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| B. Why are some projects exempt from FERC regulation? |
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B. Why are some projects exempt from FERC regulation? |
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The issuance of an exemption does not mean exempt from regulation or deregulation. It is a less comprehensive form of regulation (as compared with regulations governing the issuance of a license) intended for projects that should, by their size and location, have minimal impacts. The Commission may exempt from some or all licensing requirements two types of projects where new capacity is being added: (1) conduit—projects on manmade conduits (generally irrigation works); and (2) 5 megawatt—projects proposing additional capacity (for a total of 5 MW or less) and using an existing dam or natural water feature. The extent of information required in an exemption application is generally much less than what is required in a license application. However, most of the same procedural steps apply to both license and exemption applications. Exemptees must comply with the terms and conditions of their exemptions, which generally are conditions set by federal and state fish and wildlife agencies, just as licensees must comply with the terms and conditions of their license. The Commission ensures that conditions in both licenses and exemptions are complied with. Also, Commission dam safety engineers inspect all licensed and exempted projects.
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