approved by TVA under NEPA. Based 
on the comment, TVA has revised Sec.  1318.503(c) to make its intent 
clearer and to reflect that the criteria at 40 CFR 1506.1(c) must be 
met.
    Comments related to the need to incorporate CEQ guidance relating 
to public involvement and transparency are noted. TVA will continue to 
complete programmatic NEPA reviews for policies, plans, programs or 
suite of projects in a manner consistent with CEQ regulations and 
guidance. TVA finds these reviews to be particularly valuable when 
establishing program priorities and plans, determining how policies may 
best be implemented, and planning proposals that may have broad 
geographic influence. Public involvement in these reviews would comply 
with CEQ requirements as well as the applicable TVA procedures. When 
minor actions are proposed that may implement TVA programs, such 
activities would properly be reviewed to determine an appropriate level 
of NEPA review. In some cases, actions may fall within a category of 
actions and a CE may be used. In others, an EA or EIS may be prepared.
    The commenter also suggested adding numerous provisions to the 
final rule to incorporate the CEQ guidance. These comments are noted. 
TVA will continue to consider the CEQ's guidance to ensure good NEPA 
practices are employed during programmatic reviews.
    Comment: Procedures in Subpart F regarding emergency actions and 
``unforeseen situations'' are inconsistent with NEPA and the CEQ 
regulations.

[[Page 17455]]

    Response: In response to the comment, TVA has revised Sec.  
1318.510 to make clear that these procedures apply only to emergencies. 
The term ``unforeseen situations'' was removed. TVA also made 
additional minor revisions to this section to ensure consistency with 
CEQ regulations addressing emergency circumstances.

G. Comments on Subpart G--Floodplains and Wetlands

    Comment: TVA's proposed rule improperly sidelines the public in 
TVA's decisionmaking regarding floodplains and wetlands because it 
states that ``[p]ublic notice of actions affecting floodplains or 
wetlands is not required if the action is categorically excluded under 
Section 1318.200.''
    Response: Although TVA did not propose any revisions to the 
sentence addressed in this comment, TVA considered the comment and, 
after further deliberation, revised the first paragraph of Sec.  
1318.603 to state that public notice will be provided for proposed 
actions affecting floodplains or wetlands that are subject to the 
applicable E.O.s, including categorically excluded actions.
    Comment: TVA must implement directives in E.O. 11988 for the 
Management of Flood Risk in Federal Infrastructure.
    Response: TVA's Class Review of Certain Repetitive Actions in the 
100-Year Floodplain (46 FR 22845-46, April 21, 1981) includes a 
provision that ``[a]ll activities will adhere to the minimum standards 
of the National Flood Insurance Program published at 44 CFR 60.1-60.8, 
and any future amendments thereto, and comply with local floodplain 
regulations.'' TVA applies the process provided in the Class Review to 
every proposed action subject to NEPA. The current TVA NEPA procedures 
pertaining to the disposition of real property were brought forward 
without change to Sec.  1318.604(a) and (b) and address property in the 
floodplain conveyed by TVA. Additionally, TVA requires flood-damageable 
structures and facilities along TVA reservoirs to be located at or 
above the 0.2-annual-chance (500-year) flood elevation.
    Comment: TVA should use an informed, science-based approach to 
evaluate the impacts of its actions on all floodplains and wetlands.
    Response: Science-based methods and tools for wetland 
identification, delineations, and assessment are integral for an 
accurate analysis to meet NEPA standards. For all proposed projects, 
TVA specialists conduct an initial wetland review. This initial wetland 
assessment is conducted using National Wetland Inventory mapping, 
current aerial imagery depicting land use/land cover, and soils maps. 
Where deemed necessary, TVA conducts field surveys of wetlands to map 
wetland boundaries and collect additional information for NEPA effects 
determinations. Wetland determinations are performed according to U.S. 
Army Corps of Engineers standards, which require documentation of 
hydrophytic (wet-site) vegetation, hydric soil, and wetland hydrology. 
Wetland condition is assessed using a regional wetland assessment 
method, the TVA Rapid Assessment Method, which was developed using the 
same ecological metrics as the Ohio Rapid Assessment Method and 
calibrated to reflect regional wetland differences specific to the TVA 
region.
    Environmental effects of proposed actions upon wetlands are 
assessed for site-specific wetland conditions and include an analysis 
of cumulative impacts to wetlands within a watershed and ecoregion 
context. Regional wetland status and trends data is obtained through 
land use/land cover analysis. These wetland evaluation methods utilize 
current best practices and are fundamentally based on botany, 
hydrology, pedology, ecology, and geomorphology. These methods are also 
tied to regulatory-standards for wetland identification and 
delineation; these standards are developed by multiple national 
advisory teams and undergo periodic evaluation and updates based on 
changes in wetland science.
    Comment: TVA should update its flood frequency analysis, while 
continuing to analyze hydrology for the TVA region. TVA should continue 
to utilize its approach on flood risk management and its proposed 
determination chart.
    Response: Comment noted. TVA recognizes the need to review and 
update, as appropriate, its flood frequency analyses and resultant 
flood elevations based on newer modeling techniques, improved 
hydrologic methods, additional years of observed data, and newly 
available climate tools. TVA has created an industry-leading 
probabilistic flood hazard analysis (PFHA) platform. This platform 
handles a wide range of factors probabilistically to better understand 
our flood risk up to extreme flooding levels. This PFHA system gives 
TVA a robust understanding of the probabilities for flood elevations 
due to a wide range of factors. Updates to TVA flood frequency analyses 
would incorporate the PFHA platform.
    Comment: When TVA published its proposed rule, it provided its 
document addressing ``Determination of Project Specific Federal Flood 
Risk Management Standard (FFRMS) Elevations and Their Applicability.'' 
This document is unclear concerning climate change and the effects of 
weather.
    Response: During the public review of the proposed rule, TVA 
received comments on a document relating to how TVA would determine 
FFRMS elevations available to the public as supporting information 
relating to its proposed procedures on flood risk. TVA notes that the 
comments do not relate to the TVA rule itself. As previously stated, 
E.O. 13807 revoked E.O. 13690 relating to the FFRMS. Although the FFRMS 
is no longer is effect, TVA requires flood-damageable structures and 
facilities along TVA reservoirs to be located at or above the 0.2-
annual-chance (500 year) flood elevation.
    TVA has sponsored and followed research that has shown very little 
climate change projected for the TVA region. In order to better 
understand our full risk (out to extreme flooding levels), TVA has 
created an industry-leading PFHA platform that includes a wide range of 
factors probabilistically. These factors include: Storm type, 
precipitation frequency per storm type, storm seasonality per storm 
type, storm placement in space and time, rainfall-runoff relations, 
river routing per the TVA operating policy, and starting states sampled 
from the historic record re-sampled out to 1,000 years.
    This PFHA system gives TVA a robust understanding of the 
probabilities for flood elevations due to a wide range of factors. The 
science on how climate change might affect extreme storms is evolving. 
If a method to incorporate climate projections into our PFHA system 
becomes available, TVA would consider incorporating it. TVA agrees with 
the commenter that the public health and safety of the people of the 
Tennessee Valley are best served when the data used to develop 
estimates of rainfall and subsequent runoff are accurate, up-to-date, 
and account for potential extreme weather events.

III. Description of Changes Made

    As indicated in many of the responses to public comments, TVA made 
changes to the procedures after considering the public comments, 
additional internal review, and further consultation with CEQ on the 
final rule. The following paragraphs contain a summary of key changes 
under each subpart from those published in the Notice of Proposed Rule.
    TVA does not repeat discussion of procedures in this final rule 
that were

[[Page 17456]]

not changed relative to what was described in the Notice of Proposed 
Rule. Thus, the Notice of Proposed Rule may be consulted for further 
explanation regarding changes in the rule.

Subpart A--General Information

    Sec.  1318.20 Policy. In the final rule, TVA made minor revisions 
to paragraph (c) to improve clarity.
    Sec.  1318.40 Definitions. In the final rule, TVA made changes to 
this section because E.O. 13690 was revoked by executive action in 
August 2017. TVA removed the definition of ``Federally funded 
projects'' and deleted a sentence under ``Floodplain'' because these 
were proposed by TVA to address the Federal Flood Risk Management 
Standard in E.O. 13690. TVA also moved the definition of ``Official 
responsible for NEPA compliance'' from Subpart F of the proposed rule 
to this section.

Subpart B--Initiating the NEPA Process

    Sec.  1318.101 NEPA determination. In the final rule, TVA revised 
paragraph (d) to provide additional information about how the 
determination that an action is already covered by an existing NEPA 
review will be made and documented.

Subpart C--Categorical Exclusions

    In the final rule, TVA made revisions to each section of the 
procedures relating to CEs, including the list of CEs found in Appendix 
A to Subpart C, primarily because of public input, as addressed above. 
One section was added to the Subpart.
    Sec.  1318.200 Purpose and scope. At the request of an interagency 
partner, TVA added a statement affirming that the use of a CE does not 
relieve TVA from compliance with other statutes and consultations, 
including the ESA and NHPA.
    Sec.  1318.201 Extraordinary circumstances. At the request of an 
interagency partner, TVA revised the definition of one of the 
extraordinary circumstances to clarify the consideration given to 
species listed or proposed to be listed under the ESA and their 
designated critical habitat.
    Sec.  1318.202 Public notice. To address public concerns and 
consistent with CEQ guidance, TVA added a new section to the Subpart to 
address when to seek public engagement and disclosure when using a CE.
    Appendix A--Categorical exclusions. In the final rule, the list of 
CEs was revised based on public input on the proposed rule and 
additional internal deliberation. TVA removed two CEs and two portions 
of a third CE that were included in the proposed rule. As noted under 
Section II above, proposed CE 15 was removed because TVA's vegetation 
management activities along existing rights-of-way are under review, 
and CE 46 and two items listed under CE 45 were removed because the 
likelihood of TVA conducting such actions is not foreseeable. In total, 
TVA made changes in the final rule affecting 19 CEs, as follows:
     In the final rule, TVA carries forward the existing CE 
5.2.6 as CE 6 and will not revise the CE as proposed in the proposed 
rule.
     In the list of example actions of CE 13, TVA revised 
``soil borings'' to ``geotechnical borings'' to be consistent with the 
terminology used in other CEs.
     For CE 17, TVA added the adjective ``routine'' to the CE's 
definition, clarified that upgrades of existing transmission 
infrastructure would be minor, and revised the scope of the CE to 
exclude routine actions at existing substations and switching stations 
because those actions would be covered under CE 36 or CE 37.
     For CE 21, based on public input, TVA clarified that the 
CE may be used if future operations by TVA of existing combustion 
turbine or combined-cycle plants are ``within the normal operating 
levels of the purchased or leased facility,'' rather than ``within 
existing environmental permit'' levels.
     In the list of example actions of CE 22, TVA replaced 
``stabilization of sites'' with ``hardening and stabilization of 
sites'' to include a term more familiar to TVA recreation specialists.
     TVA revised CE 25 to clarify that the CE applies only to 
the transfer, lease or disposal of minor property or rights.
     TVA revised CE 27 to correct a grammatical error.
     TVA decreased the general acreage limitation of CE 29 from 
125 acres to 10 acres after additional consideration by TVA staff.
     As a result of public comment, TVA revised CE 34 to limit 
the scope of covered actions.
     TVA revised CE 35 based on public input to make it clear 
that the category of actions includes only low-volume water supply 
wells that would not impact important aquifers.
     TVA removed the terms ``substantial'' and 
``substantially'' from the definition of CE 36, added an example action 
(b), and made minor revisions to example actions (d) and (e) for 
clarity.
     TVA revised the example action (d) of CE 37 to reflect 
that the CE only applies to ``large'' heating and air systems.
     TVA added an example of the type of infrastructure that 
may be included under CE 38.
     TVA made minor revisions to CEs 38, 43, 45, 46, and 49 to 
clarify the spatial limitations that would apply.
     TVA made a minor revision to CE 42 to clarify that 
examples in the CE are considered to be ``minor.''
     TVA removed ``improvements'' to access roads and parking 
areas from the scope of CE 43 because CE 42 would apply to such 
improvements.
     Items (c) and (d) were removed from CE 45's list of 
covered actions in response to public comment and TVA's determination 
that such actions are not foreseeable.
     TVA moved item (e) from the list of actions under CE 45 
and added it to the list of CEs as CE 46 (replacing the proposed CE 46 
that was removed); TVA revised the scope of the new CE 46 to reflect 
that TVA's action is the purchase of power at such facilities. TVA also 
removed from the CE the limitation that actions could only occur ``on 
or contiguous to an existing landfill or wastewater treatment plant'' 
because it is unnecessary; the CE definition already restricts actions 
to areas previously developed or disturbed by human activity.
     As a result of public comment and further internal 
deliberation, TVA revised CE 47 to simplify the definition and to limit 
the scope of covered actions.
    Incorporating all of these changes has resulted in changes to the 
list of 28 CEs established by TVA in 1980 and 1983. In the final rule, 
9 of these CEs are eliminated, the definition of 14 CEs are revised, 
and 5 are carried forward unchanged. The final rule establishes 31 new 
CEs. Incorporating these changes, TVA has 50 CEs in the final rule. TVA 
updated its Supporting Documentation to reflect the CEs in the final 
rule and posted it to TVA's website (www.tva.gov/nepa).

Subpart D--Environmental Assessments

    Sec.  1318.300 Purpose and scope. In response to public comment, 
TVA modified text in paragraph (b) addressing what issues would be the 
subject of EAs. The phrase ``important environmental issues'' is 
replaced by ``issues that are potentially significant.'' TVA also made 
minor grammatical edits to paragraph (a).
    Sec.  1318.301 Public and stakeholder participation in the EA 
process. As noted above, TVA received a comment questioning whether its 
proposed procedure relating to the consideration given to public 
involvement in the preparation of an EA was consistent

[[Page 17457]]

with CEQ regulations. After further deliberations, TVA decided to 
retain the procedures established in 1980 (with minor edits) and to 
retain the proposed text (with minor edits for grammar). TVA determined 
that the previous procedures provide general guidance as well as 
additional context for the sentence included in the proposed rule. TVA 
also made other minor edits to paragraphs (b) and (c) for grammar and 
clarification.
    Sec.  1318.302 EA preparation. In the final rule, TVA revised this 
section. Notably, in paragraph (a), TVA replaced the word ``practical'' 
with ``practicable'' and ``should'' with ``shall.'' Paragraph (g) was 
revised to clarify that at the conclusion of an EA process, NEPA 
compliance staff may conclude that additional analysis is needed to 
supplement the EA.
    Sec.  1318.303 Finding of No Significant Impact. In the final rule, 
paragraph (a) is revised to clarify the roles and responsibilities 
associated with preparation and approval of a FONSI. Paragraph (d) was 
revised based on public comment to clarify when a draft FONSI would be 
made available for public review and comment.
    Sec.  1318.304 Supplements and adoptions. TVA revised paragraph (a) 
to state that TVA will consider supplementing EAs when there are 
``important components of the proposed action that remain to be 
implemented'' rather than when there are ``important decisions 
remaining to be made.'' Minor grammatical edits to paragraph (b) are 
included in the final rule.

Subpart E--Environmental Impacts Statements

    Sec.  1318.400 Purpose and scope. After additional internal review 
and in response to public comment, TVA added two types of actions that 
normally will require an EIS. TVA also revised two actions to clarify 
that the scope of the actions includes not only construction activities 
but operation of the facilities. TVA removed the words ``upon request'' 
from paragraph (b) of Sec.  1318.400 to be consistent with Sec.  
1318.301(c) in the final rule. Minor revisions were made for clarity to 
paragraphs (b), (c), and (d), including replacing the word ``should'' 
for ``shall in two places.
    Sec.  1318.401 Lead and cooperating agency determinations. Minor 
edits were made to paragraph (a) for clarity. TVA replaced 
``practical'' with ``practicable'' and ``should'' with ``shall'' based 
on further internal review. TVA also added ``purpose and need for the 
proposed action'' to the list of EIS components and revised ``key 
action alternatives'' with ``reasonable action alternatives.''
    Sec.  1318.402 Scoping process. In the final rule, numerous 
grammatical edits were made to the section to improve clarity. 
Paragraph (e) was revised to clarify that 30 days will be the minimum 
public comment period during scoping. In response to public and CEQ 
comments, TVA revised paragraph (g) to improve consistency with CEQ 
regulations and the recommended format for an EIS.
    Sec.  1318.403 DEIS preparation, transmittal and review. In the 
final rule, TVA revised paragraph (b) to clarify that cooperating 
agencies will have the opportunity to take part in the preparation of 
the DEIS and not simply review it once it has been completed. Paragraph 
(c) was revised to reflect the roles and responsibilities associated 
with approval and publication of the DEIS. TVA made additional minor 
edits to the section for grammar.
    Sec.  1318.403 FEIS preparation and transmittal. In the final rule, 
TVA incorporated input from CEQ and made numerous grammatical edits to 
the section. Paragraph (b) was revised to clarify which documents will 
be circulated if changes needed to the DEIS to complete an FEIS are 
minor. In addition, paragraph (d) was revised to reflect the roles and 
responsibilities associated with approval and publication of the FEIS.
    Sec.  1318.405 Agency decision. In the final rule, TVA revised 
paragraph (a) to remove the reference to emergency circumstances, which 
are addressed in Subpart F. Based on public input, TVA deleted the word 
``normally'' from paragraph (d) of this section to make the procedure 
consistent with CEQ guidance and regulations.
    Sec.  1318.406 Supplements. In response to public comment, TVA 
revised this section to clarify that TVA will consider supplementing 
EISs when there are ``important components of the proposed action that 
remain to be implemented'' rather than when there are important 
decisions related to the proposed action that remain to be made.
    Sec.  1318.407 EIS adoption. In response to public and CEQ input, 
TVA revised each paragraph of the section to ensure consistency with 
CEQ regulations at 40 CFR 1506.3. In the final rule, the revised 
paragraphs (a), (b), and (c) address corresponding sections of the CEQ 
regulations. Paragraphs (d) and (e) were revised in order to clarify 
when TVA may make a decision about its proposed action.

Subpart F--Miscellaneous Procedures

    Sec.  1318.500 Public participation. In the final rule, TVA revised 
this section by eliminating paragraph (c) of the proposed rule, which 
related to the open meetings of the Board of Directors; TVA determined 
that the paragraph was not a regulatory provision and did not address 
the implementation of NEPA. TVA revised the paragraph addressing 
privacy provisions for public comments in paragraph (d) of the final 
rule to clarify that the public will be notified how their comments and 
information will become part of the public record.
    Sec.  1318.501 Mitigation commitment identification, auditing, and 
reporting. Numerous grammatical edits were made to this section in the 
final rule to improve clarity.
    Sec.  1318.503 Programmatic and generic NEPA documents. After 
considering comments from the public regarding paragraph (c), TVA 
revised the paragraph to make clear that TVA would be consistent with 
criteria established in CEQ regulations at 40 CFR 1506.1(c) addressing 
limitations on actions during the NEPA process.
    Sec.  1318.509 Substantial compliance. After further review and in 
consideration of CEQ input, TVA eliminated paragraph (a) of this 
section as presented in the proposed rule, which addressed flexibility 
in implementing the procedures and reviewing proposed actions. TVA also 
revised paragraph (b) to address minor deviations with the procedures, 
who would approve such deviations, and whether they give rise to an 
independent cause of action.
    Sec.  1318.510 Emergency actions. Based on public input and to 
clarify that the section addresses emergency situations only, TVA 
removed from paragraph (a) of this section the statement that 
procedures may be consolidated, modified or omitted because of 
``unforeseen situations.'' In addition, based on public and CEQ input, 
paragraphs (a) and (b) were revised to improve clarity and ensure 
consistency with CEQ regulations at 40 CFR 1506.11.
    Sec.  1318.512 Status reports. In the final rule, TVA revised the 
section to clarify that status reports pertaining only to EISs and EAs 
under development would be published on TVA's website.
    Sec.  1318.513 Official response for NEPA compliance efforts. In 
the final rule, this section was removed from Subpart F and inserted as 
a definition under Sec.  1318.40.

[[Page 17458]]

Subpart G--Floodplains and Wetlands

    As noted above, in its proposed rule, TVA had incorporated guidance 
pertaining to E.O. 13690. The E.O. was revoked by executive action on 
August 15, 2017, during the public review of the proposed rule.
    Sec.  1318.600 Purpose and scope. Because E.O. 13690 was revoked by 
executive action (E.O. 13807, Establishing Discipline and 
Accountability in the Environmental Review and Permitting Process for 
Infrastructure), TVA revised paragraph (a) to remove the reference to 
E.O. 13690; some minor grammatical edits were also made to improve 
clarity. Paragraph (b) was revised to delete the reference to the FFRMS 
(addressed in E.O. 13690), and a new, more general reference was added 
to ensure consideration of any applicable Federal flood risk management 
standard that may be in force at the commencement of an environmental 
review. TVA also revised paragraph (c) by adding ``allocation to 
private parties'' to the text to make TVA's procedure more consistent 
with E.O. 11990, regarding when the order applies to actions on non-
Federal property.
    Sec.  1318.603 Public notice. TVA removed from paragraph (a) the 
statement that proposed actions that may be categorically excluded will 
not be subject to public notice requirements. Text was added to clarify 
that TVA will provide public notice for proposed actions affecting 
floodplains or wetlands that are subject to E.O.s 11988 and 11990 and 
that have not been previously excluded by a class review for repetitive 
actions conducted by TVA. TVA also revised paragraph (b)(4) to reflect 
the revocation of E.O. 13690 and to generalize the language to 
incorporate any Federal floodplain protection standards.

IV. Administrative Requirements

A. Unfunded Mandates Reform Act and Various Executive Orders Including 
E.O. 12866, Regulatory Planning and Review; E.O. 12898, Federal Actions 
To Address Environmental Justice in Minority Populations and Low-Income 
Populations; E.O. 12988, Civil Justice Reform Act; E.O. 13045, 
Protection of Children From Environmental Health Risks; E.O. 13132, 
Federalism; E.O. 13175, Consultation and Coordination With Indian 
Tribal Governments; E.O. 13211, Actions Concerning Regulations That 
Significantly Affect Energy Supply, Distribution, and Use; and E.O. 
13771, Reducing Regulation and Controlling Regulatory Costs

    This rule amends TVA's procedures for the implementation of NEPA 
and is not subject to review by the Office of Management and Budget 
(OMB) under E.O. 12866. The rule contains no Federal mandates for 
State, local, or tribal government or for the private sector. TVA has 
determined that these amendments will not have a significant annual 
effect of $100 million or more or result in expenditures of $100 
million in any one year by State, local, or tribal governments or by 
the private sector. Nor will the amendments have concerns for 
environmental health or safety risks that may disproportionately affect 
children, have significant effect on the supply, distribution, or use 
of energy, or disproportionally impact low-income or minority 
populations. Accordingly, the rule has no implications for any of the 
aforementioned authorities.

B. Regulatory Flexibility Act

    Under the Regulatory Flexibility Act, 5 U.S.C. 601 et seq., TVA is 
required to prepare a regulatory flexibility analysis unless the head 
of the agency certifies that the proposal will not have a significant 
economic impact on a substantial number of small entities. TVA's Chief 
Executive Officer has certified that the final rule will not have a 
significant economic impact on a substantial number of small entities 
within the meaning of the Regulatory Flexibility Act. This 
determination is based on the finding that the final rule amends 
existing TVA procedures and do not compel any other party to take any 
action or interfere with an action taken by any other party. The 
amendments do not change the substantive requirements of TVA programs 
that are most likely to affect small entities (e.g., TVA permitting, 
economic assistance and development programs).

C. Paperwork Reduction Act

    This final rule does not contain information collection 
requirements that require approval by OMB under the Paperwork Reduction 
Act, 44 U.S.C. 3501 et seq.

D. National Environmental Policy Act

    The CEQ does not direct agencies to prepare a NEPA analysis before 
establishing agency procedures that supplement the CEQ regulations for 
implementing NEPA. TVA's NEPA procedures assist in the fulfillment of 
its responsibilities under NEPA, but are not the agency's final 
determination of what level of NEPA analysis is required for a 
particular agency action. The requirements for establishing agency NEPA 
procedures are set forth at 40 CFR 1505.1 and 1507.3. The determination 
that establishing agency NEPA procedures does not require NEPA analysis 
and documentation has been upheld in Heartwood, Inc. v. U.S. Forest 
Service, 73 F. Supp. 2d 962, 972-73 (S.D. III. 1999), aff'd, 230 F.3d 
947, 954-55 (7th Cir. 2000).

List of Subjects in 18 CFR Part 1318

    Administrative practice and procedure, Environmental impact 
statements, Environmental protection, Floodplains, Floods, Wetlands.


0
 For the reasons stated in the preamble, TVA adds part 1318 to chapter 
XIII of title 18 of the Code of Federal Regulations to read as follows:

PART 1318--IMPLEMENTATION OF THE NATIONAL ENVIRONMENTAL POLICY ACT 
OF 1969

Subpart A--General Information
Sec.
1318.10 Purpose.
1318.20 Policy.
1318.30 Abbreviations.
1318.40 Definitions.
Subpart B--Initiating the NEPA Process
1318.100 Action formulation.
1318.101 NEPA determination.
Subpart C--Categorical Exclusions
1318.200 Purpose and scope.
1318.201 Extraordinary circumstances.
1318.202 Public notice.
Appendix A to Subpart C of Part 1318--Categorical Exclusions
Subpart D--Environmental Assessments
1318.300 Purpose and scope.
1318.301 Public and stakeholder participation in the EA process.
1318.302 EA preparation.
1318.303 Finding of No Significant Impact.
1318.304 Supplements and adoptions.
Subpart E--Environmental Impact Statements
1318.400 Purpose and scope.

[[Page 17459]]

1318.401 Lead and cooperating agency determinations.
1318.402 Scoping process.
1318.403 DEIS preparation, transmittal, and review.
1318.404 FEIS preparation and transmittal.
1318.405 Agency decision.
1318.406 Supplements.
1318.407 EIS adoption.
Subpart F--Miscellaneous Procedures
1318.500 Public participation.
1318.501 Mitigation commitment identification, auditing, and 
reporting.
1318.502 Tiering.
1318.503 Programmatic and generic NEPA documents.
1318.504 Private applicants.
1318.505 Non-TVA EISs.
1318.506 Documents.
1318.507 Reducing paperwork and delay.
1318.508 Supplemental guidance.
1318.509 Substantial compliance.
1318.510 Emergency actions.
1318.511 Modification of assignments.
1318.512 Status reports.
Subpart G--Floodplains and Wetlands
1318.600 Purpose and scope.
1318.601 Area of impact.
1318.602 Actions that will affect floodplains or wetlands.
1318.603 Public notice.
1318.604 Disposition of real property.
1318.605 General and class reviews.

    Authority:  42 U.S.C. 4321 et seq.

Subpart A--General Information


Sec.  1318.10  Purpose.

    This part establishes procedures for Tennessee Valley Authority 
(TVA) to use for compliance with:
    (a) The National Environmental Policy Act (NEPA) of 1969, as 
amended (42 U.S.C. 4321 et seq.);
    (b) Other applicable guidelines, regulations and Executive orders 
implementing NEPA; and
    (c) The Council on Environmental Quality (CEQ) regulations for 
implementing the procedural provisions of NEPA (40 CFR parts 1500-
1508).


Sec.  1318.20  Policy.

    It is the policy of TVA that:
    (a) TVA incorporates environmental considerations into its 
decision-making processes to the fullest extent possible. These 
procedures ensure that actions are viewed in a manner to encourage 
productive and enjoyable harmony between man and the environment.
    (b) Commencing at the earliest possible point and continuing 
through implementation, appropriate and careful consideration of the 
environmental aspects of proposed actions is built into the decision-
making process in order that adverse environmental effects may be 
avoided or minimized, consistent with the requirements of NEPA.
    (c) Environmental reviews under NEPA will assist decision makers in 
making better, more knowledgeable decisions that consider those 
reasonable alternatives to the proposed action that fulfill the purpose 
and need for the action, concisely present the environmental impacts 
and other information regarding the proposed action and its 
alternatives, are consistent with the environmental importance of the 
action, concentrate on truly significant environmental issues, and are 
practicable.


Sec.  1318.30  Abbreviations.

(a) CE--Categorical Exclusion
(b) CEQ--Council on Environmental Quality
(c) DEIS--Draft Environmental Impact Statement
(d) EA--Environmental Assessment
(e) EIS--Environmental Impact Statement
(f) EPA--Environmental Protection Agency
(g) FEIS--Final Environmental Impact Statement
(h) FONSI--Finding of No Significant Impact
(i) NEPA--National Environmental Policy Act
(j) ROD--Record of Decision
(k) TVA--Tennessee Valley Authority


Sec.  1318.40  Definitions.

    The following definitions apply throughout this part. All other 
applicable terms should be given the same meaning as set forth in CEQ's 
currently effective regulations (40 CFR part 1508) unless such a 
reading would make the terms inconsistent with the context in which 
they appear.
    Controversial refers to scientifically supported commentary that 
casts substantial doubt on the agency's methodology or data, but does 
not mean commentary expressing mere opposition.
    Floodplain refers to the lowland and relatively flat areas 
adjoining flowing inland waters and reservoirs. Floodplain generally 
refers to the base floodplain, i.e., that area subject to a 1 percent 
or greater chance of flooding in any given year.
    Important farmland includes prime farmland, unique farmland, and 
farmland of statewide importance as defined in 7 CFR part 657.
    Natural and beneficial floodplain and wetland values refer to such 
attributes as the capability of floodplains and wetlands to provide 
natural moderation of floodwaters, water quality maintenance, fish and 
wildlife habitat, plant habitat, open space, natural beauty, scientific 
and educational study areas, and recreation.
    Official responsible for NEPA compliance refers to the TVA official 
who manages the NEPA compliance staff and is responsible for overall 
review of TVA NEPA compliance.
    Practicable, as used in subpart G of this part, refers to the 
capability of an action being performed within existing constraints. 
The test of what is practicable depends on the situation and includes 
an evaluation of all pertinent factors, such as environmental impact, 
economic costs, statutory authority, legality, technological 
achievability, and engineering constraints.
    Wetland refers to an area inundated by surface or ground water with 
a frequency sufficient to support, and that under normal circumstances 
does or would support, a prevalence of vegetation or aquatic life that 
requires saturated or seasonally saturated soil conditions for growth 
and reproduction. Wetlands do not include temporary human-made ponds 
associated with active construction projects.

Subpart B--Initiating the NEPA Process


Sec.  1318.100  Action formulation.

    (a) Each office, group, or department (``entity'') within TVA is 
responsible for integrating environmental considerations into its 
planning and decision-making processes at the earliest possible time, 
to appropriately consider potential environmental effects, reduce the 
risk of delays, and minimize potential conflicts.
    (b) Environmental analyses should be included in or circulated with 
and reviewed at the same time as other planning documents. This 
responsibility is to be carried out in accordance with the 
environmental review procedures contained herein.
    (c) TVA's Chief Executive Officer and Board of Directors are the 
agency's primary decision makers for programs and actions that are 
likely to be the most consequential from an environmental, financial, 
and policy standpoint. Other TVA officials and managers are responsible 
for and make decisions about other TVA actions.


Sec.  1318.101  NEPA determination.

    (a) NEPA applies to proposed actions with potential impacts on the 
human environment that would result in a non-trivial change to the 
environmental status quo.
    (b) At the earliest possible time, the TVA entity proposing an 
action shall consult with the staff responsible for NEPA compliance and 
TVA legal counsel, as appropriate, to determine

[[Page 17460]]

whether the action requires an environmental review under NEPA and, if 
so, the level of environmental review.
    (c) The level of review will be in one of the following categories: 
Categorical Exclusions, Environmental Assessments, and Environmental 
Impact Statements.
    (d) The NEPA compliance staff shall determine whether the action is 
already covered under an existing NEPA review, including a programmatic 
or generic review. Before such an action proceeds, the NEPA compliance 
staff shall evaluate and adequately document whether the new action is 
essentially similar to the previously analyzed action, the alternatives 
previously analyzed are adequate for the new action, there are 
significant new circumstances or information relevant to environmental 
concerns that would substantially change the analysis in the existing 
NEPA review, and there are effects that would result from the new 
action that were not addressed in the previous analysis
    (e) NEPA and its implementing regulations (both CEQ's and TVA's) 
provide an established, well-recognized process for appropriately 
analyzing environmental issues and involving the public.
    (f) TVA may choose to conduct an environmental review when NEPA 
does not apply.

Subpart C--Categorical Exclusions


Sec.  1318.200  Purpose and scope.

    (a) Categories of actions addressed in this section are those that 
do not normally have, either individually or cumulatively, a 
significant impact on the human environment and therefore do not 
require the preparation of an EA or an EIS.
    (b) The TVA entity proposing to initiate an action must determine, 
in consultation with the NEPA compliance staff, whether the proposed 
action is categorically excluded.
    (c) In order to find that a proposal can be categorically excluded, 
TVA will ensure that a larger project is not impermissibly broken down 
into small parts such that the use of a categorical exclusion for any 
such small part would irreversibly and irretrievably commit TVA to a 
particular plan of action for the larger project.
    (d) The actions listed in appendix A of this part are classes of 
actions that TVA has determined do not individually or cumulatively 
have a significant effect on the human environment (categorical 
exclusions), subject to review for extraordinary circumstances.
    (e) The use of a categorical exclusion for an action does not 
relieve TVA from compliance with other statutes or consultations, 
including, for example, the Endangered Species Act or the National 
Historic Preservation Act.


Sec.  1318.201  Extraordinary circumstances.

    (a) An action that would normally qualify as a categorical 
exclusion must not be so classified if an extraordinary circumstance is 
present and cannot be mitigated, including through the application of 
other environmental regulatory processes. In order to determine whether 
extraordinary circumstances exist, TVA shall consider whether:
    (1) The action has the potential to significantly impact 
environmental resources, including the following resources:
    (i) Species listed or proposed to be listed under the Endangered 
Species Act, or the proposed or designated Critical Habitat for these 
species,
    (ii) Wetlands or floodplains,
    (iii) Cultural or historical resources,
    (iv) Areas having special designation or recognition such as wild 
and scenic rivers, parklands, or wilderness areas, and
    (v) Important farmland; and
    (2) The significance of the environmental impacts associated with 
the proposed action is or may be highly controversial.
    (b) The mere presence of one or more of the resources under 
paragraph (a)(1) of this section does not by itself preclude use of a 
categorical exclusion. Rather, the determination that extraordinary 
circumstances are present depends upon the finding of a causal 
relationship between a proposed action and the potential effect on 
these resource conditions, and, if such a relationship exists, the 
degree of the potential effect of a proposed action on these resource 
conditions.


Sec.  1318.202  Public notice.

    TVA may consider providing public notice before a categorical 
exclusion is used if TVA determines that the public may have relevant 
and important information relating to the proposal that will assist TVA 
in its decisionmaking.

Appendix A to Subpart C of Part 1318--Categorical Exclusions

    The TVA has established the following classes of actions as 
categorical exclusions. Individual actions must be reviewed to 
determine whether any of the extraordinary circumstances listed in 
Sec.  1318.202 is present. If an extraordinary circumstance cannot 
be mitigated sufficiently to render the action's impacts not 
significant, an EA or an EIS must be prepared.
    1. Educational or informational activities undertaken by TVA 
alone or in conjunction with other agencies, public and private 
entities, or the general public.
    2. Technical and planning assistance provided to State, local 
and private organizations and entities.
    3. Personnel actions.
    4. Procurement actions.
    5. Accounting, auditing, financial reports and disbursement of 
funds.
    6. Contracts or agreements for the sale, purchase, or 
interchange of electricity.
    7. Administrative actions consisting solely of paperwork.
    8. Communication, transportation, computer service and office 
services.
    9. Property protection activities that do not physically alter 
facilities or grounds, law enforcement and other legal activities.
    10. Emergency preparedness actions not involving the 
modification of existing facilities or grounds.
    11. Minor actions to address threats to public health and 
safety, including, but not limited to, temporary prohibition of 
existing uses of TVA land or property, short-term closures of sites, 
and selective removal of trees that pose a hazard.
    12. Site characterization, data collection, inventory 
preparation, planning, monitoring, and other similar activities that 
have little to no physical impact.
    13. Engineering and environmental studies that involve minor 
physical impacts, including but not limited to, geotechnical 
borings, dye-testing, installation of monitoring stations and 
groundwater test wells, and minor actions to facilitate access to a 
site.
    14. Conducting or funding minor research, development and 
demonstration projects and programs.
    15. Reserved.
    16. Construction of new transmission line infrastructure, 
including electric transmission lines generally no more than 10 
miles in length and that require no more than 125 acres of new 
developed rights-of-way and no more than 1 mile of new access road 
construction outside the right-of-way; and/or construction of 
electric power substations or interconnection facilities, including 
switching stations, phase or voltage conversions, and support 
facilities that generally require the physical disturbance of no 
more than 10 acres.
    17. Routine modification, repair, and maintenance of, and minor 
upgrade of and addition to, existing transmission infrastructure, 
including the addition, retirement, and/or replacement of breakers, 
transformers, bushings, and relays; transmission line uprate, 
modification, reconductoring, and clearance resolution; and limited 
pole replacement. This exclusion also applies to improvements of 
existing access roads and construction of new access roads outside 
of the right-of-way that are generally no more than 1 mile in 
length.
    18. Construction, modification and operation of communication 
facilities and/or equipment, including power line carriers, 
insulated overhead ground wires/fiber optic cables, devices for 
electricity transmission control and monitoring, VHF radios, and 
microwaves and support towers.

[[Page 17461]]

    19. Removal of conductors and structures, and/or the cessation 
of right-of-way vegetation management, when existing transmissions 
lines are retired; or the rebuilding of transmission lines within or 
contiguous to existing rights-of-way involving generally no more 
than 25 miles in length and no more than 125 acres of expansion of 
the existing right-of-way.
    20. Purchase, conveyance, exchange, lease, license, and/or 
disposal of existing substations, substation equipment, switchyards, 
and/or transmission lines and rights-of-way and associated equipment 
between TVA and other utilities and/or customers.
    21. Purchase or lease and subsequent operation of existing 
combustion turbine or combined-cycle plants for which there is 
existing adequate transmission and interconnection to the TVA 
transmission system and whose planned operation by TVA is within the 
normal operating levels of the purchased or leased facility.
    22. Development of dispersed recreation sites (generally not to 
exceed 10 acres in size) to support activities such as hunting, 
fishing, primitive camping, wildlife observation, hiking, and 
mountain biking. Actions include, but are not limited to, 
installation of guardrails, gates and signage, hardening and 
stabilization of sites, trail construction, and access improvements/
controls.
    23. Development of public use areas that generally result in the 
physical disturbance of no more than 10 acres, including, but not 
limited to, construction of parking areas, campgrounds, stream 
access points, and day use areas.
    24. Minor actions conducted by non-TVA entities on TVA property 
to be authorized under contract, license, permit, or covenant 
agreements, including those for utility crossings, agricultural 
uses, recreational uses, rental of structures, and sales of 
miscellaneous structures and materials from TVA land.
    25. Transfer, lease, or disposal (sale, abandonment or exchange) 
of (a) minor tracts of land, mineral rights, and landrights, and (b) 
minor rights in ownership of permanent structures.
    26. Approvals under Section 26a of the TVA Act of minor 
structures, boat docks and ramps, and shoreline facilities.
    27. Installation of minor shoreline structures or facilities, 
boat docks and ramps, and actions to stabilize shoreline (generally 
up to \1/2\ mile in length) by TVA.
    28. Minor modifications to land use allocations outside of a 
normal land planning cycle to: Rectify administrative errors; 
incorporate new information that is consistent with a previously 
approved decision included in the land use plan; or implement TVA's 
shoreline or land management policies affecting no more than 10 
acres.
    29. Actions to restore and enhance wetlands, riparian, and 
aquatic ecosystems that generally involve physical disturbance of no 
more than 10 acres, including, but not limited to, construction of 
small water control structures; revegetation actions using native 
materials; construction of small berms, dikes, and fish attractors; 
removal of debris and sediment following natural or human-caused 
disturbance events; installation of silt fences; construction of 
limited access routes for purposes of routine maintenance and 
management; and reintroduction or supplementation of native, 
formerly native, or established species into suitable habitat within 
their historic or established range.
    30. Actions to maintain, restore, or enhance terrestrial 
ecosystems that generally involve physical disturbance of no more 
than 125 acres, including, but not limited to, establishment and 
maintenance of non-invasive vegetation; bush hogging; prescribed 
fires; installation of nesting and roosting structures, fencing, and 
cave gates; and reintroduction or supplementation of native, 
formerly native, or established species into suitable habitat within 
their historic or established range.
    31. The following forest management activities:
    a. Actions to manipulate species composition and age class, 
including, but not limited to, harvesting or thinning of live trees 
and other timber stand improvement actions (e.g., prescribed burns, 
non-commercial removal, chemical control), generally covering up to 
125 acres and requiring no more than 1 mile of temporary or seasonal 
permanent road construction;
    b. Actions to salvage dead and/or dying trees including, but not 
limited to, harvesting of trees to control insects or disease or 
address storm damage (including removal of affected trees and 
adjacent live, unaffected trees as determined necessary to control 
the spread of insects or disease), generally covering up to 250 
acres and requiring no more than 1 mile of temporary or seasonal 
permanent road construction; and
    c. Actions to regenerate forest stands, including, but not 
limited to, planting of native tree species upon site preparation, 
generally covering up to 125 acres and requiring no more than 1 mile 
of temporary or seasonal permanent road construction.
    32. Actions to manage invasive plants including, but not limited 
to, chemical applications, mechanical removal, and manual treatments 
that generally do not physically disturb more than 125 acres of 
land.
    33. Actions to protect cultural resources including, but not 
limited to, fencing, gating, signing, and bank stabilization 
(generally up to \1/2\ mile in length when along stream banks or 
reservoir shoreline).
    34. Reburial of human remains and funerary objects under the 
Native American Graves Protection and Repatriation Act that are 
inadvertently discovered or intentionally excavated on TVA land.
    35. Installation or modification (but not expansion) of low-
volume groundwater withdrawal wells (provided that there would be no 
drawdown other than in the immediate vicinity of the pumping well 
and that there is no potential for long-term decline of the water 
table or degradation of the aquifer), or plugging of groundwater or 
other wells at the end of their operating life. Site 
characterization must verify a low potential for seismicity, 
subsidence, and contamination of freshwater aquifers.
    36. Routine operation, repair or in-kind replacement, and 
maintenance actions for existing buildings, infrastructure systems, 
facility grounds, public use areas, recreation sites, and operating 
equipment at or within the immediate vicinity of TVA's generation 
and other facilities. Covered actions are those that are required to 
maintain and preserve assets in their current location and in a 
condition suitable for use for its designated purpose. Such actions 
will not result in a change in the design capacity, function, or 
operation. (Routine actions that include replacement or changes to 
major components of buildings, facilities, infrastructure systems, 
or facility grounds, and actions requiring new permits or changes to 
an existing permit(s) are addressed in CE 37). Such actions may 
include, but are not limited to, the following:
    a. Regular servicing of in-plant and on-site equipment 
(including during routine outages) such as gear boxes, generators, 
turbines and bearings, duct work, conveyers, and air preheaters; 
fuel supply systems; unloading and handling equipment for fuel; 
handling equipment for ash, gypsum or other by-products or waste; 
hydropower, navigation and flood control equipment; water quality 
and air emissions control or reduction equipment; and other 
operating system or ancillary components that do not increase 
emissions or discharges beyond current permitted levels;
    b. Regular servicing of power equipment and structures within 
existing transmission substations and switching stations;
    c. Routine testing and calibration of facility components, 
subsystems, or portable equipment (such as control valves, in-core 
monitoring devices, transformers, capacitors, monitoring wells, 
weather stations, and flumes);
    d. Routine cleaning and decontamination, including to surfaces 
of equipment, rooms, and building systems (including HVAC, septic 
systems, and tanks);
    e. Repair or replacement of plumbing, electrical equipment, 
small HVAC systems, sewerage, pipes, and telephone and other 
communication service;
    f. Repair or replacement of doors, windows, walls, ceilings, 
roofs, floors and lighting fixtures in structures less than 50 years 
old;
    g. Painting and paint removal at structures less than 50 years 
old, including actions taken to contain, remove, or dispose of lead-
based paint when in accordance with applicable requirements;
    h. Recycling and/or removal of materials, debris, and solid 
waste from facilities, in accordance with applicable requirements;
    i. Groundskeeping actions, including mowing and landscaping, 
snow and ice removal, application of fertilizer, erosion control and 
soil stabilization measures (such as reseeding and revegetation), 
removal of dead or undesirable vegetation with a diameter of less 
than 3 inches (at breast height), and leaf and litter collection and 
removal;
    j. Repair or replacement of gates and fences;
    k. Maintenance of hazard buoys;
    l. Maintenance of groundwater wells, discharge structures, pipes 
and diffusers;
    m. Maintenance and repair of process, wastewater, and stormwater 
ponds and

[[Page 17462]]

associated piping, pumping, and treatment systems;
    n. Maintenance and repair of subimpoundments and associated 
piping and water control structures;
    o. Debris removal and maintenance of intake structures and 
constructed intake channels including sediment removal to return 
them to the originally-constructed configuration; and
    p. Clean up of minor spills as part of routine operations.
    37. Modifications, upgrades, uprates, and other actions that 
alter existing buildings, infrastructure systems, facility grounds, 
and plant equipment, or their function, performance, and operation. 
Such actions, which generally will not physically disturb more than 
10 acres, include but are not limited to, the following:
    a. Replacement or changes to major components of existing 
buildings, facilities, infrastructure systems, facility grounds, and 
equipment that are like-kind in nature;
    b. Modifications, improvements, or operational changes to in-
plant and on-site equipment that do not substantially alter 
emissions or discharges beyond current permitted limits. Examples of 
equipment include, but are not limited to: Gear boxes, generators, 
turbines and bearings, duct work, conveyers, superheaters, 
economizers, air preheaters, unloading and handling equipment for 
fuel; handling equipment for ash, gypsum or other by-products or 
waste; hydropower, navigation and flood control equipment; air and 
water quality control equipment; control, storage, and treatment 
systems (e.g. automation, alarms, fire suppression, ash ponds, 
gypsum storage, and ammonia storage and handling systems); and other 
operating system or ancillary components;
    c. Installation of new sidewalks, fencing, and parking areas at 
an existing facility;
    d. Installation or upgrades of large HVAC systems;
    e. Modifications to water intake and outflow structures provided 
that intake velocities and volumes and water effluent quality and 
volumes are consistent with existing permit limits;
    f. Repair or replacement of doors, windows, walls, ceilings, 
roofs, floors and lighting fixtures in structures greater than 50 
years old; and
    g. Painting and paint removal at structures greater than 50 
years old, including actions taken to contain, remove and dispose of 
lead-based paint when in accordance with applicable requirements.
    38. Siting, construction, and use of buildings and associated 
infrastructure (e.g., utility lines serving the building), 
physically disturbing generally no more than 10 acres of land not 
previously disturbed by human activity or 25 acres of land so 
disturbed.
    39. Siting and temporary placement and operation of trailers, 
prefabricated and modular buildings, or tanks on previously 
disturbed sites at an existing TVA facility.
    40. Demolition and disposal of structures, buildings, equipment 
and associated infrastructure and subsequent site reclamation, 
subject to applicable review for historical value, on sites 
generally less than 10 acres in size.
    41. Actions to maintain roads, trails, and parking areas 
(including resurfacing, cleaning, asphalt repairs, and placing 
gravel) that do not involve new ground disturbance (i.e., no 
grading).
    42. Improvements to existing roads, trails, and parking areas, 
including, but not limited to, scraping and regrading; regrading of 
embankments; installation or replacement of culverts; and other such 
minor expansions.
    43. Actions to enhance and control access to TVA property 
including, but not limited to, construction of new access roads and 
parking areas (generally no greater than 1 mile in length and 
physically disturbing no more than 10 acres of land not previously 
disturbed by human activity or 25 acres of land so disturbed) and 
installation of control measures such as gates, fences, or post and 
cable.
    44. Small-scale, non-emergency cleanup of solid waste or 
hazardous waste (other than high-level radioactive waste and spent 
nuclear fuel) to reduce risk to human health or the environment. 
Actions include collection and treatment (such as incineration, 
encapsulation, physical or chemical separation, and compaction), 
recovery, storage, or disposal of wastes at existing facilities 
currently handling the type of waste involved in the action.
    45. Installation, modification, and operation of the following 
types of renewable or waste-heat recovery energy projects which 
increase generating capacity at an existing TVA facility, generally 
comprising of physical disturbance to no more than 10 acres of land 
not previously disturbed by human activity or 25 acres of land so 
disturbed:
    a. Combined heat and power or cogeneration systems at existing 
buildings or sites; and
    b. Solar photovoltaic systems mounted on the ground, an existing 
building or other structure (such as a rooftop, parking lot or 
facility and mounted to signage lighting, gates or fences).
    46. Transactions (contracts or agreements) for purchase of 
electricity from new methane gas electric generating systems using 
commercially available technology and installed within an area 
previously developed or disturbed by human activity.
    47. Modifications to the TVA rate structure (i.e., rate change) 
that result in no predicted increase in overall TVA-system 
electricity consumption.
    48. Financial and technical assistance for programs conducted by 
non-TVA entities to promote energy efficiency or water conservation, 
including, but not limited to, assistance for installation or 
replacement of energy efficient appliances, insulation, HVAC 
systems, plumbing fixtures, and water heating systems.
    49. Financial assistance including, but not limited to, 
approving and administering grants, loans and rebates for the 
renovation or minor upgrading of existing facilities, established or 
developing industrial parks, or existing infrastructure; the 
extension of infrastructure; geotechnical boring; and construction 
of commercial and light industrial buildings. Generally, such 
assistance supports actions that physically disturb no more than 10 
acres of land not previously disturbed by human activity or no more 
than 25 acres of land so disturbed.
    50. Financial assistance for the following actions: Approving 
and administering grants, loans and rebates for continued operations 
or purchase of existing facilities and infrastructure for uses 
substantially the same as the current use; purchasing, installing, 
and replacing equipment or machinery at existing facilities; and 
completing engineering designs, architectural drawings, surveys, and 
site assessments (except when tree clearing, geotechnical boring, or 
other land disturbance would occur).

Subpart D--Environmental Assessments


Sec.  1318.300  Purpose and scope.

    (a) TVA shall prepare an EA for any proposed action not qualifying 
as a categorical exclusion to determine whether an EIS is necessary or 
a FONSI can be prepared. An EA need not be initiated (or completed) 
when TVA determines that it will prepare an EIS.
    (b) An EA shall concisely communicate information and analyses 
about issues that are potentially significant and reasonable 
alternatives.


Sec.  1318.301  Public and stakeholder participation in the EA process.

    (a) The NEPA compliance staff, in consultation with the initiating 
TVA entity and other interested offices, may request public involvement 
in the preparation of an EA or a revision to or a supplement thereof. 
The type of and format for public involvement shall be selected as 
appropriate to best facilitate timely and meaningful public input to 
the EA process. In deciding the extent of public involvement, TVA will 
consider whether the public has already been provided a meaningful 
opportunity to comment on the environmental impacts of a proposal 
through other coordinated, regulatory processes.
    (b) TVA will also identify and involve Indian tribes and interested 
stakeholders including local, State and other Federal agencies.
    (c) A draft EA prepared for an action listed in Sec.  1318.400(a), 
for which TVA would normally prepare an EIS, shall be circulated for 
public review and comment.
    (d) TVA will make draft (if applicable) and final EAs and FONSIs 
available on TVA's public website and by other means upon request to 
TVA.


Sec.  1318.302  EA preparation.

    (a) As soon as practicable after deciding to prepare an EA, the 
initiating TVA entity, in consultation with NEPA compliance staff, 
shall convene an internal coordination team to discuss:
    (1) Reasonable alternatives,

[[Page 17463]]

    (2) Permit requirements,
    (3) Coordination with other agencies (consistent with Sec.  
1318.401),
    (4) Environmental issues,
    (5) Public involvement, and
    (6) A schedule for EA preparation.
    (b) The EA will describe the proposed action and include brief 
discussions of the purpose and need for action, reasonable 
alternatives, the no-action alternative (consistent with Sec.  
1318.400(e)), the environmental impacts of the proposed action and 
alternatives, measures (if any) to mitigate such impacts, a listing of 
the agencies and persons consulted, and a list of permits that may be 
required for the proposed action.
    (c) As appropriate, EAs will identify alternatives that were 
considered, but not addressed in further detail in the EA.
    (d) The EA will address comments made during any public comment 
period.
    (e) The EA will briefly provide sufficient data and analysis for 
determining whether to prepare an EIS or a FONSI.
    (f) The EA will be reviewed by the NEPA compliance staff and other 
interested TVA entities, including TVA legal counsel.
    (g) After the EA is finalized and with the concurrence of TVA legal 
counsel, the NEPA compliance staff will make one of the following 
determinations:
    (1) A Finding of No Significant Impact,
    (2) The action requires the preparation of an EIS, or
    (3) The EA needs to be supplemented before the significance of 
potential impacts can be determined.


Sec.  1318.303  Finding of No Significant Impact.

    (a) If the NEPA compliance staff concludes, based on an EA, that a 
proposed action does not require the preparation of an EIS, the NEPA 
compliance staff, in consultation with TVA legal counsel and the 
initiating TVA entity, will prepare a FONSI. The official responsible 
for NEPA compliance will sign the FONSI.
    (b) A FONSI must concisely summarize the proposed action and the 
EA, which should be incorporated by reference, and identify any 
environmental mitigation measures to which TVA commits.
    (c) A FONSI must be made available to the public.
    (d) In the following circumstance, the NEPA compliance staff, in 
consultation with TVA legal counsel and the initiating TVA entity, will 
make a draft EA and draft FONSI available for public review and comment 
for 30 days before a final determination is made whether to prepare an 
EIS and before the proposed action may begin:
    (1) The proposed action is, or is closely similar to, an action 
listed in Sec.  1318.400(a),
    (2) TVA has issued a Notice of Intent that the proposed action 
would be the subject of an EIS, or
    (3) The nature of the proposed action is one without precedent.


Sec.  1318.304  Supplements and adoptions.

    (a) If new information concerning action modifications, 
alternatives, or probable environmental effects becomes available and 
there are important components of the proposed action that remain to be 
implemented, the NEPA compliance staff and TVA legal counsel, in 
consultation with the initiating TVA entity, will consider whether an 
EA should be supplemented based on the significance of the new 
information. The NEPA compliance staff will be responsible for 
preparing supplements to EAs.
    (b) TVA may adopt an EA prepared by another agency if it determines 
that the environmental impacts of TVA's action are adequately assessed 
in the EA. Public involvement must be provided consistent with Sec.  
1318.301. The adopted EA and the FONSI issued by TVA must be provided 
on TVA's public website.

Subpart E--Environmental Impact Statements


Sec.  1318.400  Purpose and scope.

    (a) The following actions in paragraphs (a)(1) through (5) normally 
will require an EIS:
    (1) New large water resource development and water control projects 
such as construction and operation of new dams or navigation locks.
    (2) The construction and operation of new major power generating 
facilities at sites not previously used for industrial purposes.
    (3) The development of integrated resource plans for power 
generation.
    (4) The development of system-wide reservoir operations plans.
    (5) Any major action whose environmental impacts are expected to be 
highly controversial.
    (b) If TVA determines that an EIS will not be prepared for an 
action falling within one of these categories, the basis for the 
decision must be discussed in the environmental assessment or in a 
document that is made available to the public.
    (c) An EIS shall describe the proposed action and reasonable 
alternatives, including no action; analyze the potential environmental 
impacts associated with the proposed action, alternatives, and identify 
any mitigation measures; and include a list of the major preparers of 
the EIS.
    (d) The scope and detail of the EIS shall be reasonably related to 
the scope and the probable environmental impacts of the proposed action 
and alternative actions (see 40 CFR 1502.10 through 1502.18).
    (e) The no-action alternative in an EIS (or an EA) should represent 
the environmental status quo and should be formulated to provide the 
environmental baseline from which the proposed action and other 
alternatives can be assessed even when TVA is legally required to take 
action. For proposed changes to existing programs or plans, 
continuation of the existing program or plan and associated 
environmental impacts should be considered the no-action alternative.


Sec.  1318.401  Lead and cooperating agency determinations.

    (a) As soon as practicable after the decision is made to prepare an 
EIS (or EA), the NEPA compliance staff, in consultation with the 
initiating TVA entity and TVA legal counsel, shall determine whether 
inviting other Federal, State, or local agencies to participate in the 
preparation of the EIS as lead, joint lead (40 CFR 1501.5), or 
cooperating agencies (40 CFR 1501.6) is necessary.
    (b) If TVA is requested to participate in the preparation of an EIS 
(or EA) of another Federal agency, the NEPA compliance staff, in 
consultation with other interested TVA entities, will determine if TVA 
should become a cooperating agency.


Sec.  1318.402  Scoping process.

    (a) As soon as practicable after the decision to prepare an EIS is 
made, the NEPA compliance staff, in consultation with other TVA 
entities, will identify preliminary action alternatives, probable 
environmental issues, and necessary environmental permits, and a 
schedule for EIS preparation.
    (b) The scoping process may include interagency scoping sessions to 
coordinate an action with and obtain inputs from other interested 
agencies (including local, State, and other Federal agencies, as well 
as Indian tribes).
    (c) The NEPA compliance staff, in consultation with other TVA 
entities, will determine whether public scoping meetings should be held 
in addition to seeking comments by other means. Meeting types and 
formats should be selected to facilitate timely and

[[Page 17464]]

meaningful public input into the EIS process.
    (d) As soon as practicable in the scoping process, the NEPA 
compliance staff, in consultation with the initiating TVA entity and 
TVA legal counsel, will prepare and publish in the Federal Register a 
notice of intent to prepare an EIS. This notice will briefly describe 
the proposed action, possible alternatives, and potentially affected 
environmental resources. In addition, the notice will identify issues 
that TVA has tentatively determined to be insignificant and which will 
not be discussed in detail in the EIS. The scoping process will be 
described and, if a scoping meeting will be held, the notice should 
state where and when the meeting is to occur if that has been 
determined. The notice will identify the person in TVA who can supply 
additional information about the action and describe how to submit 
comments.
    (e) There will be a minimum public comment period of 30 days from 
the date of publication of the notice of intent in the Federal Register 
to allow other interested agencies and the public an opportunity to 
review and comment on the proposed scope of the EIS.
    (f) On the basis of input received, the NEPA compliance staff, in 
consultation with other TVA entities, will determine whether to modify 
the schedule or scope of the EIS.
    (g) At the close of the scoping process, the NEPA compliance staff, 
in consultation with the other TVA entities, will identify the 
following components in paragraphs (g)(1) through (8) for use in 
preparing the DEIS:
    (1) Purpose and need of the proposed action.
    (2) Reasonable action alternatives.
    (3) Environmental issues to be addressed in detail.
    (4) Environmental issues that should be mentioned but not addressed 
in detail.
    (5) Lead and cooperating agency roles and responsibilities.
    (6) Related environmental documents.
    (7) Other environmental review and consultation requirements.
    (8) Delegation of DEIS work assignments to TVA entities and other 
agencies.
    (h) If a scoping report summarizing the preceding EIS components is 
prepared, it must be made available to the public.


Sec.  1318.403  DEIS preparation, transmittal, and review.

    (a) Based on information obtained and decisions made during the 
scoping process, the NEPA compliance staff, in cooperation with the 
initiating TVA entity and other interested TVA entities, will prepare 
the preliminary DEIS using an appropriate format (see 40 CFR 1502.10).
    (b) During preparation of the DEIS, the NEPA compliance staff will 
involve any cooperating agencies to obtain their input. If a 
cooperating agency's analysis of an environmental issue or impact 
differs from TVA's, those differences should be resolved before the 
DEIS is released for public comment or the cooperating agency's 
position should be set forth and addressed in the DEIS.
    (c) After approval of the DEIS by the official responsible for NEPA 
compliance, the senior manager of the initiating TVA entity, and TVA 
legal counsel, the NEPA compliance staff will make the DEIS available 
to the public; other interested Federal, State, and local agencies; and 
other entities and individuals who have expressed an interest in the 
type of action or commented on the scope of the EIS. The NEPA 
compliance staff will then file the DEIS with EPA for publication of 
its notice of availability in the Federal Register.
    (d) TVA will make the DEIS available on its public website and 
provide it by other means upon request.
    (e) A minimum of 45 days from the date of publication of the notice 
of availability in the Federal Register must be provided for public 
comment. TVA may extend the public comment period in its discretion.
    (f) Materials to be made available to the public should be provided 
to the public without charge to the extent practicable.


Sec.  1318.404  FEIS preparation and transmittal.

    (a) At the close of the DEIS public comment period, the NEPA 
compliance staff, in consultation with the initiating TVA entity and 
other interested TVA entities, will determine what is needed for the 
preparation of an FEIS.
    (b) If changes to the DEIS in response to comments are minor and 
confined to factual corrections or explanations of why the comments do 
not warrant additional TVA response, TVA may issue errata sheets 
instead of rewriting the DEIS. In such cases, only the comments, the 
responses (including explanations why the comments do not warrant 
changes to the DEIS), and the changes need be circulated. The entire 
document with a new cover sheet shall be filed as the FEIS (40 CFR 
1506.9). If other more extensive changes are required, the NEPA 
compliance staff, in cooperation with other interested TVA entities, 
will prepare an FEIS utilizing an appropriate format (see 40 CFR 
1502.10).
    (c) The FEIS should address all substantive comments on the DEIS 
that TVA receives before the close of the public comment period by 
responding specifically to the comments and/or by revising the text of 
the DEIS. Comments that are substantively similar should be summarized 
and addressed together.
    (d) After approval of the FEIS by the official responsible for NEPA 
compliance, the senior manager of the initiating TVA entity, and TVA 
legal counsel, the NEPA compliance staff will make the FEIS available 
to the public; other interested Federal, State, and local agencies; and 
other entities and individuals who have expressed an interest in the 
type of action or commented on the DEIS. The NEPA compliance staff will 
then file the FEIS with EPA for publication of its notice of 
availability in the Federal Register.
    (e) TVA will make the FEIS available on its public website and 
provide it by other means upon request.


Sec.  1318.405  Agency decision.

    (a) TVA shall not make a decision regarding a proposed action for 
which an EIS has been issued until 30 days after a notice of 
availability of the FEIS has been published in the Federal Register or 
90 days after a notice of availability of the DEIS has been published 
in the Federal Register, whichever is later.
    (b) After release of the FEIS and after TVA makes a decision about 
the proposed action, a ROD must be prepared by the NEPA compliance 
staff, in consultation with TVA legal counsel and the initiating TVA 
entity (see 40 CFR 1505.2). The ROD will normally include the items in 
the following paragraphs (b)(1) through (6):
    (1) The decision;
    (2) The basis for the decision and preferences among alternatives;
    (3) The alternative(s) considered to be environmentally preferable;
    (4) A summary of important environmental impacts;
    (5) The monitoring, reporting, and administrative arrangements that 
have been made; and
    (6) The measures that would mitigate or minimize adverse 
environmental impacts to which TVA commits to implement (see 40 CFR 
1505.2(c)).
    (c) A ROD will be made available to the public.
    (d) Until a ROD is made available to the public, no action should 
be taken to implement an alternative that would have adverse 
environmental impacts or limit the choice of reasonable alternatives.

[[Page 17465]]

Sec.  1318.406  Supplements.

    If TVA makes substantial changes in the proposed action that are 
relevant to environmental concerns or there is significant new 
information relevant to environmental concerns, and important 
components of the proposed action remain to be implemented, the NEPA 
compliance staff and TVA legal counsel, in consultation with the 
initiating TVA entity, will determine how the FEIS should be 
supplemented. The NEPA compliance staff will be responsible for 
preparing a supplement to an EIS.


Sec.  1318.407  EIS adoption.

    (a) TVA may adopt another agency's EIS, or a portion thereof, 
provided that the NEPA compliance staff determines that the EIS or 
portion thereof meets the standards for an adequate EIS.
    (b) If the NEPA compliance staff determines that the actions 
covered by the other agency's EIS and TVA's proposed action are 
substantially the same, TVA may adopt the other agency's EIS as TVA's 
FEIS (Sec.  1318.404). In making this determination, the NEPA 
compliance staff, in consultation with other interested TVA entities, 
will consider whether the scope and analyses in the other agency's EIS 
adequately address the TVA action. TVA will also review to ensure the 
scientific accuracy of the analysis and conclusions drawn. TVA must 
make this determination and the adopted EIS available on its public 
website.
    (c) If the NEPA compliance staff determines that the actions 
covered by the other agency's EIS and TVA's proposed action are not 
substantially the same, TVA will supplement the other agency's EIS and 
treat it as TVA's DEIS, including circulating it for comment (Sec.  
1318.403).
    (d) If TVA cooperated in the preparation of an EIS that TVA 
determines adequately addresses its proposed action, TVA may make a 
decision about its proposed action no sooner than 30 days after notice 
of availability of the FEIS was published in the Federal Register. A 
record of that decision should be prepared consistent with Sec.  
1318.405.
    (e) If TVA did not cooperate in the preparation of an EIS that TVA 
determines adequately addresses its proposed action and that it 
proposes to adopt, NEPA compliance staff will transmit notice of its 
adoption to EPA for publication of a notice of availability and 
circulate the FEIS for public comment as to its assessment of impacts 
as they relate to TVA's proposed action. TVA may make a decision about 
its proposed action no sooner than 30 days after notice of availability 
of the FEIS is published in the Federal Register. A record of decision 
will be prepared consistent with Sec.  1318.405.
    (f) TVA will provide notice of its adoption to other interested 
Federal, State, and local agencies, other entities, and individuals.

Subpart F--Miscellaneous Procedures


Sec.  1318.500  Public participation.

    (a) TVA's policy is to encourage meaningful public participation in 
and awareness of its proposed actions and decisions. This policy is 
implemented through various mechanisms.
    (b) The type of and format for public participation will be 
selected as appropriate to best facilitate timely and meaningful public 
input.
    (c) TVA will maintain a public website at which it posts 
information about TVA activities and programs, including ongoing and 
recently completed EAs and EISs.
    (d) When opportunities for public participation are provided, TVA 
will notify the public that comments submitted to TVA on the NEPA 
document and the names and addresses of those commenting may be made 
available for public inspection.


Sec.  1318.501  Mitigation commitment identification, auditing, and 
reporting.

    (a) All appropriate measures to mitigate expected significant 
adverse environmental impacts (``mitigation measures'') must be 
identified in an EA or EIS. Those mitigation measures to which TVA 
commits must be identified in the associated FONSI or ROD (or the 
documentation, if any, prepared for a categorical exclusion).
    (b) Each mitigation commitment that is not required under 
regulations will be assigned by the NEPA compliance staff to the TVA 
entity responsible for implementing the commitment. The NEPA compliance 
staff should consult with the responsible entities to resolve 
assignment conflicts, identify supporting offices, and determine 
implementation schedules.
    (c) The responsible entity shall report to the NEPA compliance 
staff the status of mitigation commitments periodically or whenever a 
specific request is made.
    (d) The NEPA compliance staff must ensure that commitments are met 
and will verify commitment progress.
    (e) Circumstances may arise that warrant modifying or cancelling 
previously made commitments. The decision to modify or cancel a 
commitment will be made by the NEPA compliance staff in consultation 
with TVA legal counsel, after considering the environmental 
significance of such a change.


Sec.  1318.502  Tiering.

    TVA may rely on tiering for the environmental review of proposed 
actions. Tiering involves coverage of general matters in broader EISs 
or EAs on programs, plans, and policies, and subsequent narrower 
analyses of implementing actions that incorporate by reference the 
broader analyses (see 40 CFR 1508.28).


Sec.  1318.503  Programmatic and generic NEPA documents.

    (a) A programmatic or generic EA or EIS may be prepared to address 
a proposed program, policy, or plan, or a proposed action that has a 
wide geographic scope.
    (b) A programmatic EA or EIS can support high-level or broad 
decisionmaking, and can provide the foundation for the efficient review 
of specific tiered implementing actions.
    (c) Ongoing or previously planned and approved actions that are 
within the scope of a programmatic review may continue during the 
programmatic review period, so long as the criteria at 40 CFR 1506.1(c) 
are met.
    (d) The identification of significant impacts in a programmatic EIS 
does not preclude the review of specific implementing actions in an EA 
that tiers from the programmatic EIS if the implementing actions would 
not result in new or different significant impacts.


Sec.  1318.504  Private applicants.

    (a) When a private applicant, individual, or other non-Federal 
entity (``private entity'') proposes to undertake an action that will 
require TVA's approval or involvement, the contacted TVA entity will 
notify the NEPA compliance staff. That staff must determine, in 
consultation with TVA legal counsel, whether NEPA is triggered and the 
scope of the review of TVA's proposed action.
    (b) TVA compliance staff will provide the private entity 
information on its responsibilities for assisting TVA in conducting the 
necessary NEPA review. At TVA's discretion, this can include providing 
TVA detailed information about the scope and nature of the proposed 
action, environmental analyses and studies, and copies of associated 
environmental permit applications submitted to other Federal, State, or 
local agencies.
    (c) In identifying reasonable alternatives, TVA should consider the 
applicant's purpose and need, in addition to TVA's purpose and need.
    (d) A private entity may be allowed to prepare draft and final EAs 
for TVA's review and approval, but TVA remains responsible for the 
adequacy of the

[[Page 17466]]

documents and the conduct of associated EA process.
    (e) A private entity normally will be required to reimburse TVA for 
its costs in reviewing the private entity's proposed action.
    (f) Participation of a private entity in a TVA NEPA review, 
including reimbursement of TVA's costs, does not commit TVA to 
favorable action on a request.


Sec.  1318.505  Non-TVA EISs.

    (a) The NEPA compliance staff, in consultation with other 
interested TVA entities, will coordinate the review of any EIS provided 
by another Federal agency to TVA for comment.
    (b) The NEPA compliance staff, in consultation with TVA legal 
counsel as appropriate, will prepare comments on any such EIS and 
transmit them to the initiating agency (see 40 CFR 1503.2 and 1503.3).


Sec.  1318.506  Documents.

    The NEPA compliance staff must keep on file all final and approved 
environmental documents either in paper form or electronically, in 
accordance with TVA's records retention policy.


Sec.  1318.507  Reducing paperwork and delay.

    (a) These procedures are to be interpreted and applied with the aim 
of reducing paperwork and the delay of both the assessment and 
implementation of a proposed action.
    (b) Data and analyses should be commensurate with the importance of 
associated impacts. Less important material should be summarized, 
consolidated, or referenced.
    (c) An environmental document may be combined with any other 
document to reduce duplication and paperwork.
    (d) Review of a proposed action under these procedures may be 
consolidated with other reviews where such consolidation would reduce 
duplication or increase efficiency.


Sec.  1318.508  Supplemental guidance.

    The NEPA compliance staff, in consultation with interested TVA 
entities and with concurrence of TVA legal counsel, may issue 
supplemental or explanatory guidance to these procedures.


Sec.  1318.509  Substantial compliance.

    Substantial compliance with these procedures must be achieved. 
Minor deviations approved by the official responsible for NEPA 
compliance do not give rise to any independent cause of action.


Sec.  1318.510  Emergency actions.

    (a) The NEPA compliance staff may consolidate, modify, or omit 
provisions of these procedures for actions necessary in an emergency.
    (b) Where emergency circumstances make it necessary to take an 
action with significant environmental impact without observing the 
provisions of these regulations, TVA will consult with CEQ about 
alternative arrangements for those actions necessary to control the 
immediate impacts of the emergency. Other actions remain subject to 
NEPA review (see 40 CFR 1506.11).
    (c) The NEPA compliance staff, with the concurrence of TVA legal 
counsel, must determine whether such changes would substantially comply 
with the intent of these procedures.
    (d) The official responsible for NEPA compliance shall document the 
determination that an emergency exists and describe the responsive 
action(s) taken at the time the emergency exists. The form of that 
documentation is within the discretion of that official.


Sec.  1318.511  Modification of assignments.

    The assignments and responsibilities identified for TVA entities in 
these procedures can be modified by agreement of the entities involved 
or by the direction of TVA's Chief Executive Officer.


Sec.  1318.512  Status reports.

    Information on the status of EISs and EAs under development shall 
be published on TVA's public website.

Subpart G--Floodplains and Wetlands


Sec.  1318.600  Purpose and scope.

    (a) The review of a proposed action undertaken in accordance with 
Sec. Sec.  1318.200, 1318.300, and 1318.400 that potentially affects 
floodplains or wetlands must include a floodplain or wetlands 
evaluation that is consistent with Executive Order 11988 (Floodplain 
Management) and Executive Order 11990 (Protection of Wetlands) 
pertaining to floodplains or wetlands, respectively, as required by 
this section.
    (b) Floodplain evaluations must apply any existing Federal flood 
risk management standard to federally-funded projects.
    (c) A wetland evaluation under Executive Order 11990 is not 
required for the issuance of permits, licenses, or allocations to 
private parties for activities involving wetlands on non-Federal lands.


Sec.  1318.601  Area of impact.

    (a) If a proposed action will potentially occur in or affect 
wetlands or floodplains, the initiating TVA entity, as soon as 
practicable in the planning process, will request the appropriate TVA 
staff with expertise in floodplain or wetland impact evaluations (``TVA 
staff'') to determine whether the proposed action will occur in or 
affect a wetland or floodplain and the level of impact, if any, on the 
wetland or floodplain.
    (b) Further floodplain or wetland evaluation is unnecessary if the 
TVA staff determines that the proposed action:
    (1) Is outside the floodplain or wetland,
    (2) Has no identifiable impacts on a floodplain or wetland, and
    (3) Does not directly or indirectly support floodplain development 
or wetland alteration.


Sec.  1318.602  Actions that will affect floodplains or wetlands.

    (a) When a proposed action can otherwise be categorically excluded 
under Sec.  1318.200, no additional floodplain or wetland evaluation is 
required if:
    (1) The initiating TVA entity determines that there is no 
practicable alternative that will avoid affecting floodplains or 
wetlands and that all practicable measures to minimize impacts of the 
proposed action to floodplains or wetlands are incorporated and
    (2) The TVA staff determines that impacts on the floodplain or 
wetland would be minor.
    (b) If the action requires an EA or an EIS, the evaluation must 
consider:
    (1) The effect of the proposed action on natural and beneficial 
floodplain and wetland values and
    (2) Alternatives to the proposed action that would eliminate or 
minimize such effects.
    (c) The initiating TVA entity must determine if there is no 
practicable alternative to siting in a floodplain or constructing in a 
wetland. Upon concurrence by the NEPA compliance staff in consultation 
with TVA legal counsel and TVA staff with expertise in floodplain or 
wetland impact evaluations, this determination shall be final. If a 
determination of no practicable alternative is made, all practicable 
measures to minimize impacts of the proposed action on the floodplain 
or wetland must be implemented. If at any time prior to commencement of 
the action it is determined that there is a practicable alternative 
that will avoid affecting floodplains or wetlands, the proposed action 
must not proceed.

[[Page 17467]]

Sec.  1318.603  Public notice.

    (a) Once a determination of no practicable alternative is made in 
accordance with Sec.  1318.602, the initiating office must notify the 
public of a proposed action's potential impact on floodplains or 
wetlands if the proposed action is subject to executive order and not 
already covered by class review. Public notice of actions affecting 
floodplains or wetlands may be combined with any notice published by 
TVA or another Federal agency if such a notice generally meets the 
minimum requirements set forth in this section. Issuance of a draft or 
final EA or EIS for public review and comment will satisfy this notice 
requirement.
    (b) Public notices must at a minimum:
    (1) Briefly describe the proposed action and the potential impact 
on the floodplain or wetland;
    (2) Briefly identify alternative actions considered and explain why 
a determination of no practicable alternative has been proposed;
    (3) Briefly discuss measures that would be taken to minimize or 
mitigate floodplain or wetland impacts;
    (4) State when appropriate whether the action conforms to 
applicable Federal, State or local floodplain protection standards;
    (5) Specify a reasonable period of time within which the public can 
comment on the proposal; and
    (6) Identify the TVA official who can provide additional 
information on the proposed action and to whom comments should be sent.
    (c) Such notices must be issued in a manner designed to bring the 
proposed action to the attention of those members of the public likely 
to be interested in or affected by the action's potential impact on the 
floodplain or wetland.
    (d) TVA must consider all relevant and timely comments received in 
response to a notice and reevaluate the action as appropriate to take 
such comments into consideration before the proposed action is 
implemented.


Sec.  1318.604  Disposition of real property.

    When TVA property in a floodplain or wetland is proposed for lease, 
easement, right-of-way, or disposal to non-federal public or private 
parties and the action will not result in disturbance of the floodplain 
or wetland, a floodplain or wetland evaluation is not required. The 
conveyance document, however, must:
    (a) Require the other party to comply with all applicable Federal, 
State or local floodplain and wetland regulations, and
    (b) Identify other appropriate restrictions to minimize 
destruction, loss, or degradation of floodplains and wetlands and to 
preserve and enhance their natural and beneficial values, except when 
prohibited by law or unenforceable by TVA, or otherwise, the property 
must be withheld from conveyance or use.


Sec.  1318.605  General and class reviews.

    In lieu of site-specific reviews, TVA may conduct general or class 
reviews of similar or repetitive activities that occur in floodplains.

Rebecca C. Tolene,
Vice President, Environment.
[FR Doc. 2020-05964 Filed 3-26-20; 8:45 am]
 BILLING CODE 8120-08-P