STATE OF TENNESSEE DEPARTMENT OF ENVIRONMENT AND CONSERVATION ) ) ) ) ) ) ) ) DIRECTOR S ORDER PARTIES I.

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1 STATE OF TENNESSEE DEPARTMENT OF ENVIRONMENT AND CONSERVATION IN THE MATTER OF: TENNESSEE VALLEY AUTHORITY RESPONDENT DIVISION OF WATER POLLUTION CONTROL CASE NUMBER WPC DIRECTOR S ORDER NOW COMES Paul E. Davis, director of the Tennessee Division of Water Pollution Control, and states: PARTIES I. Paul E. Davis is the duly appointed director of the Tennessee Division of Water Pollution Control by the commissioner of the Tennessee Department of Environment and Conservation (hereinafter the division and the department respectively. II. The Tennessee Valley Authority (hereinafter Respondent or TVA is a governmental entity with facilities throughout the State of Tennessee. Service of process may be made on the Respondent through Mr. Tom Kilgore, CEO, at 400 Summit Hill Drive, Knoxville, TN,

2 JURISDICTION III. Whenever the commissioner has reason to believe that a violation of Tennessee Code Annotated (T.C.A et seq., the Water Quality Control Act (the Act, has occurred, or is about to occur, the commissioner may issue a complaint to the violator and the commissioner may order corrective action be taken pursuant to T.C.A (a of the Act. Further, the commissioner has authority to assess civil penalties against any violator of the Act, pursuant to T.C.A of the Act; and has authority to assess damages incurred by the state resulting from the violation, pursuant to T.C.A of the Act. Department Rules governing general water quality criteria and use classifications for surface waters have been promulgated pursuant to T.C.A and are effective as the Official Compilation Rules and Regulations of the State of Tennessee, Chapters and (the Rule. Pursuant to T.C.A (13, the commissioner may delegate to the director any of the powers, duties, and responsibilities of the commissioner under the Act. IV. Notwithstanding the fact that TVA is a federal entity, TVA is subject to the jurisdiction of the Water Quality Control Act because sovereign immunity has been waived by Congress in regard to the activities addressed in this Order by the Clean Water Act (33 U.S.C Further, by having applied for and received permits under the Water Quality Control Act, as stated herein, TVA has acknowledged that its activities are subject to the requirements of that law. 2

3 V. Pursuant to T.C.A , Rule requires a person to obtain coverage under a permit from the department prior to discharging any substances to waters of the state, or to a location from which it is likely that the discharged substance will move into waters of the state. VI. Pursuant to T.C.A , Rule requires a person to submit an application prior to engaging in any activity that requires an Aquatic Resource Alteration Permit (hereinafter the ARAP that is not governed by a general permit or a 401 Water Quality Certification. No activity may be authorized unless any lost resource value associated with the proposed impact is offset by mitigation sufficient to result in no overall net loss of resource value. VII. Ocoee River, described herein, is waters of the state as defined by T.C.A (33. Pursuant to T.C.A (a(1, all waters of the state have been classified by the Tennessee Water Quality Control Board for suitable uses. Department Rule , Use Classifications for Surface Waters, is contained in the Rules of Tennessee Department of Environment and Conservation Division of Water Pollution Control Amendments. Accordingly, these waters of the state are classified for the following uses: fish and aquatic life, recreation, irrigation, livestock watering and wildlife. 3

4 FACTS VIII. On July 31, 2006, the division issued NPDES Permit TN (hereinafter the permit to the Respondent for the operation of the Ocoee #3 Hydroelectric Power Plant. The permit became effective September 1, 2006, and expires July 30, 2011, and authorizes the Respondent to discharge, in part, noncontact cooling waters, station sump wastewater and river water from unwatering operations. The permit also requires the Respondent to develop and implement a Best Management Practices plan which prevents or minimizes the potential for the release of pollutants to the waters of the state. IX. On January 5, 2009, the division received a complaint from the U.S. Forest Service- Cherokee National Forest, and the Ocoee River White Water Center, reporting that starting at 2:30 p.m. January 4, 2009, the Olympic reach of the Ocoee River, was suddenly overwhelmed by foul-smelling, black-colored, muddy, sludge-like material. The Forest Service reported that sludge-like material had been deposited throughout the Olympic Reach of the Ocoee River up to 3.5 feet in depth and up onto the river banks. X. On January 6, 2009, division personnel from the Chattanooga Environmental Field Office (CHEFO conducted a site inspection and noted that the Ocoee River was very turbid downstream of the Olympic reach. Upon arrival at the Olympic reach, division personnel noted that turbidity had increased and Forest Service personnel were picking up dead fish. Division 4

5 personnel noted black-colored, muddy, sludge-like material several inches deep covering the Olympic walkway and within the side channel of the Olympic reach, altering the physical, chemical and biological properties of waters of the state and resulting in a condition of pollution in the Ocoee River. During a telephone conversation later that day, TVA personnel stated that the bottom sluice gates of Ocoee Dam #3 had been opened January 4, 2009, in order draw down the water level behind Ocoee Dam #3 as a safety measure for workers conducting repairs on the downstream Ocoee Dam #2. The discharge from the bottom sluice gates was stated to be the source of the material noted by Forest Service and division personnel as well as the cause of the fish kill. TVA further stated that sluicing operations were scheduled to continue through March 1, XI. On January 7, 2009, TVA contacted the division via , reiterating that the sluicing operations were undertaken in order to draw down the water level behind Ocoee Dam #3 so that maintenance activities in the downstream Ocoee Dam #2 could be performed. TVA stated that such sluicing operations have been a routine procedure for many years and that maintenance work at Ocoee Dam #2 would continue through mid-march of TVA further stated that lowering the pool level increased the exposure of mud flats, which are subject to erosion and that discharges through the sluice gates released large amounts of sediment downstream, resulting in the fish kill. TVA had made no prior contact with either the division or the Forest Service regarding these special operations of the Ocoee series of dams and powerhouses. 5

6 XII. On January 9, 2009, the division issued a Notice of Violation to TVA for the violations noted during the January 6, 2009, site inspection. The Notice of Violation instructed TVA to immediately cease sluicing operations and to submit a plan for the restoration of the affected reach of the Ocoee River to pre-event status to the CHEFO by January 22, XIII. TVA has subsequently notified the division that sluicing operations at Ocoee Dam #3 ceased January 8, VIOLATIONS XIV. By causing a condition of pollution in the Ocoee River, the Respondent has violated T.C.A. Section (a which states: It shall be unlawful for any person to discharge any substance into the waters of the state or to place or cause any substance to be placed in any location where such substances, either by themselves or in combination with others, cause any of the damages as defined in (22, unless such discharge shall be due to an unavoidable accident or unless such action has been properly authorized. Any such action is declared to be a public nuisance. ORDER XV. WHEREFORE, pursuant to the authority vested by T.C.A , and , I, Paul E. Davis, hereby issue the following ORDER to the Respondent: 6

7 1. The Respondent shall not resume sluicing operations until approval for such activity has been obtained from the division. 2. The Respondent shall, by January 22, 2009, submit a plan to the CHEFO for the restoration of the Ocoee River from the toe of Ocoee Dam #3 to the Ocoee #3 Powerhouse confluence with the Ocoee River channel. The plan shall contain at a minimum: a. A component demonstrating how the sediment/sludge deposits will be removed while remaining underwater, so as not to mobilize the toxic components of the sediment/sludge deposits. b. A component detailing the measures to be taken to limit public access to the areas of sediment/sludge deposits until removal is complete. c. A component to monitor the re-establishment of riparian and aquatic life within the affected Olympic Reach of the Ocoee River until such time as the diversity of the re-established riparian and aquatic life are comparable to that in the unaffected sections of the Olympic Reach. This component shall, at a minimum, include an annual survey of the riparian and aquatic life within the affected reach. This plan shall be submitted to the Water Pollution Control Manager in the CHEFO at Suite 550 State Office Building, 540 McCallie Avenue, Chattanooga, Tennessee Any deficiencies the division finds shall be corrected by the Respondent and the corrected plan re-submitted within 30 days of notification of those deficiencies. 7

8 3. The Respondent shall, by January 22, 2009, submit to the division an amended Best Management Practices plan for the operation of the Ocoee #3 Hydroelectric Power Plant detailing how such future draw-down operations will be performed so as to eliminate the risk of exposure of existing mud flats to erosion into discharges from Ocoee Dam #3. The Respondent shall otherwise conduct business in accordance with the Act and rules promulgated pursuant to the Act. The director may, for good cause shown, extend the compliance dates contained within this ORDER. In order to be eligible for this time extension, the Respondent shall submit a written request to be received in advance of the compliance date. The written request must include sufficient detail to justify such an extension and include at a minimum the anticipated length of the delay, the precise cause or causes of the delay, and all preventive measures taken to minimize the delay. Any such extension by the division will be in writing. Further, the Respondent is advised that the foregoing ORDER is in no way to be construed as a waiver, expressed or implied, of any provision of the law or regulations. However, compliance with the ORDER will be one factor considered in any decision whether to take enforcement action against the Respondent in the future. Issued by the director of the Division of Water Pollution Control on behalf of the commissioner of the Tennessee Department of Environment and Conservation on this 12th day of January, Paul E. Davis, P.E. Director, Division of Water Pollution Control 8

9 RESERVATION OF RIGHTS This Order addresses corrective action for a situation that currently exists. It does not in any way relieve TVA of obligations imposed by the Tennessee Water Quality Control Act, or any other state or federal law. The issuance of this Order shall not be deemed an election by the department to forego any civil or criminal action to seek penalties, fines, or other appropriate relief under the Act, or any other law. The department expressly reserves the right to issue further Orders under the Water Quality Control Act or other laws to require further or different corrective action based on changes of conditions or new information, to assess civil penalties for all violations of the law, and to assess all damages allowed by law. NOTICE OF RIGHTS Tennessee Code Annotated and , allow the Respondent to secure review (appeal of this Order and Assessment. To do so, a written petition setting forth the grounds (reasons for requesting a hearing before the Water Quality Control Board must be RECEIVED by the Department within THIRTY DAYS of the date the Respondent received this Order and Assessment or it will become final (not subject to review. Artificial Respondents (corporations, limited partnerships, limited liability companies, etc. cannot carry-on the practice of law. They may secure review (appeal before the Water Quality Control Board only through an attorney licensed to practice law in Tennessee. Natural Respondents may represent themselves or be represented by an attorney licensed to practice law in Tennessee. Low- income individuals may be eligible for representation at no cost or reduced cost through a local bar association or legal aid organization. 9

10 Any hearing of this case before the Board will be a contested case hearing governed by T.C.A et seq. (the Uniform Administrative Procedures Act and the Department of State s Uniform Rules of Procedure for Hearing Contested Cases Before State Administrative Agencies. Such hearings are in the nature of a trial before the Board sitting with an Administrative Law Judge. The Respondent may subpoena witnesses to testify. At the conclusion of a hearing the Board has the authority to affirm, modify, or deny the Order and Assessment. This includes the authority to modify the penalty within the statutory confines (up to $10, per day per violation. Furthermore, the Board has the authority to assess additional damages incurred by the department including, but not limited to, all docketing expenses associated with the setting of the matter for a hearing and the hourly fees incurred due to the presence of an administrative law judge and a court reporter. Any petition to appeal which is filed should be sent to Appeal of an Enforcement Order, TDEC-OGC, 20 th Floor L & C Tower, 401 Church Street, Nashville, TN Payments of the civil penalty shall be made payable to the Treasurer, State of Tennessee, and sent to the Division of Fiscal Services - Consolidated Fees Section, Tennessee Department of Environment and Conservation, 14 th Floor L&C Tower, 401 Church Street, Nashville, Tennessee All other correspondence shall be sent to Paul E. Davis, Director, Division of Water Pollution Control, Tennessee Department of Environment and Conservation, 6th Floor L&C Annex, 401 Church Street, Nashville, TN The case number should be written on all correspondence regarding this matter. 10