The Southern Alliance for Clean Energy, along with state and local governments and a coalition of other environmental groups, won a federal lawsuit upholding the New Source Review provisions of the Clean Air act.

The Bush administration had attempted to weaken New Source Review by not requiring pollution control upgrades if the cost of modifications to increase power output at a coal-fired power plant did not exceed 20% of the cost of the plant. The U.S. Court of Appeals said that:

...such an exemption clearly violated Congress’s intent, as expressed in the Clean Air Act’s New Source Review (NSR) provisions. Specifically, the three judge panel ruled that the equipment replacement projects fit within the statutory category of “physical changes,” and therefore are subject to regulation under NSR.

Stephen Smith, director of the Southern Alliance for Clean Energy, added:

"This was a gross example of how the Bush administration and industry conspired to dismantle the clean air act. This behavior was irresponsible, unethical, and illegal."

TVA has been fighting New Source Review in the courts for a long time. This is a major setback, so you can probably expect another rate increase. But that's the price we have to pay for clean air along with our electricity. Well, that and millions in bonuses for TVA executives.