[Federal Register Volume 90, Number 58 (Thursday, March 27, 2025)]
[Notices]
[Pages 13974-13977]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-05270]
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TENNESSEE VALLEY AUTHORITY
Sugar Camp Energy, LLC Mine No. 1 Significant Boundary Revision 8
Environmental Impact Statement
AGENCY: Tennessee Valley Authority.
ACTION: Record of decision.
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SUMMARY: The Tennessee Valley Authority (TVA) has decided to adopt the
preferred alternative identified in the Sugar Camp Energy, LLC Mine No.
1 Significant Boundary Revision (SBR) Number (No.) 8 Final
Environmental Impact Statement (EIS; Document ID EISX-455-00-000-
1729685514). A Notice of Availability of the Final EIS was published in
the Federal Register on January 17, 2025. The purpose and need of the
proposed action is to comply with the terms and conditions of the
previously executed leases and agreements regarding the TVA-owned
mineral rights in Illinois which total approximately 64,689 acres
(hereafter, TVA Mineral Rights Area). TVA's preferred alternative,
analyzed in the EIS as Alternative B, consists of implementing the
terms of the existing coal lease agreement, approving the plan to
expand its underground longwall mining operations by approximately
22,414 acres (hereafter, SBR No. 8 Mine Area), and pursuing divestment
of the TVA Mineral Rights Area from TVA's control and custody. This
Record of Decision (ROD) describes TVA's decision to implement the
terms of the existing coal lease agreement and approve the plan to mine
TVA-owned coal in the SBR No. 8 Mine Area. TVA will consider
divestiture of the property in a separate ROD, likely later in 2025,
through subsequent consideration and action by the TVA Board of
Directors.
FOR FURTHER INFORMATION CONTACT: Elizabeth Smith, Tennessee Valley
Authority, 400 West Summit Hill Drive, WT11B, Knoxville, Tennessee
37902; telephone (865) 632-3053, or by email [email protected]. The
Final EIS, this ROD and other project documents are available on TVA's
website at https://www.tva.com/environment/environmental-stewardship/environmental-reviews.
SUPPLEMENTARY INFORMATION: This notice is provided in accordance with
TVA's procedures for implementing the National Environmental Policy Act
(NEPA), as amended (42 U.S. Code [U.S.C.] 4321 et seq.), found at 18
Code of Federal Regulations (CFR) part 1318. TVA is a corporate agency
and instrumentality of the United States, and among several mission
responsibilities, generates and distributes electricity to 153 local
power companies serving approximately 10 million people, as well as
directly served commercial, industrial, and government customers in the
TVA service territory--an 80,000-square-mile region comprised of
Tennessee and parts of Virginia, North Carolina, Georgia, Alabama,
Mississippi, and Kentucky. TVA receives no direct Congressional
appropriations, deriving virtually all its revenue from the sale of
electricity. In addition to operating and investing revenues in its
power system, TVA provides flood control, navigation, and land
management for the Tennessee River watershed, and provides vital
economic development, job creation and retention/support assistance
within the TVA Power Service Area.
In 2002 and 2009, TVA leased Illinois Basin coal reserves to Sugar
Camp, with the condition that any proposed mining plan be subject to
environmental review and TVA approval. Any proposed mining plan is also
subject to review and approval by the State of Illinois through an
associated permit program, through delegated regulatory authority by
the U.S. Department of the Interior, Office of Surface Mining
Reclamation and Enforcement under the Surface Mining Control and
Reclamation Act of 1977. In 2008, Sugar Camp obtained Underground Coal
Mine (UCM) Permit No. 382 from the Illinois Department of Natural
Resources (IDNR), Office of Mines and Minerals (OMM), Land Reclamation
Division, referenced hereafter as IDNR-OMM, for Sugar Camp Mine No. 1.
UCM Permit No. 382 originally authorized underground longwall mining
operations under approximately 12,125 acres in Franklin and Hamilton
counties. UCM Permit No. 382 also included a surface effects area to
process, store and transport the coal, where the existing coal
preparation plant is located. Since then, Illinois has granted Sugar
Camp permit revisions to expand underground longwall mining operations
for Sugar Camp Mine No. 1, and TVA has prepared multiple environmental
assessments and an EIS on the extraction of TVA-owned coal in these
additional areas supporting TVA's prior decisions to approve the
expanded mining operations under the leases; to date, TVA has approved
the mining of 18,010 acres of TVA-owned coal at Sugar Camp Mine No. 1.
In June 2023, Sugar Camp requested TVA approval of its SBR No. 8 mine
plan to further expand its mining operations. In December 2024, Sugar
Camp received SBR No. 8 of UCM Permit No. 382, from IDNR-OMM, which was
conditionally issued on the basis of Sugar Camp submitting proof that
the current suite of alleged and charged violations by the state of
Illinois are in the process of being corrected.
On January 20, 2025, President Trump issued a number of executive
orders that (1) directed the Council on Environmental Quality to
``provide
[[Page 13975]]
guidance on implementing the National Environmental Policy Act (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 no longer inform TVA's
environmental analysis in NEPA documents. On February 25, 2025, CEQ
published an interim final rule removing their NEPA regulations from
the Code of Federal Regulations. The interim final rule will take
effect on April 11, 2025. This NEPA ROD document was in process prior
to the recission and relies on the CEQ regulations in effect at the
time of its preparation.
Alternatives Considered
TVA considered four alternatives in the Draft EIS and Final EIS.
These alternatives are a No Action Alternative and three Action
Alternatives: Alternative A, Alternative, B, and Alternative C.
No Action Alternative--Under this alternative, TVA would not
approve the SBR No. 8 mine plan and Sugar Camp would not undertake the
proposed 22,414-acre mine expansion. In addition, TVA would not divest
the TVA Mineral Rights Area. TVA assumes that Sugar Camp would continue
the previously approved mining, processing, storing, and transporting
of approximately 25,847 acres of TVA-owned coal and privately owned
coal.
Alternative A--Alternative A consists of TVA implementing the terms
of the existing coal lease agreement and approving the plan to extract
TVA-owned coal within a 21,868-acre portion of the overall SBR No. 8
Mine Area and not divesting the TVA Mineral Rights Area. Extraction of
coal under SBR No. 8 would occur via longwall mining techniques with
room-and-pillar techniques used where appropriate to facilitate the
longwall operation. Longwall mining operations and associated planned
subsidence would occur during a 23-year period between 2025 and 2050.
Alternative A would also involve the associated construction and
operation of six bleeder shaft facilities in different locations within
the SBR No. 8 Mine Area, together occupying approximately 39 acres.
Additional IDNR-OMM permits would be required for these actions.
Planned subsidence (controlled sinking of the ground surface) of
approximately 16,129 acres within the SBR No. 8 Mine Area would result.
Connected actions include processing of the extracted TVA-owned coal at
an existing coal preparation plant, treatment of the byproducts at
three existing facilities, surface storage of coal, and offsite
transport of processed coal via an existing rail loop. These facilities
also process, store, and transport privately owned coal not subject to
TVA approval.
Alternative B--Alternative B consists of TVA implementing the terms
of the existing coal lease agreement and approving the plan to extract
TVA-owned coal as submitted by Sugar Camp in the SBR No. 8 of UCM
Permit No. 382, as well as divesting the TVA Mineral Rights Area of
64,689 acres. Divestment of the TVA Mineral Rights would result in the
transfer of the existing coal lease agreements to the receiving entity
as running with the transferred property interests; therefore, pursuing
execution of the terms and conditions of the lease would be incumbent
upon the purchasing entity. The purchasing entity may or may not choose
to continue authorization for the mining of the divested coal reserves.
If the purchasing entity elects to mine the divested coal reserves, TVA
assumes that the mining techniques and end uses of divested coal, as
well as its type and chemical composition, would be the same as
described for Alternative A. TVA assumes that environmental liabilities
associated with the mining of divested coal reserves would be
transferred to the purchasing entity with no likely reduction in the
associated impacts. TVA also assumes, for purposes of this analysis,
that the mining of the divested coal would be concurrent with the
mining under SBR No. 8 of UCM Permit No. 382. Additional IDNR-OMM
mining permits would be required for future mining of the divested coal
reserves outside of the SBR No. 8 Mine Area. If the purchasing entity
elects not to mine divested coal reserves, TVA assumes impacts from
mining the TVA Mineral Rights Area outside of the SBR No. 8 Mine Area
(approximately 36,632 acres) would be as described for the No Action
Alternative.
Alternative C--Alternative C consists of TVA not approving the plan
to extract TVA-owned coal as submitted by Sugar Camp in the SBR No. 8
of UCM Permit No. 382 and divesting the TVA Mineral Rights Area of
64,689 acres. Under this alternative, the purchasing entity may or may
not choose to mine the divested coal reserves. TVA assumes that the
mining techniques and end uses of divested coal, as well as its type
and chemical composition, would be the same as described for
Alternative A. TVA assumes that environmental liabilities associated
with the mining of divested coal reserves would be transferred to the
purchasing entity with no likely reduction in the associated impacts.
TVA also assumes, for purposes of this analysis, that the mining of the
divested coal would occur between 2025 and 2050. Additional IDNR-OMM
mining permits would be required for future mining of the divested coal
reserves. If the purchasing entity elects not to mine divested coal
reserves, TVA assumes impacts would be as described for the No Action
Alternative.
Preferred Alternative
In fulfilling its responsibilities under NEPA, TVA has prepared
this EIS to inform TVA's decision on whether to approve Sugar Camp's
application to mine TVA-owned coal reserves within the SBR No. 8 Mine
Area and whether to divest TVA of all mineral reserves in Illinois. TVA
historically acquired the mineral rights area between 1964 and 1984 to
ensure an adequate and reliable coal supply for TVA's fleet of coal-
fired power plants. TVA has subsequently retired several of its coal
plants. In accordance with the 2019 Integrated Resource Plan (IRP) and
supported by the 2025 IRP currently under development, TVA plans to
retire its remaining coal-fired generating facilities by 2035 and will
then no longer have a need for the mined coal or to own coal reserves.
The proposed divestment also aligns with direction in the TVA Act
regarding real property interests excess to TVA's mission and TVA's
aspirational goal of net-zero carbon emissions by 2050. The purpose and
need of adhering to the executed lease agreements is to comply with the
terms and conditions of the previously executed leases and agreements
regarding the TVA Mineral Rights Area. Surface activities to support
underground mining of TVA-owned coal would include continued operation
of the existing coal preparation plant, treatment of the byproducts,
storage, and transport of the coal. Sugar Camp would utilize its
existing Sugar Camp Mine No. 1 facilities to process and ship the
extracted coal, and expansion of these facilities is not needed to
support the proposed mine expansion. Sugar Camp would also construct
approximately six bleeder ventilation shafts and install associated
utilities needed to operate the bleeder shafts within the SBR No. 8
Mine Area. TVA will consider divestiture of the property in a separate
decision.
TVA's preferred alternative is Alternative B, which consists of TVA
authorizing expansion under the lease to extract TVA-owned coal as
submitted by Sugar Camp in the SBR No. 8 of UCM Permit No. 382 and
divesting the TVA
[[Page 13976]]
Mineral Rights Area of 64,689 acres. Alternative B is preferred for
several reasons. Section 31 of the TVA Act provides that real property
interests shall not be held ``except when necessary in the opinion of
the [TVA] Board to carry out plans and projects actually decided upon
requiring the use'' of the real property interest. As with other
mineral interests, TVA acquired the Illinois mineral rights to assure a
coal supply for TVA's coal-fired power plants. TVA's 2021 Aging Coal
Fleet evaluation recommended the retirement of all of TVA's coal plants
on or before 2035. Further, TVA no longer purchases coal mined from the
TVA Mineral Rights Area for use in its coal plants. Divestment of the
TVA Mineral Rights Area would align with TVA's goals of being low-cost,
risk-informed, environmentally responsible, reliable, diverse, and
flexible, as identified in the 2019 IRP and supported by the 2025 IRP
and as well as with TVA's mission of providing affordable, reliable and
increasingly clean power to its roughly 10 million customers.
In contrast, Alternative A would not align with TVA's statutory
mission requirement regarding maintenance of these assets, as the
historical need for maintaining custody and control of these mineral
interests included supporting a steady supply of coal for TVA's coal
plants; TVA plans to retire aging coal units as they reach the end of
their useful life (expected by 2035). The TVA Act directs TVA to divest
real property interests not necessary to support TVA's mission, and
TVA's plans to retire aging coal units mean that TVA no longer needs
the coal supply or coal reserves. Alternative C would not approve the
SBR No. 8 mining plan such that it would not meet the need to adhere to
the executed lease agreements and comply with the terms and conditions
of the previously executed leases and agreements regarding the TVA
Mineral Rights Area.
Coal mining activities would occur under any of the four
alternatives. Under the No Action Alternative, mining would most likely
occur in the portions of the TVA Mineral Reserve Area that TVA has
already approved under the lease for mining. Under Alternatives A and
B, and potentially Alternative C, a larger area would be mined, and
similar levels of impacts could occur under any of the three action
alternatives. Minor temporary impacts to soils, prime farmland,
groundwater, floodplains, water quality and supply, air quality and
greenhouse gases, wildlife, aquatic life, natural areas, public health,
and socioeconomics would occur. Minor temporary and permanent impacts
to vegetation, land use, and geology would occur. Moderate temporary
impacts to surface waters and wetlands, transportation, noise and
visual resources, utilities, and cultural resources would occur.
Moderate temporary and permanent impacts to transportation and waste
management would occur. Moderate short- to long-term positive impacts
to socioeconomics would occur. The adverse impacts would be minimized
or mitigated per IDNR permit requirements. Under Alternative B and per
IDNR permit conditions, the pertinent federal and state agencies would
ensure impacts associated with the bleeder shaft facilities to cultural
resources and to federally and state-listed species are avoided,
minimized, or mitigated, once siting locations for the bleeder shaft
facilities are determined. Generally, these consultations are also
required for mining under the other alternatives, per IDNR permit
conditions.
Decision
TVA has decided to implement the preferred alternative of the EIS
and approve the plan to extract TVA-owned coal reserves within a
21,868-acre portion of the overall SBR No. 8 Mine Area. This
alternative would achieve the purpose and need of the project. The
proposed action would adhere to the executed lease agreements to comply
with the terms and conditions of the previously executed leases and
agreements regarding the TVA Mineral Rights Area. Similar levels of
impacts could occur under any of the three action alternatives as
described above. TVA's Board of Directors will consider TVA's
divestment of the TVA Mineral Rights Area of 64,689 acres at a later
date. Divestment of the TVA Mineral Rights would result in the transfer
of the existing coal lease agreements to the receiving entity as
running with the transferred property interests; therefore, pursuing
execution of the terms and conditions of the lease would be incumbent
upon the purchasing entity. The purchasing entity may or may not choose
to continue authorization for the mining of the divested coal reserves.
TVA will issue a subsequent ROD to document the decision of the TVA
Board of Directors.
Public Involvement
On September 1, 2023, TVA published a Notice of Intent (NOI) in the
Federal Register announcing that it planned to prepare an EIS to
address the potential environmental effects associated with the
proposed mine expansion and divesting TVA-owned mineral rights. The NOI
initiated a 30-day public scoping period, which concluded on October 2,
2023. The NOI solicited public input on other reasonable alternatives
that should be considered in the EIS. During the public scoping period,
TVA received comments from the U.S. Environmental Protection Agency
(USEPA), Sierra Club, Prairie Rivers Network, and private individuals.
Most of the comments from individuals seemed to come through a letter
campaign promoted by the Illinois chapter of the Sierra Club. Comments
about the EIS process was related to the purpose and need, project
description, alternatives, subsidence, natural resources, threatened
and endangered species, air quality, water quality, greenhouse gas
emissions and climate change, socioeconomics, and safety.
In their comments, USEPA requested to participate in the NEPA
process as a cooperating agency. TVA granted this request. TVA made the
Draft EIS available for a 45-day public review and comment period
ending on October 15, 2024. TVA sent the Draft EIS notice via email to
agencies and organizations. TVA published notices regarding the Draft
EIS in newspapers that serve the area, including the Franklin County
Gazette, The Southern Illinoisan, Marion Republican, and Harrisburg
Register. TVA received comments from USEPA, Illinois Environmental
Protection Agency, the Sierra Club, Prairie Legal Network,
Environmental Law and Policy Center, Amphibian Refuge, Ruger Coal
Company, and many private citizens. Comments were received regarding
the purpose and need for the proposed action, public involvement,
permits and agency coordination, descriptions of alternatives,
alternatives analysis, environmental impacts generally and focused on
water resources, air quality and greenhouse gases, biological
resources, environmental justice, the cumulative impacts analysis, and
the ROD. The Final EIS contains these comments and TVA's responses to
the comments. Several sections of the EIS were also revised in response
to the comments.
The Notice of Availability for the Final EIS was published in the
Federal Register on January 17, 2025. TVA received comments from the
Environmental Protection Agency (EPA) Region IV on the FEIS. In their
letter, EPA acknowledged that TVA responded to their draft EIS comments
in the FEIS. EPA also noted that while they have no substantive
comments on the FEIS, they ask that any future action taken by Sugar
Camp be in compliance with
[[Page 13977]]
Clean Water Act Section 404(b)(1) Guidelines.
Mitigation Measures
IDNR would require Sugar Camp to implement best management
practices and mitigation to minimize potential adverse environmental
effects throughout the SBR No. 8 Mine Area as conditions of its mine
permit. Throughout the TVA Mineral Rights Area, any future mine
operator would be subject to these same requirements.
Permit conditions would be enforced by the State of Illinois; TVA
does not regulate the mining activities of Sugar Camp, nor would it
regulate any mining activities that begin after divestment of the TVA
Mineral Rights Area. TVA assumes that environmental liabilities
associated with the mining of divested coal reserves would be
transferred to the purchasing entity. State of Illinois mitigation
measures include:
1. The implementation of sediment and erosion control practices
(e.g., silt fences, straw, mulch, or vegetative cover) and fugitive
dust minimization (e.g., wetting roads prior to heavy use).
2. The implementation of water quality protection measures (e.g.,
sediment pond treatment, water quality monitoring, or establishment of
riparian zone buffer zones).
3. The repair or compensation of any damage to buildings or other
structures caused by subsidence.
4. The minimization of invasive species transmission per the
requirements of the Illinois Noxious Weed Law.
5. Compensation for any interruption to well water quality or
quantity caused by subsidence until the groundwater is restored.
6. The repair of any damage to roads caused by subsidence.
7. The repair of any drainage alteration caused by subsidence.
8. The compensatory mitigation of wetlands and streams impacted by
subsidence, if necessary. This condition would also be enforced by the
U.S. Army Corps of Engineers.
9. The repair of any damage to utilities caused by subsidence.
Authority: 40 CFR 1505.2.
Dated: March 18, 2025.
Bryan Williams,
Senior Vice President, Major Projects.
[FR Doc. 2025-05270 Filed 3-26-25; 8:45 am]
BILLING CODE 8120-01-P