Kentucky Coal Association, Inc. v. Tennessee Valley Authority

The Sixth Circuit Court of Appeals affirmed the Tennessee Valley Authority’s (TVA’s) decision to replace coal-fired electric generating units with natural gas-powered units at a Kentucky power plant. The court said that the TVA acted within its discretion when it determined, based on an environmental assessment, that switching to natural gas would not have a significant impact on the environment. The court found that the TVA had taken a hard look at 19 environmental issues, including climate change. The court was not persuaded by arguments made by the plaintiff, Kentucky Coal Association, including a contention that the TVA had not considered the cumulative impacts of building a natural gas pipeline, that the TVA prejudged the switch to natural gas, and that switching to natural gas would have “devastating socioeconomic effects.” The court also said that the TVA’s actions were not arbitrary and did not violate the Tennessee Valley Authority Act.