Tennessee Valley Authority

There have been no material changes to the environmental matters described in Part I, Item 1, Business —Environmental Matters of the Annual Report, except as described below.

General

On January 20, 2025, President Trump issued an EO that revoked a number of EOs, including the following EOs discussed in Part I, Item 1, Business —Environmental Matters — Climate Change — Executive Actions in the Annual Report: (1) EO 13990, "Protecting Public Health and the Environment and Restoring Science To Tackle the Climate Crisis"; (2) EO 14008, "Tackling the Climate Crisis at Home and Abroad”; (3) EO 14030, “Climate-Related Financial Risk”; (4) EO 14057, "Catalyzing Clean Energy Industries and Jobs Through Federal Sustainability"; (5) EO 14082, “Implementation of the Energy and Infrastructure Provisions of the Inflation Reduction Act of 2022”; and (6) EO 14096, “Revitalizing Our Nation's Commitment to Environmental Justice for All.”

On March 12, 2025, the Environmental Protection Agency ("EPA") Administrator announced that EPA will reconsider 31 rules, including (1) regulations on power plants, (2) Mercury and Air Toxics Standards, (3) steam electric effluent limitation guidelines, (4) National Ambient Air Quality Standards for particulate matter, (5) regulations regarding regional haze, (6) the Good Neighbor Plan, and (7) CCR regulations. TVA cannot predict the outcome of such reevaluations or their impact on TVA's financial results or operations. See Part I, Item 1, Business —Environmental Matters in the Annual Report.

Clean Air Act Programs and Regulations

Regional Haze Program. In February 2025, the TVA Board approved funding of $233 million to construct scrubbers at two additional units at Shawnee Fossil Plant by the end of 2028. Inclusive of the costs for these two scrubbers, at June 30, 2025, TVA’s estimated potential expenditures on Clean Air Act control projects are $48 million, $98 million, and $216 million for the remainder of 2025, 2026, and 2027 - 2029, respectively.

Mercury and Air Toxics Standards for Electric Utility Units. On April 8, 2025, the President issued a proclamation exempting certain coal-fired power plants for two years from compliance with the updated Mercury and Air Toxics Standards that EPA published in May 2024. The President has exempted TVA's Cumberland, Gallatin, Kingston, and Shawnee fossil plants for the period beginning July 8, 2027 and concluding July 8, 2029. These plants must continue to comply with the Mercury and Air Toxics Standards that were in effect prior to the May 2024 update. These exemptions are currently subject to legal challenge.

Climate Change

Emissions. Emissions of nitrogen oxides ("NOx") and sulfur dioxide ("SO 2") began being regulated in 1995 and 1977, respectively. Emissions of NOxand SO 2 have been reduced by 97 percent and 99 percent, respectively, since their initial year of regulation.

Notes

(1) Intensity rates are calculated based on generation from TVA's most recent fiscal year for years indicated and emissions data from the most recent CYs.

(2) Emissions data is consistent with Edison Electric Institute Environmental, Social, Governance, and Sustainability Report standards, which are based on metric tons ("MTs"), whereas overall CO 2 emission rates and baseline reductions from historical levels are based on short tons.

For CY 2024, TVA's emissions of carbon dioxide ("CO 2") from its owned and operated units, including purchased power and Renewable Energy Certificate retirement adjustments which reduce the reportable CO 2 emissions, were 54 million tons, resulting in a TVA system average, as delivered, CO 2 emission rate of 680 lbs/MWh. This represents a 53 percent and 49 percent reduction in mass carbon emissions and TVA's carbon emission rate, respectively, from 2005 levels.

Cleanup of Solid and Hazardous Wastes

Coal Combustion Residuals. In August 2015, TDEC issued an order that includes an iterative process through which TVA and TDEC will investigate, assess, and remediate any unacceptable risks resulting from coal combustion residuals (“CCR”) management and disposal at TVA CCR units in the State of Tennessee. As part of this process, TVA has submitted environmental assessment reports (“EARs”) to TDEC, and after the EARs are approved, TVA will submit Corrective Action/Risk Assessment (“CARA”) Plans that will identify the unacceptable risks and TVA's proposed remediation. TDEC will review the CARA Plans and provide comments, and TVA will make revisions to address TDEC's comments until TDEC approves a final CARA Plan for each site. The public also will have an opportunity to review and comment on each CARA Plan prior to TDEC's approval of the final plan. TDEC approved the EAR for Bull Run Fossil Plant ("Bull Run") on November 15, 2024, and TVA submitted the initial draft of the Bull Run CARA Plan to TDEC in January 2025. TDEC approved the EAR for Johnsonville Fossil Plant ("Johnsonville") on March 31, 2025, and TVA submitted the initial draft of the Johnsonville CARA Plan to TDEC in May 2025. In July 2025, TDEC approved the final CARA plan for John Sevier Fossil Plant. See Part I, Item I, Business — Environmental Matters — Cleanup of Solid and Hazardous Wastes—Coal Combustion Residuals in the Annual Report.

On July 22, 2025, EPA issued a direct final rule that extends deadlines for CCR management unit ("CCRMU") requirements. The rule allows the two parts of the CCRMU facility evaluation reports to be prepared concurrently so long as both reports are submitted no later than February 8, 2027. In addition, the rule extends the deadline for owners or operators of CCRMU to comply with the groundwater monitoring provisions by 15 months, to no later than August 8, 2029. Since the facility evaluation reports and groundwater monitoring requirements are prerequisites for other CCRMU requirements, the rule also makes conforming changes to the remaining CCRMU compliance deadlines. TVA is still evaluating the rule and its potential impact on TVA's operations. See Part I, Item I, Business —Environmental Matters—Cleanup of Solid and Hazardous Wastes—Coal Combustion Residualsin the Annual Report.