FERC Relicensing
The Federal Energy Regulatory Commission (FERC) provides a licensee with two options for the relicensing process: Traditional Three-Stage Consultation (outlined in 18 CFR 16.8) or Alternative Licensing Procedures (outlined in 18 CFR 4.34(i)). Both processes require consultation with resource agencies and the public before a licensee submits an application to FERC, although the degree to which a licensee consults varies greatly between the two processes.
The Traditional Three-Stage Consultation process involves consulting with resource agencies and the public regarding studies and study results. The licensee compiles the study results in a draft license application that is then distributed for public review. The licensee receives comments and develops a final license application for filing with FERC. Once FERC has the license application, the agency reviews the application to make sure all requirements and regulations have been met and then begins the public scoping process pursuant to the National Environmental Policy Act of 1969 (NEPA). The scoping process helps identify issues and reasonable alternatives as well as determines if additional studies or other information are needed. Typically, it takes an average of 2 to 5 years for FERC to issue a licensing decision when using the Traditional Three-Stage Consultation process; however, it can take much longer.
In October 1997 FERC issued new rules that provide hydro licensees with an option to relicense their project using regulations commonly known as Alternative Licensing Procedures (ALP). The ALP allows licensees to tailor the relicensing process by combining the consultation, study, and environmental review processes. In the ALP process, the environmental review required by NEPA and other Federal and State statutes is conducted before the licensee files the application with FERC, much earlier in the relicensing process than in the Traditional Three-Stage Consultation process.
The ALP also allows licensees to develop an Applicant Prepared Environmental Assessment (APEA) to file with the license application in lieu of the Environmental Report (License Exhibit E) required in the Traditional Three-Stage Consultation process. The Exhibit E report summarizes the existing environment, the environmental studies, and the licensee's proposed environmental protection, mitigation, and enhancement (PM&E) measures. The Exhibit E report also includes agency and other stakeholders' proposed PM&E measures but does not typically include an analysis of these measures or a cumulative effects analysis. The APEA analyzes how the proposed operation and the proposed PM&Es will effect the project's environmental and economic resources and reasonable operating alternatives. It then recommends an alternative project operation and management plan that best balances power and nonpower values. Scoping, an activity that FERC typically conducts once the application is filed, is conducted early in the ALP relicensing process.
Since the responsibility for the environmental review pursuant to NEPA ultimately rests with FERC, FERC conducts an independent evaluation once the APEA is filed. FERC then issues its own NEPA document, which is either an Environmental Assessment (EA) or Environmental Impact Statement (EIS). EA and EIS documents produced by FERC's Office of Energy Projects are very similar in their content, but the outline and presentation of information may vary slightly. The NEPA process at FERC, whether an EA or EIS document is produced, is the same:
- Public scoping.
- Environmental and economic analysis, including cumulative effects.
- Public comment on the draft NEPA documents.
The ALP is designed to help licensees and stakeholders identify issues early and attempt to resolve them at the local level, i.e., "local issues, local solutions." The process encourages settlement agreements but must have stakeholders that are willing to work cooperatively with the licensee and each other to meet reasonable goals.
On September 22, 2000, Alabama Power Company filed a request with FERC to use ALPs. Along with its request, Alabama Power conveyed to FERC that there is general consensus among stakeholders that the ALP should be used on the Coosa-Warrior relicensing. Alabama Power also submitted communications procedures that describes how participants in the relicensing process will document their communications. On January 21, 2001, FERC approved Alabama Power's request to use ALPs.
Before FERC issues a new operating license, the agency must first complete an environmental review of the project pursuant to the National Environmental Policy Act of 1969 (NEPA). NEPA requires that FERC examine the projects' effects on the physical and human aspects of the environment as well as identify and analyze the various project alternatives and associated effects.
