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Relicensing of Nonfederal Hydroelectric Projects: Background and Procedural Reform Issues (CRS Report for Congress)

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Release Date April 25, 2007
Report Number RL31903
Report Type Report
Authors Kyna Powers, Resources, Science, and Industry Division
Source Agency Congressional Research Service
Summary:

Hydroelectric facilities produce approximately 7% of all electricity generated in the United States and are an important and flexible source of power. About half of the hydroelectric power generated in the United States comes from privately owned facilities that operate under licenses issued by the Federal Energy Regulatory Commission (FERC). Federal hydropower dams do not require FERC licenses and are not covered by this report. New licenses for private facilities establish allowed generation capacity, operating parameters, and environmental protection requirements for the next 30 to 50 years. Given the multi-purpose nature of hydropower facilities and changes in river-management priorities since the 1950s and 1960s, it now can take more than six years and millions of dollars to relicense a hydroelectric project. […]After FERC completed its rule establishing the ILP, the 109th Congress passed legislation that affects the rule. P.L. 109-58, signed in August 2005, includes provisions for applicants to propose alternatives to license conditions and requires agencies to accept those alternatives as long as they meet certain environmental and economic requirements. Some have expressed concern that this legislation could reduce the effectiveness of the ILP by eroding federal resource agencies' conditioning authority. This report summarizes the current processes, describes FERC's recent development of a third licensing process, and explains changes to relicensing enacted by P.L. 109-58. This report will be updated as events warrant.