[Federal Register Volume 89, Number 168 (Thursday, August 29, 2024)]
[Proposed Rules]
[Pages 70145-70148]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-19373]


=======================================================================
-----------------------------------------------------------------------

TENNESSEE VALLEY AUTHORITY

18 CFR Part 1304

RIN 3316-AA25


Floating Cabins

AGENCY: Tennessee Valley Authority.

ACTION: Proposed rule.

-----------------------------------------------------------------------

SUMMARY: The Tennessee Valley Authority (TVA) is proposing to amend its 
regulations that govern floating cabins located on the Tennessee River 
System.

DATES: Written comments must be received on or before September 30, 
2024.

ADDRESSES: You may send comments, identified by RIN 3316-AA25, by any 
of the following methods:
    Mail/Hand Delivery: David B. Harrell, Program Manager, Floating 
Cabins, Tennessee Valley Authority, 400 West Summit Hill Drive, WT 11A-
K, Knoxville, TN 37902.
    Email: [email protected].

FOR FURTHER INFORMATION CONTACT: David B. Harrell, 865-632-1327, 
[email protected].

SUPPLEMENTARY INFORMATION:

Legal Authority

    These proposed amendments are promulgated under the authority of 
the TVA Act, as amended, 16 U.S.C. 831 et seq. 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. TVA has long considered 
nonnavigable structures such as floating cabins to be obstructions that 
require its approval. In addition, Section 9b of the TVA Act (16 U.S.C. 
831h-3) provides that TVA may require floating cabins to be maintained 
by the owner to reasonable health, safety, and environmental standards.

Background and Proposed Amendments

    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 
those purposes, TVA uses the system to improve water quality and water 
supply and to provide a wide range of public benefits including 
recreation.
    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

[[Page 70146]]

inundated land along and under its reservoir system.
    The proposed amendments would modify health, safety, and 
environmental standards for floating cabins, including standards for 
electrical safety. The proposed amendments also address TVA's 
management and administration of the floating cabins program, including 
clarification around the allowable size of the structures. The proposed 
amendments would extend the deadline to allow floating cabin owners 
until October 1, 2029, to comply with the rules and apply for a Section 
26a permit. TVA also proposes to make other minor changes to its 
Section 26a regulations for clarity and consistency.
    Since 1971, TVA has used its Section 26a authority to prohibit the 
mooring on the Tennessee River System of new floating cabins (formerly 
nonnavigable houseboats) that are designed and used primarily for 
habitation and not for water transportation. In particular, TVA amended 
its regulations in 1971 to prohibit the mooring or anchoring of new 
nonnavigable houseboats except for those in existence before November 
21, 1971. Since 1971, TVA has made minor changes to its regulations 
affecting nonnavigable houseboats, including in 1978 when TVA 
prohibited mooring of nonnavigable houseboats on the Tennessee River 
System except for those in existence on or before February 15, 1978. 
Effective October 1, 2018, TVA updated its regulations to change the 
terminology to floating cabins (rather than nonnavigable houseboats) 
and prohibit new floating cabins that did not exist on the Tennessee 
River System on or before December 16, 2016.
    Despite over 40 years of regulation 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. The final EIS and associated documents can be found at 
https://www.tva.com/floatingcabins.
    After considering the comments received during the EIS process and 
the 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 adopted the preferred policy, except 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). Section 5003 
related to floating cabins and amended the TVA Act to include Section 
9b (16 U.S.C. 831h-3). This new section of the TVA Act provides that 
TVA may approve and allow the use of floating cabins 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 TVA Board of Directors 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 enactment, or (2) for a 
period of 5 years if it was not granted a permit by TVA before 
enactment. It further stipulates that TVA may establish regulations to 
prevent the construction of new floating cabins.

Floating Cabins Amendments to TVA's Section 26a Regulations

    TVA published ``Phase I'' rule amendments for floating cabins that 
became effective on October 1, 2018. 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 2,200 
floating cabins were moored on the Tennessee River System on December 
16, 2016.
    TVA published ``Phase II'' rule amendments for floating cabins that 
became effective on October 12, 2021. These amendments included health, 
safety, environmental, and permitting standards that apply to all 
floating cabins and a deadline by which floating cabin owners were to 
apply to TVA for a Section 26a permit. A diverse stakeholder group 
composed of 18 members advised TVA on the development and drafting of 
these standards. Owners of floating cabins were given 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 Section 26a permit application fee. The permit application 
submission date of October 1, 2024, gave owners approximately three 
years from the effective date of the new standards to bring structures 
into compliance.

Permitting Program

    TVA's permitting requirements for floating cabins apply 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 will require a new 
permit.
    TVA has encouraged floating cabin owners to bring floating cabins 
into compliance and then apply for a permit without delay; however, 
various factors such as the COVID-19 pandemic, supply chain and labor 
resource shortages, and state wastewater certification decisions caused 
delays for floating cabin owners to achieve compliance. The proposed 
amendment extends the deadline for owners to comply with all standards 
and submit a Section 26a permit application that certifies compliance 
no later than October 1, 2029. TVA may deny an initial application for 
floating cabins if it is submitted past the deadline of October 1, 
2029.
    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 remove the structure in 
accordance with Section 9b of the TVA Act and 18 CFR 1304.406.
    The proposal also clarifies language on rebuilding floating cabins. 
Any alterations to the dimensions or approved plans for an existing 
floating cabin (monolithic frame or attached structure) are deemed a 
structural modification and require written approval from TVA.

Electrical

    Floating cabins can 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. When the final Phase 
II rule on floating cabins was published in 2021, TVA was not aware

[[Page 70147]]

of any local, state, or federal entity that monitored the construction 
of floating cabins and enforced building codes. However, after working 
with multiple state agencies, it became clear that state and local 
entities have the ability and expertise to regulate and inspect 
electrical requirements for floating cabins within their jurisdiction. 
Separate standards in TVA's Section 26a regulations had potential to 
create confusion for floating cabin owners about applicable 
requirements.
    TVA is not changing the requirement that floating cabin owners 
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 may 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 relevant regulatory agency in accordance with the 
agency's requirements. TVA proposes to remove the separate electrical 
standards for floating cabins from the Section 26a regulations and 
remove the requirement that floating cabin owners submit a 
certification of compliance to TVA every even-numbered year. This 
appropriately recognizes that state and local agencies are best 
equipped to adopt and enforce electrical standards for floating cabins 
while reinforcing compliance with those standards is a condition of the 
Section 26a permit. The regulations also clarify that applicants must 
provide documentation, upon TVA's request, that demonstrates the 
floating cabin is in compliance with wastewater and electric standards. 
In the event that a floating cabin owner fails to provide satisfactory 
evidence of compliance upon request, TVA is authorized to revoke the 
Section 26a permit and require removal of the floating cabin from the 
reservoir.

Other Changes to Section 26a Regulations

    In addition to the changes affecting floating cabins listed above, 
TVA is proposing other minor amendments to the Section 26a regulations. 
These include minor edits for clarity and consistency in the 
regulations, including a clarification to the regulations that TVA's 
issuance of a permit for any proposed facility or obstruction does not 
mean the proposed facility or obstruction has been deemed safe by TVA 
and that TVA may proceed with the review of an application absent the 
submission of some of the noted information.

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. 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. 
14094, Modernizing Regulatory Review

    This proposal contains no federal mandates for state, local, or 
tribal government or for the private sector. TVA has determined it will 
not have a significant annual effect of $200 million or more or result 
in expenditures of $200 million in any one year by state, local, or 
tribal governments or by the private sector. The proposal 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 Indian tribes. Nor will the 
proposal 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, 
this proposal updates TVA's regulations relating to the standards that 
floating cabins will be required to meet in order to remain on the 
Tennessee River System. 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. 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 proposed 
amendments tangentially impact marinas that accommodate floating 
cabins, a relatively small number of marinas will be impacted. 
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.

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 proposes to amend 18 CFR part 1304 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 the first sentence of paragraph (b);
0
b. Adding a sentence at the end of paragraph (c); and
0
c. Adding paragraph (e).
    The revision and additions read as follows:


Sec.  1304.2  Application.

* * * * *
    (b) Applications shall be submitted on TVA's online application 
system or addressed to the Tennessee Valley Authority, at the 
appropriate location as listed on the application and on TVA's 
website.* * *
    (c) * * * TVA, in its sole discretion, may proceed with the review 
of an application in the absence of some materials listed in this 
section.
* * * * *

[[Page 70148]]

    (e) TVA's issuance of a permit does not mean that TVA has 
determined a facility or obstruction is safe for any purpose or that 
TVA has any duty to make such a determination. In issuing a permit, TVA 
assumes no liability to the applicant or to any third party for any 
damages to property or personal injuries arising out of or in any way 
connected with applicant's construction, operation, or maintenance of 
the permitted facility.
0
3. Amend Sec.  1304.100 by:
0
a. Revising the seventh sentence; and
0
b. Adding a sentence after the seventh sentence.
    The revision and addition read as follows:


Sec.  1304.100  Scope and intent.

    * * * 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 section 26a permit from TVA issued after October 12, 
2021. Existing floating cabins that do not apply for a permit by the 
deadline in this part or do not remain in compliance with the rules in 
this part are subject to the removal provisions of this part and 
section 9b of the TVA Act.* * *
0
4. Amend Sec.  1304.101 by:
0
a. Revising paragraph (c);
0
b. Revising paragraph (h)(2) introductory text;
0
c. Revising paragraph (h)(3); and
0
d. Revising paragraph (i)(3).
    The revisions read as follows:


Sec.  1304.101  Floating cabins

* * * * *
    (c) All floating cabins shall comply with the rules contained in 
this part and make application for a section 26a permit by October 1, 
2029. TVA may, at its sole discretion, deny an initial application for 
a floating cabin submitted after this date. Unpermitted structures are 
subject to the removal provisions of this part and Section 9b of the 
TVA Act.
* * * * *
    (h) * * *
    (2) Any alterations to the dimensions or approved plans for an 
existing floating cabin (monolithic frame or attached structure) 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. Structural modifications to attached 
structures are subject to Sec.  1304.101(i).
* * * * *
    (3) Owners must submit an application to TVA sixty (60) days in 
advance of proposed rebuilding of an entire or significant portion of a 
floating cabin (monolithic frame or attached structures). 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 approved 
harbor limits of a commercial 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 monolithic frame of the 
floating cabin shall match the exact configuration and dimensions 
(length, width, and height) of both the total monolithic frame and the 
enclosed and open space as approved by TVA; attached structures are 
subject to Sec.  1304.101(i). The footprint of the attached structures 
shall not be incorporated into the footprint of the monolithic frame of 
the floating cabin.
* * * * *
    (i) * * *
    (3) Attached structures shall not exceed 14 feet in height from the 
lowest floor level, shall not be enclosed, shall not be connected to 
the monolithic frame by a single roofline, and shall comply with Sec.  
1304.204(p).
* * * * *
0
5. Amend Sec.  1304.103 by:
0
a. Revising paragraph (a);
0
b. Revising paragraph (d); and
0
c. Removing paragraph (e).
    The revisions 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 (satisfactory evidence of compliance to be 
provided to TVA upon request). Upon receipt of documentation that a 
floating cabin is in violation of any federal, state, or local 
discharge or water quality regulation by the respective regulatory 
agency or upon failure to provide satisfactory evidence of compliance 
at TVA's request, 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 or if satisfactory evidence 
of compliance is not provided to TVA.
* * * * *
    (d) Electrical. Floating cabins shall comply with all applicable 
federal, state, and local laws and regulations regarding electrical 
wiring and equipment (satisfactory evidence of compliance to be 
provided to TVA upon request). Upon receipt of documentation that a 
floating cabin is in violation of any federal, state, or local 
electrical standard or regulation by the respective regulatory agency 
or upon failure to provide satisfactory evidence of compliance at TVA's 
request, 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 or if satisfactory evidence of compliance is 
not provided to TVA. Floating cabins shall comply with Sec.  
1304.209(c)(2).

Michael McCall,
Vice President, Environment and Sustainability.
[FR Doc. 2024-19373 Filed 8-28-24; 8:45 am]
BILLING CODE 8120-08-P