Hydropower - Industry Activities
Hydroelectric Licensing Rulemaking, Order 2002
Commission Issues Final Rule
On July 23, 2003, the Commission issued a
Final Rule  to revise its regulations pertaining to hydroelectric
licensing under the Federal Power Act. Effective October 23, 2003,
the revisions would create a new licensing process, the
Integrated Licensing Process (ILP) in which a potential
license applicant's pre-filing consultation and the Commission's
scoping pursuant to the National Environmental Policy Act (NEPA)
would be conducted concurrently, rather than sequentially. The Final
Rule was published in the Federal
Register on August 25, 2003. Highlights of the proposed new
licensing process include:
- Greater coordination among the Commission and federal and
state agencies with mandatory conditioning authority;
- Increased assistance by Commission staff to the potential
applicant and stakeholders during the development of a license
application;
- Application preparation in conjunction with the Commission's
environmental scoping process to facilitate in early issue identification;
- Increased public participation in the pre-filing consultation
process;
- Establishment of process plan and schedules and deadlines
for all participants, including Commission staff;
- Development of a Commission-approved study plan by the applicant,
with informal resolution to study disagreements, followed by
formal dispute resolution, if necessary; and
- Limiting of the need for post-application study requests
The ILP joins the Commission's two existing processes, the Traditional
Licensing Process (TLP) and the Alternative Licensing Process (ALP),
as a third alternative for processing hydroelectric license applications
(table comparing the three processes).
The Final Rule also established a two-year-transition-period
whereby an applicant may choose among the three processes until
July 2005. On July 23, 2005, the ILP would became the default process. Commission approval is now needed to use the TLP and ALP.
The regulatory language for the ILP is included in a new part 5
of Title 18 of the Code of Federal Regulations. The Final Rule also
includes changes to the TLP and ALP regarding application requirements,
public participation, and a Pre-application document. The 18 CFR
parts 2, 4, 16, and 385 is amended to implement the new procedures.
A redline/strikeout version
of the changes to 18 CFR parts 2, 4, 9, 16, 375, and 385 and
the new part 5 regulation text
is available.
In drafting language for the Final Rule, Commission staff considered
written comments filed in response to the February 20, 2003 Notice
of Proposed Rulemaking comments received at public and
tribal workshops, conceptual language from the Stakeholder Drafting
Sessions, and language drafted jointly with other federal agencies
with authorities under the Federal Power Act (Departments of Commerce,
Agriculture, and the Interior.)
Tribal Policy Statement
In addition to the Final Rule, the Commission also issued a policy
statement on consultation with indian tribes in Commission proceedings
to articulate its commitment to promote a government-to-government
relationship between itself and federally-recognized Indian tribes.
The policy statement recognizes the sovereignty of tribal nations
and the Commission's trust responsibility to Indian tribes. The
policy statement also establishes a tribal liaison who will act
as a guide for an Indian tribe's participation in FERC proceedings.
Finally, the policy statement establishes certain actions specific
to the hydroelectric program that will endeavor to increase direct
communications with tribal representatives in appropriate proceeding.
> Final
Rule and Tribal Policy Statement News Release
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