Section 26a Permit Management

November 14, 2023

Inspection / Evaluation

Section 26a of the Tennessee Valley Authority (TVA) Act requires TVA's approval prior to construction, operation, or maintenance of any dam, appurtenant works, or other obstruction affecting navigation, flood control, or public lands or reservations across, along, or in the Tennessee River and its tributaries. Title 18, Code of Federal Regulations (CFR), Part 1304.1 1304.412, Approval of Construction in the Tennessee River System and Regulation of Structures and Other Alterations (18 CFR §§ 1304.1 1304.412) contains regulations related to the application process and information on what is allowable under a Section 26a permit. Additionally, 18 CFR §§ 1310.1–1310.3, Administrative Cost Recovery requires applicants pay TVA fees for its review of Section 26a permit applications. TVA’s Natural Resources group has also established a series of stewardship guidelines to provide guidance for effective, consistent management of TVA reservoir land and natural resources that includes the Section 26a permit process. Due to a concern identified in public comments prior to a TVA Board of Directors meeting, as well as concerns reported to the Office of the Inspector General EmPowerline®, we performed an evaluation to determine if Section 26a permits were being effectively managed. We determined Section 26a permits were not being managed effectively by TVA. Specifically, we found: • TVA is not complying with requirements to recover all the associated cost of permits in accordance with 18 CFR § 1310.3. When costs associated with processing Section 26a permits are not recovered from applicants, TVA’s ratepayers are effectively subsidizing the Section 26a permitting process.• TVA’s oversight of the Section 26a permit process is inadequate. The oversight concerns are related to TVA: (1) performing minimal compliance oversight, (2) not providing oversight to ensure violations and encroachments are addressed in a timely or consistent manner, and (3) inconsistently documenting permit noncompliances as violations and encroachments. • Instances of noncompliance with 18 CFR §§ 1304.1–1304.412 related to permit application requirements and multiple instances of poor recordkeeping. TVA is responsible for managing the Tennessee River system. An important part of that responsibility is to ensure obstructions affecting navigation, flood control, or public lands across, along, or in the Tennessee River and its tributaries are built and maintained to protect the safety of all river users and the environment. TVA manages these responsibilities through the Section 26a permit process. However, based on the issues identified during our review, TVA’s oversight is not adequate to ensure the Section 26a permit process is effective.

Yes

Yes (agency-wide)

$0

$9,712,764