32 JUNE 2010 INTERNATIONAL WATER POWER & DAM CONSTRUCTION
LICENSING
I
N the US, there is renewed interest in small scale hydro devel-
opment and new interest in hydrokinetic and wave projects,
driven in a large part by national policies that promote invest-
ment in renewable energy. For instance, the recent March
2010 MoU among the US Army Corps of Engineers (USACE), the
Department of the Interior, and the Department of Energy focused
on facilitating the development of private hydro facilities at federal
dams. Non-federal hydro projects that meet certain criteria must
be licensed by the Federal Energy Regulatory Commission (FERC).
Licensing a project, however, can be a long and costly process that
can be especially burdensome to small scale developers.
The question is, what can applicants of both small and large scale
projects do within the current regulatory framework to help facili-
tate the licensing process? The Louis Berger Group (LBG) provides
environmental and engineering support to FERC, including adequacy
reviews of applications and preparation of environmental documents
for compliance with the National Environmental Policy Act (NEPA).
We have provided NEPA support to FERC for more than 150 licence
applications since 1997. Over the past 13 years we have seen all types
of applications, ranging from those with minimal information – typi-
cally small projects – to massive lings for the relicensing of large,
complex multi-development projects.
Based on our experience with all types of applicants and projects
for both FERC and private utilities, we can offer several observations
about how to navigate the licensing process. First of all, FERC can act
on applications relatively quickly (in less than two years). Secondly,
early consultation and a concise and accurate licence application can
facilitate the review and action on a licence application. And nally,
proactive developers can nd exibility in the licensing process.
ACTING QUICKLY
An example of FERC’s ability to act on applications relatively quick-
ly is the Meldahl Project (FERC No. 12667), proposed by the City
of Hamilton, Ohio, at the US Army Corps of Engineers’ Anthony
Meldahl locks and dam.
The city filed an application in October 2006 for a 105MW
project, including a new intake, approach channel, powerhouse,
tailrace channel, and an 8km long transmission line. Before ling
the application, the city thoroughly compiled the existing informa-
tion about the resources in the project area, consulting early and
often with resource agencies, and using that information to address
resource agencies’ concerns. FERC staff conducted scoping and issued
a request for additional information (AIR) in December 2006. The
city replied in March 2007, but the ready for environmental analysis
notice (REA) was not issued until November 2007. The delay in issu-
ing the REA notice resulted from a combination of factors, including
other projects having higher priority at the commission.
LBG was tasked to prepare a draft EA and nal EA in early 2008.
Shortly thereafter, FERC staff became aware that the city needed to
commence construction by 1 July 2008 to be eligible for tax incen-
tives. Asked to accelerate our schedule, we prepared the single EA in
little over one month. The commission issued the EA in April 2008
and the licence in June 2008, meeting the deadline faced by the city.
The project is now under construction.
In this example, early and frequent consultation with the resource
agencies and submission of an adequate application helped to facili-
tate the proceeding. However, communication with FERC staff about
the use of tax incentives earlier in the proceeding might have elimi-
nated the six-month delay between submission of the AIR responses
and issuance of the REA notice.
CONCISE AND ACCURATE
The Baker River project demonstrates the importance of early consulta-
tion and a concise and accurate licence application in facilitating the
review and action on an application. Located in the Cascade Mountain
Range, northeast of Concrete, Washington, the 170MW project
includes two developments, Upper and Lower Baker Dams, currently
operated for power generation, ood control and recreation.
Upper Baker Dam, located on Baker Lake, is approximately 95m
high and 366m long. Water is conveyed from the intake at the dam
via two 98m long penstocks to the powerhouse that discharges into
Lake Shannon. Lower Baker Dam is approximately 87m high and
168m long. Water is conveyed from the intake at the dam via a 179m
long penstock to the powerhouse, which discharges into a tailrace
channel that extends almost 1.5km to the Skagit river.
LBG and Meridian Environmental Inc were retained by Puget Sound
Energy (PSE) to review the initial consultation document that contains
detailed information on the project facilities, operations and existing
environmental impacts; to prepare the applicant-prepared environ-
mental assessment; and to prepare the application for relicensing.
LBG joined the Baker Solution Team (composed of the resource
agency and stakeholder representatives) and participated in the tech-
nical working groups addressing aquatic, cultural, historical, wildlife,
terrestrial, recreational and aesthetic issues. We also provided key
stakeholders, tribes, non-governmental organisations and govern-
ment agencies with guidance and insight into the relicensing process.
Notably, the AIR issued by FERC contained only four items that
PSE was able to address very quickly. In addition, FERC staff were
able to use more than 90% of the applicant-prepared EA because it
conformed to commission EA/EIS guidelines and objectively disclosed
the potential effects of the proposed measures.
Every applicant should expect a request for additional informa-
tion (we have not seen any that have escaped that step), but there is a
huge difference in time and costs between a short AIR with a 30- or
90-day response deadline, and a request for additional information
with a schedule calling for studies or other activities that could take
180 days or more to complete.
Lessons on licensing
Patricia Weslowski, director of international consulting rm The Louis Berger Group,
helps readers to navigate through the hydro power licensing process in the US.
View of Baker Lake. The project demonstrates the
importance of early consultation in a licence application