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Rule2026-01092

Implementation of the National Environmental Policy Act

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Published

January 21, 2026

Effective

January 21, 2026

Issuing agencies

Tennessee Valley Authority

Abstract

This interim final rule revises the Tennessee Valley Authority (TVA) procedures implementing the National Environmental Policy Act (NEPA). TVA is taking this action in response to the amendments to NEPA enacted through the Fiscal Responsibility Act of 2023 and the One Big Beautiful Bill Act of 2025, to reflect the Supreme Court's recent decision in Seven County Infrastructure Coalition v. Eagle County, Colorado, and to align with Executive Order (E.O.) 14154, Unleashing American Energy, and the Council on Environmental Quality's (CEQ) subsequent recission of its NEPA implementing regulations, which TVA's procedures were intended to supplement. This interim final rule requests comments on this action and TVA's intent to move its procedures at Subpart G, for compliance with E.O. 11988, Floodplain Management, and E.O. 11990, Protection of Wetlands, into a new part 1319 of the CFR, to inform TVA's decision-making.

Full Text

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<title>Federal Register, Volume 91 Issue 13 (Wednesday, January 21, 2026)</title>
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[Federal Register Volume 91, Number 13 (Wednesday, January 21, 2026)]
[Rules and Regulations]
[Pages 2470-2486]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-01092]

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TENNESSEE VALLEY AUTHORITY

18 CFR Parts 1318 and 1319

RIN 3316-AA26

Implementation of the National Environmental Policy Act

AGENCY: Tennessee Valley Authority.

ACTION: Interim final rule; request for comments.

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SUMMARY: This interim final rule revises the Tennessee Valley Authority
(TVA) procedures implementing the National Environmental Policy Act
(NEPA). TVA is taking this action in response to the amendments to NEPA
enacted through the Fiscal Responsibility Act of 2023 and the One Big
Beautiful Bill Act of 2025, to reflect the Supreme Court's recent
decision in Seven County Infrastructure Coalition v. Eagle County,
Colorado, and to align with Executive Order (E.O.) 14154, Unleashing
American Energy, and the Council on Environmental Quality's (CEQ)
subsequent recission of its NEPA implementing regulations, which TVA's
procedures were intended to supplement. This interim final rule
requests comments on this action and TVA's intent to move its
procedures at Subpart G, for compliance with E.O. 11988, Floodplain
Management, and E.O. 11990, Protection of Wetlands, into a new part
1319 of the CFR, to inform TVA's decision-making.

DATES: The interim final rule is effective January 21, 2026. Comments
must be submitted no later than February 20, 2026.

ADDRESSES: Comments on the interim final rule can be submitted by one
of the following methods:
1. TVA's NEPA website: <a href="https://www.tva.gov/nepa">https://www.tva.gov/nepa</a>. Follow the
instructions for submitting comments electronically on the website.
2. Email: <a href="/cdn-cgi/l/email-protection#b6f8f3e6f7c4c3dad3f6c2c0d798d1d9c0"><span class="__cf_email__" data-cfemail="e4aaa1b4a596918881a4909285ca838b92">[email&#160;protected]</span></a>.
3. Mail comments to: NEPA Rule Comments, Tennessee Valley
Authority, 400 W Summit Hill Drive, 11B-K, Knoxville, Tennessee 37902.
Before including your address, phone number, email address, or
other personal identifying information in your comment, please note
that any comments received, including names and addresses, will become
part of the project administrative record and will be available for
public inspection.

FOR FURTHER INFORMATION CONTACT: Matthew Higdon, Senior NEPA
Specialist, Tennessee Valley Authority, 400 W Summit Hill Drive, 11B-K,
Knoxville, Tennessee 37902. Telephone: 865-632-8051. Email:
<a href="/cdn-cgi/l/email-protection#c3aeb0abaaa4a7acad83b7b5a2eda4acb5"><span class="__cf_email__" data-cfemail="3c514f54555b5853527c484a5d125b534a">[email&#160;protected]</span></a>.

SUPPLEMENTARY INFORMATION:

I. Background

This interim final rule revises TVA's implementing procedures for
assessing the effects of TVA's actions in accordance with NEPA (42
U.S.C. 4321 et seq.), codified at 18 CFR part 1318. TVA first
established its procedures for implementing NEPA in 1980 (45 FR 54511-
15, August 15, 1980). In 1983, TVA amended the procedures to
incorporate requirements relating to floodplain management and
protection of wetlands, among other things (48 FR 19264, April 28,
1983). In 2020, TVA amended its procedures to update organizational
references, improve clarity, and revise its list of categorical
exclusions. To promote greater transparency in the NEPA process, TVA
incorporated its procedures into the Code of Federal Regulations (CFR)
at that time. In its final rule preamble, TVA stated that, ``[l]ike
TVA's previous NEPA procedures, the final rule supplements the CEQ
regulations'' (85 FR 17434; March 27, 2020). Since established in 1980,
the TVA procedures have stated that they serve to ensure compliance
with not only NEPA itself but CEQ's NEPA implementing regulations. 18
CFR 1318.10(c).
CEQ's NEPA implementing regulations were rescinded as of April 11,
2025. See Removal of National Environmental Policy Act Implementing
Regulations (90 FR 10610; Feb. 25, 2025). CEQ's rescission of its
regulations was necessitated by and is consistent with E.O. 14154,
Unleashing American Energy (90 FR 8353; January 29, 2025), in which
President Trump rescinded President Carter's E.O. 11991, Relating to
Protection and Enhancement of Environmental Quality (42 FR 26967; May
24, 1977), which directed CEQ to issue regulations to Federal agencies
for implementing NEPA's procedural provisions. E.O. 14154 further
directed agencies to revise their NEPA implementing procedures
consistent with the E.O. and implementation guidance from CEQ.

[[Page 2471]]

Congress passed the Fiscal Responsibility Act of 2023, Public Law
118-5, signed into law on June 3, 2023, that among other things added
substantial detail and direction in Title I of NEPA, including
procedural issues that CEQ, TVA, and other agencies had previously
addressed in their own regulations. In addition, Congress passed the
One Big Beautiful Bill Act of 2025, Public Law 119-21, title VI, Sec.
60026, (July 4, 2025), adding Section 112 of NEPA, entitled ``Project
Sponsor Opt-in Fees for Environmental Reviews.'' This provision allows
project sponsors to pay a fee to obtain shortened NEPA review
deadlines. TVA needs to update its procedures in light of these
statutory changes.
Finally, the Supreme Court on May 29, 2025, issued Seven County
Infrastructure Coalition v. Eagle County, Colorado, 145 S. Ct. 1497
(2025), which affirmed that agencies have broad discretion when
conducting NEPA reviews, including with regard to the scope of the
analysis in agencies' NEPA reviews given the agency's authority and the
importance of the issue to the decisionmaker. In issuing this interim
final rule, TVA seeks to align its procedures with the Supreme Court's
guidance in this decision.
NEPA requires Federal agencies to ``identify and develop methods
and procedures,'' in consultation with CEQ, with respect to their
environmental analysis of their proposed actions, see 42 U.S.C.
4332(2)(B). E.O. 14154 directs agencies to ensure their NEPA
implementing regulations ``prioritize efficiency and certainty'' in the
NEPA process.
TVA is revising its NEPA procedures at 18 CFR part 1318 to reflect
the rescission of CEQ's regulations, the direction to agencies under
E.O. 14154, the statutory amendments to NEPA, and the Supreme Court's
decision in Seven County. TVA has completed an internal review of its
NEPA procedures and practices and has identified opportunities to
improve its practices and clarify its procedures. By these revisions,
TVA intends to ensure it complies with NEPA and that the procedures
reduce paperwork and delay to the extent possible. A summary of the
procedures revised by TVA are described below. TVA is also moving its
procedures at Subpart G, for compliance with E.O. 11988, Floodplain
Management, and E.O. 11990, Protection of Wetlands, into a separate
part of the CFR, a new Part 1319. These floodplain and wetland
procedures are not part of TVA's procedures for implementing NEPA. TVA
made minor clarifying edits but is not proposing any substantive
changes to its floodplain and wetland procedures.

II. Publication as an Interim Final Rule

A. Notice-and-Commenting Rulemaking Is Not Required

NEPA is a ``purely procedural statute'' which prescribes a process
for a federal agency to conduct environmental review of a project but
does not require any substantive outcome for a project. Seven County,
145 S. Ct. at 1511. NEPA does not substantively constrain an agency's
ultimate decision on a proposed project, and ``is relevant only to the
question of whether an agency's final decision . . . was reasonably
explained.'' Id. at 1511.
TVA is repealing and replacing its prior procedures for
implementing NEPA. Notice and comment procedures are not required under
the Administrative Procedure Act (APA) for ``rules of agency
organization, procedure, or practice.'' 5 U.S.C. 553(b)(A). TVA's
procedures for implementing NEPA are themselves purely procedural. See,
e.g., 18 CFR 1318.10 (``This part establishes procedures for Tennessee
Valley Authority (TVA) to use for compliance with . . . NEPA . . .
.''). They do not dictate outcomes or impose binding legal obligations
on private citizens. They only prescribe how TVA will conduct NEPA
reviews. Procedural regulations that do not require notice and comment
procedures to promulgate similarly do not require notice and comment
procedures to remove.
TVA's revised implementing procedures are also procedural. Since
NEPA itself is a procedural statute that does not mandate outcomes,
Seven County, 145 S. Ct. at 1510, regulations implementing NEPA are
also necessarily procedural. TVA's regulations describe how TVA will
implement the NEPA process, prepare and structure environmental
documents, and incorporate NEPA as a part of agency decision-making.
They will guide TVA's internal practice in implementing NEPA but will
not dictate substantive outcomes.
Notice and comment procedures are also not required under the APA
for ``interpretative rules'' or ``general statements of policy.'' 5
U.S.C. 553(b)(A). Even if, and to the extent that, TVA's regulations
were not procedural rules, they may be characterized as interpretative
rules or general statements of policy. An interpretative rule provides
an interpretation of a statute, rather than making discretionary policy
choices that establish enforceable rights or obligations for regulated
parties under delegated congressional authority. General statements of
policy provide notice of an agency's intentions as to how it will
enforce statutory requirements, again without creating enforceable
rights or obligations for regulated parties under delegated
congressional authority. To the extent anything in TVA's regulations is
not a procedural rule it would be considered TVA's interpretation of
NEPA or general policy statements about TVA's application of NEPA. Both
of these are expressly exempted from notice and comment by statute.
Although TVA is voluntarily providing notice and an opportunity to
comment on this interim final rule, the agency has determined that
notice and comment procedures are not required.

B. TVA Has Good Cause for Proceeding With an Interim Final Rule

TVA also finds that, even if prior notice and solicitation of
public comment would otherwise be required or this action could not
immediately take effect, the need to expeditiously replace its existing
rules satisfies the APA's ``good cause'' exceptions. 5 U.S.C.
553(b)(B), (d)(3). The APA authorizes agencies to issue regulations
without notice and public comment when an agency finds, for good cause,
that notice and comment is ``impracticable, unnecessary, or contrary to
the public interest,'' and to make the rule effective immediately for
good cause. 5 U.S.C. 553(b)(B), (d)(3). As discussed above, TVA's prior
procedures were promulgated with CEQ's NEPA regulations as a foundation
and to be used in conjunction with those regulations. See 85 FR 17434
(``Like TVA's previous NEPA procedures, the final rule supplements the
CEQ regulations. The rule was drafted with the objective of minimizing
repetition of requirements already contained in the CEQ regulations and
with the understanding that the TVA-specific regulations would be
applied with the CEQ regulations.''). With the rescission of CEQ's NEPA
regulations, TVA's prior procedures were premised on a framework that
no longer exists. In the interim, TVA has continued to apply its
procedures as though CEQ's NEPA regulations still existed where
necessary to fill gaps. This makeshift substitute was, at best, a
temporary solution; now that TVA has had the opportunity to draft
revised standalone procedures in consultation with CEQ, it is critical
that TVA begin following them as soon as possible. Immediate rescission
of former procedures without replacement would result in uncertainty
and potential

[[Page 2472]]

delays to TVA projects and authorizations. Therefore, if notice-and-
comment were otherwise required, doing so here would be impracticable
and contrary to the public interest. For these reasons, TVA finds that
``good cause'' exists under 5 U.S.C. 553(d)(3) to waive the 30-day
delay of the effective date that would otherwise be required. This
interim final rule will accordingly be effective immediately. TVA will
consider comments submitted in response to this action and may address
them when issuing a final rule, if warranted, after consideration of
the comments received.

C. TVA Solicits Comments

As explained above, notice and comment procedures are not required
because TVA's NEPA procedures were and are procedural and because, even
if comment were otherwise required under the APA, good cause exists to
forgo it. Nevertheless, TVA has elected to voluntarily solicit
comments. TVA is soliciting comment on this interim final rule and its
new procedures, which are available for review at <a href="https://www.tva.gov/nepa">https://www.tva.gov/nepa</a>. TVA may make further revisions to its NEPA implementing
procedures, if TVA's review of any comments submitted suggests that
further revisions are warranted. Commenters have 30 days from the date
of publication of this interim final rule to submit comments.

III. Description of Regulatory Changes

TVA's revised NEPA procedures, developed in consultation with CEQ,
will facilitate compliance with the statutory obligations of NEPA.
TVA's NEPA procedures will continue to be maintained at 18 CFR part
1318, subparts A through F. TVA is moving the regulations currently in
Subpart G, procedures addressing floodplain management and protection
of wetlands, to a new Part 1319. Moving the floodplain management and
protection of wetlands procedures to a separate part clarifies that
those procedures do not address the implementation of NEPA.
Throughout the revised procedures, TVA removes citations to the
rescinded CEQ regulations and implements key structural features of the
2023 statutory amendments to NEPA, such as deadlines and page limits
for environmental assessments (EA) and environmental impact statements
(EIS), as directed at NEPA Sec. 107(g). The procedures provide that
TVA will adhere to the page limits and timelines established by
Congress. The revised procedures also incorporate new definitions (NEPA
Sec. 111) and statutory requirements for determining the appropriate
level of NEPA review (NEPA Sec. 106), content for EISs (NEPA Sec.
102(2)(C)), and public notice associated with issuing a notice of
intent to prepare an EIS (NEPA Sec. 107(c)). In revising its
procedures, TVA also relied upon CEQ's Memorandum for Heads of Federal
Departments and Agencies: Implementation of the National Environmental
Policy Act (September 29, 2025) (``CEQ Guidance'').\1\
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\1\ Available at <a href="http://www.nepa.gov">www.nepa.gov</a>.
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TVA also revises the procedures by grouping similar subjects
together to improve readability and clarity. Substantial revisions to
subparts A through F are included, although some of TVA's former
implementing procedures remain intact. Throughout the procedures, and
also in Part 1319, TVA removes references to specific TVA management
and staff positions and office titles and replaces those with ``TVA'';
such detail about administrative roles and responsibilities within TVA
is unnecessary in the regulations.
The following paragraphs contain a section-by-section summary of
key changes under each subpart from those currently in TVA's NEPA
procedures.

Subpart A--General Information

Sec. 1318.10 Purpose and policy. In this section, TVA combines
provisions relating to the purpose of the procedures and TVA's related
policy into one section. TVA removes reference to CEQ NEPA regulations
at 40 CFR parts 1500 through 1508 and adds clarification of the purpose
of the TVA NEPA procedures. The section addresses the procedural and
interpretive nature of these provisions. TVA also adds provisions
addressing when it will consult with CEQ.
Sec. 1318.20 Abbreviations. TVA removes abbreviations for the
Environmental Protection Agency (EPA) and Record of Decision (ROD) from
its procedures because the abbreviations are no longer used in its
procedures.
Sec. 1318.30 Definitions. TVA removes its reference to the CEQ
NEPA regulations in this section and cites new definitions in the
statute (NEPA Sec. 111). TVA adds definitions in this section for the
following terms: authorization, effects, human environment,
jurisdiction, mitigation, NEPA process, notice of intent, page, project
sponsor, publish, reasonable alternatives, reasonably foreseeable,
scope, and tiering. Several new definitions are based upon the CEQ
guidance (e.g., effects, mitigation, page, publish). The definitions of
``controversial'' and ``important farmland'' are removed because the
terms are sufficiently defined in the text of the procedures. Four
definitions addressing the management of floodplains and protection of
wetlands (floodplain, practicable, natural and beneficial floodplain
and wetland values, and wetland) are removed from part 1318 and, as
discussed below, will be added to definitions section (Sec. 1319.20)
of the floodplains and wetlands procedures.

Subpart B--Initiating the NEPA Process

This subpart is revised to address additional procedures relating
to the initiation of the NEPA process. Sections of this subpart are
renamed, revised and reorganized to improve structure, organization,
and readability. Sections addressing scoping, interagency cooperation,
and the supplementation of, and reliance on, environmental documents
are moved to Subpart B from other subparts because these are
considerations made at the beginning of the NEPA process and apply to
both EAs and EISs. TVA adds a section addressing NEPA schedules to
incorporate deadline requirements from the Fiscal Responsibility Act of
2023.
Sec. 1318.100 Determining when NEPA applies. This section is added
to clarify which actions taken by TVA would be subject to review under
NEPA, consistent with provisions from NEPA Sec. Sec. 106(a)(4) and
111(10)(B)(vii) (42 U.S.C. 4336(a)(4) and Sec. 4336e(10)(B)(vii),
respectively).
Sec. 1318.101 Determining the appropriate level of NEPA Review.
This section is retitled and revised extensively. Previous paragraphs
addressing internal administration are removed and replaced with new
procedures that describe how TVA determines whether NEPA applies to a
proposed action and, if so, the appropriate level of environmental
review. In paragraph (b), TVA includes criteria for determining whether
potential effects are significant, thereby requiring an EIS.
Sec. 1318.102 Determination of NEPA Adequacy. TVA has revised the
procedures relating to making and documenting a determination of NEPA
adequacy and the determination of when to supplement an environmental
document. These considerations are key to a determination by TVA that
an existing document provides adequate analysis to address a proposed
action. TVA also removes a reference to CEQ regulations from this
section.
Sec. 1318.103 Supplements. This section, previously included under
Subpart E, is added to Subpart B because the procedures apply to EAs as

[[Page 2473]]

well as EISs. Like Sec. 1318.102, the section addresses consideration
of whether an existing document is adequate to address a proposed
action. These provisions address instances in which the existing
document does not adequately address a proposed action and additional,
supplemental analysis is necessary to comply with NEPA.
Sec. 1318.104 Reliance on existing environmental documents. This
section, previously included under Subpart E, is added to Subpart B
because the procedures also apply to EAs and are considerations during
the initiation of a NEPA process. The procedures are modified to
improve clarity, and paragraphs addressing public notification are
removed from Subpart B because the topic is addressed in Subpart F.
Sec. 1318.105 Lead and cooperating agency determinations. This
section, previously included under Subpart E, is added to Subpart B
because these procedures also apply to EAs and are considerations
during the initiation of a NEPA process. Modifications address
provisions of the Fiscal Responsibility Act of 2023, including those
relating to the preparation of a single document when multiple agencies
participate in the preparation of an environmental document. In
addition, TVA clarifies that TVA will normally serve as the lead agency
for TVA actions.
Sec. 1318.106 Schedule for the NEPA process. TVA adds this section
to address the Fiscal Responsibility Act of 2023 emphasis that
environmental documents be prepared in a timely manner and the
importance of working with project sponsors to achieve the required
deadlines. In the section, TVA outlines the statutory deadlines
identified in NEPA Sec. 107(g) and adds a provision requiring a
certification regarding TVA's adherence to statutory deadlines. TVA
adds a paragraph addressing how deadline extensions may be considered.
A paragraph is added to ensure that concurrent environmental processes
or requirements are also incorporated into the schedule, as
appropriate, because these concurrent processes may influence the
critical path for the NEPA process.
Sec. 1318.107 Scoping process. This section, previously included
under Subpart E, is added to Subpart B because it addresses
considerations made at the initiation of a NEPA process and that may
also apply to EAs. This section is modified to clarify the scoping
process and the types of information and issues that will be developed
and identified. TVA modifies the public notice and comment requirements
associated with scoping and removes a paragraph that addressed the
preparation of a scoping report because such reports are not required
by statute.

Subpart C--Categorical Exclusions

Sec. 1318.200 Purpose and scope. TVA modifies this section for
clarity and to address new methods in which categorical exclusions may
be established, including the adoption of another agency's categorical
exclusion consistent with the Fiscal Responsibility Act of 2023 (NEPA
Sec. 109). In paragraph (a), TVA defines categorical exclusions. In
paragraph (b), TVA clarifies that more than one categorical exclusion
may be applied to a proposed action if the exclusions collectively
encompass the action. In paragraph (c), TVA defines a new process for
establishing a new categorical exclusion that involves documenting in a
sufficient record substantiation that additional categories of actions
may be added to TVA's list of categorical exclusions (found in Appendix
A of this subpart). The process includes consultation with CEQ and
public notification. In paragraph (d), TVA addresses the procedures for
adopting another agency's categorical exclusions. Paragraph (e) adds
procedures that address TVA's reliance on a determination by another
Federal agency that a categorical exclusion applies to a proposed
action that is substantially the same as TVA's proposed action. TVA
removes an unnecessary statement that TVA would comply with other laws
or requirements when applying a categorical exclusion.
Sec. 1318.201 Extraordinary circumstances. This section is
modified for clarity and to more accurately summarize the review for
extraordinary circumstances that occurs prior to using a categorical
exclusion. TVA includes examples of extraordinary circumstances in
paragraph (b) and adds paragraph (d) to generally explain when it would
prepare documentation for a review for extraordinary circumstances.
Sec. 1318.202 Public notification. TVA makes a grammatical
revision to the section for clarity.
Appendix A--Categorical exclusions. In the introductory text of
this appendix, TVA revised the second sentence referencing
extraordinary circumstances and corrects the citation to text in the
applicable text in Subpart C. There are no other changes to appendix A
of Subpart C.

Subpart D--Environmental Assessments

TVA modifies this subpart by moving and modifying sections
addressing supplements and relying on existing environmental documents
to Subpart B, as previously discussed, and by moving and modifying a
section addressing public and stakeholder involvement in the
preparation of EAs into Subpart F.
Sec. 1318.300 Purpose and scope. TVA revises this section to
clarify when it is appropriate to prepare an EA.
Sec. 1318.301 Environmental assessment preparation. TVA modifies
the section addressing the preparation of EAs, now numbered as section
1318.301 with the removal of procedures relating to public and
stakeholder involvement. TVA removes a list of items that would be
considered during the initiation of the NEPA process; those are
adequately addressed under the revised Subpart B. In paragraph (a), TVA
identifies core elements of an EA. In paragraph (b), TVA states that
public comment on a draft EA is at its discretion and that substantive
comments are addressed when such review periods are offered. TVA
addresses the page limit established in the Fiscal Responsibility Act
of 2023 (NEPA Sec. 107(e)) in paragraph (d). Finally, TVA adds a
provision in paragraph (e) addressing the use of appendices and a
provision in paragraph (f) requiring a certification in an EA regarding
TVA's adherence to statutory page limits.
Sec. 1318.302 Finding of No Significant Impact. In this section,
TVA makes numerous revisions to clarify the contents of the finding of
no significant impact document. TVA adds that a finding of no
significant impact will identify any mitigation requirements and
commitments that are necessary to address significant effects and the
associated authority and/or applicable monitoring or enforcement
provisions. TVA also adds that a finding of no significant impact may
be published separately or as part of an EA. Procedures relating to
public notification for findings are moved to Subpart F and modified.

Subpart E--Environmental Impacts Statements

Numerous modifications to this subpart ensure that TVA's procedures
more accurately reflect the statutory requirements for EISs and that
the process for completing documents is efficient and timely. As noted
above, sections addressing interagency cooperation, scoping,
supplements, and reliance on existing environmental documents are moved
to Subpart B.
Sec. 1318.400 Purpose and scope. TVA removes the list of actions
normally requiring an EIS. TVA moves the description of the standard
contents for an EIS to Sec. 1318.401. In paragraphs (b)

[[Page 2474]]

and (c), TVA revises the previous procedures that address the scope of
an EIS to emphasize the need for concise documents that focus on issues
of significance and to address the consideration of indirect effects.
Sec. 1318.401 Environmental Impact Statement preparation. Two
sections addressing the preparation of the draft and final EISs are
combined into this section. TVA adds a list of contents that represent
the standard format for an EIS, based on past CEQ NEPA regulations. TVA
revises its procedures addressing the review of EISs in a manner
consistent with NEPA Sec. 102(C). Procedures addressing public
reviews, minimum review periods, and responding to comments are
addressed in Subpart F. Similar to the addition to Sec. 1318.301, TVA
addresses the page limit for EISs that is established in the Fiscal
Responsibility Act of 2023 (NEPA Sec. 107(e)) in paragraphs (d) and
(e). TVA also adds a provision in paragraph (f) addressing the use of
appendices and a provision in paragraph (e) requiring a certification
in an EIS regarding TVA's adherence to statutory page limits.
Sec. 1318.402 Agency decision. This section addresses how TVA
documents the completion of an EIS. NEPA mandates that TVA consider all
relevant information relating to impacts on the quality of the human
environment in making its decision but does not require any particular
format for documenting an agency decision. TVA revised this section to
remove specific requirements formerly applicable to a Record of
Decision and provides a format that may be used to notify the public
that the environmental review has been completed and considered.

Subpart F--Miscellaneous Procedures

TVA makes numerous revisions to this Subpart. TVA removes
procedures addressing the review of EISs prepared by other agencies
because those procedures addressed only internal administrative tasks
and roles associated with providing comments to the agency and
therefore are not necessary. TVA removes procedures stating that TVA
may issue additional supplemental or explanatory guidance relating to
its NEPA procedures and that TVA executives may modify the roles and
responsibilities identified in the procedures; these procedures
addressing administrative determinations are unnecessary. TVA revised a
section addressing TVA's substantial compliance with TVA's NEPA
procedures. TVA moves procedures relating to providing reports to the
public on the status of ongoing NEPA reviews to Sec. 1318.500 because
they pertain to public involvement. As described below, three sections
are added to this subpart.
Sec. 1318.500 Public and stakeholder involvement. In this section,
TVA consolidates procedures relating to public involvement in the NEPA
process. The section revises previous procedures to reflect that public
involvement in the preparation of environmental documents is at TVA's
discretion. Minor modifications reaffirm and clarify TVA's commitments
to provide notification and information relevant to its NEPA program
and proposed actions. Paragraph (d) addresses how TVA makes documents
available for public review, relying primarily on its public website.
The section includes new procedures addressing how public comments are
treated to streamline the process and time required to review and
consider the public's input. These changes allow TVA to focus on those
comments that improve the environmental document and its analysis. In
the section, TVA commits to disclosing public comments submitted on
environmental documents and updating the public when it ceases
environmental reviews.
Sec. 1318.501 Mitigation. TVA includes minor revisions to this
section for clarification. TVA removes details relating to which staff
will be responsible for ensuring mitigation measures are met.
Sec. 1318.502 Programmatic environmental documents and tiering.
TVA combines two sections addressing programmatic NEPA documents and
tiering into one section. TVA adds a paragraph citing to new statutory
requirements addressing programmatic environmental documents from the
Fiscal Responsibility Act of 2023 (NEPA Sec. 108). TVA modifies the
section by removing a definition for programmatic documents because the
definition is now established in statute (NEPA Sec. 111). Two
citations to CEQ's NEPA regulations are deleted. In paragraph (b), TVA
clarifies that contents of tiered documents need only be summarized and
incorporated by reference and will only address the subsequent action.
In paragraph (c), TVA incorporates three criteria to determine whether
ongoing or previously approved actions may be implemented during a
programmatic review.
Sec. 1318.503 Coordination with project sponsors and procedures
for project sponsor-related environmental documents. This section
incorporates new provisions addressing ``private applicants.''
Throughout this section, TVA now refers to such applicants as ``project
sponsors,'' consistent with usage in the Fiscal Responsibility Act of
2023 and the One Big Beautiful Bill Act of 2025. The section is
modified to acknowledge that project sponsors or their contractors may
prepare environmental documents, while reaffirming that such documents
must be independently evaluated and approved by TVA. TVA addresses
support for project sponsors or their contractors in the preparation of
environmental documents. TVA also adds a provision that requires
project sponsors or sponsors preparing environmental documents to
submit disclosure statements addressing their interest in the outcome
of the action. In paragraph (h), TVA addresses section 112 of NEPA (a
provision of the One Big Beautiful Bill Act of 2025) and the associated
coordination with CEQ.
Sec. 1318.504 Reducing paperwork and delay. TVA modifies this
section to emphasize practices that ensure efficient, concise
environmental reviews are completed in accordance with new page and
time limits. TVA incorporates and consolidates several procedures from
other sections of its procedures into this modified section. Paragraph
(b) addresses incorporating material by reference in environmental
documents, based on long-standing CEQ NEPA regulations. Paragraph (c)
addresses the need to write in plain language using a clear format.
Sec. 1318.505 Information requirements. TVA adds this section to
ensure that long-standing standards for the information used in
environmental reviews are addressed. Based on previous CEQ NEPA
regulations, TVA adds procedures addressing methodology and scientific
accuracy in paragraph (a) and incomplete and unavailable information in
paragraph (b).
Sec. 1318.506 Causes of action. This section was added to clarify
that minor deviations from TVA's procedures do not establish a cause of
action for violation of NEPA.
Sec. 1318.507 Emergency actions. TVA makes no changes to this
section.
Sec. 1318.508 Unique identification numbers. TVA adds this section
to address the numbering system that it will apply to its environmental
documents for tracking purposes. The numbering of TVA environmental
documents will be consistent with CEQ guidance.

Part 1319--Floodplains and Wetlands

TVA is moving the regulations in Subpart G (Floodplains and
Wetlands) from 18 CFR part 1318 to Part 1319 of title 18 of the Code of
Federal Regulations. As noted above, those

[[Page 2475]]

procedures implement the requirements of two Executive Orders. Moving
the floodplains and wetlands procedures to a separate part clarifies
that those procedures do not implement the statutory requirements of
NEPA and therefore should not be considered part of TVA's NEPA
procedures.
Four definitions relevant to the floodplains and wetlands
procedures were removed from Sec. 1318.10 and added to this part at
Sec. 1319.20. In several places, TVA revises text to remove references
to specific TVA offices that would be involved in various tasks. Other
minor revisions are made for clarification, but TVA has not proposed
substantive changes to these floodplains and wetlands procedures.

IV. Regulatory Requirements

A. Regulatory Planning and Review

Executive Order (E.O.) 12866 provides that the Office of
Information and Regulatory Affairs (OIRA) in the Office of Management
and Budget will determine whether a regulatory action is significant as
defined by E.O. 12866 and will review significant regulatory actions.
E.O. 13563 reaffirms the principles of E.O. 12866 while calling for
improvements in the Nation's regulatory system to promote
predictability, reduce uncertainty, and use the best, most innovative,
and least burdensome tools for achieving regulatory ends. TVA has
developed the interim final rule consistent with E.O. 13563. OIRA
reviewed this interim final rule and determined that it is not a
significant regulatory action under E.O. 12866, as supplemented by E.O.
13563.

B. Regulatory Flexibility Act

Notice and comment is not required because TVA has invoked the
APA's ``good cause'' exemption under 5 U.S.C. 553(b) and because it is
a rule of agency procedure and practice and does not establish
substantive requirements binding the public. However, TVA is
voluntarily accepting comments for a period of 30 days.

C. Paperwork Reduction Act

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

D. Federalism

TVA has considered this interim final rule under the requirements
of E.O. 13132, Federalism, and has determined that the interim final
rule conforms with the federalism principles set out in this E.O.; will
not impose any compliance costs on the States; and will not have
substantial direct effects on the States, on the relationship between
the Federal government and the States, or the distribution of power and
responsibilities among the various levels of government. Therefore, TVA
concludes that this interim final rule will not have federalism
implications, and no further assessment of federalism implications is
necessary.

E. Unfunded Mandates

Pursuant to Title II of the Unfunded Mandates Reform Act of 1995 (2
U.S.C. 1531-38), TVA has assessed the effects of the interim final rule
on State, local, and Tribal governments and the private sector. The
interim final rule will not compel the expenditure of $100 million or
more, adjusted annually for inflation, in any one year by State, local,
and Tribal governments in the aggregate or by the private sector.
Therefore, a statement under section 202 of the Act is not required.
This action also does not impose any enforceable duty, contain any
unfunded mandate, or otherwise have any effect subject to the
requirements of 2 U.S.C. 1531-38.

F. National Environmental Policy Act

TVA's NEPA procedures assist in the fulfillment of its
responsibilities under NEPA and do not authorize any specific agency
activity or commit resources that may affect the environment. The
procedures also do not represent the agency's final determination of
what level of NEPA analysis is required for a particular agency action.
The determination that establishing agency NEPA procedures does not
require NEPA analysis and documentation has been upheld in Heartwood,
Inc. v. U.S. Forest Service, 73 F. Supp. 2d 962, 972-73 (S.D. III.
1999), aff'd, 230 F.3d 947, 954-55 (7th Cir. 2000).

G. Civil Justice Reform

Under section 3(a) of E.O. 12988, Civil Justice Reform, agencies
must review their regulations to eliminate drafting errors and
ambiguities, draft them to minimize litigation, and provide a clear
legal standard for affected conduct. Section 3(b) provides a list of
specific issues for review to ensure compliance with section 3(a). TVA
has conducted this review and determined that this interim final rule
complies with the requirements of E.O. 12988.

H. Consultation and Coordination With Indian Tribal Governments

E.O. 13175, Consultation and Coordination with Indian Tribal
Governments, requires Federal agencies to consult and coordinate with
Tribes on a government-to-government basis on policies that have Tribal
implications, including regulations, legislative comments or proposed
legislation, and other policy statements or actions that have
substantial direct effects on one or more Indian Tribes, on the
relationship between the Federal Government and Indian Tribes, or the
distribution of power and responsibilities between the Federal
Government and Indian Tribes. This interim final rule does not impose
substantial direct compliance costs on Tribal governments and does not
preempt Tribal law. TVA has reviewed this interim final rule in
accordance with the requirements of E.O. 13175 and has determined that
it will not have substantial direct effects on Indian Tribes, on the
relationship between the Federal Government and Indian Tribes, or on
the distribution of power and responsibilities between the Federal
Government and Indian Tribes. Therefore, consultation and coordination
with Indian Tribal governments is not required for this interim final
rule.

I. Executive Orders 14154 and 14192

TVA has determined that this interim final rule is consistent with
the policies and directives outlined in E.O. 14154 ``Unleashing
American Energy'' and E.O. 14192, ``Unleashing Prosperity Through
Deregulation.'' This rule is an E.O. 14192 deregulatory action.

J. Congressional Review Act

Pursuant to subtitle E of the Small Business Regulatory Enforcement
Fairness Act of 1996 (known as the Congressional Review Act) (5 U.S.C.
801 et seq.), OIRA has designated this interim final rule as not a
major rule as defined by 5 U.S.C. 804(2). This procedural action, in
any event, is not a rule at all under 5 U.S.C. 804(3)(C).

List of Subjects

18 CFR Part 1318

Administrative practice and procedure, Environmental impact
statements, Environmental protection.

18 CFR Part 1319

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

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

[[Page 2476]]

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

Subpart A--General Information
Sec.
1318.10 Purpose and policy.
1318.20 Abbreviations.
1318.30 Definitions.
Subpart B--Initiating the NEPA Process
1318.100 Determining when NEPA applies.
1318.101 Determining the appropriate level of NEPA review.
1318.102 Determination of NEPA Adequacy.
1318.103 Supplements.
1318.104 Reliance on existing environmental documents.
1318.105 Lead and cooperating agency determinations.
1318.106 Schedule for the NEPA process.
1318.107 Scoping process.
Subpart C--Categorical Exclusions
1318.200 Purpose and scope.
1318.201 Extraordinary circumstances.
1318.202 Public notification.

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

Subpart D--Environmental Assessments

1318.300 Purpose and scope.
1318.301 EA preparation.
1318.302 Finding of No Significant Impact.

Subpart E--Environmental Impact Statements

1318.400 Purpose and scope.
1318.401 EIS preparation.
1318.402 Agency decision.

Subpart F--Miscellaneous Procedures

1318.500 Public and stakeholder involvement.
1318.501 Mitigation.
1318.502 Programmatic environmental documents and tiering.
1318.503 Coordination with project sponsors and procedures for
project sponsor-prepared environmental documents.
1318.504 Reducing paperwork and delay.
1318.505 Information requirements.
1318.506 Causes of action.
1318.507 Emergency actions.
1318.508 Unique identification numbers.

Authority: 16 U.S.C. 831 et seq.; 42 U.S.C. 4321 et seq.

Subpart A--General Information

Sec. 1318.10 Purpose and policy.

This part establishes procedures for Tennessee Valley Authority
(TVA) to use for compliance with the National Environmental Policy Act
(NEPA) of 1969, as amended (42 U.S.C. 4321 et seq.).
(a) Purpose. The purpose of these procedures is to integrate NEPA
into TVA's decision-making processes. Specifically, the procedures:
describe the process by which TVA determines what actions are subject
to NEPA's procedural requirements and the applicable level of NEPA
review; ensure that relevant environmental information is identified
and considered early in the process to ensure informed decision making;
enable TVA to conduct coordinated, consistent, predictable and timely
environmental reviews; reduce unnecessary burdens and delays; and
implement NEPA's mandates regarding lead and cooperating agency roles,
page and time limits, and sponsor preparation of environmental
documents.
(b) Procedural and Interpretive Rule. This document sets forth
TVA's procedures and practices for implementing NEPA. It further
explains TVA's interpretation of certain key terms in NEPA. It does
not, nor does it intend to, govern the rights and obligations of any
party outside the Federal government. It does, however, establish the
procedures under which TVA will typically fulfill its requirements
under NEPA.
(c) Consultation with the Council on Environmental Quality (CEQ).
In addition to the process for establishing or revising categorical
exclusions set forth in Sec. 1318.200(c), TVA will consult with CEQ
while developing or revising proposed NEPA implementing procedures, in
accordance with NEPA sec. 102(2)(B), 42 U.S.C. 4332(B).

Sec. 1318.20 Abbreviations.

(a) CE--Categorical Exclusion
(b) CEQ--Council on Environmental Quality
(c) EA--Environmental Assessment
(d) EIS--Environmental Impact Statement
(e) FONSI--Finding of No Significant Impact
(f) NEPA--National Environmental Policy Act
(g) TVA--Tennessee Valley Authority

Sec. 1318.30 Definitions.

The following definitions apply throughout this part. Other
applicable terms should be given the same meaning as set forth in
section 111 of NEPA unless such a reading would make the terms
inconsistent with the context in which they appear.
(a) Authorization means any license, permit, approval, finding,
determination, or other decision issued by an agency that is required
or authorized under Federal law to implement a proposed action.
(b) Effects or impacts means changes to the human environment from
the proposed action or alternatives that are reasonably foreseeable and
have a reasonably close causal relationship to the proposed action or
alternatives.
(1) Effects may include ecological (such as the effects on natural
resources and on the components, structures, and functioning of
affected ecosystems), aesthetic, historic, cultural, economic (such as
the effects on employment), social, or health effects. Effects
appropriate for analysis under NEPA may be either beneficial or
adverse, or both, with respect to these values.
(2) A ``but for'' causal relationship is insufficient to make TVA
responsible for a particular effect under NEPA. Effects should
generally not be considered if they are remote in time, geographically
remote, or the product of a lengthy causal chain. Effects do not
include those effects that the agency has no ability to prevent due to
the limits of its regulatory authority, or that would occur regardless
of the proposed action, or that would need to be initiated by a third
party.
(c) Human environment means comprehensively the natural and
physical environment and the relationship of Americans with that
environment. (See also the definition of ``effects'' in paragraph (b)
of this section.)
(d) Jurisdiction by law means agency authority to approve, veto, or
finance all or part of the proposal.
(e) Mitigation means measures that avoid, minimize, or compensate
for effects caused by a proposed action or alternatives as described in
an environmental document or decision document that have a nexus to
those effects. While NEPA requires consideration of mitigation, it does
not mandate the form or adoption of any mitigation. Mitigation may
include:
(1) Avoiding the impact altogether by not taking a certain action
or parts of an action.
(2) Minimizing effects by limiting the degree or magnitude of the
action and its implementation.
(3) Rectifying the impact by repairing, rehabilitating, or
restoring the affected environment.
(4) Reducing or eliminating the impact over time by preservation
and maintenance operations during the life of the action.
(5) Compensating for the impact by replacing or providing
substitute resources or environments.
(f) NEPA process means all measures necessary for compliance with
the requirements of section 2 and title I of NEPA sec. 102(2), 42
U.S.C. 4332(2).

[[Page 2477]]

(g) Notice of intent means a public notice that an agency will
prepare and consider an environmental document.
(h) Official responsible for NEPA compliance refers to the TVA
official(s) who manages the NEPA compliance staff and is responsible
for overall review of TVA NEPA compliance.
(i) Page means an 8.5'' x 11'' page with one-inch margins using a
word processor with 12-point proportionally spaced font, single spaced.
Footnotes may be in 10-point font. Such size restrictions do not apply
to explanatory maps, diagrams, graphs, tables, and other means of
graphically displaying quantitative or geospatial information, although
pages containing such material do count towards the page limit. When an
item of graphical material is larger than 8.5'' x 11'', each such item
will count as one page.
(j) Project sponsor refers to a private applicant, individual, or
other non-Federal entity that proposes to undertake an action that will
require TVA's authorization.
(k) Publish means a method found by TVA to efficiently and
effectively make environmental documents and information available for
interested persons, including publication on TVA's website.
(l) Reasonable alternatives means a reasonable range of
alternatives that are technically and economically feasible and meet
the purpose and need for the proposed action.
(m) Reasonably foreseeable means sufficiently likely to occur such
that a person of ordinary prudence would take it into account in
reaching a decision.
(n) Scope consists of the range of actions, alternatives, and
effects to be considered in an environmental document. The scope of an
individual statement may depend on its relationships to other
statements.
(o) Tiering refers to the coverage of general matters in a broader
EIS or EA (such as a regional program or policy statements) with
subsequent narrower statements or environmental analyses (such as site-
specific statements) incorporating by reference the general discussions
and concentrating solely on the issues specific to the statement
subsequently prepared.

Subpart B--Initiating the NEPA Process

Sec. 1318.100 Determining when NEPA applies.

(a) At the earliest possible time, TVA will determine whether a
proposed action requires an environmental review under NEPA and, if so,
the level of environmental review.
(b) TVA will determine that NEPA does not apply to a proposed
agency action when:
(1) The activities or decision do not result in final agency action
under the Administrative Procedure Act, see 5 U.S.C. 704, or other
relevant statute that also includes a finality requirement;
(2) The proposed activity or decision is exempted from NEPA by law;
(3) Compliance with NEPA would clearly and fundamentally conflict
with the requirements of another provision of law;
(4) In circumstances where Congress by statute has prescribed
decisional criteria with sufficient completeness and precision such
that TVA retains no residual discretion to alter its action based on
the consideration of environmental factors, then that function of TVA
is nondiscretionary within the meaning of NEPA sec. 106(a)(4) and/or
sec. 111(10)(B)(vii) (42 U.S.C. 4336(a)(4) and 4336e(10)(B)(vii),
respectively), and NEPA does not apply to the action in question;
(5) The proposed action is an action for which another statute's
requirements serve the function of agency compliance with the Act; or
(6) The proposed action is not a ``major Federal action.'' The
terms ``major'' and ``federal action,'' each have independent force.
NEPA applies only when both of these two criteria are met. Such a
determination is inherently bound up in the facts and circumstances of
each individual situation, and is thus reserved to the judgment of TVA
in each instance.
(7) NEPA does not apply to ``non-Federal actions.'' Therefore,
under the terms of the statue, NEPA does not apply to actions with no
or minimal Federal funding, or with no or minimal Federal involvement
where a Federal agency cannot control the outcome of the project. NEPA
sec. 111(10)(B)(i), 42 U.S.C. 4336e(10)(B)(i). A but-for causal
relationship is insufficient to make an agency responsible for a
particular action under NEPA. By the same token, minimal Federal
funding or involvement does not by itself convert that action into a
Federal action within the meaning of the language of the statute.
(c) The issuance or update of TVA's NEPA procedures is not subject
to NEPA review.
(d) In determining whether NEPA applies to a proposed agency
action, TVA will consider only the action or project at hand.

Sec. 1318.101 Determining the appropriate level of NEPA review.

(a) If TVA determines under Sec. 1318.100 that NEPA applies to a
proposed action or decision, TVA will then determine the appropriate
level of NEPA review in the following sequence and manner. At all steps
in the following process, TVA will consider the proposed action or
project at hand and its effects.
(1) If TVA has established, or adopted pursuant to NEPA sec. 109,
42 U.S.C. 4336c, a categorical exclusion that covers the proposed
action, TVA will analyze whether to apply the categorical exclusion to
the proposed action and apply the categorical exclusion, if
appropriate, pursuant to subpart C of this part.
(2) If another agency has already established a categorical
exclusion that covers the proposed action, TVA will consider whether to
adopt that exclusion pursuant to Sec. 1318.200(d) so that it can be
applied to the proposed action at issue, and to future actions or
decisions of that type.
(3) If the proposed action warrants the establishment of a new
categorical exclusion, or the revision of an existing categorical
exclusion, pursuant to Sec. 1318.200(c), TVA will consider whether to
establish or revise, and then apply the categorical exclusion to the
proposed action pursuant to subpart C of this part.
(4) If TVA cannot apply a categorical exclusion to the proposed
action consistent with paragraphs (a)(1) through (3) of this section,
TVA will consider the proposed action's reasonably foreseeable effects
consistent with paragraph (b) of this section, and then will:
(i) if the proposed action is not likely to have reasonably
foreseeable significant effects or the significance of the effects is
unknown, develop an EA, as described in subpart D of this part; or
(ii) if the proposed action is likely to have reasonably
foreseeable significant effects, develop an EIS, as described in
subpart E of this part.
(b) When considering whether the reasonably foreseeable effects of
the proposed action are significant, TVA will analyze the potentially
affected environment and degree of the effects of the proposed action.
TVA may use any reliable data source and will not undertake new
research unless it is essential to evaluating alternatives and the cost
and time of obtaining it are not unreasonable.
(1) In considering the potentially affected environment, TVA may
consider, as appropriate to the specific

[[Page 2478]]

proposed action, the affected area and its resources.
(2) In considering the degree of the effects, TVA may consider the
following, as appropriate to the specific proposed action:
(i) Both short- and long-term effects.
(ii) Both beneficial and adverse effects.
(iii) Effects on public health and safety.
(iv) Economic effects
(v) Effects on the quality of life of the American people.

Sec. 1318.102 Determination of NEPA Adequacy.

TVA will determine whether a proposed action is already evaluated
by an existing NEPA review, including a programmatic or generic review.
In making a determination, TVA will evaluate and document whether the
following conditions are met:
(a) The new proposed action is substantially similar to an action
previously analyzed in an existing environmental document(s);
(b) The reasonably foreseeable environmental effects that would
result from the new proposed action are similar to those analyzed in an
existing environmental document(s); and
(c) Any new information or circumstances relevant to environmental
concerns would not substantially change the analysis in an existing
environmental document(s).

Sec. 1318.103 Supplements.

(a) After completion of an environmental document, if TVA makes
substantial changes in the proposed action that are relevant to
environmental concerns or there is substantial new circumstances or
information about the significance of the adverse effects that bear on
the proposed action or its impact, and important components of the
proposed action remain to be implemented, TVA will determine how the
environmental document should be supplemented or modified. TVA may
supplement an environmental document by issuing a new document that
addresses changes in the proposed action or new circumstances or
information or may modify the existing document so that revisions and
edits to the original document are apparent. A supplemented or modified
environmental document will be published.
(b) After completion of an environmental document, if TVA
determines that changes to the proposed action that are relevant to
environmental concerns are not substantial or new circumstances or
information are not significant or relevant to environmental concerns,
and therefore supplemental analysis is not warranted, TVA will document
this determination consistent with Sec. 1318.102.

Sec. 1318.104 Reliance on existing environmental documents.

(a) TVA may rely on another Federal agency's EA or EIS (including
an EA or EIS prepared by a Tribal, State, or local agency on behalf of
a Federal agency), or a portion thereof, if TVA determines that TVA's
proposed action is substantially the same or similar to the other
agency's action, and the other agency's document meets the standards
for an adequate statement or assessment under these procedures.
(b) In making this determination, TVA will consider whether the
scope and analyses in the other agency's EA or EIS adequately address
the TVA action. TVA will cite, briefly describe the content and
relevance to the environmental document, and may make modifications
that are necessary to render the relied-upon document, or portion
thereof, fit for fulfilling NEPA analytic requirements for the action
at hand. TVA will publish this determination and the EA or EIS relied
upon and notify affected Federal, Tribal, State, and local agencies and
other interested entities.
(c) TVA may supplement another agency's EA or EIS in accordance
with Sec. 1318.103.

Sec. 1318.105 Lead and cooperating agency determinations.

(a) As soon as practicable after the determination is made to
prepare an EA or EIS, TVA will determine whether inviting other
Federal, Tribal, State, or local agencies to participate in the
preparation of the EA or EIS as lead, joint lead, or cooperating
agencies is appropriate (NEPA sec. 107(a), 42 U.S.C. 4336a, and NEPA
sec. 111, 42 U.S.C. 4336e). TVA will typically serve as the lead
Federal agency for TVA actions. Any designation of lead federal agency
will be made in accordance with NEPA sec. 107, U.S.C. 4336a.
(b) If TVA is participating with other Federal agencies in a NEPA
review, TVA will cooperate with the other Federal agency(ies) to
designate agency roles (e.g., lead agency, joint lead agency,
cooperating agency).
(c) When participating with other Federal agencies, TVA will, to
the extent practicable, work with the other Federal, Tribal, State, or
local agencies to prepare a single environmental document.

Sec. 1318.106 Schedule for the NEPA process.

(a) Once TVA has made a determination of the level of NEPA review,
TVA, and if applicable, project sponsors or other participating
agencies, will establish a schedule for the completion of the
environmental document, consistent with deadlines identified in NEPA
sec. 107(g), 42 U.S.C. 4336a(g). Prior to establishing the schedule,
TVA will review for completeness any information, data, materials, and/
or any applications or agreements that are necessary to determine the
level of NEPA review.
(b) TVA will address in the schedule, as appropriate, any
concurrent and integrated surveys and studies required by other
applicable environmental review laws and Executive Orders, including
but not limited to the National Historic Preservation Act of 1966 (54
U.S.C. 300101 et seq.) and the Endangered Species Act of 1973 (16
U.S.C. 1531 et seq.).
(c) As the Supreme Court has repeatedly held, NEPA is governed by a
``rule of reason.'' Congress supplied the measure of that reason in the
2023 revision of NEPA by setting the deadlines in NEPA sec. 107(g), 42
U.S.C. 4336a(g). These deadlines indicate Congress's determination that
an agency has presumptively spent a reasonable amount of time on
analysis and the document should issue, absent very unusual
circumstances. In such circumstances, an extension will be given only
for such time as is necessary to complete the analysis.
(1) TVA will complete an EIS not later than the date that is 2
years after the sooner of the date on which TVA determines that NEPA
requires the preparation of an EIS with response to the proposal; the
date on which TVA notifies the applicant that the application to
establish a right-of-way for the proposal is complete; and the date on
which TVA issues a notice of intent to prepare the EIS. (42 U.S.C.
4336a(g)(1)(A))
(2) TVA will complete an EA not later than the date that is 1 year
after the sooner of the date on which TVA determines that NEPA requires
the preparation of an EA with response to the proposal; the date on
which TVA notifies the applicant that the application to establish a
right-of-way for such action is complete; and the date on which TVA
issues a notice of intent to prepare the EA for the proposal. (42
U.S.C. 4336a(g)(1)(B))
(3) TVA will calculate EIS or EA schedules from the applicable
start date to the date TVA publishes the EIS or a finding of no
significant impact as the

[[Page 2479]]

end date. Where TVA has prepared an EA that results in a decision to
prepare an EIS, TVA will use the start date for the EA as the start
date for the EIS unless it exercises its discretion to determine
otherwise by direction of the TVA official responsible for NEPA.
(4) The EIS or EA will publish (unless the deadline is extended
pursuant to the provision below) on the day the deadline elapses, in as
substantially complete form as is possible.
(5) TVA will document the start and completion dates of each EIS or
EA to assist TVA in tracking the schedule and preparing a report to
congressional committees required by NEPA Sec. 107(h), 42 U.S.C.
4336a(h).
(d) If TVA determines it is not able to meet the deadline
prescribed by NEPA sec. 107(g)(1), 42 U.S.C. 4336a(g)(1), TVA will
consult with the applicant, if any, pursuant to NEPA sec. 107(g)(2), 42
U.S.C. 4336a(g)(2). After such consultation, if needed, and for cause
stated, TVA may establish a new deadline and appropriately document the
cause. Cause for establishing a new deadline is only established if the
EIS or EA is so incomplete, at the time at which TVA determines it is
not able to meet the statutory deadline, that issuance would, in TVA's
view, result in an inadequate analysis. Such new deadline must provide
only so much additional time as is necessary to complete such EIS or
EA. The announcement of the new deadline will specify the reason why
the EIS or EA was not able to be completed under the statutory deadline
and whether the applicant consented to the new deadline.
(e) When the EIS or EA is published, a responsible official will
certify (and the certification will be incorporated into the EIS or EA)
that the resulting EIS or EA represents TVA's good-faith effort to
fulfill NEPA's requirements within the Congressional timeline; that
such effort is substantially complete; and that, in the TVA's expert
opinion, it has thoroughly considered the factors mandated by NEPA; and
that, in TVA's judgment, the analysis contained therein is adequate to
inform and reasonably explain TVA's final decision regarding the
proposed federal action.

Sec. 1318.107 Scoping process.

(a) TVA will publish a notice of intent for an EIS and request
public comment on the proposed action and alternatives.
(b) TVA may use the scoping process to identify for analysis in an
EA or EIS the substantive issues that meaningfully inform the
consideration of environmental effects and reasonable alternatives to
be considered. Scoping may also identify non-substantive issues that do
not require analysis and/or alternatives that are determined not to be
reasonable. Scoping may include work conducted prior to publication of
the notice of intent or formal initiation of the NEPA process,
including prior public engagement to identify issues and alternatives
that may inform the eventual alternatives analyzed.
(c) The scoping process may include interagency scoping sessions to
coordinate an action with and obtain inputs from other interested
agencies (including likely affected Federal, Tribal, State, and local
agencies).
(d) On the basis of input received during the scoping process, TVA
will determine whether to modify the scope, schedule, or the type of
environmental document.

Subpart C--Categorical Exclusions

Sec. 1318.200 Purpose and scope.

(a) Categories of actions addressed in this section are those that
do not normally have a significant effect on the human environment and
therefore do not require the preparation of an EA or an EIS. Such
categories of actions (categorical exclusions) include those:
(1) Identified in appendix A of this part;
(2) Adopted by TVA consistent with NEPA sec. 109, 42 U.S.C. 4336c;
or
(3) Identified by TVA pursuant to paragraph (c) of this section.
(b) A proposed action may be categorically excluded if a single
categorical exclusion encompasses the proposed action or multiple
categorical exclusions collectively encompass the proposed action,
subject to a review for extraordinary circumstances pursuant to Sec.
1318.201. A proposed action will not be impermissibly segmented into
smaller parts such that the use of a categorical exclusion for any such
smaller part would irreversibly and irretrievably commit TVA to a
particular plan of action for a broader proposed action.
(c) TVA may update or revise the categorical exclusions listed in
appendix A of this part when it identifies new categories of actions or
determines that the definition of actions listed in appendix A of this
part warrants revision or removal, based on TVA's experience. In making
this determination, TVA will:
(1) Develop a written record containing information to substantiate
its determination or to justify its removal;
(2) Consult with the CEQ on its proposed categorical exclusion or
revision, including the written record, for a period not to exceed 30
days prior to providing public notice as described in paragraph (c)(3);
and
(3) Provide public notice of TVA's establishment, revisions, or
removal of the categorical exclusion and publish the written record.
(d) Consistent with NEPA sec. 109, 42 U.S.C. 4336c, TVA may adopt a
CE listed in another agency's NEPA procedures. If, after consulting
with the agency, TVA determines such an adoption is appropriate, TVA
will provide public notification of the adoption. The notification will
briefly describe the agencies' consultation, the category of actions to
which TVA would apply the CE, and any information relevant to the
application of the adopted CE. The CEs adopted by TVA under NEPA sec.
109, 42 U.S.C. 4336c, will be listed on TVA's web page.
(e) TVA may rely on another Federal agency's determination that a
categorical exclusion applies to a particular proposed action if the
action covered by that determination and TVA's proposed action are
substantially the same. In these instances, TVA will review the records
of the other Federal agency to ensure the records address the TVA
proposed action. TVA will document that TVA is relying on the
categorical exclusion determination and that no extraordinary
circumstances are present that require the preparation of an
environmental document.

Sec. 1318.201 Extraordinary circumstances.

(a) If TVA determines that a categorical exclusion(s) covers a
proposed action, TVA will evaluate the action for extraordinary
circumstances in which a normally excluded action may have a
significant effect.
(1) If an extraordinary circumstance exists, TVA may categorically
exclude the proposed action if it determines that there are
circumstances that lessen the impacts or other conditions sufficient to
avoid significant effects or that the action may be modified to avoid
the potential to result in significant effects.
(2) If TVA cannot categorically exclude the proposed action due to
the presence of an extraordinary circumstance, TVA will prepare an EA
or EIS, as appropriate.
(b) Examples of extraordinary circumstances to be considered are:
(1) The proposed action has the potential to significantly impact
environmental resources, including the following resources:
(i) Species listed or proposed to be listed under the Endangered
Species Act, or the proposed or designated Critical Habitat for these
species;
(ii) Wetlands or floodplains;

[[Page 2480]]

(iii) Cultural or historical resources;
(iv) Areas having special designation or recognition such as wild
and scenic rivers, sacred sites, parklands, or wilderness areas; and
(v) Important farmland, as defined in 7 CFR part 657; and
(2) There is substantial scientific controversy regarding the
significance of the environmental impacts of the proposed action.
(c) The mere presence of one or more of the resources under
paragraph (b)(1) of this section does not by itself preclude the use of
a categorical exclusion. Rather, the determination that an
extraordinary circumstance(s) exists depends upon the finding of a
causal relationship between a proposed action and the potential effect
on these resource conditions, and, if such a relationship exists, the
relative degree of the potential effect of a proposed action on these
resource conditions.
(d) TVA will document its review for extraordinary circumstances
for categories of actions that are likely to result in a physical
effect on the environment. No documentation of the extraordinary
circumstances review is required for categories of actions that would
not result in a physical effect on the environment or carry little risk
of significant environmental effects.

Sec. 1318.202 Public notification.

TVA may, in its sole discretion, provide public notification on any
action for which a categorical exclusion is used if TVA determines that
the public may have relevant and important information relating to the
proposal that will assist TVA in its decisionmaking.

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

TVA has established the following classes of actions as
categorical exclusions. Individual actions must be reviewed to
determine whether extraordinary circumstances are present (see Sec.
1318.201). If an extraordinary circumstance cannot be addressed
sufficiently to render the action's impacts not significant, an EA
or an EIS must be prepared.
1. Educational or informational activities undertaken by TVA
alone or in conjunction with other agencies, public and private
entities, or the general public.
2. Technical and planning assistance provided to State, local
and private organizations and entities.
3. Personnel actions.
4. Procurement actions.
5. Accounting, auditing, financial reports and disbursement of
funds.
6. Contracts or agreements for the sale, purchase, or
interchange of electricity.
7. Administrative actions consisting solely of paperwork.
8. Communication, transportation, computer service and office
services.
9. Property protection activities that do not physically alter
facilities or grounds, law enforcement and other legal activities.
10. Emergency preparedness actions not involving the
modification of existing facilities or grounds.
11. Minor actions to address threats to public health and
safety, including, but not limited to, temporary prohibition of
existing uses of TVA land or property, short-term closures of sites,
and selective removal of trees that pose a hazard.
12. Site characterization, data collection, inventory
preparation, planning, monitoring, and other similar activities that
have little to no physical impact.
13. Engineering and environmental studies that involve minor
physical impacts, including but not limited to, geotechnical
borings, dye-testing, installation of monitoring stations and
groundwater test wells, and minor actions to facilitate access to a
site.
14. Conducting or funding minor research, development and
demonstration projects and programs.
15. Reserved.
16. Construction of new transmission line infrastructure,
including electric transmission lines generally no more than 10
miles in length and that require no more than 125 acres of new
developed rights-of-way and no more than 1 mile of new access road
construction outside the right-of-way; and/or construction of
electric power substations or interconnection facilities, including
switching stations, phase or voltage conversions, and support
facilities that generally require the physical disturbance of no
more than 10 acres.
17. Routine modification, repair, and maintenance of, and minor
upgrade of and addition to, existing transmission infrastructure,
including the addition, retirement, and/or replacement of breakers,
transformers, bushings, and relays; transmission line uprate,
modification, reconductoring, and clearance resolution; and limited
pole replacement. This exclusion also applies to improvements of
existing access roads and construction of new access roads outside
of the right-of-way that are generally no more than 1 mile in
length.
18. Construction, modification and operation of communication
facilities and/or equipment, including power line carriers,
insulated overhead ground wires/fiber optic cables, devices for
electricity transmission control and monitoring, VHF radios, and
microwaves and support towers.
19. Removal of conductors and structures, and/or the cessation
of right-of-way vegetation management, when existing transmissions
lines are retired; or the rebuilding of transmission lines within or
contiguous to existing rights-of-way involving generally no more
than 25 miles in length and no more than 125 acres of expansion of
the existing right-of-way.
20. Purchase, conveyance, exchange, lease, license, and/or
disposal of existing substations, substation equipment, switchyards,
and/or transmission lines and rights-of-way and associated equipment
between TVA and other utilities and/or customers.
21. Purchase or lease and subsequent operation of existing
combustion turbine or combined-cycle plants for which there is
existing adequate transmission and interconnection to the TVA
transmission system and whose planned operation by TVA is within the
normal operating levels of the purchased or leased facility.
22. Development of dispersed recreation sites (generally not to
exceed 10 acres in size) to support activities such as hunting,
fishing, primitive camping, wildlife observation, hiking, and
mountain biking. Actions include, but are not limited to,
installation of guardrails, gates and signage, hardening and
stabilization of sites, trail construction, and access improvements/
controls.
23. Development of public use areas that generally result in the
physical disturbance of no more than 10 acres, including, but not
limited to, construction of parking areas, campgrounds, stream
access points, and day use areas.
24. Minor actions conducted by non-TVA entities on TVA property
to be authorized under contract, license, permit, or covenant
agreements, including those for utility crossings, agricultural
uses, recreational uses, rental of structures, and sales of
miscellaneous structures and materials from TVA land.
25. Transfer, lease, or disposal (sale, abandonment or exchange)
of (a) minor tracts of land, mineral rights, and landrights, and (b)
minor rights in ownership of permanent structures.
26. Approvals under Section 26a of the TVA Act of minor
structures, boat docks and ramps, and shoreline facilities.
27. Installation of minor shoreline structures or facilities,
boat docks and ramps, and actions to stabilize shoreline (generally
up to \1/2\ mile in length) by TVA.
28. Minor modifications to land use allocations outside of a
normal land planning cycle to: rectify administrative errors;
incorporate new information that is consistent with a previously
approved decision included in the land use plan; or implement TVA's
shoreline or land management policies affecting no more than 10
acres.
29. Actions to restore and enhance wetlands, riparian, and
aquatic ecosystems that generally involve physical disturbance of no
more than 10 acres, including, but not limited to, construction of
small water control structures; revegetation actions using native
materials; construction of small berms, dikes, and fish attractors;
removal of debris and sediment following natural or human-caused
disturbance events; installation of silt fences; construction of
limited access routes for purposes of routine maintenance and
management; and reintroduction or supplementation of native,
formerly native, or established species into suitable habitat within
their historic or established range.
30. Actions to maintain, restore, or enhance terrestrial
ecosystems that generally involve physical disturbance of no more
than 125 acres, including, but not limited to, establishment and
maintenance of non-invasive vegetation; bush hogging; prescribed

[[Page 2481]]

fires; installation of nesting and roosting structures, fencing, and
cave gates; and reintroduction or supplementation of native,
formerly native, or established species into suitable habitat within
their historic or established range.
31. The following forest management activities:
a. Actions to manipulate species composition and age class,
including, but not limited to, harvesting or thinning of live trees
and other timber stand improvement actions (e.g., prescribed burns,
non-commercial removal, chemical control), generally covering up to
125 acres and requiring no more than 1 mile of temporary or seasonal
permanent road construction;
b. Actions to salvage dead and/or dying trees including, but not
limited to, harvesting of trees to control insects or disease or
address storm damage (including removal of affected trees and
adjacent live, unaffected trees as determined necessary to control
the spread of insects or disease), generally covering up to 250
acres and requiring no more than 1 mile of temporary or seasonal
permanent road construction; and
c. Actions to regenerate forest stands, including, but not
limited to, planting of native tree species upon site preparation,
generally covering up to 125 acres and requiring no more than 1 mile
of temporary or seasonal permanent road construction.
32. Actions to manage invasive plants including, but not limited
to, chemical applications, mechanical removal, and manual treatments
that generally do not physically disturb more than 125 acres of
land.
33. Actions to protect cultural resources including, but not
limited to, fencing, gating, signing, and bank stabilization
(generally up to \1/2\ mile in length when along stream banks or
reservoir shoreline).
34. Reburial of human remains and funerary objects under the
Native American Graves Protection and Repatriation Act that are
inadvertently discovered or intentionally excavated on TVA land.
35. Installation or modification (but not expansion) of low-
volume groundwater withdrawal wells (provided that there would be no
drawdown other than in the immediate vicinity of the pumping well
and that there is no potential for long-term decline of the water
table or degradation of the aquifer), or plugging of groundwater or
other wells at the end of their operating life. Site
characterization must verify a low potential for seismicity,
subsidence, and contamination of freshwater aquifers.
36. Routine operation, repair or in-kind replacement, and
maintenance actions for existing buildings, infrastructure systems,
facility grounds, public use areas, recreation sites, and operating
equipment at or within the immediate vicinity of TVA's generation
and other facilities. Covered actions are those that are required to
maintain and preserve assets in their current location and in a
condition suitable for use for its designated purpose. Such actions
will not result in a change in the design capacity, function, or
operation. (Routine actions that include replacement or changes to
major components of buildings, facilities, infrastructure systems,
or facility grounds, and actions requiring new permits or changes to
an existing permit(s) are addressed in CE 37). Such actions may
include, but are not limited to, the following:
a. Regular servicing of in-plant and on-site equipment
(including during routine outages) such as gear boxes, generators,
turbines and bearings, duct work, conveyers, and air preheaters;
fuel supply systems; unloading and handling equipment for fuel;
handling equipment for ash, gypsum or other by-products or waste;
hydropower, navigation and flood control equipment; water quality
and air emissions control or reduction equipment; and other
operating system or ancillary components that do not increase
emissions or discharges beyond current permitted levels;
b. Regular servicing of power equipment and structures within
existing transmission substations and switching stations;
c. Routine testing and calibration of facility components,
subsystems, or portable equipment (such as control valves, in-core
monitoring devices, transformers, capacitors, monitoring wells,
weather stations, and flumes);
d. Routine cleaning and decontamination, including to surfaces
of equipment, rooms, and building systems (including HVAC, septic
systems, and tanks);
e. Repair or replacement of plumbing, electrical equipment,
small HVAC systems, sewerage, pipes, and telephone and other
communication service;
f. Repair or replacement of doors, windows, walls, ceilings,
roofs, floors and lighting fixtures in structures less than 50 years
old;
g. Painting and paint removal at structures less than 50 years
old, including actions taken to contain, remove, or dispose of lead-
based paint when in accordance with applicable requirements;
h. Recycling and/or removal of materials, debris, and solid
waste from facilities, in accordance with applicable requirements;
i. Groundskeeping actions, including mowing and landscaping,
snow and ice removal, application of fertilizer, erosion control and
soil stabilization measures (such as reseeding and revegetation),
removal of dead or undesirable vegetation with a diameter of less
than 3 inches (at breast height), and leaf and litter collection and
removal;
j. Repair or replacement of gates and fences;
k. Maintenance of hazard buoys;
l. Maintenance of groundwater wells, discharge structures, pipes
and diffusers;
m. Maintenance and repair of process, wastewater, and stormwater
ponds and associated piping, pumping, and treatment systems;
n. Maintenance and repair of subimpoundments and associated
piping and water control structures;
o. Debris removal and maintenance of intake structures and
constructed intake channels including sediment removal to return
them to the originally-constructed configuration; and
p. Clean up of minor spills as part of routine operations.
37. Modifications, upgrades, uprates, and other actions that
alter existing buildings, infrastructure systems, facility grounds,
and plant equipment, or their function, performance, and operation.
Such actions, which generally will not physically disturb more than
10 acres, include but are not limited to, the following:
a. Replacement or changes to major components of existing
buildings, facilities, infrastructure systems, facility grounds, and
equipment that are like-kind in nature;
b. Modifications, improvements, or operational changes to in-
plant and on-site equipment that do not substantially alter
emissions or discharges beyond current permitted limits. Examples of
equipment include, but are not limited to: gear boxes, generators,
turbines and bearings, duct work, conveyers, superheaters,
economizers, air preheaters, unloading and handling equipment for
fuel; handling equipment for ash, gypsum or other by-products or
waste; hydropower, navigation and flood control equipment; air and
water quality control equipment; control, storage, and treatment
systems (e.g. automation, alarms, fire suppression, ash ponds,
gypsum storage, and ammonia storage and handling systems); and other
operating system or ancillary components;
c. Installation of new sidewalks, fencing, and parking areas at
an existing facility;
d. Installation or upgrades of large HVAC systems;
e. Modifications to water intake and outflow structures provided
that intake velocities and volumes and water effluent quality and
volumes are consistent with existing permit limits;
f. Repair or replacement of doors, windows, walls, ceilings,
roofs, floors and lighting fixtures in structures greater than 50
years old; and
g. Painting and paint removal at structures greater than 50
years old, including actions taken to contain, remove and dispose of
lead-based paint when in accordance with applicable requirements.
38. Siting, construction, and use of buildings and associated
infrastructure (e.g., utility lines serving the building),
physically disturbing generally no more than 10 acres of land not
previously disturbed by human activity or 25 acres of land so
disturbed.
39. Siting and temporary placement and operation of trailers,
prefabricated and modular buildings, or tanks on previously
disturbed sites at an existing TVA facility.
40. Demolition and disposal of structures, buildings, equipment
and associated infrastructure and subsequent site reclamation,
subject to applicable review for historical value, on sites
generally less than 10 acres in size.
41. Actions to maintain roads, trails, and parking areas
(including resurfacing, cleaning, asphalt repairs, and placing
gravel) that do not involve new ground disturbance (i.e., no
grading).
42. Improvements to existing roads, trails, and parking areas,
including, but not limited to, scraping and regrading; regrading of
embankments; installation or replacement of culverts; and other such
minor expansions.
43. Actions to enhance and control access to TVA property
including, but not limited to, construction of new access roads and

[[Page 2482]]

parking areas (generally no greater than 1 mile in length and
physically disturbing no more than 10 acres of land not previously
disturbed by human activity or 25 acres of land so disturbed) and
installation of control measures such as gates, fences, or post and
cable.
44. Small-scale, non-emergency cleanup of solid waste or
hazardous waste (other than high-level radioactive waste and spent
nuclear fuel) to reduce risk to human health or the environment.
Actions include collection and treatment (such as incineration,
encapsulation, physical or chemical separation, and compaction),
recovery, storage, or disposal of wastes at existing facilities
currently handling the type of waste involved in the action.
45. Installation, modification, and operation of the following
types of renewable or waste-heat recovery energy projects which
increase generating capacity at an existing TVA facility, generally
comprising of physical disturbance to no more than 10 acres of land
not previously disturbed by human activity or 25 acres of land so
disturbed:
a. Combined heat and power or cogeneration systems at existing
buildings or sites; and
b. Solar photovoltaic systems mounted on the ground, an existing
building or other structure (such as a rooftop, parking lot or
facility and mounted to signage lighting, gates or fences).
46. Transactions (contracts or agreements) for purchase of
electricity from new methane gas electric generating systems using
commercially available technology and installed within an area
previously developed or disturbed by human activity.
47. Modifications to the TVA rate structure (i.e., rate change)
that result in no predicted increase in overall TVA-system
electricity consumption.
48. Financial and technical assistance for programs conducted by
non-TVA entities to promote energy efficiency or water conservation,
including, but not limited to, assistance for installation or
replacement of energy efficient appliances, insulation, HVAC
systems, plumbing fixtures, and water heating systems.
49. Financial assistance including, but not limited to,
approving and administering grants, loans and rebates for the
renovation or minor upgrading of existing facilities, established or
developing industrial parks, or existing infrastructure; the
extension of infrastructure; geotechnical boring; and construction
of commercial and light industrial buildings. Generally, such
assistance supports actions that physically disturb no more than 10
acres of land not previously disturbed by human activity or no more
than 25 acres of land so disturbed.
50. Financial assistance for the following actions: approving
and administering grants, loans and rebates for continued operations
or purchase of existing facilities and infrastructure for uses
substantially the same as the current use; purchasing, installing,
and replacing equipment or machinery at existing facilities; and
completing engineering designs, architectural drawings, surveys, and
site assessments (except when tree clearing, geotechnical boring, or
other land disturbance would occur).

Subpart D--Environmental Assessments

Sec. 1318.300 Purpose and scope.

(a) If an action is subject to NEPA and unless TVA finds that the
proposed action is excluded from having to prepare an EA or EIS
pursuant to a categorical exclusion as determined following the
procedures in subpart C of this part, or by another provision of law,
TVA will prepare an EA with respect to a proposed agency action that
does not have a reasonably foreseeable significant effect on the
quality of the human environment, or if the significance of such effect
is unknown. TVA is mindful of Congress' direction that EAs are to be
``concise.'' NEPA sec. 106(b)(2); 42 U.S.C. 4336(b)(2).
(b) An EA will concisely communicate information and analyses about
issues that are potentially significant and a reasonable range of
alternatives.

Sec. 1318.301 EA preparation.

(a) The EA will briefly describe the proposed action and include
brief discussions of the purpose and need for action, alternatives
required by NEPA sec. 102(2)(H), 42 U.S.C. 4332(2)(H), and the
environmental effects of the proposed action and alternatives.
(b) TVA may, in its sole discretion, request public and stakeholder
involvement in the preparation of an EA and provide a public comment
period. When public comment is requested, the EA will address
substantive comments made in accordance with Sec. 1318.500.
(c) The EA will briefly provide sufficient data and analysis for
determining whether to sign a FONSI or prepare an EIS.
(d) The text of an EA is strictly prohibited from exceeding 75
pages, not including citations or appendices.
(e) Appendices are to be used for voluminous materials, such as
scientific tables, collections of data, statistical calculations, and
the like, which substantiate the analysis provided in the EA.
Appendices are not to be used to provide additional substantive
analysis, because that would circumvent the congressionally mandated
page limits.
(f) The breadth and depth of analysis in an EA will be tailored to
ensure that the environmental analysis does not exceed this page limit.
In this regard, as part of the finalization of the EA, a responsible
official will certify (and the certification will be incorporated into
the EA) that TVA has considered the factors mandated by NEPA; that the
EA represents TVA's good-faith effort to prioritize documentation of
the most important considerations required by the statute within the
congressionally mandated page limits; that this prioritization reflects
TVA's expert judgment; and that any considerations addressed briefly or
left unaddressed were, in TVA's judgment, comparatively not of a
substantive nature that meaningfully informed the consideration of
environmental effects and the resulting decision on how to proceed.
Such certification may be combined with the certification required
under Sec. 1318.106(e).

Sec. 1318.302 Finding of No Significant Impact.

(a) TVA will prepare a finding of no significant impact if TVA
determines, based on the EA, not to prepare an EIS because the proposed
action will not have significant effects. The finding of no significant
impact will:
(1) Include the EA or incorporate it by reference;
(2) Document TVA's determination that the proposed action will not
have a significant effect on the quality of the human environment;
(3) State the authority for any mitigation that TVA has adopted and
any applicable monitoring or enforcement provisions. If TVA finds no
significant effects based on mitigation, the mitigated finding of no
significant impact will state any mitigation requirements enforceable
by TVA or voluntary mitigation commitments that will be undertaken to
avoid significant effects;
(4) Identify any other documents related to the finding of no
significant impact; and
(5) State that an EIS will not be prepared, concluding the NEPA
process for the action.
(b) TVA will publish a FONSI as part of an EA or as a separate
document.

Subpart E--Environmental Impact Statements

Sec. 1318.400 Purpose and scope.

(a) TVA will prepare an EIS for major Federal actions significantly
affecting the quality of the human environment. The EIS will address
each of the elements identified in section 102(2)(C) of NEPA.
(b) TVA will focus its analysis on whether the environmental
effects of the proposed action are significant.
(c) Similarly, TVA will document in the EIS where and how it drew a
reasonable and manageable line relating to its consideration of any
environmental effects from the action or

[[Page 2483]]

project at hand that extend outside the geographical territory of the
project or might materialize later in time.

Sec. 1318.401 EIS preparation.

(a) The following standard format may be used unless TVA determines
that a different format is more appropriate:
(1) Executive summary.
(2) Purpose and need.
(3) Reasonable range of alternatives including the proposed action.
(4) Affected environment.
(5) Environmental consequences.
(6) Appendix.
(b) During the process of preparing an EIS, TVA will obtain the
comments of any Federal agency that has jurisdiction by law or special
expertise with respect to any environmental impact involved and
appropriate Federal, Tribal, State, and local agencies that are
authorized to develop and enforce environmental standards. Consistent
with Sec. 1318.500, TVA may, in its sole discretion, seek comments
from the public and Tribal, State, and local agencies that may be
affected by the proposed action or have expressed interest in the
proposed action. TVA will address any substantive comments received in
the EIS and will determine whether modifications to the EIS are
necessary.
(c) TVA will publish the EIS and notify the Environmental
Protection Agency; other interested Federal, Tribal, State, and local
agencies; and other entities and individuals who have expressed
interest in the proposed action.
(d) Except as provided in paragraph (e) of this section, the text
of an EIS will not exceed 150 pages, not including citations or
appendices.
(e) An EIS for a proposed agency action of extraordinary complexity
is strictly prohibited from exceeding 300 pages, not including any
citations or appendices. TVA will determine at the earliest possible
stage of preparation of an EIS whether the conditions for exceeding the
page limit in paragraph (d) of this section are present.
(f) Appendices are to be used for voluminous materials, such as
scientific tables, collections of data, statistical calculations, and
the like, which substantiate the analysis provided in the EIS.
Appendices are not to be used to provide additional substantive
analysis, because that would circumvent the congressionally mandated
page limits.
(g) The breadth and depth of analysis in an EIS will be tailored to
ensure that the EIS does not exceed these page limits. In this regard,
as part of the finalization of the EIS, a responsible official will
certify that TVA has considered the factors mandated by NEPA; that the
EIS represents TVA's good-faith effort to prioritize documentation of
the most important considerations required by the statute within the
congressionally mandated page limits; that this prioritization reflects
TVA's expert judgment; and that any considerations addressed briefly or
left unaddressed were, in TVA's judgment, comparatively unimportant or
frivolous. Such certification may be combined with the certification
required under Sec. 1318.106(e).

Sec. 1318.402 Agency decision.

(a) When TVA is considering a proposed action, TVA will not take
action that would have a significant adverse environmental effect or
limit the choice of reasonable alternatives until TVA determines that
the requirements of these procedures have been met.
(b) After completion of the EIS, TVA may prepare and timely publish
a concise decision document notifying the public that TVA has
considered all relevant information raised in the NEPA process in
making its decision.
(c) The decision document would normally address the decision, the
basis for the decision, and any monitoring and/or mitigation
commitments.

Subpart F--Miscellaneous Procedures

Sec. 1318.500 Public and stakeholder involvement.

(a) TVA may, in its sole discretion, request public involvement in
the preparation of an environmental document. The type of and format
for notification and public participation will be selected as
appropriate to best facilitate timely and meaningful public input. Any
process of obtaining and requesting comments may be undertaken at any
time that is reasonable in the process of preparing the environmental
document. TVA will ensure that the process of obtaining and requesting
comments, and TVA's analysis of and response to those comments, does
not cause TVA to violate NEPA's deadlines for completion of an
environmental document.
(b) TVA will maintain a public website on which it publishes
completed environmental documents, decision documents, relevant
notices, the list of established and adopted categorical exclusions,
and other information relating to TVA's NEPA compliance program.
(c) When TVA seeks comments from the public, TVA will publish the
document and provide it by other reasonable means upon request. TVA
will specify an appropriate comment period and method for submission of
comments. TVA will consider substantive comments submitted within the
period and method specified. TVA is not required to respond to comments
or objections of any kind that were not submitted in the time or manner
specified, and any such comments shall be considered not properly
submitted.
(d) When opportunities for public participation are provided, TVA
will notify the public that comments submitted to TVA on the NEPA
document and the names and addresses of those commenting may be made
available for public inspection.
(e) If TVA determines that an individual comment or group of
comments is substantive, TVA will respond in the environmental document
by:
(1) Modifying alternatives including the proposed action;
(2) Developing and evaluating alternatives not previously given
serious consideration;
(3) Supplementing, improving, or modifying its analyses;
(4) Making factual corrections; or
(5) Stating that no action is needed.
(f) Changes to the document resulting from substantive comments
will be briefly summarized in the environmental document.
(g) TVA will publish all comments received during the comment
period when the environmental document is published.
(h) TVA may provide notification on its website if TVA withdraws,
cancels, or otherwise ceases the consideration of a proposed action
before completing an environmental document.

Sec. 1318.501 Mitigation.

(a) TVA will identify, as appropriate, measures to mitigate
expected significant adverse environmental effects in an environmental
document. Those mitigation measures to which TVA commits must be
identified in the associated FONSI or decision document (or the
documentation, if any, prepared for a categorical exclusion).
(b) Circumstances may arise that warrant modifying or cancelling
previously made commitments. TVA may modify or cancel a commitment
after considering the environmental significance of such a change.

Sec. 1318.502 Programmatic environmental documents and tiering.

(a) A programmatic environmental document may be prepared to
address a proposed program, policy, or plan, or a proposed action that
has a wide geographic scope.
(b) A programmatic environmental document can support high-level or

[[Page 2484]]

broad decisionmaking and can provide the foundation for the efficient
review of specific tiered implementing actions. When TVA has prepared
an environmental document for programs, plans, and policies, the tiered
document need only summarize and incorporate by reference the issues
discussed in the broader document. The tiered document will concentrate
on the subsequent proposed action.
(c) Ongoing or previously planned and approved actions that are
within the scope of a programmatic review may continue during the
programmatic review period, so long as the planned and approved actions
are justified independently of the program, are accompanied by an
adequate environmental review, and would not prejudice the ultimate
decision on the contemplated program.
(d) The identification of significant impacts in a programmatic EIS
does not preclude the review of specific implementing actions in a
subsequent tiered NEPA review if the implementing actions would not
result in new or different significant impacts.
(e) TVA will rely on programmatic environmental documents in
accordance with section 108 of NEPA.

Sec. 1318.503 Coordination with project sponsors and procedures for
project sponsor-prepared environmental documents.

(a) When a project sponsor proposes to undertake an action that
will require TVA's authorization, TVA will determine whether NEPA is
triggered and the scope of the review of TVA's proposed action.
(b) When TVA prepares an environmental document to consider
authorization of a project sponsor's action, TVA will provide the
project sponsor with information on its responsibilities for assisting
TVA in conducting the necessary NEPA review. At TVA's discretion, this
assistance can include providing TVA detailed information about the
scope and nature of the proposed action, environmental analyses and
studies, and copies of associated environmental permit applications
submitted to other Federal, Tribal, State, or local agencies. TVA will
independently evaluate the submitted information for accuracy.
(c) In accordance with NEPA sec. 107(f), 42 U.S.C. 4336a(f), TVA
allows project sponsors, or contractors hired by project sponsors, to
prepare NEPA documents under TVA's supervision.
(d) TVA will independently evaluate the environmental document and
will take responsibility for its contents.
(e) TVA will assist project sponsors and project sponsor-hired
contractors by providing guidance and outlining the types of
information required for the preparation of the environmental document.
TVA will work with the project sponsor to define the purpose and need,
and, when appropriate, to develop a reasonable range of alternatives to
meet that purpose and need.
(f) A project sponsor normally will be required to reimburse TVA
for all of the costs in reviewing the project sponsor's proposed action
or environmental document. (See 16 U.S.C. 831c(d); 18 CFR part 1310.)
Participation of a project sponsor in a TVA NEPA review, including
reimbursement of TVA's costs, does not commit TVA to any favorable
action on a request for authorization.
(g) Project sponsors or contractors assisting in the preparation of
the environmental documents will submit a disclosure statement to TVA
that specifies any financial or other interest in the outcome of the
action.
(h) Project sponsors intending to pay a fee for an expedited EA or
EIS deadline pursuant to NEPA sec, 112, 42 U.S.C. 4336f, for which TVA
would be the lead agency should consult with TVA before submitting a
request to CEQ. TVA will use such consultation to assist the project
sponsor in providing an accurate description of the project as it
relates to the anticipated EA or EIS-associated costs and understanding
the anticipated scope of the environmental review including whether to
prepare an EA or an EIS.
(i) TVA's compliance with NEPA sec. 107(g), 42 U.S.C. 4336a(g), and
NEPA sec. 112, 42 U.S.C. 4336f, is contingent on receipt of complete
and accurate project information from a project sponsor.
(j) Project sponsors must not take actions concerning a proposal
that may have an environmental impact or that would limit or affect
TVA's decision until TVA determines that the requirements of these
procedures have been met. If such actions are taken prior to that
determination, TVA may deny the project sponsor's request for TVA's
authorization. This section does not preclude a project sponsor from
developing plans or designs or taking other actions that will not have
environmental impact to support an application or proposal for TVA's
authorization.

Sec. 1318.504 Reducing paperwork and delay.

(a) To reduce paperwork and delay and to meet NEPA's page limits
and time limits, TVA will prepare analytic and concise environmental
documents, with emphasis placed on portions of the environmental
documents that are useful to decision makers and the public. Data and
analyses will be commensurate with the importance of associated
impacts. Less important material will be briefly discussed, summarized,
consolidated, or referenced as appropriate.
(b) TVA may incorporate material, such as planning studies,
analyses, or other relevant information, into environmental documents
by reference. TVA will cite to incorporated material in the document
and briefly describe its content.
(c) Environmental documents will be written in plain language and
follow a clear format that excludes content that is not critical to
compliance with NEPA section 101.
(d) An environmental document may be combined with any other
document to reduce duplication, paperwork, and delay.

Sec. 1318.505 Information requirements.

(a) Methodology and scientific accuracy. To ensure the professional
integrity, including scientific integrity, of the discussions and
analyses in environmental documents, TVA will rely on reliable existing
applicable data and resources. TVA will identify any methodologies used
and reference to scientific and other sources relied upon for its
conclusions in environmental documents. TVA is not required to
undertake new scientific and technical research to inform the analysis
but may do so at its discretion.
(b) Incomplete and unavailable information. When there is
incomplete or unavailable information relating to the reasonably
foreseeable significant adverse effects on the human environment, TVA
will make clear that such information is lacking in the EIS. If the
incomplete but available information is essential to a reasoned choice
among alternatives and costs of obtaining it are reasonable, TVA will
include the information in the EIS. If information cannot be obtained
because the cost is unreasonable or the means to obtain it are not
known, TVA will state in the EIS that the information is unavailable,
explain the extent to which the information is relevant to its
evaluation of reasonably foreseeable significant adverse effects, and
summarize existing scientific evidence addressing the reasonably
foreseeable significant adverse effects. TVA will include its
evaluation of effects based upon theoretical approaches or research
methods generally accepted in the scientific community.

[[Page 2485]]

Sec. 1318.506 Causes of action.

This part establishes the procedures by which TVA will typically
fulfill the requirements of NEPA. Minor deviations do not establish
that TVA failed to comply with NEPA and do not create a substantive
right or cause of action for violation of NEPA.

Sec. 1318.507 Emergency actions.

(a) TVA may consolidate, modify, or omit provisions of these
procedures for actions necessary in an emergency and ensure such
changes would substantially comply with the intent of these procedures.
(b) Where emergency circumstances make it necessary to take an
action with significant environmental impact without observing the
provisions of these regulations, TVA will consult with the CEQ about
alternative arrangements for those actions necessary to control the
immediate impacts of the emergency.
(c) TVA will document the determination that an emergency exists
and describe the responsive action(s) taken at the time the emergency
exists. The form and content of that documentation is within TVA's
discretion.

Sec. 1318.508 Unique identification numbers.

For all environmental documents, TVA will provide a unique
identification number for tracking purposes, which TVA will reference
on all associated environmental review documents prepared for the
proposed agency action and in any database or tracking system for such
documents. TVA will coordinate with the CEQ and other federal agencies
to ensure uniformity of such identification numbers across federal
agencies.

0
For the reasons stated in the preamble, TVA adds part 1319 to chapter
XIII of title 18 of the Code of Federal Regulations to read as follows:

PART 1319--FLOODPLAINS AND WETLANDS

Sec.
1319.10 Purpose and scope.
1319.20 Definitions.
1319.30 Area of impact.
1319.40 Actions that will affect floodplains or wetlands.
1319.50 Public notice.
1319.60 Disposition of real property.
1319.70 General and class reviews.

Authority: 16 U.S.C. 831 et seq; E.O. 11988, 42 FR 26951; E.O.
11990, 42 FR 26961

Sec. 1319.10 Purpose and scope.

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

Sec. 1319.20 Definitions.

The following definitions apply throughout this part.
(a) Floodplain refers to the lowland and relatively flat areas
adjoining inland waters and reservoirs. Floodplain generally refers to
an area that has a 1 percent or greater chance of flooding in any given
year.
(b) Practicable refers to the capability of an action being
performed within existing constraints. The test of what is practicable
depends on the situation and includes an evaluation of all pertinent
factors, such as environmental impact, economic costs, statutory
authority, legality, technological achievability, and engineering
constraints.
(c) Natural and beneficial floodplain and wetland values refer to
such attributes as the capability of floodplains and wetlands to
provide natural moderation of floodwaters, water quality maintenance,
fish and wildlife habitat, plant habitat, open space, natural beauty,
scientific and educational study areas, and recreation.
(d) Wetland refers to an area inundated by surface or ground water
with a frequency sufficient to support, and that under normal
circumstances does or would support, a prevalence of vegetation or
aquatic life that requires saturated or seasonally saturated soil
conditions for growth and reproduction. Wetlands do not include
temporary human-made ponds associated with active construction
projects.

Sec. 1319.30 Area of impact.

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

Sec. 1319.40 Actions that will affect floodplains or wetlands.

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

Sec. 1319.50 Public notice.

(a) Once a determination of no practicable alternative is made in
accordance with Sec. 1318.40, TVA must notify the public of a proposed
action's potential impact on floodplains or wetlands if the proposed
action is subject to executive order and not already covered by class
review. Public notice of actions affecting floodplains or wetlands may
be combined with any notice published by TVA or another Federal agency
if such a notice generally

[[Page 2486]]

meets the minimum requirements set forth in this section. Issuance of a
draft or final EA or EIS for public review and comment will satisfy
this notice requirement.
(b) Public notices must at a minimum:
(1) Briefly describe the proposed action and the potential impact
on the floodplain or wetland;
(2) Briefly identify alternative actions considered and explain why
a determination of no practicable alternative has been proposed;
(3) Briefly discuss measures that would be taken to minimize or
mitigate floodplain or wetland impacts;
(4) State when appropriate whether the action conforms to
applicable Federal, State or local floodplain protection standards;
(5) Specify a reasonable period of time within which the public can
comment on the proposal; and
(6) Identify the TVA official who can provide additional
information on the proposed action and to whom comments should be sent.
(c) Such notices must be issued in a manner designed to bring the
proposed action to the attention of those members of the public likely
to be interested in or affected by the action's potential impact on the
floodplain or wetland.
(d) TVA must consider all relevant and timely comments received in
response to a notice and reevaluate the action as appropriate to take
such comments into consideration before the proposed action is
implemented.

Sec. 1319.60 Disposition of real property.

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

Sec. 1319.70 General and class reviews.

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

Michael McCall,
Vice President, Environment and Stewardship.
[FR Doc. 2026-01092 Filed 1-20-26; 8:45 am]
BILLING CODE 8120-08-P

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