[Federal Register Volume 86, Number 173 (Friday, September 10, 2021)]
[Rules and Regulations]
[Pages 50625-50637]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-19098]


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TENNESSEE VALLEY AUTHORITY

18 CFR Part 1304

RIN 3316-AA24


Floating Cabins

AGENCY: Tennessee Valley Authority.

ACTION: Final rule.

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SUMMARY: The Tennessee Valley Authority (TVA) is publishing a final 
rule to amend its regulations that govern floating cabins located on 
the Tennessee River System. The unrestrained mooring of floating cabins 
on the Tennessee River System, if left unaddressed, would pose 
unacceptable risks to navigation, safety, the environment, and public 
lands. These amendments provide health, safety, and environmental 
standards as well as establish permitting standards with regard to 
rebuilding, modifying, or combining floating cabins.

DATES: This final rule is effective October 12, 2021.

FOR FURTHER INFORMATION CONTACT: David B. Harrell, 865-632-1327, Email: 
[email protected] or [email protected], Mail address: Tennessee Valley 
Authority, 400 West Summit Hill Drive, WT 11A-K, Knoxville, TN 37902.

SUPPLEMENTARY INFORMATION:

Legal Authority

    This final rule is promulgated under the authority of the TVA Act, 
as amended, 16 U.S.C. 831-831ee, Title V of the Independent Offices 
Appropriations Act of 1955, 31 U.S.C. 9701, and OMB Circular No. A-25. 
Under Section 26a of the TVA Act, no obstructions affecting navigation, 
flood control, or public lands or reservations shall be constructed, 
operated, or maintained across, along, or in the Tennessee River System 
without TVA's approval. Nonnavigable structures, such as floating 
cabins, are obstructions that require TVA's approval. In addition, 
Section 9b of the TVA Act provides that TVA may require floating cabins 
to be maintained by the owner to reasonable health, safety, and 
environmental standards. Section 9b also authorizes TVA to levy fees on 
floating cabin owners as necessary and reasonable to ensure compliance.

Background

    TVA is a multi-purpose federal agency that has been charged by 
Congress with promoting the wise use and conservation of the resources 
of the Tennessee Valley region, including the Tennessee River System. 
In carrying out this mission, TVA operates a system of dams and 
reservoirs on the Tennessee River and its tributaries for the purposes 
of navigation, flood control, and power production. Consistent with its 
mission, TVA also uses the system to improve water quality and water 
supply and to provide a wide range of public benefits, including 
recreation and natural resource stewardship.
    To promote the unified development and regulation of the Tennessee 
River System, Congress directed TVA to approve obstructions across, 
along, or in the river system under Section 26a of the TVA Act. 
``Obstruction'' is a broad term that includes, by way of example, boat 
docks, piers, boathouses, buoys, floats, boat launching ramps, fills, 
water intakes, devices for discharging effluents, bridges, aerial 
cables, culverts, pipelines, fish attractors, shoreline stabilization 
projects, channel excavations, and floating cabins. TVA also owns, as 
agent for the United States, much of the shoreland and inundated land 
along and under its reservoir system.
    Since 1971, pursuant to Section 26a, TVA has prohibited the mooring 
on the Tennessee River System of new floating cabins (formerly 
nonnavigable houseboats) that are designed and used primarily for human 
habitation or occupation and not for transportation on the water. In 
particular, TVA amended its regulations in 1971 to prohibit the mooring 
or anchoring of new nonnavigable houseboats except those in existence 
before November 21, 1971. Criteria were established then to identify 
when a houseboat was considered ``navigable'' and the conditions under 
which existing nonnavigable houseboats would be allowed to remain. 
These criteria were characteristics that TVA determined were indicative 
of real watercraft; i.e., boats or vessels that are designed and used 
primarily to traverse water. In 1978, TVA reiterated the prohibited 
mooring of nonnavigable houseboats on the Tennessee River System except 
for those in existence on or before February 15, 1978.
    Despite over 40 years of Section 26a regulations related to 
floating cabins, the number of floating cabins on the Tennessee River 
System continued to increase. In determining what action to take with 
respect to floating cabins, TVA prepared an Environmental Impact 
Statement (EIS) in accordance with the National Environmental Policy 
Act. This EIS assessed the environmental and socioeconomic impacts of 
different policies to address the proliferation of floating cabins on 
the Tennessee River System. TVA released a draft of this EIS for public 
comment in June 2015 and held four public meetings and a webinar to 
provide information about its analyses and to facilitate public 
involvement. Public reaction to this situation varied widely.
    Many members of the general public urged TVA to require the removal 
of all floating cabins since TVA's reservoirs are public resources and 
owners of floating cabins are occupying public areas. Owners of 
floating cabins generally supported additional reasonable regulation of 
their structures but argued against policies requiring their removal 
because of the investments they have made in the structures. Other 
commenters had concerns about discharges of blackwater (sewage) and 
graywater (showers, sinks, etc.) from floating cabins and shock and 
electrocution risks associated with the electrical connections to 
floating cabins. Commenting agencies consistently supported better 
regulation of floating cabins. The final EIS and associated

[[Page 50626]]

documents can be found at https://www.tva.com/floatingcabins.
    After considering the comments it received during the EIS process 
and its analyses of impacts, TVA identified as its preferred policy one 
that establishes standards to ensure safer mooring, electrical 
connections, and protection of water quality. Under the preferred 
policy, the mooring of new floating cabins would be prohibited on the 
Tennessee River System. The preferred policy would have required all 
existing floating cabins, including nonnavigable houseboats, to be 
removed from the Tennessee River System by January 1, 2036, and be 
subject to a regulatory program in the interim. On May 5, 2016, the TVA 
Board of Directors (Board) adopted the preferred policy, but the Board 
extended the removal date to May 5, 2046.
    On December 16, 2016, Congress enacted the Water Infrastructure 
Improvements for the Nation Act of 2016 (WIIN Act). Title IV Section 
5003 related to floating cabins and amended the TVA Act to include 
Section 9b. This new section of the TVA Act provides that TVA may 
approve and allow the use of floating cabins that were located on 
waters under the jurisdiction of TVA as of December 16, 2016, if the 
floating cabin is maintained to reasonable health, safety, and 
environmental standards as required by the Board and if the owner pays 
a compliance fee if assessed by TVA. The WIIN Act stipulates that TVA 
may not require the removal of a floating cabin that was located on the 
Tennessee River System as of December 16, 2016: (1) For a period of 15 
years if it was granted a permit by TVA before the WIIN Act's 
enactment, or (2) for a period of five years if it was not granted a 
permit by TVA before the WIIN Act's enactment. It further stipulates 
that TVA may establish regulations to prevent the construction of new 
floating cabins. These regulations were planned in two phases.

Phase I Floating Cabins Amendments

    TVA published Phase I rule amendments for floating cabins that 
became effective on October 1, 2018 (83 FR 44467). These amendments 
clarified the types of structures that TVA will regulate as a floating 
cabin and prohibited new floating cabins from mooring on the Tennessee 
River System after December 16, 2016. TVA estimates that approximately 
2,250 floating cabins were moored on the Tennessee River System on 
December 16, 2016. These initial rule amendments also incorporated a 
requirement for owners to register their floating cabins and identified 
locations where floating cabins may moor.

Phase II Floating Cabin Amendments

    This final rule includes health, safety, environmental, and 
permitting standards that will apply to all floating cabins. A diverse 
stakeholder group composed of 18 members provided input to TVA on the 
development and drafting of these standards. The group represented 
varied interests and perspectives. Members included representatives 
from floating cabin owners, lake user interests, fishing interests, 
marina owners, local power distributors, state and federal regulatory 
agencies, the insurance industry, and the general public. The full 
group met five times from August 2017 to June 2019 at various 
locations, including locations near Norris and Fontana Reservoirs where 
floating cabins are prevalent. Teleconferences were also held among 
three subgroups to develop and discuss recommendations in specific 
subject matter areas. An industry professional in marine electricity 
presented to the group and helped answer questions regarding 
electricity at marinas and in water. TVA tested and displayed ground 
fault protection devices for the group to observe and discuss.
    Each of the three subgroups made recommendations for a subset of 
standards. Recommendations were presented to the full stakeholder group 
for wastewater, electrical, flotation, mooring, fees, permitting 
standards, and compliance. TVA reviewed and evaluated the 
recommendations and responded to each recommendation. TVA refined the 
recommendations and developed them into proposed rule amendments for 
publication for public review and comment. A draft of the rule 
amendments was reviewed with the stakeholder group in June 2019, and 
TVA made some modifications after that discussion. TVA published the 
proposed rule amendments for a 90-day public comment period on December 
10, 2019 (84 FR 67386).

Final Rule

    The final rule for floating cabins applies to all existing floating 
cabins, including those formerly referred to as nonnavigable houseboats 
originally permitted on or before February 15, 1978. All floating 
cabins and attached structures must be registered and obtain a new 
permit from TVA.
    The final rule allows floating cabin owners additional time to 
register with TVA, until December 9, 2021. To obtain a Section 26a 
permit, owners of floating cabins will have until October 1, 2024, to 
comply with the standards in TVA's regulations and submit a complete 
permit application that certifies compliance and includes the payment 
of a permit application fee. TVA will not require floating cabin owners 
to pay the initial permit application fee if they possess a permit in 
their name issued before December 16, 2016, and the structure is 
compliant with the terms of the permit, constructed in accordance with 
the permit (same dimensions, attached structures such as docks, and 
utility connections), and moored at the permitted location. A change in 
ownership application fee, currently $250, will be charged each time an 
existing floating cabin owner requests a transfer of the permit to a 
new owner. Permits will only be transferrable if the structure is in 
full compliance with the existing permit; requests not compliant with 
the previous permit will be subject to the standard permit application 
fee, and modifications not compliant with the rules will be denied.
    The permit application submission date of October 1, 2024, will 
give owners nearly four years from the publication of the final 
standards to bring structures into compliance. TVA encourages floating 
cabin owners to bring floating cabins into compliance and apply for a 
permit without delay. Upon submission of the application, owners of 
floating cabins may remain in place until TVA acts on the application. 
If TVA approves the application, TVA will issue a Section 26a permit to 
the owner. If TVA denies the application, the owner must either correct 
all deficiencies and submit a new application or remove the structure 
in accordance with Section 9b of the TVA Act and 18 CFR 1304.406.

Removal

    Under the final rule, TVA will have the authority to require owners 
to remove their floating cabins if TVA determines a floating cabin is 
not in compliance with its permit, does not apply for a permit by 
October 1, 2024, or does not pay the compliance fee if levied by TVA. 
The requirement to remove a floating cabin will be in accordance with 
Section 9b of the TVA Act and 18 CFR 1304.406. All structures not 
removed by the applicable deadline may be removed by TVA at the owner's 
expense.

Flotation

    Unencased flotation (i.e., Styrofoam) breaks apart over time, can 
harm wildlife, and becomes litter in reservoirs or along shorelines. 
Currently, all docks, floating cabins, and other water-use structures 
and facilities permitted by

[[Page 50627]]

TVA are subject to 18 CFR 1304.400, which establishes flotation 
requirements to protect the environment from harmful flotation 
materials, such as Styrofoam and the contents of metal drums, which 
were common flotation devices in the past. TVA's current regulations 
prohibit unencased flotation unless it was previously allowed by TVA, 
was installed prior to September 8, 2003, and is still serviceable in 
TVA's judgment. TVA's current rules prohibit the installation of 
unencased flotation to repair or replace existing flotation that is no 
longer serviceable. This final rule requires the removal and 
replacement of all unencased flotation no later than December 31, 2031. 
If TVA determines that the existing unencased flotation is no longer 
serviceable prior to December 31, 2031, owners will have 24 months from 
notification from TVA to remove and replace it. These changes will 
apply to all Section 26a permits, including those authorizing floating 
cabins.

Mooring

    Some floating cabins are moored by running cables across the water 
to attach to a tree or other anchor on the shoreline. This potentially 
obstructs navigation and recreation, poses a potential hazard to public 
safety, and can detract from the scenic integrity of the areas where 
floating cabins are located. Current regulations require floating 
cabins to be moored in such a manner as to: (1) Avoid obstruction of or 
interference with navigation, flood control, public lands, or 
reservations; (2) avoid adverse effects on public lands or 
reservations; (3) prevent the preemption of public waters when moored 
in permanent locations outside of the approved harbor limits of 
commercial marinas; (4) protect land and land rights owned by the 
United States alongside and subjacent to TVA reservoirs from trespass 
and other unlawful and unreasonable uses; and (5) maintain, protect, 
and enhance the quality of the human environment.
    These regulations will continue to apply to floating cabins. Two 
additional requirements will be added: (1) Floating cabin owners must 
ensure visibility of all mooring cables and (2) floating cabin owners 
must comply with 18 CFR 1304.205(c), which prohibits attachment to 
trees on TVA property. The method of mooring should be modified, if 
necessary, to eliminate navigation and safety hazards. If modification 
of the mooring method is not practical or feasible, TVA's permit will 
require the hazard to be marked to aid in visibility and to help avoid 
property damage and personal injury. Permit applicants must indicate 
how the structure is moored, and TVA will determine if that method is 
allowable. Any determinations on proper mooring and hazard marking will 
be made during the permit review process.
    TVA's current regulations specify locations where floating cabins 
must be located. These include areas where the floating cabin was 
moored as of December 16, 2016, and the owner has sufficient land 
ownership or land rights as specified in the regulations; locations 
where the owner had written permission from TVA prior to December 16, 
2016; or within the harbor limits of a commercial marina. To prevent 
sprawl and to better contain the impacts of floating cabins, the final 
rule prohibits relocation of permitted floating cabins to a different 
reservoir. TVA will consider applications to relocate existing floating 
cabins to any commercial marina on their respective reservoir that is 
willing to accept them. Any relocation, except within the harbor limits 
of the same marina, will require advance approval from TVA in the form 
of a new permit and concurrence from the receiving marina operator.

Electrical

    Floating cabins can also pose a threat to public safety due to 
unsafe electrical systems. TVA is aware that floating cabins are 
currently obtaining electricity from the shore via underwater cables, 
through onboard portable generators, and by other methods. TVA is not 
aware of any local, state, or federal entity that currently monitors 
the construction of floating cabins and enforces building codes. 
However, after the WIIN Act, these agencies may consider floating 
cabins to be more like houses rather than vessels, and agencies may 
determine to regulate and inspect those within their jurisdiction. If 
an agency chooses to regulate, floating cabins will be required to 
comply with all applicable federal, state, and local laws and 
regulations regarding electrical wiring and equipment. If a floating 
cabin is documented to be in violation of any federal, state, or local 
electrical standard or regulation by the respective regulatory agency, 
TVA will have the authority to revoke the permit and require removal of 
the floating cabin from the Tennessee River System if the violation is 
not corrected as specified by the regulatory agency in accordance with 
the agency's requirements.
    In addition to and at a minimum, TVA will require all floating 
cabin owners to install ground fault protection and to use properly 
listed underwater cables. At two-year intervals, TVA will require 
floating cabin owners to provide certification that the floating cabin 
meets these requirements. TVA's electrical requirements are based on 
the 2017 National Electric Code (NEC). Ground fault protection 
requirements for floating buildings can be found in Section 553; 
requirements for marinas can be found in Section 555. Ground fault is 
defined in Section 100. NEC requires underwater cables for floating 
buildings to be extra hard usage portable power cables listed for wet 
locations and sunlight resistance. NEC table 400.4 provides a listing 
of flexible cable types and designations with these ratings.

Wastewater

    Floating cabins use various methods to manage their wastewater 
(both blackwater and graywater). Some have holding tanks for blackwater 
and use pump-out facilities to dispose of it through land-based 
systems. TVA has received complaints of some floating cabins 
discharging blackwater and/or graywater directly to the reservoir. 
Graywater originates from sinks, showers, dishwashers, and washing 
machines and is often discharged by floating cabins directly to the 
reservoir. Blackwater and graywater discharges can contribute to water 
quality deterioration. Discharges are regulated by state environmental 
agencies and the EPA.
    The final rule requires floating cabin owners to comply with 
discharge requirements set by local, state, or federal agencies and 
incorporates requirements of Section 401 of the Clean Water Act (CWA). 
If TVA is notified by a federal, state, or local agency that an owner 
of a floating cabin is not compliant with applicable discharge 
requirements and has failed to correct that deficiency after 
notification, TVA will have the authority to revoke the floating 
cabin's Section 26a permit and require the structure to be removed from 
the Tennessee River System. This should help induce more compliant 
behavior and complement federal, state, or local agency efforts.
    TVA will require a Section 26a permit for all floating cabins, and 
all TVA permits must comply with the CWA. Section 401 of the CWA 
prohibits federal agencies from issuing a permit to conduct an 
activity, including the construction or operation of facilities, which 
may result in any discharge into navigable waters of the United States 
unless the applicable state agency has certified that the structure or 
activity will comply with applicable water quality standards or the 
certification has been waived. Floating cabin owners must request 
certification from the relevant certifying agency when

[[Page 50628]]

applying for a Section 26a permit, and the certifying agency will 
determine whether to grant, grant with conditions, deny, or waive the 
certification. Some certifying agencies may determine to review and 
make one determination that applies to all floating cabins within its 
jurisdiction or may review each request for floating cabin permits 
individually. The respective certifying agencies will make this 
determination.
    TVA will not grant a Section 26a permit for a floating cabin or 
other obstruction unless a required water quality certification has 
been provided or waived by the respective certifying agency. The final 
rule allows a reasonable period of time, not to exceed one year, for 
the certifying agency to take action. If a certifying agency has not 
acted within a reasonable period of time and the certification 
requirement is waived, TVA may then proceed with processing the Section 
26a application. This will apply to all Section 26a permit 
applications, including floating cabins.

Maintenance, Alterations, and Rebuilds

    Floating cabins that fall into disrepair can threaten public 
safety, create a boating hazard, and create litter in reservoirs and 
along shorelines. Therefore, normal repair and maintenance of floating 
cabins is encouraged and may be undertaken without TVA's permission. By 
way of example, maintenance activities include painting; changing the 
internal walls within the existing enclosed space; replacing shingles, 
siding, electrical wiring, or plumbing; or adding new encased flotation 
that complies with the regulations. Maintenance activities do not 
include any activity that would modify any external walls or the 
dimensions (length, width, and height) of the floating cabin, including 
its enclosed or open spaces.
    Any alteration to the dimensions or approved plans for a floating 
cabin will be deemed a structural modification and, if approvable, 
would require a new permit from TVA. Except for the following three 
exceptions, which must be approved in writing in advance by TVA, 
alterations will be prohibited. First, an alteration may be allowed if 
it is deemed necessary by TVA to comply with health, safety, and 
environmental standards. Second, TVA may allow changes in the roof 
pitch or allow open portions of the monolithic frame to be covered but 
no part of the floating cabin may exceed a total height of 14 feet 
above the lowest floor level of the floating cabin. Third, TVA may 
approve enclosure of open space on the monolithic frame of an existing 
floating cabin if the enclosure will not result in expansion to the 
dimensions (length, width, and height) of the monolithic frame; in 
which case, at least 24 contiguous square feet of open space with a 
minimum width of four feet must be retained on the monolithic frame for 
unrestricted boarding and a reduction in the footprint of attached 
structures may be required.
    Floating cabins may be rebuilt to the exact same dimensions 
(length, width, and height), including both enclosed and open spaces, 
as previously approved by TVA. Owners will be required to apply to TVA 
60 days in advance of proposed rebuilding and must receive prior 
written approval from TVA before beginning construction. TVA may 
require a new permit for the proposed rebuilding. Construction of the 
rebuilt floating cabin must be completed within 18 months of TVA's 
written approval to proceed.

Combined Floating Cabins

    To encourage reduction of the number and footprint of floating 
cabins on the Tennessee River System, TVA is proposing a program that, 
with a permit obtained in advance, may allow owners to permanently 
remove multiple existing floating cabins and replace them with a 
combined floating cabin that meets certain size requirements. Owners 
must provide evidence that all existing floating cabins to be removed 
existed on the Tennessee River System as of December 16, 2016, and must 
remove the existing floating cabins before construction on the combined 
floating cabin may begin. The permits for the removed floating cabins 
will be rendered invalid upon their removal. All combined floating 
cabins must locate within the harbor limits of a commercial marina and 
have the marina owner's permission. The combined floating cabin must be 
located on the same reservoir as any of the existing floating cabins 
that are to be removed in exchange. The maximum size allowable for the 
new structure would be the lesser of 1,000 square feet or the combined 
size of the monolithic frames of the removed floating cabins. Any 
amount of the combined size exceeding 1,000 square feet would be 
forfeited and could not be transferred to another party or another 
project. At least 24 contiguous square feet with a minimum width of 
four feet must remain open to allow for unrestricted boarding of the 
combined floating cabin. The maximum roof height is 14 feet above the 
lowest floor level. Attached structures, such as decks, may not be 
incorporated into the monolithic frame of the combined floating cabin.

Attached Structures

    With written approval from TVA, floating cabins may be accompanied 
by floating attached structures, such as decks, platforms, or Jet Ski 
ports. All attached structures must be permitted to the floating cabin 
owner, and the owner must provide evidence of approval from the marina 
operator. The square footage of attached structures may not be 
incorporated into the monolithic frame of the floating cabin. Attached 
structures may not exceed 14 feet in height from the lowest floor 
level, may not be enclosed, and must comply with 18 CFR 1304.204(p), 
which prohibits covered second stories. The total footprint of all 
attached structures for a single floating cabin cannot exceed 400 
square feet or the total footprint of the existing attached structures 
that were part of the floating cabin as of December 16, 2016, whichever 
is greater. Floating cabins with attached structures as of this date 
may remain with written approval from TVA, but requests to rebuild or 
reconfigure the attached structures' square footage must comply with 
the requirements above. Requests for certain structural modifications 
or a combined floating cabin will require the square footage of the 
attached structures to also be reduced to 400 square feet.

Other Changes to Section 26a Regulations

    In addition to the changes affecting floating cabins and those for 
flotation and discharges applicable to all Section 26a permits, the 
final rule provides other minor amendments to the Section 26a 
regulations. These include changes to the TVA locations where 
applications should be addressed, clarification regarding the size of 
residential water-use facilities in pre-existing developments, and 
other minor edits for clarity and consistency in the regulations.

Comments on the Proposed Rule and TVA's Responses

    TVA received 62 comments during the public review period, all via 
email. Comments were received from 59 individuals (three individuals 
sent comments in two separate emails). One email from the Floating Home 
Alliance Board of Directors represented the views of many floating 
cabin owners. The following discussion describes a summary of the 
comments received, provides TVA's response to the comments, and 
describes changes, if any, made by TVA to the rule based on the 
comments. TVA appreciates the perspectives, interests, and concerns 
expressed by all commenters.

[[Page 50629]]

1. Comments Related to Other Section 26a Permitted Structures and the 
Need for Section 26a Regulations

    Comment: Some commenters stated that TVA's regulations, standards, 
and inspections should apply consistently to all structures on TVA 
reservoirs, particularly residential docks. Commenters asserted that 
TVA is focusing on something that has never been a problem and docks 
are far more dangerous, particularly with regard to electrical.
    TVA Response: Section 26a of the TVA Act requires the advance 
written approval of TVA for all floating cabins, private residential 
docks, and other obstructions. Since 1971, TVA has recognized the 
necessity to prohibit construction of new nonnavigable houseboats (the 
early version of floating cabins) and established regulations 
exclusively for their authorization and management on TVA reservoirs. 
This was due to their unique nature as a habitable enclosed structure, 
their included amenities, and their impacts on navigation, public land, 
and water quality. The WIIN Act allows existing floating cabins to 
remain on the water only if the owner maintains the structure in 
accordance with reasonable health, safety, and environmental standards 
set by the Board.
    TVA has previously established corresponding standards for private 
residential water-use facilities. Subparts C and D of the TVA Section 
26a regulations set forth the standards for private water-use 
facilities, such as boat docks, in substantial detail and restrict 
these facilities in ways that floating cabins are not restricted. For 
example, living space or sleeping areas are prohibited; enclosed space 
is limited to 32 square feet for storage; and toilets, sinks, and 
electrical appliances are not allowed. Electrical lines and service to 
private docks must be installed in compliance with all state and local 
electrical codes (satisfactory evidence of compliance to be provided to 
TVA upon request); and electrical service must be installed with an 
electrical disconnect that is located above the 500-year floodplain or 
flood risk profile whichever is higher, and is accessible during flood 
events.
    Floating cabins raise unique safety and environmental concerns 
because many, for example, have electrical service supplied by 
submerged electrical lines, are equipped with household appliances, and 
generate wastewater.
    TVA studied the impact of floating cabins in its EIS using an 
extensive amount of existing information and additional data collection 
and analysis to support its finding of potential impacts to human 
health and the environment from floating cabins. These findings were 
based on existing information, literature on the known effects on 
resources, comments by agencies and the public about impacts that they 
experience, internal TVA resource specialists, and professional 
judgment. The potential adverse impacts from sewage discharges into 
public waterways and the risk and potential harm to the public safety 
from poorly maintained electrical wiring are well established and 
understood. TVA acknowledged that the severity of current impacts is 
not well-sourced in available information. However, TVA concluded in 
its EIS that the severity of impacts will increase if the proliferation 
of floating cabins is not controlled and operating standards are not 
established. It is appropriate that TVA acts to address such potential 
impacts before they become severe.

2. Comments Related to Total Footprint

    Comment: Floating cabins are typically made up of multiple 
sections, the monolithic frame of the main cabin footprint and the 
floating attached structures, such as decks and walkways. Numerous 
commenters expressed a desire to combine the total footprint of all 
components and rebuild to one monolithic frame. The rationale of some 
commenters was that it is safer to have fewer structures, would make 
the waterway cleaner from the ``mess of lashed together garbage,'' and 
is better suited for modern lake activities. Others want to rebuild a 
floating cabin to a different configuration and change the size of 
enclosed space while not exceeding the total current footprint. Still 
others stated that expansions to either the monolithic frame or the 
attached structures should be allowed.
    TVA Response: One of TVA's management goals of the floating cabin 
program is to prevent an increase in total square footage of the 
structures. Currently, the total footprint inventory of the monolithic 
frames of existing floating cabins is over 1.7 million square feet; 
there is an additional 1 million square feet of attached structure 
inventory. Allowing the size of the monolithic frames and/or enclosed 
space to increase will result in more living space and increased 
impacts to water quality, navigation, and privatization of public 
waters. For those reasons, floating cabin owners will not be allowed to 
incorporate the footprint of attached structures into the footprint of 
the monolithic frame. The final rule does provide an opportunity for 
floating cabin owners to increase enclosed space on the existing 
monolithic frame in exchange for a reduction in the footprint of the 
attached structures. This reduction aligns with the comments about 
multiple structures pieced together for each floating cabin and the 
potential risks they pose. TVA also made modifications to the draft 
rule to clarify that reconfigurations of attached structures could be 
considered so long as the total footprint did not exceed the specified 
limits.

3. Comments Opposing a Reduction of Attached Structures Footprint to 
250 Square Feet

    Comment: TVA's draft rule proposed that floating cabin owners would 
be required to reduce attached structures to 250 square feet when 
requesting certain structural modifications or utilizing the 
combination program. Although many comments were received about the 
negative effects of multiple attached structures accompanying floating 
cabins, some commenters opposed this proposal. The commenters' 
rationale was generally that additional enclosed space on the 
monolithic frame would not result in an expansion of water space used 
and, therefore, would not require a reduction of the attached 
structures. Others argued that 250 square feet of open space was too 
little to utilize recreationally. Some felt the reduction was a penalty 
for making improvements and adding living space to the floating cabin.
    TVA Response: TVA agrees that floating cabins should be maintained 
in a good state of repair; however, enlarging enclosed space is not a 
necessary improvement for enjoyment of existing floating cabins. TVA 
will not require a reduction in the attached structures that existed as 
of December 16, 2016, unless the owner requests to make certain 
modifications to their floating cabin; namely, increasing the enclosed 
space on the monolithic frame or utilizing the combination program. To 
counter the impacts of the larger living space and to address concerns 
of multiple, potentially difficult to manage attached structures, TVA 
considers this reduction a reasonable compromise. In response to the 
comments on the draft rule, TVA has increased the maximum footprint for 
attached structures to 400 square feet.

4. Comments Requesting the Ability To Add Additional Attached 
Structures

    Comment: Multiple commenters expressed a desire to add additional 
attached structures to existing floating cabins. Jet Ski ports were the 
most commonly mentioned type of attached

[[Page 50630]]

structure. Some commenters stated these additions were minor in size 
and impacts.
    TVA Response: The final rule allows for the addition of attached 
structures up to a total footprint of 400 square feet. TVA calculates 
footprint as the rectangular or square area of the attached structure 
(length times width at the structures widest and longest points). The 
footprint of each attached structure will be added together to 
determine the total footprint. Floating cabins accompanied by attached 
structures of a greater footprint that existed as of December 16, 2016, 
may remain. Attached structures could be modified to add additional 
items, such as Jet Ski ports, or different configurations as long as 
the total footprint remains the same. All items that consume water 
surface area will be calculated in the total footprint. While the 
individual impacts from adding additional structures to any individual 
floating cabin may be minor, the cumulative impacts of these additions 
could result in a significant increase in square footage of occupied 
surface area on the reservoirs. One of TVA's goals is to prevent 
floating cabins from taking up additional square footage on the water.

5. Comments Related to the Combination Program

    Comment: Multiple commenters requested that TVA increase the 
maximum size of a combined floating cabin; some suggested 1,800 square 
feet, one suggested 2,000 square feet, and one suggested no size 
limitation.
    TVA Response: TVA's goal with the combination program is to reduce 
the number and footprint of floating cabins on the Tennessee River 
System, especially those in a state of disrepair. Analysis of TVA's 
inventory data revealed that a significant majority of floating cabins 
are smaller than 1,000 square feet. The 1,000-square-foot maximum 
provides floating cabin owners adequate incentive to utilize the 
program while staying in line with TVA's goals for the floating cabin 
program. This size is also consistent with TVA's residential dock 
footprint standards.

6. Comments Related to Mooring Requirements

    Comment: Multiple commenters stated that mooring compliance should 
be the responsibility of the marina owner, not the floating cabin 
owner. Others opposed TVA's restriction against securing mooring lines 
to trees on TVA property.
    TVA Response: Multiple mooring systems are utilized across TVA 
reservoirs that are dependent on topography, reservoir level 
fluctuations, and level of effort to manage. TVA will permit the 
mooring obstructions accordingly. For example, in marinas where the 
floating cabins are moored independently to the bottom of the reservoir 
and the floating cabin owner is responsible for the purchase and 
installation of that mooring system, TVA will consider permitting the 
mooring infrastructure to the floating cabin owner. In other cases 
where the marina operator installs a mooring grid and each floating 
cabin anchors to the grid, the components of the mooring system will be 
permitted to each responsible party (i.e., mooring grid is the 
responsibility of the marina owner, individual anchors are the 
responsibility of the floating cabin owner). TVA will continue to 
prohibit the anchoring of all cables, chains, and poles (for both 
floating cabins and other water-use facilities) to trees on TVA 
property. Anchoring to trees on private property will require 
permission from the private property owner.

7. Comments Related to Wastewater

    Comment: Some commenters requested strict enforcement of wastewater 
discharge regulations. Others agreed that wastewater restrictions 
should align with local or state requirements. One commenter stated it 
was impractical to request the collection and/or purification of 
graywater and believed effects from graywater discharge were a non-
issue.
    TVA Response: Discharges of blackwater and graywater are regulated 
by the EPA and the state agencies that are responsible for issuing 
National Pollutant Discharge Elimination System permits for facilities 
that discharge sewage or other wastewater. Pursuant to Section 401 of 
the Clean Water Act, if a structure or activity for which federal 
approval is sought may result in any discharge into navigable waters of 
the United States, then the applicant must also request certification 
from the relevant state certifying agency when applying for a Section 
26a permit. If the certifying agency denies certification on 
appropriate grounds, TVA will not be able to issue the Section 26a 
permit. If the certifying agency grants certification with appropriate 
conditions, those conditions are required to be incorporated in the 
Section 26a permit. If the conditions of that certification are 
violated or TVA is notified of an unresolved violation by one of these 
regulatory agencies, TVA is authorized to revoke the Section 26a permit 
and require removal of the floating cabin in compliance with the WIIN 
Act.

8. Comments Related to Electrical Requirements

    Comment: Some commenters requested clarification on the electrical 
inspection requirements. Others asked for more details on the equipment 
necessary to comply with the rule.
    TVA Response: In response to the comments, TVA has clarified its 
intent regarding electrical inspections and clarified the inspection 
interval. While specific requirements and equipment are subject to 
National Electric Code standards, TVA will provide examples of 
equipment and installation options on its website at www.tva.com/floatingcabins.

9. Comments Related to Flotation

    Comment: Most comments related to flotation were complimentary of 
TVA's proposal to eliminate all unencased flotation by 2031. A few 
commenters requested that TVA make this a requirement earlier than 
2031.
    TVA Response: TVA has prohibited the use of new unencased 
floatation since 2003. Because this requirement applies to all 
obstructions (including, but not limited to, residential docks and 
marina facilities), the final rule includes the proposed deadline. In 
the event that TVA deems existing flotation is no longer serviceable, 
it must be replaced within 24 months of notification from TVA.

10. Comments Related to Manufactured Houseboats and Other Structures

    Comment: Some commenters expressed concerns with manufactured 
houseboats being considered floating cabins. They felt that since 
vessels are already regulated, additional regulation as floating cabins 
was unnecessary. Others commented on the floating docks and other 
attached structures associated with some navigable houseboats. Some 
commenters expressed their desire for only these ``mooring docks'' to 
be considered floating cabins while arguing that the houseboats moored 
to the docks should not be regulated as floating cabins, but instead as 
vessels.
    TVA Response: The determination of a structure as a floating cabin 
is in TVA's sole discretion and its judgment will be guided by criteria 
defined in previous rule amendments. It is not TVA's intent to regulate 
vessels. With regard to docks and other water-use facilities not 
associated with floating cabins, those structures are regulated under 
TVA's Section 26a jurisdiction and approval is subject to the 
applicable regulations. In general, individually-

[[Page 50631]]

owned ``mooring docks'' or other water-use facilities in marina harbor 
limits associated with a vessel will not be permitted and will not be 
considered a floating cabin.

11. Comments Related to the WIIN Act Effective Date

    Comment: Some commenters requested that TVA use a later date than 
December 16, 2016, for the date on which floating cabins and attached 
structures are considered existing and allowed to remain on the 
reservoirs if they comply with TVA's regulations. The main reason 
stated in support of this request is that many floating cabin owners 
were not aware of the new regulations before this date.
    TVA Response: TVA has formally engaged the public and floating 
cabin community related to its review of these structures since April 
30, 2014, when it published the Notice of Intent to assess impacts of 
floating cabins and invited public comments on scoping. TVA's Draft EIS 
was published in June 2015, which included proposed standards for 
regulation. Various opportunities for public engagement and education 
have been offered, including the Board's public listening sessions. 
December 16, 2016, is the date selected by Congress when it passed the 
WIIN Act. Pursuant to the WIIN Act, TVA published this ``cutoff date'' 
in the prior Section 26a rule amendments.

12. Comments Related to Fees

    Comment: Commenters had questions and requested clarification about 
the fees TVA will charge. One commenter stated that TVA is collecting 
an excessive amount of money for registration, transfer, alteration, 
combination, relocation, and yearly fees with no transparency or 
accountability.
    TVA Response: TVA has standard permit application fees that apply 
to all Section 26a requests, including floating cabins. Currently, the 
standard permit application fee for a minor activity, which includes 
most floating cabins, is $500. Modifications to an existing obstruction 
require a new permit, and the application fee is $500. The application 
fee for a change in ownership with no associated modifications is $250. 
Requests for major construction activities are assessed a $1,000 
application fee and are full cost recovery. There is no fee for 
registration of a floating cabin.
    Section 26a permit application fees are governed by TVA's 
Administrative Cost Recovery regulations (18 CFR part 1310) and are 
assessed per application, regardless of the number of items requested 
in a single application (there is not an additional fee for each item 
requested). While TVA was granted the authority by the WIIN Act to levy 
a compliance fee for floating cabins, TVA will not establish that 
charge at this time.

13. Comments in Support of the Final Rule

    Comment: Numerous commenters expressed general support for the 
final rule amendments. Many expressed appreciation for TVA's 
collaborative approach at managing the Floating Cabin Program and 
drafting reasonable regulations. Others commented that TVA's 
documentation, inventory, registration, and inspection of floating 
cabins is an appropriate way to ensure owners are held accountable for 
properly maintaining their structures. Others emphasized that TVA 
should regularly and fairly enforce the regulations.
    TVA Response: TVA acknowledges these comments and agrees with the 
need to have reasonable standards and rules, have consistent 
enforcement of regulations, and avoid overly burdensome requirements. 
TVA appreciates the input and feedback received from the stakeholder 
group.

III. Administrative Requirements

A. Unfunded Mandates Reform Act, National Environmental Policy 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. 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; E.O. 12988, 
Civil Justice Reform Act; and E.O. 13771, Reducing Regulation and 
Controlling Regulatory Costs

    In determining what action to take with respect to floating cabins, 
TVA prepared an Environmental Impact Statement (EIS) in accordance with 
the National Environmental Policy Act. This EIS assessed the 
environmental and socioeconomic impacts of different policies to 
address the proliferation of floating cabins on the Tennessee River 
System. TVA released a draft of this EIS for public comment in June 
2015 and held four public meetings and a webinar to provide information 
about its analyses and to facilitate public involvement. The final EIS 
and associated documents can be found at https://www.tva.com/floatingcabins. One of the alternatives evaluated by TVA in the EIS was 
to approve and issue permits for the mooring of existing floating 
cabins that meet new minimum standards and to prohibit new floating 
cabins. TVA previously published a final rule that clarified the types 
of structures that TVA will regulate as a floating cabin and prohibited 
new floating cabins from mooring on the Tennessee River System. This 
final rule establishes minimum health, safety, environmental, and 
permitting standards that existing floating cabins will be required to 
meet. TVA's analysis of this alternative in the EIS determined that 
prohibiting new floating cabins and applying new standards would result 
in minor beneficial impacts to many resource areas (e.g., water 
quality, recreation, cultural resources), but that the alternative may 
result in significant economic effects to some floating cabin owners or 
marina operators, depending on the extent to which their floating cabin 
would need to be updated to meet the new standards.
    This final rule is a ``significant regulatory action'' under the 
criteria set forth in section 3(f) of Executive Order 12866, 
``Regulatory Planning and Review.'' 58 FR 51735 (October 4, 1993). 
Accordingly, this action was subject to review by the Office of 
Information and Regulatory Affairs (``OIRA'') in the Office of 
Management and Budget (``OMB''). TVA has determined it will not have an 
economically 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. TVA estimates there are 
approximately 2,200 floating cabins on the Tennessee River System. 
TVA's estimate on compliance costs include the following ranges for 
each Floating Cabin provision: (1) Wastewater: $4,000-$8,000; (2) 
flotation: $10,000-$15,000; (3) mooring: $3,000-$5,000; (4) electrical: 
$250-$5,000. Most of the costs described are one-time investments, and 
not every floating cabin will require modifications in each area as 
many are already in compliance with one or more of the new provisions. 
As a result, this final rule will not exceed $100 million in annual 
impact.
    This final rule contains no federal mandates for state, local, or 
tribal government or for the private sector. The rule will not have a 
substantial direct effect on the States or Indian tribes, on the 
relationship between the Federal Government and the States or Indian 
tribes, or on the distribution of power and responsibilities between 
the Federal Government and States or

[[Page 50632]]

Indian tribes. Nor will the rule 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.
    Unified development and regulation of the Tennessee River System 
through an approval process for obstructions across, along, or in the 
river system and management of United States-owned land entrusted to 
TVA are federal functions for which TVA is responsible under the TVA 
Act, as amended. In general, the final rule updates or clarifies TVA's 
regulations relating to the standards that floating cabins will be 
required to meet in order to remain on the Tennessee River System. The 
final rule will establish a charge for individuals or entities that 
request certain services from TVA relating to use of its property, 
reservoirs, and permitting for a floating cabin. Absent a request for 
these services for a Section 26a permit, no entity or individual would 
be forced to pay a charge. None of the charges would be applied 
retroactively. The final rule also amends TVA's regulations to clarify 
a date certain by which all unencased flotation must be removed from 
TVA's reservoirs. The proposal also amends TVA's regulations to 
establish a time period after which TVA will deem a state's water 
quality certification decision to be waived and proceed with processing 
of Section 26a permit applications. TVA will continue to appropriately 
review specific requests in accordance with applicable laws, 
regulations, and Executive Orders.

B. Regulatory Flexibility Act

    Under the Regulatory Flexibility Act, 5 U.S.C. 605, 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 this proposal will not have a significant 
economic impact on a substantial number of small entities. The statute 
defines ``small entity'' as a ``small business,'' ``small 
organization'' (further defined as a ``not-for-profit enterprise''), or 
a ``small governmental jurisdiction.'' Most floating cabins are owned 
by individuals and not businesses, not-for-profit enterprises, or small 
governmental jurisdictions, and therefore relatively few ``small 
entities'' will be affected by TVA's proposal. Even if the final rule 
tangentially impacts marinas that accommodate floating cabins, this 
represents only 29% of marinas on TVA reservoirs. Accordingly, this 
rule will not have a significant impact on a substantial number of 
small entities; no regulatory flexibility analysis is required; and 
TVA's Chief Executive Officer has made the requisite certification.

C. Paperwork Reduction Act Title of Information Collection

    Section 26a Permit Application.
    OMB Approval Number: 3316-0060.
    This rule contains information collection requirements for 
registration and permitting of floating cabins, which were approved by 
the Office of Management and Budget (OMB) on June 18, 2019.

List of Subjects in 18 CFR Part 1304

    Administrative practice and procedure, Natural resources, 
Navigation (water), Rivers, Water pollution control.

    For the reasons set out in the preamble, the Tennessee Valley 
Authority amends 18 CFR part 1304 of the Code of Federal Regulations as 
follows:

PART 1304--APPROVAL OF CONSTRUCTION IN THE TENNESSEE RIVER SYSTEM 
AND REGULATION OF STRUCTURES AND OTHER ALTERATIONS

0
1. The authority citation for 18 CFR Part 1304 continues to read as 
follows:

    Authority: 16 U.S.C. 831-831ee.


0
2. Amend Sec.  1304.2 by:
0
a. Revising paragraphs (a) and (b);
0
b. Revising the first sentence of paragraph (c)(1) introductory text;
0
c. Revising paragraph (c)(1)(i);
0
d. Revising paragraph (c)(1)(ii)(A);
0
e. Revising the first sentence of paragraph (c)(2)(i) introductory 
text;
0
f. Revising paragraph (c)(2)(ii)(A); and
0
g. Revising paragraph (d).
    The additions and revisions read as follows:


Sec.  1304.2   Application.

    (a) If the facility is to be built on TVA land, the applicant must, 
in addition to the other requirements of this part, own the fee 
interest in or have an adequate leasehold or easement interest of 
sufficient tenure to cover the normal useful life of the proposed 
facility in land immediately adjoining the TVA land. If the facility is 
to be built on private land, the applicant must own the fee interest in 
the land or have an adequate leasehold or easement interest in the 
property where the facility will be located. If the facility is an 
existing floating cabin, it must meet the requirements of subpart B. 
TVA recognizes, however, that in some cases private property has been 
subdivided in a way that left an intervening strip of land between the 
upland boundary of a TVA flowage easement and the waters of the 
reservoir, or did not convey to the adjoining landowner the land 
underlying the waters of the reservoir. In some of these situations, 
the owner of the intervening strip or underlying land cannot be 
identified or does not object to construction of water-use facilities 
by the adjacent landowner. In these situations, TVA may exercise its 
discretion to permit the facility, provided there is no objection from 
the fee owner of the intervening strip or underlying land. A TVA permit 
conveys no property interest. The applicant is responsible for locating 
the proposed facility on qualifying land and ensuring that there is no 
objection from any owner of such land. TVA may require the applicant to 
provide appropriate verification of ownership and lack of objection, 
but TVA is not responsible for resolving ownership questions. In case 
of a dispute, TVA may require private parties requesting TVA action to 
grant or revoke a TVA permit to obtain a court order declaring 
respective ownership and/or land rights. TVA may exercise its 
discretion to permit a facility on TVA land that is located up or 
downstream from the land which makes the applicant eligible for 
consideration to receive a permit.
    (b) Applications shall be addressed to Tennessee Valley Authority, 
at the appropriate Regional Watershed Office location as listed on the 
application and on TVA's website. To contact an office, call 1-800-882-
5263 or email [email protected]. Applications are available on TVA's 
website.
    (c) * * *
    (1) * * * By way of example only, minor facilities may include: 
boat docks, piers, rafts, boathouses, fences, steps, gazebos, and 
floating cabins. * * *
    (i) Completed application form. One copy of the application shall 
be prepared and submitted. Application forms are available on TVA's 
website. The application shall include a project description which 
indicates what is to be built, removed, or modified, and the sequence 
of the work. Applications for floating cabins shall include written 
evidence that the floating cabin was located or moored on the Tennessee 
River System as of December 16, 2016, and detailed descriptions of 
mooring method, how electrical service is provided, and how wastewater 
is managed. An application to relocate a floating cabin to a marina 
shall include

[[Page 50633]]

evidence of approval from the accepting marina operator.
    (ii) * * *
    (A) Be prepared electronically or on paper suitable for 
reproduction (no larger than 11 by 17 inches).
* * * * *
    (2) * * *
    (i) * * * Application forms are available on TVA's website. * * *
    (ii) * * *
    (A) Be prepared electronically or on paper suitable for 
reproduction (no larger than 11 by 17 inches).
    (d) Discharges into navigable waters of the United States. If 
construction, maintenance, or operation of the proposed structure or 
any part thereof, or the conduct of the activity in connection with 
which approval is sought may result in any discharge into navigable 
waters of the United States, applicant shall also submit with the 
application, in addition to the material required by paragraph (c) of 
this section, a copy of the request for certification from the state in 
which such discharge would originate, or if appropriate, from the 
interstate water pollution control agency having jurisdiction over the 
navigable waters at the point where the discharge would originate, or 
from the Environmental Protection Agency, that such state or interstate 
agency or the Environmental Protection Agency has determined that the 
applicant's proposed activity will be conducted in a manner that will 
comply with applicable water quality standards. The applicant shall 
further submit such supplemental and additional information as TVA may 
deem necessary for the review of the application, including, without 
limitation, information concerning the amounts, chemical makeup, 
temperature differentials, type and quantity of suspended solids, and 
proposed treatment plans for any proposed discharges. No section 26a 
permit will be granted until required certification has been obtained 
or has been waived. If a certifying agency has not acted within a 
reasonable period of time, not to exceed one year, of an applicant's 
request for certification from the respective agency and certification 
is waived, TVA will proceed with processing of the section 26a permit 
application.

0
3. Amend Sec.  1304.10 by:
0
a. Revising paragraph (b)(2) and
0
b. Adding paragraph (c).
    The addition and revision read as follows:


Sec.  1304.10   Change in ownership of approved facilities or 
activities

* * * * *
    (b) * * *
    (2) Obtain TVA approval for any repairs that would alter the size 
of the facility, create a structural modification, or for any new 
construction.
    (c) Change in ownership of a floating cabin is addressed in Sec.  
1304.102.

0
4. Revise Sec.  1304.100 to read as follows:


Sec.  1304.100   Scope and intent.

    This subpart prescribes requirements for floating cabins on the 
Tennessee River System. Floating cabins as applied to this subpart 
include existing nonnavigable houseboats approved by TVA and other 
existing structures, whose design and use is primarily for human 
habitation or occupation and not for navigation or transportation on 
the water. Floating cabins that were not located or moored on the 
Tennessee River System as of December 16, 2016, shall be deemed new 
floating cabins. New floating cabins are prohibited and subject to the 
removal provisions of this part and Section 9b of the TVA Act. No new 
floating cabins shall be moored, anchored, or installed on the 
Tennessee River System. Floating cabins that were located or moored in 
the Tennessee River System as of December 16, 2016, shall be deemed 
existing floating cabins. Existing floating cabins may remain moored on 
the Tennessee River System provided they remain in compliance with the 
rules in this part and obtain a permit from TVA issued after October 
12, 2021. All permits for nonnavigable houseboats or floating cabins 
that were not located on the Tennessee River System as of December 16, 
2016, are terminated. Unless otherwise noted, the term floating cabin 
refers to the primary structure on the monolithic frame as well as all 
attached structures.

0
5. Revise Sec.  1304.101 to read as follows:


Sec.  1304.101   Floating cabins.

    (a)(1) Floating cabins include nonnavigable houseboats approved by 
TVA as of December 16, 2016, and other floating structures moored on 
the Tennessee River System as of this date and determined by TVA in its 
sole discretion to be designed and used primarily for human habitation 
or occupation and not designed and used primarily for navigation or 
transportation on the water as of December 16, 2016. If, at any time, 
the floating cabin is modified such that it no longer meets the 
criteria to be deemed a floating cabin, the approval for that existing 
floating cabin will be terminated. TVA's judgment will be guided by, 
but not limited to, the following factors:
    (i) Whether the structure is usually kept at a fixed mooring point;
    (ii) Whether the structure is actually used on a regular basis for 
transportation or navigation;
    (iii) Whether the structure has a permanent or continuous 
connection to the shore for electrical, plumbing, water, or other 
utility service;
    (iv) Whether the structure has the performance characteristics of a 
vessel typically used for navigation or transportation on water;
    (v) Whether the structure can be readily removed from the water;
    (vi) Whether the structure is used for intermittent or extended 
human-habitation or occupancy;
    (vii) Whether the structure clearly has a means of propulsion, and 
appropriate power/size ratio;
    (viii) Whether the structure is safe to navigate or use for 
transportation purposes.
    (2) That a structure could occasionally move from place to place, 
or that it qualifies under another federal or state regulatory program 
as a vessel or boat, are factors that TVA also will consider but would 
not be determinative. Floating cabins are not recreational vessels to 
which Sec.  1304.409 applies.
    (b) Owners of floating cabins are required to register the floating 
cabin with TVA by January 10, 2022. Floating cabin owners shall include 
the following information with their registration: Clear and current 
photographs of the structure; a drawing or drawings showing in 
reasonable detail the size and shape of the floating cabin (length, 
width, and height) and attached structures, such as decks or slips 
(length, width, and height); and a completed and signed TVA 
registration form. The completed TVA registration form shall include 
the mailing and contact information of the owner(s); the TVA permit or 
TVA-issued numbers (when applicable); the mooring location of the 
floating cabin; how the floating cabin is moored; how electrical 
service is provided; how wastewater and sewage are managed; and an 
owner's signature.
    (c) All floating cabins shall comply with the rules contained in 
this part and make application for a section 26a permit by October 1, 
2024.
    (d) Existing floating cabins may remain on the Tennessee River 
System provided they stay in compliance with the rules contained in 
this part and pay any necessary and reasonable fees levied by TVA to 
ensure compliance with TVA's regulations, in accordance with section 9b 
of the TVA Act.

[[Page 50634]]

    (e) Existing floating cabins must be moored at one of the following 
locations:
    (1) To the bank of the reservoir at locations where the owner of 
the floating cabin is the owner or lessee (or the licensee of such 
owner or lessee) of the proposed mooring location provided the floating 
cabin was moored at such location as of December 16, 2016;
    (2) At locations described by Sec.  1304.201(a)(1), (2), and (3) 
provided the floating cabin was moored at such location as of December 
16, 2016;
    (3) To the bank of the reservoir at locations where the owner of 
the floating cabin obtained written approval from TVA pursuant to 
subpart A of this part authorizing mooring at such location as of 
December 16, 2016; or
    (4) Within the designated and approved harbor limits of a 
commercial marina that complies with Sec.  1304.404. As provided in 
Sec.  1304.404, TVA may adjust harbor limits and require relocation of 
an existing floating cabin within the harbor limits.
    (f) Applications for mooring of a floating cabin outside of 
designated harbor limits will be disapproved if TVA determines that the 
proposed mooring location would be contrary to the intent of this 
subpart.
    (g) A floating cabin moored at a location approved pursuant to this 
subpart shall not be relocated and moored at a different location 
without a permit from TVA, except for movement to a new location within 
the designated harbor limits of the same commercial marina. Existing 
floating cabins may only relocate to the harbor limits of a commercial 
marina that complies with Sec.  1304.404 on the same reservoir where 
the floating cabin was moored as of December 16, 2016. Relocation of a 
floating cabin to another TVA reservoir is prohibited.
    (h)(1) Existing floating cabins shall be maintained in a good state 
of repair and may be maintained without additional approval from TVA. 
By way of example, these activities may include painting, changing the 
internal walls within the existing enclosed space, replacing the 
shingles, siding, electrical wiring, or plumbing, or adding new 
flotation in compliance with Sec.  1304.400. Repair and maintenance 
activities shall not modify the dimensions (length, width, and height) 
of the floating cabin, any external walls, or the enclosed or open 
space.
    (2) Any alterations to the dimensions or approved plans for an 
existing floating cabin shall be deemed a structural modification and 
shall require prior written approval from TVA. All expansions in 
length, width, or height are prohibited, except under the following 
circumstances if approved in writing in advance by TVA:
    (i) TVA may allow alterations necessary to comply with health, 
safety, and environmental standards;
    (ii) TVA may allow changes in roof pitch or allow open portions of 
the monolithic frame to be covered, but no part of the floating cabin 
may exceed a total height of 14 feet above the lowest floor level; or
    (iii) TVA may allow enclosure of existing open space on the 
monolithic frame of the existing floating cabin if the enclosure will 
not result in expansion to the dimensions (length, width, and height) 
of the monolithic frame, subject to Sec.  1304.101(i). At least 24 
contiguous square feet of open space with a minimum width of four feet 
shall be maintained on the monolithic frame for unrestricted boarding.
    (3) Owners must submit an application to TVA 60 days in advance of 
proposed rebuilding of a floating cabin or a significant portion of a 
floating cabin. The owner shall not begin construction until prior 
written acknowledgment from TVA is received. Plans for removal of the 
existing floating cabin or portions to be rebuilt shall be acknowledged 
in writing by TVA before removal occurs, and the removal shall be at 
the owner's expense before construction of the rebuild may begin. The 
owner shall provide evidence of approval from the marina operator to 
rebuild within the marina. TVA may require a new permit for the 
proposed rebuilding. Construction of the rebuilt floating cabin must be 
completed within 18 months. The rebuilt floating cabin shall match the 
exact configuration and dimensions (length, width, and height) of both 
the total floating cabin and the enclosed and open space as approved by 
TVA; attached structures are subject to Sec.  1304.101(i).
    (4) TVA may allow the exchange of multiple existing floating cabins 
removed from the Tennessee River System for a single combined floating 
cabin under the following conditions:
    (i) Prior written approval from TVA shall be obtained before taking 
any actions. Evidence shall be provided to TVA that all existing 
floating cabins to be exchanged were located on the Tennessee River 
System as of December 16, 2016.
    (ii) Plans for removal of the existing floating cabin(s) shall be 
approved in writing by TVA before removal occurs, and the floating 
cabin(s) shall be removed at the owner's expense before construction of 
the new combined floating cabin may begin. Approvals of the existing 
floating cabins to be exchanged will be terminated. Construction on the 
new combined floating cabin must be completed within 18 months.
    (iii) The combined floating cabin shall be moored within the harbor 
limits of a commercial marina that complies with Sec.  1304.404. The 
owner shall provide evidence of approval from the marina operator to 
locate within the marina. The combined floating cabin must be located 
on the same reservoir as any of the existing floating cabins to be 
exchanged.
    (iv) The maximum total size of the monolithic frame of the combined 
floating cabin is 1,000 square feet or the sum of the square footage of 
the monolithic frames of the existing exchanged floating cabins, 
whichever is less. At least 24 contiguous square feet with a minimum 
width of four feet must remain open to allow for unrestricted boarding 
of the combined floating cabin. Any square footage of the existing 
exchanged floating cabins that exceeds the maximum allowable total size 
of the combined floating cabin is not transferrable to other projects 
or owners.
    (v) The maximum height of any part of the combined floating cabin 
is 14 feet above the lowest floor level.
    (vi) Floating attached structures, such as decks or platforms, are 
subject to Sec.  1304.101(i).
    (i) With written approval from TVA, floating cabins may be 
accompanied by floating attached structures subject to the following:
    (1) A single floating cabin may have multiple floating attached 
structures. The footprint of each attached structure will be measured 
as a rectangular or square area. The total footprint of all attached 
structures for a single floating cabin cannot exceed 400 square feet or 
the total footprint of the existing attached structures that were part 
of the floating cabin as of December 16, 2016, whichever is greater.
    (2) The footprint of the attached structures shall not be 
incorporated into the footprint of the monolithic frame of the floating 
cabin.
    (3) Attached structures shall not exceed 14 feet in height from the 
lowest floor level, shall not be enclosed, and shall comply with Sec.  
1304.204(p).
    (4) All attached structures must be permitted to the floating cabin 
owner. The owner shall provide evidence of approval from the marina 
operator for the attached structures.
    (5) Existing attached structures that were part of the floating 
cabin as of December 16, 2016, may remain with written approval from 
TVA. Any requests to rebuild or reconfigure attached structures must 
comply with

[[Page 50635]]

Sec.  1304.101(i)(1) through (4). Attached structures associated with a 
request for a structural modification as described in Sec.  
1304.101(h)(2)(iii) or a combined floating cabin as described in Sec.  
1304.101(h)(4) shall not exceed a total footprint of 400 square feet.
    (j) Any floating cabin not in compliance with this part is subject 
to the applicable removal provisions of Sec.  1304.406 and section 9b 
of the TVA Act.

0
6. Revise Sec.  1304.102 to read as follows:


Sec.  1304.102   Numbering of floating cabins and change in ownership.

    (a) All approved floating cabins and attached structures shall 
display a number assigned by TVA. The owner of the floating cabin shall 
paint or attach a facsimile of the number on a readily visible part of 
the outside of the facilities in letters at least three inches high. If 
TVA provided a placard or tag, it must be displayed on a readily 
visible part of the outside of the floating cabin.
    (b) When there is a change in ownership of the floating cabin, the 
new owner shall notify TVA within 60 days. Upon application to TVA by 
the new owner, the new owner may continue to use the existing floating 
cabin or carry out permitted activities pending TVA's decision on 
reissuance of the permit. TVA shall reissue the permit upon determining 
the floating cabin is in good repair, is the same configuration and 
dimensions (length, width, and height) of both the floating cabin and 
the enclosed and open space as previously permitted, moored in the same 
location or in the harbor limits of the same commercial marina, and 
complies with the conditions of the previous approval and the 
requirements of this subpart.

0
7. Add Sec.  1304.103 to read as follows:


Sec.  1304.103   Health, safety, and environmental standards.

    (a) Wastewater. Floating cabins shall comply with Sec.  1304.2(d) 
with regard to discharges into navigable waters of the United States. 
All discharges, sewage, and wastewater, and the pumping, collection, 
storage, transport, and treatment of sewage and wastewater shall be 
managed in accordance with all applicable federal, state, and local 
laws and regulations. If a floating cabin is documented to be in 
violation of any federal, state, or local discharge or water quality 
regulation by the respective regulatory agency, TVA is authorized to 
revoke the permit and require removal of the floating cabin from the 
Tennessee River System if the violation is not corrected as specified 
by the regulatory agency in accordance with the agency's requirements.
    (b) Flotation. Floating cabins shall comply with the requirements 
for flotation devices and material contained in Sec.  1304.400.
    (c) Mooring. All floating cabins must be moored in such a manner as 
to:
    (1) Avoid obstruction of or interference with navigation, flood 
control, public lands, or reservations;
    (2) Avoid adverse effects on public lands or reservations;
    (3) Prevent the preemption of public waters when moored in 
permanent locations outside of the approved harbor limits of commercial 
marinas;
    (4) Protect land and land rights owned by the United States 
alongside and subjacent to TVA reservoirs from trespass and other 
unlawful and unreasonable uses;
    (5) Maintain, protect, and enhance the quality of the human 
environment;
    (6) Ensure visibility of all mooring cables; and
    (7) Comply with Sec.  1304.205(c).
    (d) Electrical. Floating cabins shall comply with all applicable 
federal, state, and local laws and regulations regarding electrical 
wiring and equipment. If a floating cabin is documented to be in 
violation of any federal, state, or local electrical standard or 
regulation by the respective regulatory agency, TVA is authorized to 
revoke the permit and require removal of the floating cabin from the 
Tennessee River System if the violation is not corrected as specified 
by the regulatory agency in accordance with the agency's requirements. 
Floating cabins shall comply with Sec.  1304.209(c)(2).
    (e) Electrical certifications. Floating cabin owners shall provide, 
in a form acceptable to TVA, certification of compliance with the 
electrical standards of paragraphs (e)(1) and (2) of this section with 
their initial permit application, no later than October 1, 2024, and by 
October 1 of every even-numbered year thereafter. The certification 
must be signed by a licensed electrical engineer, a state-certified 
electrical inspector, or a person certified by the International 
Association of Electrical Inspectors, the International Code Council, 
or an equivalent organization.
    (1) All floating cabins must meet the following minimum 
requirements for ground fault protection:
    (i) The feeder(s) from electrical service on the shore to the 
floating cabin shall have ground fault protection not exceeding 100 
milliamps.
    (ii) If the floating cabin has a transformer, the transformer shall 
have ground fault protection not exceeding 100 milliamps at the first 
overcurrent protection device on the secondary side of the transformer. 
The conductors from the transformer enclosure to the overcurrent 
protection device shall not exceed ten feet and shall be installed in a 
raceway.
    (iii) If the floating cabin is located in a marina and the feeder 
supplying the floating cabin is part of the marina's electrical system, 
the feeder shall have ground fault protection not exceeding 100 
milliamps.
    (iv) If another source of electrical power is utilized on a 
floating cabin, such as but not limited to a generator, photovoltaic 
cell, or wind turbine, the source of electrical power shall have ground 
fault protection not exceeding 100 milliamps at the first overcurrent 
protection device for each source. For permanently installed sources, 
the conductors from the source to the first overcurrent protection 
device shall not exceed ten feet and shall be installed in a raceway.
    (v) The floating cabin owner may determine the devices that are 
utilized to achieve the ground fault protection requirement provided 
such devices are labeled and listed from a third-party testing 
laboratory for the purpose of the installation.
    (2) If power is supplied to the floating cabin by an underwater 
cable, the portable power cable shall, at a minimum, meet the 
requirements of National Fire Protection Association 70 Article 555.13 
(A)(2) and (B)(4) of the 2017 National Electrical Code. For new 
portable power cables installed after October 12, 2021, the cables 
shall meet the requirements of the most recent version of the National 
Electric Code.

0
8. Amend Sec.  1304.204 by revising paragraphs (a) and (i) to read as 
follows:


Sec.  1304.204  Docks, piers, and boathouses.

* * * * *
    (a) Docks, piers, boathouses, and all other residential water-use 
facilities shall not exceed a total footprint area of 1,000 square 
feet, unless the proposed water-use facility will be located in an area 
of preexisting development. For the purpose of this regulation, 
``preexisting development'' means either: The water-use facility will 
be located in a subdivision recorded before November 1, 1999, and TVA 
permitted at least one water-use facility in the subdivision prior to 
November 1, 1999; or if there is no subdivision, where the water-use 
facility will be located within a quarter-mile radius of another water-
use facility that TVA permitted prior to November 1, 1999. Water-use 
facilities located in an area of preexisting development shall

[[Page 50636]]

not exceed a total footprint area of 1,800 square feet.
* * * * *
    (i) Where the applicant owns or controls less than 50 feet of 
property adjoining TVA shoreland, the overall width of the facilities 
permitted along the shore shall be limited to ensure sufficient space 
to accommodate other property owners.
* * * * *

0
9. Amend Sec.  1304.211 by revising paragraph (d)(2) to read as 
follows:


Sec.  1304.211  Change in ownership of grandfathered structures or 
alterations.

* * * * *
    (d) * * *
    (2) Obtain TVA approval for any repairs that would alter the size 
of the facility, create a structural modification, for any new 
construction, or for removal of trees or other vegetation (except for 
mowing of lawns established prior to November 1, 1999).

0
10. Amend Sec.  1304.212 by revising paragraph (a)(1) to read as 
follows:


Sec.  1304.212   Waivers.

    (a) * * *
    (1) The property is within a preexisting development as defined in 
Sec.  1304.204(a); and
* * * * *

0
11. Amend Sec.  1304.302 by revising the first sentence to read as 
follows:


Sec.  1304.302   Vegetation management on flowage easement shoreland.

    Removal, modification, or establishment of vegetation on privately-
owned shoreland subject to a TVA flowage easement generally does not 
require approval by TVA. * * *

0
12. Revise Sec.  1304.400(a) to read as follows.


Sec.  1304.400   Flotation devices and material, all floating 
structures.

    (a)(1) By December 31, 2031, all unencased (i.e., Styrofoam) 
flotation shall have been removed and replaced with flotation 
consistent with this subpart. Structures continuing to use unencased 
flotation after December 31, 2031, will be subject to removal under 
Sec.  1304.406. Use or reuse of unencased flotation for repairs, 
replacement, or new construction is prohibited. Existing unencased 
flotation (secured in place prior to September 8, 2003) may continue to 
be used until December 31, 2031, so long as it remains attached and in 
good condition in TVA's judgement. If, in TVA's judgement, the 
flotation is no longer serviceable, it shall be replaced with approved 
flotation within 24 months upon notification from TVA.
    (2) All flotation for docks, boat mooring buoys, floating cabins 
and attached structures, and other water-use structures and facilities, 
shall be of materials commercially manufactured for marine use. 
Flotation materials shall be fabricated so as not to crack, peel, 
fragment, become water-logged, or be subject to loss of beads. 
Flotation materials shall be resistant to puncture, penetration, damage 
by animals, and fire. Any flotation within 40 feet of a line carrying 
fuel shall be 100 percent impervious to water and fuel. Use of plastic, 
metal, or other previously used drums or containers for encasement or 
flotation purposes is prohibited, except as provided in paragraph (c) 
of this section for certain metal drums already in use. For any 
flotation devices or material, repair or replacement is required when 
it no longer performs its designated function or it exhibits any of the 
conditions prohibited by this subpart.
* * * * *

0
13. Revise the first sentence of Sec.  1304.406 to read as follows.


Sec.  1304.406   Removal of unauthorized, unsafe and derelict 
structures or facilities.

    If, at any time, any dock, wharf, boathouse (fixed or floating), 
floating cabin, outfall, aerial cable or other fixed or floating 
structure or facility (including any navigable boat or vessel that has 
become deteriorated or is a potential navigation hazard or impediment 
to flood control) is anchored, installed, constructed or moored in a 
manner inconsistent with this part, or is not constructed in accordance 
with TVA's approval or plans approved by TVA, or is not maintained or 
operated so as to remain in accordance with this part and such approval 
or plans, or is not kept in a good state of repair and in good, safe 
and substantial condition, and the owner or operator thereof fails to 
repair or remove such structure (or operate or maintain it in 
accordance with such approval or plans) within ninety (90) days after 
written notice from TVA to do so, TVA may cancel any license, permit, 
or approval and remove such structure, and/or cause it to be removed, 
from the Tennessee River system and/or lands in the custody and control 
of TVA. * * *

0
14. Amend Sec.  1304.412 by:
0
a. Adding in alphabetical order the definition of ``Attached 
structure'';
0
b. Revising the definition of ``Backlot:;
0
c. Adding in alphabetical order the definition of ``Combined floating 
cabin'';
0
d. Revising the definitions for ``Community outlot'', ``Enclosed 
structure'', ``Existing floating cabin'';
0
e. Adding in alphabetical order the definition of ``Floating cabin,''
0
f. Revising the definition of ``Footprint'';
0
g. Adding in alphabetical order the definition of ``Monolithic frame'';
0
h. Revising the definitions of ``New floating cabin,'' and 
``Rebuilding''; and
0
i. Adding in alphabetical order the definition of ``Structural 
Modification''.
    The additions and revisions read as follows:


Sec.  1304.412   Definitions.

* * * * *
    Attached structure means a floating deck, walkway, platform, slip, 
Jet Ski port, or other floating structure that supports the use of a 
floating cabin and can be detached from the floating cabin. Attached 
structures are not considered part of the monolithic frame of a 
floating cabin.
* * * * *
    Backlot means a residential lot not located adjacent to the 
shoreland but located in a subdivision associated with the shoreland.
* * * * *
    Combined floating cabin means a single floating cabin that replaces 
two or more existing floating cabins.
* * * * *
    Community outlot means a subdivision lot located adjacent to the 
shoreland and designated by deed, subdivision covenant, or recorded 
plat as available for use by designated property owners within the 
subdivision.
* * * * *
    Enclosed structure means a structure enclosed overhead and on all 
sides so as to keep out the weather. Floor space shall not be 
considered enclosed if three of the four walls are constructed of wire 
or screen mesh from floor to ceiling, and the wire or screen mesh 
leaves the interior of the structure open to the weather.
    Existing floating cabin means a floating cabin that was located or 
moored on the Tennessee River System as of December 16, 2016.
    Floating cabin means a nonnavigable houseboat approved by TVA as of 
December 16, 2016, and other floating structures moored on the 
Tennessee River System and determined by TVA in its sole discretion to 
be designed and used primarily for human habitation or occupation and 
not designed and used primarily for navigation or transportation on the 
water.
* * * * *
    Footprint means the total water surface area of either a square or 
rectangular shape occupied by a floating

[[Page 50637]]

cabin or adjoining property owner's dock, pier, boathouse, or 
boatwells.
* * * * *
    Monolithic frame means the supporting floor structure of a floating 
cabin that is constructed as one rigid component. It specifically 
excludes any attached structures, such as decks and platforms, 
regardless of when they were connected or how they are connected (e.g., 
pins, hinges, bolts, ropes).
    New floating cabin means a floating cabin that was not located or 
moored on the Tennessee River System as of December 16, 2016.
* * * * *
    Rebuilding means replacement of all or a significant portion of an 
approved obstruction to the same configuration, total footprint, and 
dimensions (length, width, and height of the obstruction or enclosed or 
open space) as the approved plans, standards, and conditions of the 
section 26a permit.
* * * * *
    Structural modification means any alteration to the dimensions 
(length, width, and height of the obstruction or enclosed or open 
space), footprint, or approved plans of a structure.
* * * * *

Allen A. Clare,
Vice President, River and Resources Stewardship.
[FR Doc. 2021-19098 Filed 9-9-21; 8:45 am]
BILLING CODE 8120-08-P