EPA Reaches Settlement with TVA to Reduce Coal-Fired Plant Emissions

Strategic Insights -

The U.S. Environmental Protection Agency (EPA) has reached a settlement with the Tennessee Valley Authority (TVA) to resolve alleged Clean Air Act violations at 11 of its coal-fired plants in Alabama, Kentucky, and Tennessee. The agreement will require TVA to invest an estimated $3 to $5 billion on new and upgraded pollution controls, which will prevent thousands of premature deaths, heart attacks, and asthma attacks each year, resulting in up to $27 billion in annual health benefits. TVA will also invest $350 million in clean energy projects to reduce pollution, save energy, and protect public health and the environment.

Key Takeaways:

  • The settlement requires TVA to invest an estimated $3 to $5 billion on new and upgraded pollution controls to prevent 1,200 to 3,000 premature deaths, 2,000 heart attacks, and 21,000 cases of asthma attacks each year.
  • The pollution controls will reduce emissions of nitrogen oxide (NOx) by 69 percent, sulfur dioxide (SO2) by 67 percent, and particulate matter by an unspecified amount from TVA's 2008 emissions levels.
  • TVA will invest $240 million in energy efficiency initiatives, including a Smart Energy Communities project to focus on energy efficiency in low-income communities.
  • TVA will spend $350 million on clean energy projects, including $40 million on renewable energy projects and $8 million on a clean diesel and electric vehicle project for public transportation systems.
  • The settlement also requires TVA to pay a civil penalty of $10 million, with $500,000 going to Alabama and Kentucky, and $1 million going to Tennessee.

Statistics:

  • Estimated annual health benefits: up to $27 billion
  • Projected reduction in premature deaths: 1,200 to 3,000
  • Reducing air pollution will also prevent 2,000 heart attacks and 21,000 cases of asthma attacks each year
  • TVA's estimated investment in pollution controls: $3 to $5 billion
  • Total investment in clean energy projects: $350 million

Sources:

  • "EPA, TVA Settle Clean Air Act Violations" (U.S. Environmental Protection Agency, [unavailable])
  • "TVA to Spend $350 Million on Clean Energy" (U.S. Environmental Protection Agency, [unavailable])
  • U.S. Environmental Protection Agency (EPA), news release, [unavailable].