2002 Environmental
Performance Update

The 2002 Environmental Performance Update is a summary of TVA’s environmental performance for the calendar year. It is expressed through a series of 21 indicators against which TVA measures its environmental progress, and a brief mention of key environmental developments related to its environmental activities. TVA is committed to improving its environmental performance and minimizing the impact of its operations on the Tennessee Valley.

A printed copy of TVA’s Environmental Performance report, which includes more in-depth discussion of the agency’s environmental performance, is produced every two years. The next one will be available in the spring of 2004. TVA appreciates your interest in the 2002 Environmental Performance Update and encourages you to access other key information about TVA on this Web site.

Key Environmental Developments

Clean Air Improvements

Reflecting its continued commitment to improving regional air quality, TVA spent more than $430 million on environmental improvements during its fiscal year 2002 as part of the most aggressive clean air program in the country. This summer, TVA operated four selective catalytic reduction systems (SCRs) on units at its Paradise and Allen Fossil Plants. This is part of TVA’s plan to reduce nitrogen oxide (NOx) by installing SCRs on 25 coal-fired units by 2005. Additionally, in a continuing effort to improve air quality in the Tennessee Valley and to comply with the Clean Air Act, TVA plans to design, build, and operate five more scrubbers to further reduce sulfur dioxide (SO2) emissions from 12 of its coal-fired units. Although the design of these scrubbers is scheduled to start in 2003, substantial construction activities are not expected to begin until TVA completes its SCR installation program in 2005.

New Source Review

TVA has challenged the validity of the Administrative Order issued by EPA, and the Eleventh Circuit Court of Appeals has stayed the order pending its review. The outcome of this litigation and the EPA proceedings is uncertain. The EPA has instituted judicial and administrative action against a number of utilities in the eastern United States, including TVA, alleging that they have modified their coal-fired units without complying with new source review requirements.

Southern Appalachian Mountains Initiative (SAMI)

To develop a better understanding of the complex air quality situation in the Southeast and recommend ways to remedy existing adverse effects and prevent future ones, TVA and others participated in SAMI. In 2002 SAMI released its final technical report, which offered conclusions and recommendations from its 10-year study of air pollution effects in southern Appalachian Class I parks and wilderness areas. Topics addressed in this report include emissions inventory and proposed strategies, atmospheric modeling and geographic sensitivity analysis, visibility, ozone effects on forests, acid deposition effects on streams and forests, direct cost of emission reduction strategies, and socioeconomic consequences.

SAMI’s conclusions and recommendations discuss the necessity of:

Reducing SO2, NOx, and NH3 (ammonia) emissions both within and outside the SAMI region
Supporting and promoting strong national multi-pollutant legislation for electric utility plants to assure significant reductions in SO2 and NOx emissions
Encouraging energy efficiency, conservation, and use of renewable energy by each SAMI state to reduce emissions from stationary and mobile sources.

To review this report in its entirety, visit www.saminet.org.