Updated TVA NEPA Procedures

As a federal agency, TVA is required to consider the environmental effects of proposed actions prior to making decisions. Impacts are identified and analyzed in accordance with the National Environmental Policy Act (NEPA) and TVA’s own NEPA procedures.

TVA is updating its procedures for implementing NEPA, codified at 18 CFR Part 1318, to align with Executive Order 14154 Unleashing American Energy, to incorporate amendments to NEPA enacted by the Fiscal Responsibility Act of 2023 and the One Big Beautiful Bill Act of 2025, to reflect the U.S. Supreme Court’s May 2025 decision in Seven County Infrastructure Coalition v. Eagle County, Colorado, and to remove references to the Council on Environmental Quality’s (CEQ) rescinded NEPA regulations, which TVA’s procedures were intended to supplement.

The updated procedures are effective on January 21, 2026, with the publication of an Interim Final Rule in the Federal Register. TVA held a public comment period after its publication of the Interim Final Rule. TVA is reviewing the public’s input and will respond in a final rule, with changes if warranted.   

Overview

The updates are needed to address recent legislative amendments to NEPA, relevant Supreme Court precedent, and executive actions, including Executive Order 14154 Unleashing American Energy.  

The changes will help TVA move projects forward more efficiently while meeting environmental requirements and supporting our mission to deliver affordable, reliable energy for our growing region. The updated NEPA procedures are intended to improve business practices and reduce unnecessary paperwork.

Key changes to the NEPA procedures include:

• Incorporation of statutory time limits to complete Environmental Assessments (EA) in one year and Environmental Impact Statements (EIS) in two years
• Incorporation of page limits for EAs and EISs, ensuring that content is concise and focused on the information that is most meaningful to decision makers
• Additional provisions for adopting and creating new Categorical Exclusions (CEs)
• Provisions that provide more flexibility related to public participation and notification
• Elimination of the 30-day wait period after an EIS is published before making a decision
• Provisions that address working with project sponsors to complete reviews

TVA’s Interim Final Rule includes a preamble that addresses the changes to its procedures in greater detail.

Many of TVA’s procedures for NEPA would remain the same. Under the updated procedures, TVA would continue to:

• Conduct environmental reviews according to the requirements of NEPA.
• Prepare an EIS for any major action expected to have significant environmental impacts.
• Prepare an EA or proposed activities that don’t qualify for categorical exclusion or where the environmental effects are uncertain.
• Complete an environmental review checklist for most actions that qualify as a CE.
• Notify the public of its environmental reviews, as appropriate, using modern communications methods.
• TVA did not make changes to its list of Categorical Exclusions.
• Procedures relating to wetland and floodplain management were not revised substantively but are moved from 18 CFR part 1318 into a new part 1319

Background

NEPA establishes the process for identifying, considering and disclosing environmental impacts of major federal actions. TVA first established its NEPA procedures in 1980 and made minor revisions in 1983.

In 2020, TVA made numerous changes to its NEPA procedures, including the establishment of a new list of CEs. During its process to update the procedures, TVA published a Notice of Proposed Rule in June 2017 and a Final Rule in the Federal Register in March 2020. The procedures, which became effective in April 2020, were incorporated into Title 18 of the Code of Federal Regulations (CFR) as part of Part 1318 of Chapter XIII (Tennessee Valley Authority).

To substantiate changes made in 2020 to its list of CEs, TVA prepared a document entitled Categorical Exclusions Supporting Documentation (February 2020). The supporting documentation is meant to provide a summary of the factors relied upon during development of the proposed CEs and to describe the basis upon which each proposed CE was established.

TVA’s January 2026 Interim Final Rule replaces the NEPA procedures established by TVA in 2020 and updates the TVA NEPA procedures at 18 CFR 1318. In preparing its procedures, TVA consulted with CEQ to ensure its procedures conform with NEPA. TVA relied upon CEQ guidance relating to agency NEPA procedures.

Contact

More information can be obtained from:

Matthew Higdon
NEPA Specialist
[email protected]
865-632-8051
400 West Summit Hill Drive, WT 11B
Knoxville,
Tennessee