Hydropower Re-licensing FAQ's

What is a FERC License?
The Federal Power Act of 1920 provides the Federal Energy Regulatory Commission (FERC) with exclusive authority to license all non-federal hydroelectric projects that are located on navigable waterways or federal lands. The Carmen-Smith project is located on federal land and is subject to FERC licensing. Licenses are normally issued for a period of 30 to 50 years and contain conditions that regulate project operations. In order to continue to operate project facilities, a licensee must obtain a new license for its project when the existing license expires. This process is called "relicensing."

What is the focus of relicensing?
At relicensing, FERC reassesses use of the resources affected by the hydro project by applying current laws and regulations to such topics as land use, recreation, water, habitat, endangered species, and historical and cultural values. In making this assessment, FERC must give "equal consideration" to power and non-power uses. Relicensing provides the licensee, resource agencies, and the public the opportunity to comment on these issues in the context of project facilities and operations. Through this process, FERC makes sure that the new license is consistent with a comprehensive plan for use of the affected resources.

Can you tell me more about the relicensing process?
The FERC relicensing process is based on laws and regulations that require extensive planning, environmental studies, agency consultation, and public involvement. The process has changed considerably since the original project license was issued in the 1960's. The Federal Power Act was amended by the Electric Consumers Protection Act (ECPA) in 1986. Among other things, this law requires that FERC give "equal consideration'' to power production (the purpose of the license), energy conservation, and water quality, recreation, and other non-power benefits of the natural resources, such as fish and wildlife conservation.

Is the relicensing process complicated?
The process can be very time consuming, expensive and complicated. FERC regulations provide an applicant with a choice of relicensing approaches. All of the approaches provide for public involvement and focus on achieving the best comprehensive use of the affected resources.

Which relicensing approach does the project plan to follow?
EWEB is using a hybrid version of the traditional five year relicensing approach prescribed by FERC regulations. This approach consists of the three stages described below.

1. First Stage Consultation: The purpose of this stage is to identify issues related to relicensing and the studies needed to address these issues. This stage included: 1) meetings among the public, special interest groups, resource agencies and the licensee; 2) the licensee issuing a written Initial Consultation Package (ICP) which describes their project, relicensing issues, and studies the licensee proposes to conduct; 3) review and comment on the ICP by interested parties; and 4) the licensee finalizing the study plans.
   
2. Second Stage Consultation: In this stage, the licensee will: 1) conduct the studies identified in the first stage; 2) evaluate study results; 3) develop and issue draft license applications (DLA) which include a description of the project, study results and the licensee's proposed resource management measures; 4) request review and comment on the DLAs by interested parties; and 5) finalize the license applications. As in the first stage of the relicensing process, the second stage will include considerable interaction and collaboration among the public, special interest groups, resource agencies and the licensee. It is anticipated that "settlement agreements'' will be developed for issues about which there is consensus among the relicensing participants.
   
3. Third Stage Consultation: This stage begins when the licensee files their license application. FERC will: 1) determine if the application is complete and request additional information from the licensee if needed; 2) prepare an Environmental Assessment consistent with the National Environmental Policy Act (NEPA) once the applications are complete; and 3) make a decision on issuance of new license, including license conditions. In this process, FERC goal is to assure the best comprehensive use of the affected resources