[Federal Register Volume 90, Number 41 (Tuesday, March 4, 2025)]
[Notices]
[Pages 11202-11205]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-03405]
=======================================================================
-----------------------------------------------------------------------
TENNESSEE VALLEY AUTHORITY
New Caledonia Gas Plant Environmental Impact Statement
AGENCY: Tennessee Valley Authority.
ACTION: Record of Decision.
-----------------------------------------------------------------------
SUMMARY: Tennessee Valley Authority (TVA) has decided to adopt the
Preferred Alternative identified in its Final Environmental Impact
Statement (EIS; Document ID EISX-455-00-000-1734008442) for the
construction of the New Caledonia Gas (NCG) Plant. TVA's Preferred
Alternative, Alternative B, involves the construction and operation of
an approximately 500 megawatts (MW), dual fuel, simple cycle, frame
combustion turbine (CT) facility on the NCG Plant property.
Alternative B will achieve the purpose and need to support
continued load growth within TVA's seven-state service territory in a
way that is consistent with the recommendations in the 2019 Integrated
Resource Plan (IRP). The CTs are needed to provide dispatchable
generation capacity to ensure that TVA can reliably meet required year-
round generation, maximum capacity system demands, planning reserve
margin targets, and comply with a primary objective under the TVA Act
that power be sold at rates as low as feasible. The addition of CT
units to the fleet supports meeting the growing demand for electricity
and enhances system flexibility to integrate distributed resources and
renewables such as solar generation. As the amount of solar generation
in the TVA generation portfolio continues to increase, flexibility of
the remainder of the fleet becomes even more important.
FOR FURTHER INFORMATION CONTACT: Erica McLamb, NEPA Compliance
Specialist, Tennessee Valley Authority, 1101 Market Street,
Chattanooga, Tennessee 37402; telephone 423-751-8022; email
[email protected]. The Final EIS, this Record of Decision, and other
project documents are available on TVA's website at https://www.tva.gov/nepa.
SUPPLEMENTARY INFORMATION: This notice is provided in accordance with
the National Environmental Policy Act (NEPA), as amended (42 U.S. Code
[U.S.C.] 4321 et seq.), the Council on Environmental Quality (CEQ)'s
regulations for implementing NEPA (40 Code of Federal Regulations (CFR)
1500 through 1508, as updated April 20, 2022), and TVA's NEPA
procedures (18 CFR 1318). On January 20, 2025, President Trump issued
executive orders that (1) directed the Council on Environmental Quality
to ``provide guidance on implementing NEPA, 42 U.S.C. 4321 et seq., and
propose rescinding CEQ's NEPA regulations found at 40 CFR 1500 et
seq.;'' and (2) revoked all executive orders on environmental justice.
These revoked E.O.s will no longer inform TVA's environmental analysis
in NEPA documents. Although TVA anticipates receiving further guidance
from CEQ, the Final Environmental Impact Statement and this Record of
Decision were prepared pursuant to CEQ regulations at the time of
preparation.
TVA is a corporate agency and instrumentality of the United States
that provides electricity for 153 local power companies (LPC) serving
approximately 10 million people as well as directly serving commercial,
industrial, and government customers in the Tennessee Valley--an
80,000-square-mile region comprised of Tennessee and parts of Virginia,
North Carolina, Georgia, Alabama, Mississippi, and Kentucky.
Planning Basis and Assumptions
In 2019, TVA completed its IRP and associated IRP EIS. The 2019 IRP
identified various energy resource options that TVA may pursue to meet
the energy needs of the Tennessee Valley region over a 20-year planning
period. The Preferred Alternative aligns with the 2019 IRP. The
strategic direction established by the 2019 IRP and results from
recommended near-term actions formed the basis for TVA's asset
strategy, which continues to support affordable, reliable, and cleaner
energy for customers. The 2019 IRP
[[Page 11203]]
recommendation optimizes TVA's ability to create a more flexible power-
generation system that can successfully meet changing load demands and
integrate increasing amounts of renewable energy sources while ensuring
reliability. TVA's target power supply mix includes firm, dispatchable
power, which refers to a generating resource that can adjust power
output up or down on demand within the specific operating limitations
of that resource, thus increasing system reliability and resiliency. CT
units can be operated year-round to meet the fluctuating demand on the
power system, including overnight, during cold pre-dawn winter
mornings, and during warm summer evenings as solar generation fades. In
September 2024, TVA released a new Draft IRP for public review and
comment. The 2019 IRP remains valid and guides future generation
planning until TVA's 2025 IRP is issued as Final and the TVA Board of
Directors has approved the recommendations therein.
The role and contribution to system-wide generating capacity by
various technologies/generating sources, including natural gas, is
likely to change over time or be replaced by newer technologies. The
inclusion of dispatchable power generation from natural gas-fired CTs
effectively enables system-wide integration of solar while providing
critical transmission-related benefits to ensure reliability,
resiliency, and power quality. TVA has existing solar capacity
commitments of nearly 3,200 MW and plans to add up to 10,000 MW of
solar by 2035. TVA is continuing to expand its solar and carbon-free
commitments through procurement methods such as requests for proposals
and opportunities at existing TVA sites. Additionally, TVA continues to
work with long-term LPCs customers to deploy additional generation onto
the system, including solar, through the Flexibility option under TVA's
Long-Term Agreement with each individual LPC customer. The recommended
construction and operation of the approximately 500-MW simple cycle
frame CT facility at the NCG Site is one piece of TVA's overall asset
strategy.
TVA prepared a Final EIS pursuant to NEPA to assess the
environmental impacts associated with constructing and operating the
NCG Plant on the previous generating facility site, utilizing existing
natural gas and transmission infrastructure, to meet system-wide
generation demands. The Notice of Availability (NOA) for the New
Caledonia Gas Plant Final EIS was published in the Federal Register on
January 10, 2025.
Alternatives Considered
TVA assessed two alternatives: Alternative A--No Action, and
Alternative B--Construction and Operation of a simple cycle frame CT
facility. Alternatives considered but eliminated from detailed
evaluation are summarized in Table 2.1-1 of the Final EIS.
Alternative A: No Action Alternative--Under the No Action
Alternative, TVA would not construct a simple cycle frame CT facility
at the NCG Site. TVA would not make related upgrades to the
transmission system to interconnect the generation, and actions related
to upgrading the natural gas pipeline interconnection would not be
completed. TVA would be required to obtain capacity from other sources
to maintain reserves, if possible. Without peaking power available when
needed, TVA would purchase the cheapest available market power, a
portion of which would likely be natural gas. Purchased power is
generally less cost-effective than using TVA generation sources.
Relying on purchased power could potentially adversely affect TVA's
ability to meet required year-round generation, maximum capacity system
demands, and planning reserve target margins should market power be
limited or unavailable. This alternative does not meet the purpose and
need of TVA's Proposed Action; however, it is included in this
evaluation as it represents current baseline conditions against which
the proposed action alternative is compared.
Alternative B: Construction and Operation of a simple cycle frame
CT facility--Alternative B is the construction and operation of an
approximately 500 MW dual fuel CT facility on federally-owned property
managed by TVA in Lowndes County, Mississippi, approximately 10 miles
northeast of Columbus. The project area includes the entire 63-acre NCG
Site as well as the adjacent 82-acre Lowndes County 500-kilovolt (kV)
Substation Site and totals approximately 145 acres. The NCG Site is a
former CT facility, originally constructed in 1998 and operated for
several years by a private company. The company dismantled the site in
2007, removing the existing six frame CTs. The adjacent TVA Lowndes
County 500-kV Substation has remained in-service. The existing six
turbine/generator foundations, three 500-kV generator step-up, 500-kV
Transmission Line superstructure, gas metering equipment, water tanks,
and office building were abandoned in their current locations, but are
scheduled to be demolished and removed in early 2025 as part of a
separate Strategic Real Estate Reduction effort. Much of the property
is fenced and graveled, with the remaining portions undeveloped and
largely composed of early succession forest, particularly in areas with
steep slopes, while the flatter portions of the property are largely
fallow field.
Additionally, the proposed NCG Site would include plant equipment
and systems, such as natural gas metering and handling systems,
instrumentation and control systems, transformers, and administration
and warehouse/maintenance buildings. The NCG Plant would use an
existing gas line currently located at the site. The existing
interconnection and existing ancillary infrastructure (e.g., taps,
meter station, pressure regulation equipment, etc.) would need to be
replaced; however, construction of a new gas pipeline is not required.
Alternative B would meet TVA's project purpose and need to support
continued load growth within the Tennessee Valley in a way that is
consistent with the recommendations in the 2019 IRP and to meet the
demand for electricity while facilitating the integration of renewables
onto the electric grid.
Preferred Alternative
TVA identified Alternative B as the Preferred Alternative in both
the Draft and Final EISs because it is the best overall solution to
provide low-cost, reliable energy to TVA's power system and would
facilitate integration of renewable energy resources into the TVA power
system. Additionally, the use of the existing, previously disturbed
property and natural gas infrastructure would minimize potential
environmental impacts. Alternative B aligns with the 2019 IRP
generation target power supply mix, which includes the addition of up
to 8,600 MW of CT by 2038.
Summary of Environmental Effects
The anticipated environmental impacts of the No Action Alternative
and the Preferred Alternative are described in detail in the Final EIS
and summarized in Table 2.2-1, and this section summarizes the actions
and impacts that would occur under the various alternatives.
Alternative A: No Action Alternative--Under the No Action
Alternative, TVA would not construct a simple cycle frame CT facility
at the NCG Site or make related upgrades to the transmission system to
interconnect the generation. Actions related to upgrading the natural
gas pipeline
[[Page 11204]]
interconnection would not be completed. The No Action Alternative would
avoid the impacts of constructing and operating a new generating
facility at the NCG site; therefore, TVA identifies this as the
environmentally preferable alternative. However, TVA would be required
to obtain capacity from other sources to maintain reserves, if
possible. Without peaking power available when needed, TVA would
purchase the power from the cheapest market source, a portion of which
would likely be natural gas. Relying on purchased power from a market
source could potentially result in adverse impacts to TVA generation
system reliability and increased costs to customers. Incorporation of
renewable energy sources would be limited without the addition of the
reliable dispatchable generation.
Alternative B Construction and Operation of a simple cycle frame CT
facility--TVA's actions during construction under Alternative B would
have no impacts on the following resources: Floodplains, Public Health
and Safety, Wetlands, Parks and Recreational areas, Groundwater
Quantity and Quality, Cultural and Historic Resources.
Construction of the site would have a minor and temporary effect on
the following resources: Air Quality, Geology, Soils, and Prime
Farmland, Surface Water Quality and Quantity, Vegetation, Aquatic
Ecology, Natural Areas, Threatened and Endangered Species,
Transportation, and Solid and Hazardous Waste. Minor, long-term effects
anticipated are Climate Change, GHG, Land Use, Wildlife, Visual
Resources, and Noise.
TVA actions under Alternative B would have a beneficial effect on
the following resources: socioeconomics and environmental justice and
utilities. Overall, the added dispatchable generation capacity as a
result of Alternative B would have potential long-term beneficial
impacts by helping to ensure that TVA can reliably meet required year-
round generation, maximum capacity system demands, and planning reserve
margin targets while facilitating the integration of renewable energy
onto the electric grid. Additionally, a temporary increase in
employment during construction activities will also occur, which may
increase beneficial impacts on socioeconomic resources.
Alternative B would advance TVA's Strategic Intent and Guiding
Principles to execute a long-term carbon reduction plan. Pursuant to
guidance in effect at the time the EIS was prepared, TVA completed an
analysis of GHG emissions and Social Cost of GHG (SC-GHG) directly
attributable to Alternative B's construction and operation using
methods consistent with guidance from the Council on Environmental
Quality. Alternative B will result in an increase to TVA's system-wide
GHG emissions; however, this increase is expected to be temporal. By
providing flexible, dispatchable generation that would enable the
integration of renewable generation into the system, the proposed
project is expected to facilitate a long-term reduction in GHG
emissions in alignment with the 2019 IRP. The eventual net reduction in
GHG emissions would put downward pressure on the rate of climate change
when the proposed project is paired with the installation of renewable
energy. However, TVA acknowledges that any future net reductions would
be dependent on installation of renewable energy as separate future
projects.
To fulfill its obligations under Section 106 of the National
Historic Preservation Act (NHPA), TVA consulted with the Mississippi
State Historic Preservation Officer (SHPO) and federally recognized
Indian tribes regarding potential project-related effects to cultural
resources from TVA's actions under Alternative B. Based on prior
surveys and consultation, there are no above-ground historic properties
in the cultural resources area of potential effect (APE), and one
potentially significant archaeological site is present. To further
assess the potential National Register of Historic Places (NRHP)
eligibility of the site, TVA completed additional investigations
following consultation with the SHPO and the tribes concerning the
proposed research design and determined that the site should be
considered eligible for inclusion in the NRHP. Furthermore, TVA
determined the portion of the site north of the established gravel
access road, and the road itself, are non-contributing portions to the
site's NRHP eligibility. The continued use of the existing road and any
ground-disturbing actions north of the gravel road would have no
adverse effects on the site. TVA submitted a report of its findings to
the SHPO and the tribes regarding this determination; the SHPO provided
concurrence on August 30, 2024, while none of the consulted tribes
objected or identified additional resources of concern in the APE. TVA
and SHPO have agreed that the project as currently designed will avoid
any adverse effects on the NRHP-eligible archaeological site located in
the NCG boundary; therefore, TVA has no further obligation to consider
potential effects on the site and no further compliance obligations
under Section 106 of the NHPA. As such, Alternative B would have no
impact on historic properties.
While the No Action Alternative would avoid the impacts of
constructing and operating a new approximately 500-MW simple cycle
frame CT, TVA would be required to obtain capacity from other sources,
and relying on purchased power could potentially adversely affect TVA's
ability to meet required year-round generation, maximum capacity system
demands, and planning reserve target margins should market power be
limited or unavailable.
When comparing the environmental impacts of the two alternatives,
the No Action Alternative would have fewer environmental impacts in
terms of immediate results; however, under the No Action Alternative,
TVA would be required to obtain capacity from other sources to maintain
reserves, if other sources are actually available. Without peaking
power available when needed, TVA would purchase the power from the
cheapest market source, a portion of which would likely be natural gas.
Alternative A could result in adverse impacts to power availability if
purchased power is not available or sufficient to meet demand,
resulting in adverse impacts to TVA generation system reliability and
increased costs to customers. Additionally, incorporation of renewable
energy sources would be limited without the addition of the reliable
dispatchable generation.
Public Involvement
TVA initiated a 30-day public scoping period on November 28, 2023,
when it published a Notice of Intent in the Federal Register announcing
the preparation of an Environmental Assessment (EA) or EIS (88 FR
83202, November 28, 2023). TVA also announced the project and requested
public input in news releases; on its website; in notices printed in
relevant area newspapers and news websites; and in letters to federal,
state, and local agencies and federally recognized Indian tribes. TVA
held a public scoping meeting on January 28, 2024. During the scoping
period, TVA received 30 submissions from members of the public, federal
agencies, and various organizations totaling 1,027 unique comments.
This included sixteen submissions from the General Public, one
submission from a federal agency, the U.S. Environmental Protection
Agency, and thirteen submissions from the following organizations:
Appalachian Voices, Center for Biological Diversity, GS
[[Page 11205]]
Research LLC, Gulf Coast for a Sustainable Future, Hop, Legacy Village
Inc, Mississippi Rising Coalition (2 submissions), Robbins Properties,
Sierra Club, Solar Energy Industries Association, Southern Alliance for
Clean Energy, Southern Environmental Law Center.
The NOA of the Draft EIS was published in the Federal Register on
July 19, 2024, initiating a 45-day public comment period that ended on
September 4, 2024 (89 FR 58733, July 19, 2024). The availability of the
Draft EIS and request for comments were announced on the TVA website;
in regional and local newspapers; in a news release; and in letters to
local, state, and federal agencies and federally recognized tribes. TVA
held a public meeting for the Draft EIS on August 15, 2024, at the
Caledonia Community Center in Columbus, Mississippi.
TVA received nine submissions totaling 100 unique comments on the
Draft EIS. Substantive comments are addressed in Appendix A of the
Final EIS.
Following the publication of the NOA for the Final EIS in January
2025, TVA received no additional public or agency comments.
Decision
TVA has considered all the alternatives, information, analyses,
material in the record determined to be relevant, and comments
submitted by Federal, State, Tribal, and local governments and public
commenters for consideration in developing the Final EIS.
TVA has decided to implement the Preferred Alternative identified
in the Final EIS. Under this alternative, TVA would construct the
simple cycle frame CT at the NCG site, which would be capable of
generating approximately 500 MW. The addition of CT units to the fleet
aligns with the 2019 IRP recommendation to enhance system flexibility
and TVA's May 2021 Strategic Intent and Guiding Principles.
Mitigation Measures
TVA would employ standard practices, routine measures, and other
project-specific measures to avoid and minimize effects to resources
from the implementation of Alternative B. TVA would also implement
minimization and mitigation measures based on BMPs, permit
requirements, and adherence to erosion and sediment control plans to
minimize erosion during construction, operation, and maintenance
activities. The BMPs are described in TVA's A Guide for Environmental
Protection and BMPs for TVA Construction and Maintenance Activities--
Revision 4.
For those activities with potential to affect bats, TVA committed
to implementing conservation measures established through TVA's
programmatic consultation on routine actions with potential to affect
federally listed bats that was completed in April 2018 and updated May
2023 and November 2024 with the U.S. Fish and Wildlife Service in
accordance with Section 7(a)(2) of the Endangered Species Act. In areas
requiring tree removal, clearing activities would be limited to winter
periods (October 1-March 14) to minimize impacts to wildlife and
protected species. Unavoidable impacts to potential suitable summer
roosting habitat for the proposed endangered tricolored bat (Perimyotis
subflavus) and endangered Indiana bat (Myotis sodalis) would be
addressed using TVA's programmatic consultation. The conservation
measures required for this project are identified in Appendix C of the
Final EIS, and they would be implemented as part of the proposed
project. Winter tree removal and conservation measures implemented
through TVA's bat programmatic consultation would also minimize
unavoidable impacts to summer roosting habitat for the Indiana bat and
tricolored bat.
To minimize potential impacts to transportation, a transportation
study would be conducted to determine the routes used for delivery of
construction equipment and project materials. Roads used to access the
project area would be surveyed to determine the existing conditions
prior to construction. Finally, based on the results of the
transportation study and road survey, a traffic impact analysis would
be performed if necessary to address potential roadway impacts.
Authority: 40 CFR 1505.2.
Dated: February 13, 2025.
Jeff Lyash,
President & Chief Executive Officer.
[FR Doc. 2025-03405 Filed 3-3-25; 8:45 am]
BILLING CODE 8120-08-P