Thought Leadership
It’s 2024. Do you know when your FERC license expires ?
October 7, 2024
By Ginger Gillin, Vice President/Principal Environmental Scientist
If you’re a hydropower owner who operates a project licensed by the Federal Energy Regulatory Commission (FERC), and you’re not familiar with the requirements of FERC relicensing, then this blog is for you.
FERC licenses are issued for a term from 30 to 50 years. That’s a long time, so it’s not unusual for licensees to find themselves faced with an expiring license with uncertainty about what’s involved in the renewal process.
If this is you, the first thing to know about are a couple of very important deadlines. FERC’s regulations require that you file a Notice of Intent (NOI) to relicense between 5 and 5 1/2 years BEFORE your license expires. Preparing an NOI is not difficult, with the support of a knowledgeable practitioner or attorney.
In addition to the NOI, however, licensees are also required to file a Pre-Application Document (PAD) at the same time as the NOI. PAD preparation is a bigger lift, and it will take time to plan and prepare. The PAD needs to describe the current environmental conditions at your project. A description of water resources, water quality, wildlife, fisheries, aesthetics, and recreational resources are among the topics that need to be described. The PAD must also describe environmental issues at the project, and the licensees proposed studies to fill any data gaps.
Licensees are not required to conduct studies to prepare the PAD, but you are required to gather the existing, available information. Due diligence includes reaching out to the interested stakeholders and agencies with a request for pertinent environmental information for the relicensing.
The author visits the Mystic Lake Dam.
In terms of timing, this means that you should start work to prepare the PAD at least 6 years before your license expires!
Another key question about relicensing is which licensing process do you wish to use? FERC has three different licensing processes! Determining the right process for your situation takes some thought and consideration of the pros and cons. If you want to use a process other than the default process, (the Integrated Licensing Process), then you will need to make that request at the time you file the NOI.
This is another reason to get started early and bring in support from experienced FERC practitioners who can help you with the decision on your preferred process.
After you file the NOI, PAD, and request to use a licensing process that is not the default (if that pertains), you will be immersed in the world of FERC licensing.
Licensees are required to conduct studies to fill any data gaps related to environmental resources that were identified in the PAD. Commonly, studies include fisheries, wetlands, recreational use, cultural resources, and water quality, but the specifics will be tailored to the issues at your project. There will also be a considerable amount of stakeholder engagement throughout the licensing process, including a site visit to the project.
Once the studies are completed, it will be time to file your Draft and Final License Application. The deadline to file your Final License Application is no later than 2 years before your license expires. This is a hard deadline you cannot miss.
FERC will use the information in the Final License Application to prepare an environmental review to comply with the National Environmental Policy Act. They will also conduct consultations with other federal agencies to comply with federal law.
FERC relicensing is a long journey, with about 3 years from the filing of the PAD to Final License Application. FERC’s processing of the application takes about 2 years but can be longer. In the event the existing license expires before the new license is issued, FERC will issue annual licenses to allow the project to continue operating. This is not an unusual situation.
There are consultants available who can help you navigate the process. Contact me at: ggillin@geiconsultants.com.