Hydropower Prime

A Handbook of Hydropower Basics

A staff report of the Office of Energy Projects/ 

Federal Energy Regulatory Commission

Hydropower primer

PURPOSE OF THIS PRIMER 

This hydropower primer provides an overview of the Federal Energy Regulatory Commission’s role 

in regulating and overseeing non-federal hydropower generation in the United States. It provides a 

history of hydropower and describes the role hydropower plays in the nation’s energy mix. The primer 

explains the different types of hydropower projects and the resources they affect. Further, it discusses 

the regulations and statutes applicable to the hydropower program. The primer describes the role of 

the Office of Energy Projects and its three divisions that work together to review hydropower project 

applications through the various licensing processes, oversee compliance and administration, and 

ensure dam safety. Finally, it provides an overview of how the public and agencies can interact with 

the Commission and the outreach opportunities provided by Commission staff. 

It is written to be used either as a traditional text—read front to back—or as a reference guide. 

Consequently, some material is repeated in different sections, and references are provided to other 

parts of the primer where a concept is addressed in greater detail. Additional information about 

various aspects of hydropower and FERC regulation can be found at 

http://www.ferc.gov/industries/hydropower.asp.

A staff report of the Office of Energy Projects/
 

Federal Energy Regulatory Commission
 

Hydropower Primer iii
 

Hydropower primer
 

A Handbook of Hydropower Basics
 

February 2017
 

PURPOSE OF THIS PRIMER iii
 

1. HYDROPOWER IN THE UNITED STATES 1
 

1.1 Overview 1
 

1.2 Project Types and Configurations 4
 

1.3 Environmental Concerns 11
 

1.4 Developmental Issues 16
 

2. PERTINENT LAWS AND REGULATIONS RELATED TO NON-FEDERAL HYDROPOWER PROJECTS 17
	

2.1 Federal Power Act 17
 

2.2 Rivers and Harbors Act 19
 

2.3 U.S. Bureau of Reclamation Statutes 19
 

2.4 National Environmental Policy Act 20
 

2.5 Clean Water Act 21
 

2.6 Endangered Species Act 21
 

2.7 Fish and Wildlife Coordination Act 22
 

2.8 National Historic Preservation Act 22
 

2.9 Coastal Zone Management Act 22
 

2.10 Magnuson-Stevens Fishery Conservation and Management Act 23
 

2.11 Marine Mammal Protection Act 23
 

2.12 Wild and Scenic Rivers Act 23
 

2.13 Pacific Northwest Power Planning and Conservation Act 23
 

3. FEDERAL ENERGY REGULATORY COMMISSION 24
 

3.1 Overview of Agency 24
 

3.2 Office of Energy Projects 24
 

3.3 Hydropower Program 25
 

Hydropower Primer v
 
4. HYDROPOWER PERMITS AND AUTHORIZATIONS 28
 

4.1 Overview 28
 

4.2 Preliminary Permits 29
 

4.3 Licenses 30
 

4.4 Exemptions 35
 

4.5 Amendments 36
 

4.6 Surrenders, Transfers, and Terminations 38
 

5. HYDROPOWER ADMINISTRATION AND COMPLIANCE 41
 

5.1 Overview 41
 

5.2 Environmental Inspections 42

5.3 Compliance Tracking and Monitoring 42

5.4 License Transition Meetings 42

5.5 Shoreline Management 43

5.6 Recreation Facilities 43

5.7 Compliance Penalties 44
 

5.8 Headwater Benefits 44
 

6. DAM SAFETY AND INSPECTIONS OF HYDROPOWER PROJECTS 45
	

6.1 Overview 45
 

6.2 Regulations 45
 

6.3 Reporting Safety-Related Incidents 46
 

6.4 Emergency Action Plans 46
 

6.5 Independent Safety Inspections 48
 

6.6 Public Safety 49
 

6.7 Security 51
 

6.8 Engineering Guidelines 51
 

6.9 Owners Dam Safety Program 51
 

6.10 Dam Safety Performance Monitoring Program, Potential Failure Mode Analysis,
 

and Risk-Informed Decision Making 52
 

6.11 Dam Safety Remediation 52
 

7. PUBLIC RESOURCES AND OUTREACH 53
 

7.1 Electronic Systems 53
 

7.2 Outreach 54
 

8. GLOSSARY 55
 

9. LIST OF ACRONYMS AND ABBREVIATIONS 58
 

The Hydropower Primer is a staff product and does not necessarily reflect the views of the Commission or any Commissioner.
 

All images credit to FERC unless stated otherwise.
 

Pictures on cover from left to right: York Haven reservoir, PA; Merwin Dam, WA; Wanapum Dam, WA.
 

vi Hydropower Primer 
1. Hydropower in tHe United StateS
 

1.1 Overview 

Introduction 

Hydroelectric projects are currently in almost every state
	

and on most of the major river systems in the United States,
	

with a combined 101,000 megawatts (MW) of electric
	

generating capacity.
	

Hydroelectric generation accounts for about 8 percent of
	

the total generating capacity in the United States and about
	

48 percent of all renewable generation. States that have
	

significant water resources, such as those in the Pacific
	

Northwest, obtain a large percentage of their power from
	

hydroelectric projects.
	

Hydroelectric projects are owned and operated by 

private, non-utility companies; private utility companies; 

municipalities; electric cooperatives; private citizens; and 

state and federal government agencies. Federal agencies 

that own hydroelectric projects include: the U.S. Army Corps 

of Engineers (Corps), Bureau of Reclamation (Reclamation), 

Tennessee Valley Authority (TVA), Bureau of Indian Affairs, 

and the International Boundary and Water Commission. 

The Corps and Reclamation own 78 percent of federally 

owned projects and account for 91 percent of federally 

owned capacity, and TVA owns most of the remaining federal 

capacity. Federally owned projects, which are authorized 

by Congress, provide a little less than half of the total 

hydropower capacity in the United States. Non-federally 

owned projects thus comprise the majority of hydropower 

capacity in the United States,1

 and the Federal Energy 

Regulatory Commission (Commission or FERC) regulates 

these non-federal projects. FERC has jurisdiction over more 

than 2,500 dams that generate approximately 55,500 MW of 

hydropower capacity. 

Hydropower regulation, the oldest area of the 

Commission’s jurisdiction, began with the Federal Power 

Commission’s regulation of non-federal hydroelectric 

generation in 1920. Under Part I of the Federal Power 

Act (FPA), the Commission’s responsibilities include 

authorizing the construction of projects and overseeing 

their operation and safety. 

This document discusses the general history and principles 

of hydropower and FERC’s role in the regulation of nonfederal hydropower projects. 

Toledo Bend Project, TX 

1 U.S. Department of Energy. 2016. Hydropower Vision – A New Chapter for America’s 1st Renewable Electricity Source. 

Hydropower Primer 1
 
Federal and Non-Federal FERC Regulated Hydroelectric

Projects in the United States 

Source: U.S. Department of Energy, 2016 

mination for tourists. 

1900 

ouse 

rand 

en 

e 1882 World’s 1907

first hydroelectric electri

 factory power plant began capacit

te 16 operation in States 

Appleton, Wisconsin. by hyd

 

eastern United States. 

1960 

Hydro History Highlights 

1881 Jacob F. Schoellkopf 1889 200 electric 1920s 25% of electric 

diverted part of the output from plants in the generating capacity in 

his waterwheel-powered flour United States United States provided 

mills onto a power canal above used waterpower by hydropower. Federal 

the Niagara Gorge near American for some or all government begins regulating 

Falls. This effort provided the first generation. hydropower projects. 

use of electricity at Niagara Falls – 

nighttim

1880 

1880 World’s 

hydroelectric p

began operatio

e illu

1930 

first 

owerh

n in G

Rapids, Michigan, wh

a water turbine at th 15% of 

Wolverine Chair and c generating 1930 First use of 

Furniture Company’s y in United pumped storage 

was used to illumina provided hydropower in 

street arc lights. ropower. the United States. 

1950s to 1970s 

Construction of several hydropower 

projects on large rivers throughout 

the United States, such as the 

Columbia and Snake Rivers, along 

with construction of several large 

pumped storage projects in the 

1940s New Deal 

increases construction of 

projects; 40% of electric 

generating capacity in 

United States is provided 

by hydropower. 

2 Hydropower Primer 
History of Hydropower in the United States 

People have been harnessing the power of water for 

thousands of years. As one of the planet’s oldest power 

sources, hydropower was used by farmers as far back as 

ancient Greece for mechanical tasks like grinding grain. 

In the United States, hydropower originated more than 

200 years ago with the construction of dams to produce 

mechanical power for gristmills and other industries. 

On September 30, 1882, the world’s first hydroelectric 

power plant began operation on the Fox River in Appleton, 

Wisconsin, when a paper manufacturer used generators 

provided by Thomas Edison to power a single home and 

paper mill. Since then, many dams originally constructed 

for mechanical power have been converted to include 

the production of electricity, with a large number of 

conversions occurring in the early-1900s as the nation’s 

electric power grids were being established. Construction 

of new hydropower projects in the United States greatly 

expanded in the middle of the twentieth century. Although 

construction has waned since the 1990s, hydropower 

continues to provide reliable generation and grid support 

services that help meet the nation’s requirements for 

the electrical bulk power system. For over a century, 

hydropower has provided the United States with clean, 

affordable, reliable, and renewable electricity and 

supported development of the nation’s power grid and 

industrial growth.2 

Role of Hydropower in Nation’s Energy Mix 

Hydropower has many advantages as an energy source. 

It is a scalable, highly reliable generation technology 

that offers significant operational flexibility to maintain 

grid reliability and integration of variable generation 

resources, such as wind and solar. Hydropower projects 

also can provide associated environmental benefits such 

as recreational opportunities, water quality protection 

and enhancement, fisheries enhancement, and low-flow 

augmentation. In addition: 

•	 Hydropower is fueled by the kinetic energy of water, 

which is a clean fuel source, meaning it does not emit 

air pollutants. 

•	 Hydropower is a domestic source of energy. 

•	 The energy generated through hydropower relies on 

the water cycle, which is driven by the sun, 

making it a renewable and reliable source of power. 

•	 Reservoirs created by many hydropower projects offer 

a variety of recreational opportunities, notably fishing, 

swimming, and boating. Most water power installations are 

required to provide some public access to the reservoir to 

allow the public to take advantage of these opportunities. 

•	 Some hydropower facilities can quickly go from zero 

power generation to maximum output. Because 

hydropower plants can generate power to the grid 

immediately, they can help integrate variable energy 

resources, and provide essential back-up power during 

major electricity outages or disruptions. 

•	 In addition to a sustainable fuel source, hydropower 

projects provide flood control, irrigation, and water supply. 

Hydropower also provides economic benefits to the country. 

In 2013 in the United States, the operation, construction, 

and upgrades of conventional hydropower projects 

supported approximately 143,000 jobs.3 

The Future of Hydropower 

In addition to the nation’s existing hydropower generating 

capacity, there is also potential to increase hydropower 

development. Many dams that were originally constructed 

for other purposes, such as commercial navigation (locks 

and dams), irrigation, or flood control, do not have power 

generating facilities. In the United States, there are 

approximately 87,000 existing dams4 and only 3 percent 

generate electricity. The U.S. Department of Energy 

estimates that significant additional hydropower potential 

(12,000 MW) is available at some of these existing nonpowered dams. Modeling of reasonable assumptions 

for advancements in technology, low-cost financing for 

hydropower projects, and environmental considerations 

for additional development, reduces the resource potential 

for non-powered dams to 4,800 MW.5 Most of the current 

and future hydropower potential in the United States is 

concentrated in mountainous areas along the Atlantic 

and Pacific coasts, including the Appalachian and Rocky 

Mountains, as well as within the Great Lakes drainage 

and Mississippi River Basin. Alaska also has significant 

hydropower potential, but only a small percentage has been 

developed to date. 

2 U.S. Department of Energy. 2016. Hydropower Vision – A New Chapter for America’s 1st Renewable Electricity Source. 

3 U.S. Department of Energy. 2016. Hydropower Vision – A New Chapter for America’s 1st Renewable Electricity Source. 

4 U.S. Army Corps of Engineers. 2013. National Inventory of Dams. May 26, 2015. Accessed July 5, 2016. http://nid.usace.army.mil. 

5 U.S. Department of Energy. 2016. Hydropower Vision – A New Chapter for America’s 1st Renewable Electricity Source. 

Hydropower Primer 3
 
1.2 Project Types and Configurations 

Hydroelectric projects convert the potential or kinetic 

energy of water into electricity. This flow of water turns 

a turbine that is connected to a generator that produces 

electricity. Electricity flows from the generator to a 

substation, where the voltage is increased. From there, the 

electricity is transmitted via a transmission line to an end 

user or to the interstate power grid. 

Power from Water 

Water wheels are a familiar sight at the many scenic grist 

mills that dot the country. Although the approach has 

become significantly more sophisticated, hydropower 

projects employ the same concept. In the 1820s, Benoît 

Fourneyron developed the first commercial horizontal 

water wheel he called a turbine which is derived from the 

Latin word turbo, meaning “whirlwind or whirl.” James 

Francis improved on earlier designs, creating the Francis 

reaction turbine, which is the most common type of 

turbine in use today. 

The type of hydropower turbine selected for a project is 

based on the available hydraulic head and the flow of water 

at the site. Hydraulic head is defined as vertical change in 

elevation expressed in feet or meters between the head 

(reservoir) water level and the tailwater (downstream) 

water level. Flow is the volume of water, expressed in cubic 

feet or cubic meters per second, passing a point in a given 

amount of time. The greater the hydraulic head and rate 

of water flow, the greater the potential energy that can be 

converted to electricity. Hydropower plants with smaller 

rates of flow must have higher hydraulic head in order to 

generate electricity from the potential energy of the falling 

water. Plants with lower hydraulic head must have more 

water passing through the turbine to generate the same 

amount of electricity. 

4 Hydropower Primer 

Development of the Turbine 

1827 Benoît Fourneyron developed first 

commercial horizontal water wheel. 

1848 James Francis improved on earlier designs, 

creating the Francis reaction turbine. 

1878 Lester Pelton developed an impulse water 

wheel, known as the Pelton wheel, which is 

very efficient with high heads and low flows. 

1912 Viktor Kaplan developed the reaction 

turbine that used adjustable propellertype blades to improve efficiency, 

allowing it to match a range of flow 

and head site conditions. 

Glade Creek Mill, WV 
Types of Turbines 

There are several types of turbines that can be used in 

hydropower projects. The three main types currently in 

use at FERC-regulated projects are Pelton, Francis, and 

Kaplan turbines.6 

The Pelton turbine is an impulse turbine, which means 

that it generally uses the velocity of the water to move the 

runner.7 The water stream hits each bucket on the runner. 

There is no suction on the down side of the turbine, and 

the water flows out the bottom of the turbine housing after 

hitting the runner. An impulse turbine is generally suitable 

for high head, low flow applications. 

The Francis turbine is a reaction turbine, which means it 

develops power from the combined action of pressure and 

moving water. The runner is placed directly in the water 

stream so the water is flowing over the blades rather than 

striking each individually. Reaction turbines are generally 

used for sites with lower head and higher flows than sites 

where impulse turbines are used. The Francis turbine has 

a runner with fixed buckets (vanes), usually nine or more. 

Water is introduced just above the runner and all around 

it and then falls through, causing it to spin. Besides the 

runner, the other major components are the scroll case, 

wicket gates, and draft tube.8 

The Kaplan turbine is also a reaction turbine with a 

propeller design. The propeller turbine generally has a 

runner with three to six blades in which the water contacts 

all of the blades constantly. The major components 

besides the runner are a scroll case, wicket gates, and a 

draft tube. In the Kaplan turbine, both the blades and the 

wicket gates are adjustable, allowing for operation over a 

wider range of flows. It is best adapted for sites with lower 

head and higher flows. 

C 

flow needle		 water inlet 

buckets 

water-jet generator
 

drive
 

water inlet 

volute 

chamber 

guide 

vanes deflector 

variable pitch volute blades chamber runner guide vanes 

A B 

The three main types of water turbine: (A) the Pelton turbine (or wheel); (B) the Francis turbine; (C) the Kaplan turbine 

Source: http://www.daviddarling.info/encyclopedia/W/AE_water_turbine.html 

6 https://energy.gov/eere/water/types-hydropower-turbines. 

7 A runner is the rotating part of the turbine that converts the energy of falling water into mechanical energy. 

(All definitions are from https://energy.gov/eere/water/glossary-hydropower-terms.) 

8 A scroll case is a spiral-shaped steel intake guiding the flow into the wicket gates located just prior to the turbine. The wicket gates are adjustable 

elements that control the flow of water to the turbine. A draft tube is a water conduit that conveys a flow of water from the turbine outlet to the 

downstream water level (tailrace). 

Hydropower Primer 5
 
Types of Dams 

The Commission regulates various types of dams and 

appurtenant structures associated with hydroelectric 

generation and water storage projects. Each project is 

unique, and many dams have been in place for decades. 

Types of dams regulated include: 

•	 Gravity—constructed from concrete or stone masonry 

and designed to hold back water by primarily using 

the weight of the dam itself to resist the horizontal 

pressure of water pushing against it; 

•	 Arch—similar to a gravity dam but thinner and curves 

upstream in a narrowing curve that directs the water 

pressure against the shoreline (typically canyon rock 

walls), providing the force to compress and maintain 

the strength of the dam; 

•	 Roller compacted concrete (RCC)—a gravity dam 

constructed using a mix of cement/fly ash, water, sand, 

aggregate and common additives, but containing less 

water, compacted by vibratory rollers; 

•	 Slab and buttress—reinforced concrete buttresses 

proportioned to transfer the water load to the 

foundation rock through individual buttress footings, 

using the weight of the impounding water and the 

weight of the structure to provide resistance against 

sliding and overturning; 

•	 Embankment—massive dam created by the placement 

and compaction of a complex semi-plastic mound of 

various compositions of soil, sand, clay and/or rock, 

with a typically dense impervious core; and 

•	 Rockfill—a type of embankment dam constructed of 

compacted free-draining granular earth typically with 

an impervious zone, using a high percentage of large 

particles (rock). 

6	 Hydropower Primer 

Types of Dams
 

Gravity	 Arch Slab & Buttress 

Roller Compacted Concrete Embankment	 Rockfill 
Other Structures
 

Powerhouse Canal	 Gates 

Flume	 Penstocks Transmission Yard 

Types of Structures 

In addition to dams, the Commission regulates other key 

components of hydroelectric projects. These structures 

include: 

•	 Powerhouse—the building that houses the project’s 

turbines/generating units; 

•	 Turbine—a machine that produces continuous power 

in which a wheel or runner revolves, pushed by a fastmoving flow of water; 

•	 Generator—a device that converts the rotational 

energy from a turbine to electrical energy; 

•	 Canal—a man-made open channel for conveying water 

typically from a reservoir to a powerhouse; 

•	 Flume—a man-made structure for conveying water in 

the form of an open, declined gravity chute with walls 

that are raised above the surrounding terrain; 

•	 Penstock—an enclosed pipe-like structure that typically 

conveys water directly from a reservoir to a powerhouse; 

•	 Gate—a structure, typically on a dam or canal, that 

allows passage of water when open; 

•	 Transmission lines— those lines that convey electricity 

to the interconnected grid (referred to as “primary 

lines”); and 

•	 Transmission yards—electrical substations that receive 

power generated by a project and increase the voltage 

for transmission to the power grid. 

Hydropower Primer 7
 
Types of Projects 

Hydroelectric projects can be generally categorized into 

conventional, pumped storage, and marine and hydrokinetic 

designs. These types of projects are described below. 

Conventional Hydroelectric Projects 

Most hydroelectric projects in the United States are 

conventional and convert the potential energy of water 

impounded by a dam (the reservoir or impoundment) to 

electricity. The reservoir created by the structure of the 

dam creates the hydraulic head. Water flows from the 

reservoir through the penstock to the powerhouse. The 

powerhouse contains the turbine, which converts the power 

of the water into electricity. When a turbine gate is open, 

the weight of the water above the powerhouse causes the 

water to flow into the penstock and spin the turbine and 

generator, producing electricity. 

The electricity is transmitted from the generator to onsite transformers and then to the transmission lines, tying 

into the grid. Some dams and powerhouses are integral 

(are constructed as part of the same structure) and are 

typically called impoundment projects (see conventional 

impoundment schematic), while other conventional projects 

have the dam and powerhouse separated to gain additional 

head (i.e., vertical elevation) and are typically called 

diversion projects (see conventional diversion schematic). 

Diversion projects channel water from the impoundment 

through a canal or penstock to a powerhouse that is from a 

few feet to miles downstream. The waterway between the 

dam and powerhouse is called a bypassed reach. 

8 Hydropower Primer 

Transmission 

Fish Ladder 

Turbine 

Draft Tube 

Penstock 

Transformer 

Spillway 

Intake 

Trashrack 

Control 

Gate 

Outflow 

Generator 

Powerhouse 

Conventional Impoundment Project 
Hydropower Primer 9 

Picnic 

Area 

Power Canal Reservoir 

take F Bypassed Reach Canoe Take-out In ish Ladder Boat Launch 

Diversion Dam Transmission Lines 

Forebay 

Penstock 

Portage Trail 

Powerho

ilrace 

use 

Tra

Canoe Put-in 

Conventional Diversion Project 

Pumped Storage Hydroelectric Projects 

Pumped storage projects are fewer in number than conventional projects. Most were constructed from the 1960s to the 

1980s to complement operation of large, baseload coal and nuclear power plants by balancing electricity load and demand 

on the transmission grid. A pumped storage project is similar in concept to a battery. Construction involves the creation of an 

upper reservoir and a lower reservoir, which may be man-made or a natural lake or river. During off-peak hours (typically on 

nights or weekends), when electricity demand is low, water is pumped to the upper reservoir and stored for later use. During 

peak hours (typically weekdays/evenings), when electricity demand increases, stored water is released from the upper 

reservoir and passes through the powerhouse, generating power as it is released into the lower reservoir. Pumped storage 

projects work well in conjunction with baseload power sources, like nuclear and steam-generating power plants, that 

provide pumping power. These hydropower projects can also help to integrate variable generation from other renewable 

energy sources, such as wind and solar, and can serve an important role in providing the power needed to restart other 

generating facilities after a regional blackout. 

Courtesy: Tennessee Valley Authority 

Switchyard 

Upper Reservoir 

Intake 

Elevator 

Main Access Tunnel
 

Surge Chamber
 Lower Reservoir 

Powerplant Chamber 

Transformer Vault Breakers 

Schematic of a Pumped Storage Hydroelectric Project 
10 Hydropower Primer 

Experimental Point Absorber Wave Energy Device 

Marine and Hydrokinetic Projects 

Marine and hydrokinetic (MHK) projects generate electricity from waves or directly from the flow of water in ocean 

currents, tides, or inland waterways. No dam or powerhouse is required, and the generating device is placed directly 

within the waterway. Wave energy projects extract energy from the undulating action of ocean waves or from pressure 

fluctuations below the ocean surface. A variety of technologies has been proposed to capture energy from waves, and 

all are still in the early stages of development and testing. To date, most testing of MHK projects in the United States 

has involved marine tidal and inland river currents. These projects typically involve placement of propeller-type or 

helical turbine/generators into the current. 

Schematic of Inland River Hydrokinetic Project Schematic of Tidal Current Hydrokinetic Project 
Safe Harbor Dam, PA 

1.3 Environmental Concerns 

Constructing new projects, as well as relicensing existing 

projects, may have environmental effects that are of concern 

to stakeholders (e.g., state and federal agencies, Indian 

tribes, local landowners, and nongovernmental organizations 

[NGOs]). The specific environmental and developmental 

issues commonly associated with hydropower projects are 

discussed below. The number of issues and the amount of 

information required to address them are project specific 

and depend on the project location and design and the sitespecific resources that are affected. 

For hydropower projects under FERC jurisdiction, 

requirements for addressing environmental issues are 

spelled out in the Exhibit E (Environmental Report) sections 

of the Commission’s regulations, set forth in 18 Code 

of Federal Regulations (CFR) §4.34(i), §4.38(f), §4.41(f), 

§4.51(f), §4.61(d), §5.18(b), and §16.8(f). Generally, 

applicants are required to describe the existing resources 

in the project area, impacts that would occur during the 

construction and/or operation of the project, and proposed 

measures for mitigating the project’s effects or enhancing 

resources in the project area. 

Geology and Soils 

Typical issues of greatest concern related to geology and 

soils are shoreline erosion for existing projects, and erosion 

resulting from ground disturbance for proposed or existing 

projects involving new construction. Information about the 

geology and soils of a project area, along with how a project 

would affect these resources, must be considered. Types of 

information required for assessment include descriptions of: 

geologic features, including bedrock lithology, stratigraphy, 

structural features, glacial features, unconsolidated 

deposits, and mineral resources at the project site; soils in 

the project area, including soil types, occurrence, erodibility, 

and potential for soil mass movement; and the geology 

of the project area, including bedrock type. Geology and 

soils information is used in the analysis of the proposed 

project design or design changes and effects on water 

quality. Project proponents also need to consider measures 

that would be implemented to reduce erosion during both 

construction and operation of a project. 

Hydropower Primer 11
 

Shoreline Erosion 
12 Hydropower Primer 

Water Use and Quality	 

Primary issues related to water resources are typically 

instream flow needs; effects downstream of the project; and 

effects of the project on specific water quality parameters 

such as water temperature, dissolved oxygen, and nutrient 

levels in the reservoir and in waters downstream of the 

project. Water usage and quality of waters in the project 

area must be assessed. All waters affected by the project 

must be described, including, but not limited to, project 

reservoir(s), tributaries thereto, the riverine bypassed 

reach, the tailrace, and the river downstream of the 

project. For projects that propose new construction, 

effects of that construction, including issues such as 

erosion and sedimentation and the need for an erosion 

and sedimentation control plan, must be considered. The 

operational effects of projects also must be assessed, 

including any proposed flow diversions or modifications to 

streamflow, shoreline erosion, and changes in water quality 

parameters in the project reservoir or in discharges from 

the project. Project proponents must be able to describe 

how the project would be operated (the flow release 

regime, e.g., peaking9

 or run-of-river10) and what measures 

would be implemented to ensure that releases from 

the project would be consistent with state water quality 

standards. Project proponents must also obtain water 

quality certification pursuant to section 401 

of the Clean Water Act (see chapter 2).11 

Aquatic Resources 

Project-related effects on fisheries and other aquatic 

resources, such as macroinvertebrates and mussels, are the 

primary issues associated with most hydroelectric projects. 

Primary fishery concerns are related to fish passage and 

protection of fish from turbine passage mortality, fish 

passage for maintenance of diadromous12 fish migrations 

and populations in the river affected, and effects of 

inundation (mainly for proposed projects) and changes in 

streamflow on aquatic habitat and fish populations. Effects 

on mussel species, particularly federally listed threatened 

or endangered species, must also be considered. Applicants 

should propose measures for protection of fish passing 

through the powerhouse and for upstream and downstream 

passage over the project, if appropriate; instream flows for 

protection of downstream aquatic habitat; and mitigation 

or enhancement of fish or mussel populations affected by 

inundation. These measures may or may not be needed 

on all projects, and will depend on the species that will be 

affected and the extent of impacts on those species. For 

instance, if fish survival is high during turbine passage, or 

diadromous species are not present, fish protection and 

passage measures may not be needed. 

9 A peaking project is one in which water can be stored in a reservoir until needed, and then released through turbines to generate power to help 

supply the peakload demand (https://www.usbr.gov/power/edu/pamphlet.pdf). 

10 A run-of-river project is a type of hydropower project in which limited storage capacity is available and water is released at roughly the same rate as 

the natural flow of the river (https://energy.gov/eere/water/glossary-hydropower-terms). 

11 Water quality certifications are issued by the state(s) in which the project is located. 

12 Diadromous species include both anadromous species (such as Atlantic and Pacific salmon, American shad) and catadromous species 

(American eel). Some of these species may also be federally listed as threatened or endangered, including distinct populations of salmon on the 

Pacific coast, and Atlantic salmon and Atlantic sturgeon on the Atlantic coast. 
©Joe Riis USACE Kansas City Missouri River Restoration 

Atlantic salmon 

Wildlife and Botanical Resources
 (including Wetlands, Riparian, and Littoral Habitat13) 

The operation of hydropower projects, including reservoir 

water level fluctuations and changes in downstream 

flows can affect the distribution, species composition, 

and health of wetland and riparian habitat. In addition, 

project construction and maintenance activities, such as 

vegetation clearing, can have a direct effect on wildlife and 

botanical (vegetation, including forests and wetland/riparian 

communities) resources. The effects on botanical resources 

and associated wildlife species must be evaluated. For 

proposed projects, the extent of vegetative clearing and loss 

of wildlife habitat through inundation must be estimated. 

For existing projects, changes in the vegetative and wildlife 

communities resulting from changes in flow releases/ 

streamflow or changes in reservoir operations and water 

levels must be assessed. Project proponents must describe 

how the vegetative and wildlife communities will change 

and propose measures to protect these communities, such 

as limits to reservoir fluctuations or habitat enhancement to 

mitigate for lost habitat. 

Threatened or Endangered Species 

The presence of federally listed threatened or endangered 

species must be documented in the vicinity of all proposed 

or existing projects, and the effects of construction and 

operation must be assessed, including a determination of 

the effects on individuals and populations of those species 

and any critical habitat. If a project under Commission 

jurisdiction has the potential to affect listed species, 

Commission staff and staff of the U.S. Fish and Wildlife 

Service (FWS) or the National Marine Fisheries Service 

(NMFS) must consult to determine appropriate mitigation 

to protect listed species. For those projects, the applicant 

may serve as the Commission’s non-federal representative 

for consultations with these agencies, and if a listed species 

may be affected, Commission staff must prepare a biological 

assessment (BA) addressing potential effects on listed 

species. This may be followed by formal consultation with 

FWS or NMFS under section 7 of the Endangered Species 

Act (see chapter 2). 

13 Riparian habitat is terrestrial habitat found along the banks of a river or stream. Littoral habitat is wetted habitat that is close to the shoreline of a water body. 

Hydropower Primer 13
 
14 Hydropower Primer 

Recreation 

Hydroelectric projects can provide significant recreational 

opportunities, such as boating and fishing on project 

reservoirs, campgrounds, visitor centers, and access 

points for recreational use of a reservoir or river reach. 

Creation of new projects can affect existing recreational 

opportunities at a project site by limiting access to or 

inundating existing facilities, altering flow conditions and 

water levels, or creating new opportunities and facilities. 

For existing projects, changes in project operation can affect 

recreation by affecting access to the project’s shoreline 

and boating flows downstream. An assessment of those 

effects must be conducted along with an evaluation of 

whether any proposed recreational facilities will adequately 

serve recreation needs. For existing projects, the adequacy 

of existing recreational facilities is also assessed, as are 

changes to existing recreational opportunities resulting from 

proposed project modifications. Projects with numerous 

recreation opportunities and facilities are typically required 

to provide recreation plans that guide the operation and 

maintenance of project facilities and opportunities. 

Aesthetics 

The aesthetics of a hydroelectric facility are considered in 

the context of the surrounding landscape. This is typically 

a more important issue for proposed projects, especially 

if the existing landscape will be significantly affected by 

the construction of project facilities. For existing projects 

that have been part of the landscape for many years, the 

aesthetic evaluation often focuses on how to make existing 

project structures blend better with the local landscape, 

or whether flow releases could be provided to enhance 

aesthetics (such as flows over a falls). As with other 

resources, project proponents must consider measures 

that will be implemented to protect aesthetics during the 

construction of proposed projects, or protect or enhance 

aesthetics during the operation of existing projects. 
Hydropower Primer 15 

Cultural Resources 

Cultural resources include pre-historic (archaeological) 

and historic-era sites and structures in the project area, 

regardless of their eligibility for listing in the National 

Register of Historic Places (National Register). As defined 

in section 106 of the National Historic Preservation Act 

(see chapter 2), historic properties are those resources 

that are either listed in the National Register or have been 

determined by the State Historic Preservation Officer (SHPO) 

and/or Tribal Historic Preservation Officer (THPO) to be 

eligible for listing. Historic properties would include eligible 

sites to which Indian tribes attach religious and cultural 

significance, whether on or off any federally recognized 

Indian reservation. All historic properties within a project’s 

Area of Potential Effect (APE)14 must be identified, the 

impacts of the proposed project described, and measures 

to resolve effects that are found to be adverse developed 

in consultation with the SHPO or THPO. Applicants must 

provide the Commission sufficient information to allow 

Commission staff to evaluate potential effects on properties 

listed or eligible for listing in the National Register prior to 

an undertaking,15 pursuant to section 106. Section 106 also 

requires that the Commission seek concurrence with the 

SHPO on any finding involving effects on historic properties, 

and allow the Advisory Council on Historic Preservation 

an opportunity to comment on any finding of effects on 

historic properties. If Native American properties have been 

identified, section 106 requires that the Commission consult 

with interested Native American tribes that might attach 

religious or cultural significance to such properties. 

Tribal Resources 

In addition to the issues described above, proposed project 

construction and operation may affect tribal interests not 

necessarily associated with the above resources, e.g., tribal 

fishing practices or agreements between the tribe and 

entities other than the potential applicant. These tribal 

interests must be addressed for both proposed and existing 

projects and may be closely tied to the analysis conducted 

under cultural resources. 

Land Use 

Typical issues related to land use involve shoreline 

management and the extent of shoreline development 

(homes, cabins, marinas, and boat docks), shoreline public 

access, and protection of important shoreline resources. 

Applications for both proposed and existing projects must 

depict land uses and resources adjacent to the project 

using maps, aerial photographs, or drawings that clearly 

delineate the project boundary and boundaries of public 

lands; describe any associated shoreline and reservoir 

management plans; and identify land management plans, 

including a discussion of the project’s consistency or lack 

of consistency with each plan, and the plan’s relationship 

to adjacent uses of land and resources. The Commission 

also encourages project proponents to develop shoreline 

management plans in cooperation with resource agencies, 

adjoining property owners, local governments, and other 

interested entities. A shoreline management plan helps 

the applicant and the Commission reach a reasonable 

balance between developmental and recreational interests 

and wildlife and fisheries resource values around the 

project reservoir. 

Socioeconomics 

Socioeconomics can be an important issue, particularly for 

large proposed projects. The existence of a hydropower 

project can affect the local economy through employment 

opportunities, tax revenues, and tourism. Typical 

information requested for new, unconstructed projects 

includes a description of general land use, employment, 

population, and personal income trends in the impact 

area; an evaluation of workforce impacts; a discussion of 

residences and businesses displaced, property acquisition 

procedures, and relocation assistance; and an analysis 

of impacts on local governmental budgets and taxes. For 

projects without major construction, or existing projects, the 

socioeconomic information can be limited to a discussion 

of the project’s ongoing effects on the local economy and 

local government budgets and taxes, along with estimates of 

any changes in employment or income associated with any 

anticipated modifications or improvements to recreational 

facilities that result in increased recreational use and 

employment in the project area. 

14 According to the Advisory Council on Historic Preservation’s regulations, the APE is defined as “the geographic area or areas within which an 

undertaking may directly or indirectly cause alterations in the character or use of historic properties, if any such properties exist” (36 CFR, Part 800.16[3]). 

15 An undertaking means a project, activity, or program funded in whole or in part under the direct or indirect jurisdiction of a federal agency, including: 

(1) those carried out by or on behalf of the federal agency; (2) those carried out with federal financial assistance; (3) those requiring a federal permit, 

license, or approval; and (4) those subject to state or local regulation administered pursuant to a delegation or approval by a federal agency 

(http://www.achp.gov/nhpa.pdf). 
Comprehensive Plans 

Applicants must identify all relevant federal or state 

comprehensive plans pursuant to section 10(a)(2)(A) of 

the FPA.16 Those plans are then reviewed by Commission 

staff to consider the extent to which a project is consistent 

with those plans for improving, developing, or conserving 

a waterway or waterways affected by the project. If a 

project is found to be inconsistent with portions of a 

comprehensive plan, Commission staff assesses whether 

it would be reasonable to include conditions in the project 

license that would make the project consistent. Projects not 

fully consistent with a comprehensive plan may still proceed 

if the Commission concludes that the project would be in 

the public interest despite these inconsistencies. 

1.4 Developmental Issues 

Economics 

All projects, whether proposed or existing, must include an 

economic analysis of the estimated costs of any proposed 

facilities and for implementing each proposed resource 

protection, mitigation, or enhancement measure, including 

any specific measures filed with the Commission by 

stakeholders (e.g., state and federal agencies, Indian tribes, 

NGOs, or members of the public). The economic analysis 

is not a cost/benefit analysis, but instead considers the 

estimated costs of constructing, operating, and maintaining 

a proposed project. For licenses, the estimated costs should 

include operating and maintaining the project under its 

existing license, including any changes that may be required 

by relicensing. Commission staff estimates the cost of any 

proposed facilities and resource protection, mitigation, 

or enhancement measures using data supplied by the 

applicant or other entities, or staff’s independent analysis 

of likely costs. The economic analysis also considers the 

benefit of developmental resources associated with the 

project. As applicable, these developmental resources 

may include power generation, water supply, irrigation, 

navigation, and flood control. Under the Commission’s 

approach to evaluating the economics of hydropower 

projects, as articulated in Mead Corp.,17 the Commission 

compares the current project cost to an estimate of the 

cost of obtaining the same amount of energy and capacity 

using the likely alternative source of least-cost power for the 

region (cost of alternative power). The economic analysis is 

based on current electric power cost conditions and does 

not consider future escalation of fuel prices in valuing the 

hydropower project’s power benefits. Likely alternative 

source of power may include fossil fuels, solar, or wind. 

Flood Control, Water Supply, and Irrigation 

Dams can play a role in preventing the loss of life

or property due to flooding. 

Dams and reservoirs can be effectively used to regulate river 

levels and flooding downstream of the dam by temporarily 

storing the flood volume and releasing it later. Each dam 

can be operated by a specific water control plan for routing 

floods through the basin without damage. This means 

lowering the reservoir level to create more storage before 

the rainy season.18 In a flood situation, federal and nonfederal dam operators work together to manage water 

levels along rivers and other waterways, coordination 

that saves property and lives.19 In addition, dams add to 

domestic water supplies, control water quality and can 

provide water for irrigation for agriculture.20 Commission 

analyses will consider these issues, as appropriate. 

Navigation 

Natural river conditions, 

such as changes in the 

flow rate and river level, 

ice and changing river 

channels due to erosion 

and sedimentation, 

create major problems 

and obstacles for inland 

navigation. Enhanced 

inland navigation is a 

result of comprehensive 

basin planning and 

Lock and Dam

development. Where appropriate. Commission-regulated 

dams, locks, and reservoirs may be operated to enhance 

navigation, thus providing a role in realizing regional and 

national economic benefits.21 

16 The Commission considers comprehensive plans to be those federal or state plans for improving, developing, or conserving a waterway or waterways 

affected by the project. Commission Order No. 481-A establishes that the Commission will accord FPA section 10(a)(2)(A) comprehensive plan status 

to any federal or state plan that: (1) is a comprehensive study of one or more of the beneficial uses of a waterway or waterways; (2) specifies the 

standards, the data, and the methodology used; and (3) is filed with the Secretary of the Commission. 

17 See Mead Corporation, Publishing Paper Division, 72 FERC ¶ 61,027 (July 13, 1995). In most cases, electricity from hydropower would displace some 

form of fossil-fueled generation, in which the fuel cost is the largest component of the cost of electricity production. 

18 http://www.icold-cigb.net/GB/dams/role_of_dams.asp. 

19 http://www.hydro.org/why-hydro/other-benefits/. 

20 https://www.usbr.gov/power/edu/pamphlet.pdf. 

21 http://www.icold-cigb.net/GB/dams/role_of_dams.asp. 

16 Hydropower Primer 
Hydropower Primer 17 

2. pertinent LawS and regULationS reLated to non-FederaL
 

Hydropower projectS
 

The Commission is an independent agency that regulates 

non-federal hydroelectric projects by authorizing their 

construction and operation. The Commission was created 

through the Department of Energy Organization Act 

on October 1, 1977. At that time, the FPC, which was 

established in 1920, was abolished and the Commission 

inherited most of the FPC’s regulatory mission. 

FERC also regulates the interstate transmission of natural 

gas, oil, and electricity and reviews proposals to build 

interstate natural gas pipelines, natural gas storage projects, 

and liquefied natural gas (LNG) terminals. Congress assigned 

these responsibilities to FERC (or its predecessor, FPC) in 

various laws enacted over nearly 100 years, including the 

Federal Water Power Act of 1920, which became Part I of 

the FPA of 1935; the Natural Gas Act of 1938; the Public 

Utility Regulatory Policies Act of 1978; and the Interstate 

Commerce Act of 1887, as amended. 

The FPA is the primary statute governing the regulation of 

non-federal hydropower projects, but it is not the only statute. 

Other federal laws come into play and are described herein. To 

promote efficiency when authorizing non-federal hydropower 

projects, the Commission’s goal is to conduct consultations 

and processes required by the FPA simultaneously with 

consultations required by other federal laws. 

2.1 Federal Power Act 

The FPA, codified in 16 U.S.C. §§ 791 to 823d, was enacted 

in 1935 and grants the Commission jurisdiction over nonfederal hydropower projects throughout the United States,22 

as well as the power to regulate the transmission and 

wholesale sale of electricity in interstate commerce. The FPA 

comprises three Parts: Part I addresses hydropower licensing, 

administration, and safety, and Parts II and III address electric 

transmission and wholesale sales rates and services. 

The FPA established the FPC, which was renamed FERC 

when the U.S. Department of Energy was established by the 

Department of Energy Organization Act of 1977. FERC was 

established as an independent regulatory agency within the 

U.S. Department of Energy. In 1986, the Electric Consumers 

Protection Act amended the FPA to require the Commission 

to assess hydropower projects’ impacts on all environmental 

and social issues and consider both power and non-power 

resources values during the licensing process. 

Under Part I of the FPA, Commission authorization of a nonfederal hydroelectric project is required, unless a project 

has a valid pre-1920 federal permit, if the project: 

•	 is located on navigable waters of the United States; 

•	 is located on federal lands or reservations; 

•	 uses surplus waters from a federal dam; or 

•	 is located on a non-navigable stream over which 

Congress has Commerce Clause jurisdiction, is 

constructed or enlarged after 1935, and affects interstate 

commerce, usually by connecting to the interstate grid. 

Section 4(e) 

This section of the FPA specifies the Commission’s 

jurisdiction and allows the Commission to issue licenses 

to citizens of the United States, any association of such 

citizens, any corporation organized under the laws of 

the United States, or to any state or municipality for the 

purpose of constructing, operating, and maintaining dams, 

water conduits, reservoirs, powerhouses, transmission 

lines, or other project works necessary or convenient for 

the development and improvement of navigation and for 

the development, transmission, and utilization of power 

across, along, from, or in any of the streams or other bodies 

of water over which the Commission’s jurisdiction has 

been granted. It states that the Commission, in deciding 

whether to authorize a hydropower project, must consider 

the power and developmental purposes of the project and 

will give equal consideration to the purposes of energy 

conservation; the protection, mitigation, and enhancement 

of fish and wildlife (including related spawning grounds and 

habitat); the protection of recreational opportunities; and 

the preservation of other aspects of environmental quality. 

This section also allows the Commission to issue licenses 

for projects located on public lands and reservations of the 

United States, only after a finding that the license will not 

interfere or be inconsistent with the purposes for which 

the reservation was established. Any license issued within a 

federal reservation is also subject to mandatory terms and 

conditions issued by the federal land management agency. 

22 Federally owned hydroelectric projects do not fall under FERC jurisdiction and instead are authorized by Congress. 
18 Hydropower Primer 

The licensee, however, may appeal these conditions to 

Secretaries of the department under whose supervision 

such reservation falls.23 

Section 10(a)(1) 

Section 10(a)(1), often referred to as the comprehensive 

development requirement of the FPA, states that any project 

licensed must be, in the judgment of the Commission, 

best adapted to a comprehensive plan for improving or 

developing a waterway or waterways for the benefit of 

multiple public uses. In conjunction with section 4(e), it sets 

forth the matters the Commission must consider in reviewing 

a license application. Equal consideration must be given to 

power development, energy conservation, fish and wildlife, 

recreation, other aspects of environmental quality, and other 

beneficial uses (irrigation, flood control, water supply). 

Section 10(a)(2)(A) 

Section 10(a)(2)(A) requires the Commission to consider 

the extent to which a project is consistent with federal 

or state comprehensive plans for improving, developing, 

or conserving a waterway or waterways affected by the 

project. Qualifying comprehensive plans that are filed 

with the Commission and are applicable to the waterway 

where a proposed project is located must be reviewed by 

Commission staff to determine whether the project would 

be consistent with the plans. 

Section 10(c) 

Section 10(c) forms the basis of the Commission’s mission 

related to dam safety and inspections and states: 

the licensee shall maintain the project works in a condition 

of repair adequate for the purposes of navigation and for 

the efficient operation of said works in the development 

and transmission of power, shall make all necessary 

renewals and replacements, shall establish and maintain 

adequate depreciation reserves for such purposes, shall 

so maintain, and operate said works as not to impair 

navigation, and shall conform to such rules and regulations 

as the Commission may from time to time prescribe for 

the protection of life, health, and property. Each licensee 

hereunder shall be liable for all damages occasioned to the 

property of others by the construction, maintenance, or 

operation of the project works or of the works appurtenant 

or accessory thereto, constructed under the license and in no 

event shall the United States be liable therefore. 

Section 10(j) 

This section requires that any license issued must include 

conditions to protect, mitigate damages to, and enhance, 

fish and wildlife related habitat. Conditions are to be 

based on recommendations from federal and state fish 

and wildlife agencies. The Commission may reject a 

recommended condition if it decides that a condition is 

inconsistent with Part I of the FPA or other law, but it must 

first attempt to resolve the matter with the recommending 

agency, giving due weight to expertise and statutory 

responsibilities of that agency. Agency recommendations 

under section 10(j) are made in comments filed in response 

to the Commission’s notice that a project is ready for 

environmental analysis (see section 4.3). Commission staff 

reviews those recommendations and if it concludes that 

any recommendations are inconsistent with Part I of the 

FPA or other applicable law, meets with the recommending 

agency to try to resolve the inconsistency. If resolution 

does not occur, the license order must make a finding that: 

(1) the recommended condition is inconsistent with Part 

I of the FPA or other applicable law; and (2) the other fish 

and wildlife conditions selected by the Commission will 

adequately and equitably protect, mitigate damage to, and 

enhance fish and wildlife affected by the project. 

Section 18 

Section 18 states that the Commission must require the 

construction, operation, and maintenance by a licensee of 

such fishways as may be prescribed by the Secretaries of 

Interior or Commerce. These prescriptions are mandatory 

and must be included in the license. As mentioned above, as 

with the 4(e) conditions, the licensee, however, may appeal 

these prescriptions with the Secretaries. Section 18 also 

provides that the Commission must require any lights and 

signals as directed by the Coast Guard for navigation facilities. 

Turners Falls Fishway, MA 

23 The U.S. Department of the Interior (Interior) and the U.S. Department of Agriculture, Forest Service, share mandatory conditioning authority under 

section 4(e) of the FPA for hydropower licenses within reservations of the United States; Interior and the U.S. Department of Commerce (Commerce) 

share mandatory conditioning authority under section 18 for fishways (see description below on section 18). 
Hydropower Primer 19 

2.2 Rivers and Harbors Act 

Section 14 of the Rivers and Harbors Act of 1899, codified 

in 33 U.S.C. 408, authorizes the Secretary of the Army to 

grant the alteration, occupation or use of Corps properties, 

if the Secretary determines the activity “will not be injurious 

to the public interest and will not impair the usefulness 

of the project.” This applies to non-federal hydroelectric 

projects constructed at Corps projects. The Corps’ section 

408 procedures are grouped into nine steps, including: 

pre-coordination, written request, required documentation, 

district-led agency technical review, summary of findings, 

division review, Corps headquarters review, notification, and 

post-permission oversight. The Corps applies this process 

to conventional hydroelectric projects being developed 

in combination with unpowered Corps dams, and nonconventional projects, such as marine and hydrokinetic 

facilities, that would use civil works structures like jetties, 

levees, and navigation channels. 

Further, on July 21, 2016, the Commission and the Corps 

signed a Memorandum of Understanding (MOU) to facilitate 

the development of hydropower at the Corps’ federal 

facilities by synchronizing each agency’s permitting process, 

including the Corps’ requirements for authorizing any 

discharge of dredged or fill material into all waters of the 

United States, including wetlands, pursuant to section 404 

of the Clean Water Act (CWA) (33 U.S.C. § 1344). The MOU 

offers project developers an approach designed to improve 

efficiency with the Commission and Corps processes, reduce 

permitting times, provide a single environmental document 

and ensure more certainty and less risk. The synchronized 

approach includes two phases – an environmental 

review phase (Phase 1), followed by a detailed technical, 

engineering, and safety review phase (Phase 2). Phase 1 

concludes with the Commission’s licensing decision, and 

if the Corps deems the section 404 permit application 

complete and satisfactory, with status letters from the 

Corps on its sections 404 permit application review and 

408 environmental review. During Phase 2, the licensee 

prepares its detailed project designs in coordination with 

Commission and Corps staff, and submits the designs to 

the Commission and the Corps. The licensee also submits 

a section 408 application to the Corps for its review. If, 

the Corps approves the application, it issues a section 

408 approval decision and then issues the final section 

404 permit. Once all preconstruction requirements have 

been completed and the Commission receives the Corps’ 

written construction approval, the Commission authorizes 

construction of the project. 

2.3 U.S. Bureau of Reclamation Statutes 

If Congress reserves to Reclamation the development of the 

entire hydropower potential of a site, Reclamation has sole 

authority to approve hydropower projects there, whether 

they are government projects or non-federal projects as 

to which Reclamation grants a non-federal entity a lease 

of power privilege. If, however, Congress has not reserved 

the entire power potential of a site, a developer may need 

to obtain a license from the Commission. On November 6, 

1992, the Commission and Reclamation signed an MOU that 

establishes a process for early resolution of issues related to 

the development of non-federal hydropower at Reclamation 

facilities. This process provides for coordinated review of 

the appropriate jurisdiction of a hydropower proposal at 

Reclamation facilities to determine whether it would be 

under the Commission’s or Reclamation’s jurisdiction, and a 

coordinated review of any license application, if a project is 

found to fall under the Commission’s jurisdiction. If a project 

is found not to fall under the Commission’s jurisdiction, it 

will require a Reclamation Lease of Power Privilege. Under 

the “Bureau of Reclamation Small Conduit Hydropower 

Development and Rural Jobs Act” (2013), Reclamation may 

authorize small conduit hydropower facilities at Reclamation 

projects, independent of the Commission’s regulatory 

requirements, but any such Reclamation authorization may 

not alter or affect any existing preliminary permit, license, or 

exemption issued by the Commission under Part I of the FPA. 

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2.4 National Environmental Policy Act 

The National Environmental Policy Act (NEPA) was passed 

by Congress in 1969 with the stated purpose: “To declare 

a national policy which will encourage productive and 

enjoyable harmony between man and his environment; to 

promote efforts which will prevent or eliminate damage to 

the environment and biosphere and stimulate the health 

and welfare of man; to enrich the understanding of the 

ecological systems and natural resources important to 

the Nation; and to establish a Council on Environmental 

Quality.” NEPA directs all federal agencies to develop 

methods and procedures so that environmental amenities 

and values are given appropriate consideration in decision 

making, along with economic and technical considerations, 

and requires that every recommendation or proposal 

for a major federal action significantly affecting the 

quality of the human environment must be accompanied 

by a detailed statement on the environmental impacts 

of the proposed action. This detailed statement is the 

environmental impact statement (EIS). For proposals that 

would not be a major federal action significantly affecting 

the quality of the human environment, an environmental 

assessment (EA) is prepared. 

Thus, hydropower licensing or exemption actions taken 

by the Commission require preparation of a NEPA 

document (EA or EIS) that analyzes the environmental 

effects of a proposed action and reasonable 

alternatives to the 

proposed action, 

recommends 

whether or not 

a project should 

be licensed or 

exempted, and 

recommends 

appropriate terms 

and conditions 

if a license or 

exemption is 

recommended

 (18 CFR §380).24 

The NEPA 

document serves 

as part of the 

record for the 

Commission’s 

consideration. 

A 

National 

NEPEnvironmental 

Policy Act 

• Scoping

• Preparation of

environmental

documents (EA/EIS)

• Public comments

on EA/EIS

• Responding to Comments

in final EA/EIS

• Final agency action

24 Under the Commission’s regulations, conduit exemptions (see chapter 4) are considered categorical exclusions, and these do not require preparation 

of a NEPA document (18 CFR § 380.4). 

20 Hydropower Primer 
Hydropower Primer 21 

Scoping 

Scoping is the process whereby Commission staff identify 

the issues that will be analyzed in the NEPA document 

and determine whether an EA or EIS will be prepared, 

based on the overall scope of the project and its issues. 

Scoping begins with Commission staff issuing an initial 

Scoping Document that describes the proposed project and

outlines the expected environmental issues for the project. 

This document is issued for public comment and may be 

followed by public scoping meetings in the vicinity of the 

project. Following receipt of agency and public comments 

on the scoping document, staff may issue a revised Scoping 

Document, if public comments identify additional issues 

not initially contemplated by staff and included in an initial 

Scoping Document, or if commenters disagree with staff’s 

recommendation for the type of NEPA document. The 

revised Scoping Document outlines all the environmental 

issues to be addressed in the NEPA document and addresses

the comments received on the initial Scoping Document. 

Draft National Environmental Policy Act Document 

Selection of either an EA or EIS usually occurs during 

the scoping process. Whether an EA or EIS is prepared

depends on the size of the proposed project, whether 

it is an existing or unconstructed project, the expected 

environmental impacts of the project, and the extent 

of public concern or controversy associated with the

proposed project. Both documents include a conclusion on

whether or not the project will have a significant effect on

the quality of the human environment. NEPA requires that 

an EIS be prepared if it appears that the project will have a

significant effect on the quality of the human environment,

or when an EA makes that finding. The EIS will often 

include a more in-depth analysis of the proposed project 

and its environmental effects, and provides stakeholders 

an additional avenue for commenting via public meetings 

held after issuance of a draft EIS. Environmental and

developmental issues typically analyzed for the proposed 

action and reasonable alternatives to the proposed action

include those described above and are specific to each 

project analyzed.25 The environmental document, whether 

a single EA, a draft EA, or a draft EIS, will usually be issued

for a public comment period of 30 to 60 days.26 Interested 

stakeholders are invited to file comments on the draft 

NEPA document or other aspects of the proposed project 

with the Commission. 

Final National Environmental Policy Act Document 

Comments received from stakeholders are reviewed and, if 

appropriate, revisions will be made to the NEPA document, 

resulting in the preparation of the final EA or EIS. The 

analysis and recommendations may be changed in the final 

document if new or not previously considered information 

is brought to light by the comments filed. The final EA or EIS 

addresses all comments filed and generally recommends a 

preferred alternative, which may include whether or not a 

license should be issued by the Commission and what conditions 

developed by staff or recommended by other stakeholders 

should be required for any license that may be issued. 

2.5 Clean Water Act 

The CWA establishes the basic structure for regulating 

discharges of pollutants into the waters of the United States 

and regulating water quality standards for surface waters. 

Under the CWA, EPA has implemented pollution control 

programs, such as setting wastewater standards for industry 

and setting water quality standards for all contaminants 

in surface waters. Pursuant to section 401 of the CWA, an 

applicant for a Commission license must obtain certification 

(or a waiver of certification) from the appropriate state 

pollution control agency verifying compliance with the CWA 

before the Commission can issue a license for a project. 

The conditions of a water quality certification become 

mandatory conditions of any license issued. 

2.6 Endangered Species Act 

Section 7 of the Endangered Species Act (ESA) requires 

federal agencies to ensure that their actions are not likely 

to jeopardize the continued existence of endangered or 

threatened species or result in the destruction or adverse 

modification of the critical habitat of those species. If any 

proposed licensing action may affect listed species, the 

Commission must prepare a BA. Sometimes this BA is a standalone document; however, it is more typically incorporated 

as part of the analysis in the Commission’s environmental 

document. Commission staff may consult with FWS or NMFS 

when gathering information about listed species, prior to 

preparing a BA or the environmental document. Commission 

staff’s BA or environmental document will conclude whether 

or not the proposed action will affect listed species or their 

critical habitat. These conclusions may include: “no effect,” 

“not likely to adversely affect,” or “likely to adversely affect.” If 

a “likely to adversely affect” conclusion is reached for a listed 

species in the BA or environmental document, Commission 

25 For example, fisheries issues are usually unique to each project, depending on the species that occur, project effects on that species, and agency 

management objectives for the river or water body. 

26 For some small projects with minimal environmental effects, only a single EA may be issued. Any comments received can be addressed in the 

Commission’s decision on the application. 
22 Hydropower Primer 

staff must enter into formal consultation with the federal 

agency responsible for management of that species (either 

FWS or NMFS) and obtain that agency’s Biological Opinion 

on measures to avoid jeopardy or adverse modification, and 

measures that are required to avoid or minimize the “take” 

of that species. 

2.7 Fish and Wildlife Coordination Act 

The Fish and Wildlife Coordination Act (FWCA) requires 

federal agencies granting a license or permit for the control, 

impoundment, or modification of streams and water bodies 

to first consult with FWS, NMFS, and the appropriate state 

fish and wildlife agencies regarding conservation of fish and 

wildlife resources. A federal agency licensing a water-resource 

development project is required under the FWCA to give full 

consideration to the recommendations of FWS, NMFS, and the 

state fish and wildlife agency on the fish and wildlife effects 

of such projects. The Commission is also to include in any 

license issued, conditions for the protection, mitigation, and 

enhancement of fish and wildlife. Those conditions should 

be based on recommendations received pursuant to the 

FWCA from the above-named agencies during the agency 

consultation process for each licensing proceeding. 

2.8 National Historic Preservation Act 

The National Historic Preservation Act (NHPA) was 

enacted and amended to require the federal government 

to accelerate its historic preservation programs and to 

encourage such efforts on state, local, and private levels. 

Compliance with the NHPA may be coupled with the 

Commission’s NEPA process where the federal action 

(licensing) affects cultural resources. In licensing, the 

Commission is bound by the provisions of the NHPA, which 

requires it to take into account the effect of the action on 

any historic properties, which include any district, site, 

building, structure, object, or Traditional Cultural Property 

that is included in or eligible for inclusion in the National 

Register of Historic Places, and to give the Advisory Council 

on Historic Preservation a reasonable opportunity to 

comment on a proposed action. Section 106 of the NHPA 

and its implementing regulations, found at 36 CFR Part 800, 

contain several important steps, and require licensees or 

license applicants to identify all historic properties within 

a proposed action’s APE and assess the action’s effects on 

these resources. If effects are determined to be adverse, 

resolution of effects usually involves the development of a 

Historic Properties Management Plan (HPMP) that specifies 

measures to avoid, reduce, or mitigate these effects.27 

State Historic Preservation Officers, appropriate agencies, 

Native American tribes with interests in a project area, and 

others as needed are consulted throughout each phase of 

the section 106 and HPMP development processes. The 

HPMP is typically implemented through the execution of 

a Programmatic Agreement between the Commission, 

State Historic Preservation Officer, and Advisory Council on 

Historic Preservation (if it chooses to participate), with others 

included as concurring parties. Execution and implementation 

of the Programmatic Agreement satisfies FERC’s section 106 

responsibilities toward cultural resources. 

2.9 Coastal Zone Management Act 

The Coastal Zone Management Act (CZMA) states that the 

Commission cannot issue a license for a project within 

or affecting a state’s coastal zone unless the state CZMA 

agency concurs with the license applicant’s certification of 

consistency with the state’s CZMA program, or the agency’s 

concurrence is conclusively presumed by its failure to act 

within 180 days of its receipt of the applicant’s certification. 

Commission staff determines a project’s consistency with 

the CZMA during the preparation of the environmental 

document for a proposed licensing, amendment, or 

exemption action. 

27 See Guidelines for the Development of Historic Properties Management Plans for FERC Hydroelectric Projects, Federal Energy Regulatory Commission 

and Advisory Council on Historic Preservation, Washington, DC (2002).
2.10 Magnuson-Stevens Fishery Conservation 

and Management Act 

The Magnuson-Stevens Fishery Conservation and 

Management Act requires federal agencies to consult with 

NMFS on all actions that may adversely affect essential fish 

habitat (EFH). If EFH for species managed by NMFS occurs in 

the project area, Commission staff must analyze the effects 

of the project on EFH, and if adverse effects are predicted, 

must consult with NMFS to determine appropriate 

measures to reduce those effects. Commission staff 

completes the EFH analysis and consultations during the 

preparation of the environmental document for a proposed 

licensing, amendment, or exemption action. 

2.11 Marine Mammal Protection Act 

The 1972 Marine Mammal Protection Action (MMPA) 

prohibits, with certain exceptions, the “take” (defined under 

statute to include harassment) of marine mammals in U.S. 

waters and the high seas. In 1986, Congress amended both 

the MMPA, under the incidental take program, and the ESA, 

to authorize incidental takings of depleted, endangered, 

or threatened marine mammals, provided the “taking” 

(defined under the statute as actions that are or may be 

lethal, injurious, or harassing) was small in number and 

had a negligible impact on marine mammals. With this 

relationship between the MMPA and the ESA, NMFS cannot 

complete section 7 consultation under the ESA and issue 

an Incidental Take Permit for listed marine mammals until 

an Incidental Harassment Authorization28 has been issued. 

This requires that Commission staff analyze effects of a 

project on marine mammals, if there is a likelihood of their 

occurrence in the project area. This analysis occurs during 

the preparation of the environmental document for a 

proposed licensing, amendment, or exemption action. 

2.12 Wild and Scenic Rivers Act 

The Wild and Scenic Rivers Act provides for the protection 

and preservation of certain rivers and their immediate 

environments by instituting a national wild and scenic rivers 

system. Rivers may be included in this system either by an 

act of Congress or by the Secretary of the Interior, upon 

application by a governor. Section 7(a) of the Wild and Scenic 

Rivers Act provides that the Commission may not license the 

construction of project works on or directly affecting any river 

that is designated as a component of the Wild and Scenic River 

system. Commission staff assesses the effects of a proposed 

action on the Wild and Scenic River System during the 

preparation of the environmental document for a proposed 

licensing, amendment, or exemption action. 

2.13 Pacific Northwest Power Planning and 

Conservation Act 

Under section 4(h) of the Pacific Northwest Power Planning 

and Conservation Act, the Pacific Northwest Planning Council 

(Northwest Council) developed the Columbia River Basin 

Fish and Wildlife Program (Program) to protect, mitigate, 

and enhance the fish and wildlife resources associated 

with development and operation of hydroelectric projects 

in the Columbia River Basin. Section 4(h) of the Act states 

that responsible federal and state agencies should provide 

equitable treatment for fish and wildlife resources, in addition 

to other purposes for which hydropower is developed, and 

that these agencies shall take into account, to the fullest 

extent practicable, the Program adopted under the Act. The 

Program directs agencies to consult with federal and state 

fish and wildlife agencies, appropriate Indian tribes, and the 

Northwest Council during the study, design, construction, 

and operation of any hydroelectric development in the 

basin. Section 12.1A of the Program outlines conditions that 

should be provided for in any original or new license. The 

Program also designates certain river reaches as protected 

from development, although this provision does not preclude 

the Commission from licensing a project in such designated 

reaches. The Northwest Council will recommend that the 

Commission not issue a license in a protected reach, and 

will instruct the Bonneville Power Administration not to 

acquire the power from such a project if one were to be 

licensed by the Commission, nor to allow access to the 

power grid in a way that would undermine the protected 

areas policy. However, if hydroelectric development 

proceeds, the Program directs that agencies responsible 

for that development (including the Commission) consult 

with federal and state fish and wildlife agencies, appropriate 

Indian tribes, and the Northwest Council during the study, 

design, construction, and operation of any hydroelectric 

development, to mitigate harm to fish and wildlife 

resources. Commission staff assesses the consistency of a 

proposed action with the Program during the preparation 

of the environmental document for a proposed licensing, 

amendment, or exemption action. 

Chinook salmon 

28 In 1994, MMPA section 101(a)(5) was amended to establish an expedited process by which citizens of the United States can apply for an 

authorization, referred to as an Incidental Harassment Authorization, to incidentally take small numbers of marine mammals by harassment. 

Hydropower Primer 23
 
24 Hydropower Primer 

3. FederaL energy regULatory commiSSion
 

3.1 Overview of Agency	 

As stated above, FERC is an independent agency that 

regulates the interstate transmission of electricity, natural 

gas, and oil. FERC also reviews proposals to build LNG 

terminals and interstate natural gas pipelines, as well as to 

license hydropower projects. 

The Commission is composed of up to five commissioners 

who are appointed by the President of the United States 

with the advice and consent of the Senate. Commissioners 

serve staggered 5-year terms and have an equal vote on 

decisions, in the form of orders through which FERC takes 

action. The President appoints one of the commissioners 

to be the chairman of FERC—the administrative head 

of the agency. FERC is a bipartisan body: no more than 

three commissioners may be of the same political party. 

Commission staff, which numbers almost 1,500 employees, 

comprises engineers, scientists, planners, regulatory 

specialists, attorneys, and support staff who carry out the 

Commission’s normal operations, providing the information 

and analysis required for the Commission to make decisions 

on matters that come before them. Commission staff is 

organized into the following 12 offices: 

•	 Office of Administrative Law Judges and 

Dispute Resolution 

•	 Office of Administrative Litigation 

•	 Office of Electric Reliability 

•	 Office of Energy Infrastructure Security 

•	 Office of Energy Market Regulation 

•	 Office of Energy Policy and Innovation 

•	 Office of Energy Projects 

•	 Office of Enforcement 

•	 Office of External Affairs 

•	 Office of the Executive Director 

•	 Office of the General Counsel 

•	 Office of the Secretary 

3.2 Office of Energy Projects
 

The Office of Energy Projects (OEP) is one of the offices 

within FERC that has oversight responsibility for both 

hydropower and natural gas projects. OEP fosters economic 

and environmental benefits for the nation through the 

approval and oversight of hydroelectric, natural gas pipeline, 

natural gas storage, and LNG projects that are in the public 

interest. Within OEP, five divisions carry out the core 

functions of the office: 

•	 Division of Hydropower Licensing 

(Hydropower Licensing) 

•	 Division of Hydropower Administration and Compliance 

(Hydropower Administration and Compliance) 

•	 Division of Dam Safety and Inspections 

(Dam Safety and Inspections) 

•	 Division of Pipeline Certificates 

•	 Division of Gas Environment and Engineering 

The three hydropower divisions (Licensing, Compliance, and 

Dam Safety) are responsible for coordinating and managing 

the processing of hydropower project license and exemption 

applications, as well as applications for preliminary permits 

(under which permittees study proposed projects). This 

includes determining the effects of constructing, operating, 

and maintaining hydropower projects on environmental 

resources, and the need for the project’s power. In doing so, 

OEP prepares environmental documents that describe the 

effects of the proposal and alternatives, evaluates mitigation 

and enhancement measures, balances developmental 

and non-developmental resources, and recommends an 

action to the Commission. Issues considered during the 

application review process often include power production; 

fish, wildlife, recreation, and other environmental issues; 

flood control; irrigation; and other water uses. The office 

is also responsible for ensuring compliance with the terms 

and conditions of licenses and exemptions, and compliance 

with Commission regulations and the FPA and for ensuring 

that the water-retaining features of hydropower projects 

are designed, constructed, operated, and maintained using 

current engineering standards and meeting the federal 

guidelines for dam safety. 
Hydropower Primer 25 

Office of Energy Projects (OEP)
	

Energy

Infrastructure 

Policy Group 

Division of 

Pipeline Certificates 

Certificates Branch 

1 Gas Branch 1 Aquatic Resources

Branch 

Washington

Office 

Mid-Atlantic 

Branch 

Gas Branch 3 Engineering

Resources Branch 

Atlanta Regional

Office 

New York

 Regional Office 

New England

Branch 

Certificates Branch 

2 Gas Branch 2 Land Resources 

Branch 

Risk Informed 

Decision-Making

Branch 

Midwest Branch 

Gas Branch 4 

Environmental & 

Project Review

Branch 

Chicago

Regional Office 

Portland

 Regional Office 

San Francisco 

Regional Office 

Northwest 

Branch 

Gas Branch 5 South Branch 

West Branch 

Division of Gas 

Environment and 

Engineering 

Division of 

Hydropower

Licensing 

Division of 

Hydropower

Administration & 

Compliance 

Division of 

Dam Safety &

Inspections 

Management and

Operations 

Office Director 

Deputy Director 

Sr. Policy Advisor, Hydropower 

3.3 Hydropower Program 

The Commission’s mission is to provide reliable, 

efficient, and sustainable energy for consumers. For 

the Commission’s Hydropower Program, fulfilling this 

mission involves OEP pursuing a primary goal to promote 

the development of safe, reliable, secure, and efficient 

infrastructure that serves the public interest. Key 

components of the Commission’s approach to achieving 

this goal include fostering economic and environmental 

benefits for the nation through approval of hydropower 

projects and minimizing risks to the public associated with 

Commission jurisdictional energy infrastructure. 

For hydropower projects, the fundamental responsibilities 

of OEP are to review applications; prepare environmental 

documents; make recommendations to the Commission for 

action on the applications; and oversee the administration 

of licensed projects, including dam and public safety, during 

the license term.29 Orders approving hydropower projects 

are issued by the Commission, or by the Director of 

OEP under delegated authority from the Commission. 

These orders may include the following types of issuances: 

action on uncontested applications for licenses, exemptions, 

or preliminary permits; action on uncontested applications 

for amendments or surrenders of licenses, exemptions, 

or preliminary permits; and action on license transfers, 

jurisdictional determinations, motions for extensions of time, 

and new or revised exhibits, studies, plans, and similar filings. 

Currently, OEP administers more than 1,000 active licenses 

and more than 600 projects that are exempted from 

licensing.30 Together, these include over 2,500 dams. The 

following chapters highlight how the divisions within OEP 

administer the Hydropower Program and in turn support 

the Commission’s Strategic Plan.

 The Commission’s Hydropower Program relies on the 

support of licensing, dam safety, and administration & 

compliance activities, as well as the integration of stakeholder 

input throughout the lifespan of a hydropower project. 

29 A license authorizes the construction and operation of a hydroelectric project and is issued for a period of 30 to 50 years. 

30 Projects receiving an exemption are exempt from the requirements of Part I of the FPA, and have no expiration date. 
The Commission’s Hydropower Program relies on the support of licensing, dam safety, and administration & compliance activities, 

as well as the integration of stakeholder input throughout the lifespan of a hydropower project. 

Licensees 

Resource Agencies 

Tribes 

NGOs 

Local Stakeholders 

Licensing 

License Administration & Compliance 

Dam Safety 

Division of Hydropower Licensing 

Hydropower Licensing staff review applications filed 

with the Commission for hydropower authorizations (see 

chapter 4). Hydropower Licensing advises applicants 

in selecting the appropriate licensing process to be 

used for applications; determines whether applications 

are adequate for processing once filed; and then 

processes those applications, including preparation of 

the environmental document (EA or EIS). Hydropower 

Licensing also makes recommendations to the Commission

regarding action on applications for hydropower 

authorizations (approval, approval with modifications, 

or denial), and recommends final measures (e.g., 

specific administrative, engineering, and environmental 

requirements) for each authorization. 

Hydropower Licensing is organized into six branches that 

are defined by geographic area. The six branches and the 

geographic coverage of each branch are as follows: 

New England—Maine, New Hampshire, Vermont, 

Massachusetts, Connecticut, and Rhode Island 

Mid-Atlantic —New York, New Jersey, Pennsylvania, Virginia, 

West Virginia, Maryland, and Delaware 

South—North Carolina, South Carolina, Georgia, Florida, 

Kentucky, Tennessee, Alabama, Mississippi, Arkansas, 

Louisiana, Oklahoma, and Texas 

Division of Hydropower Licensing Branches 

HAWAII ALASKA 

Northwest 

Midwest 

West 

South 

New

England

MidAtlantic

Midwest—Ohio, Michigan, Indiana, Illinois, Wisconsin, 

Minnesota, Iowa, Missouri, North Dakota, South Dakota, 

Nebraska, and Kansas 

Northwest—Alaska, Hawaii, Washington, Oregon, Idaho, 

Montana, and Wyoming 

West—California, Nevada, Utah, Colorado, Arizona, 

and New Mexico 

26 Hydropower Primer 
Division of Hydropower Administration and Compliance 

Hydropower Administration and Compliance staff ensures 

compliance with Commission rules and regulations and 

with the conditions included in hydropower authorizations 

(see chapter 5). In addition, once an authorization has 

been issued, Hydropower Administration and Compliance 

staff resolves complaints from stakeholders alleging 

noncompliance with license conditions and authorizes 

amendments to licenses and exemptions. 

Hydropower Administration and Compliance consists 

of four branches that are organized by resource-related 

activities. The four branches and their major program 

responsibilities are as follows. 

Land Resources 

This branch administers filings31 and compliance issues 

primarily related to project lands and waters. Typical areas 

of responsibilities include: non-project use of project lands 

and waters, recreation including FERC Form 80 filings, 

shoreline management, encroachments, property rights, 

historic and cultural resources, wildlife resources, and 

aesthetic resources. 

Engineering Resources 

Typical areas of responsibility for this branch include: 

capacity-related license amendments, engineering exhibits 

(A, F, and G) for licenses, conduit exemptions, qualifying 

conduits, erosion and flooding issues, project operations, 

annual charges, mining claims, and federal lands. 

Environmental and Project Review 

This branch’s main areas of responsibility include: 

jurisdictional determinations, navigation studies, 

preparation of EAs and EISs for compliance actions, Part 1232 

support to Dam Safety and Inspections (see below), issues 

related to invasive species and noxious weeds, production 

tax credits, license surrenders, and non-operating projects. 

Aquatic Resources 

This branch mainly handles issues associated with 

water quality and fisheries, including actions related to: 

aquatic habitat, dredging/sedimentation, upstream and 

downstream fish passage, water withdrawals, wetlands, 

dissolved oxygen, and water temperature. 

Division of Dam Safety and Inspections 

Dam Safety and Inspections staff implements the 

Commission’s dam safety, public safety, and hydropower 

security programs by developing and implementing policies, 

programs, and standards for dam safety, public safety, and 

hydropower security at and around jurisdictional projects 

(see chapter 6). Commission staff is responsible for ensuring 

that jurisdictional projects are inspected and evaluated 

using good engineering practices during the design, 

construction, and operation and maintenance phases to 

protect life, health, property, and the environment. Dam 

Safety and Inspections is headquartered in Washington, 

DC, and includes regional offices in New York, New York; 

Atlanta, Georgia; Chicago, Illinois; Portland, Oregon; and San 

Francisco, California. 

Dam Safety and Inspections Regional Offices 

ALASKA

Portland 

Chicago 

San Francisco 

Atlanta 

New 

York 

As of December 2016, Dam Safety and Inspections 

regulates 2,518 dams within the United States. 

Of these, the Atlanta Regional Office (ARO) oversees 

311; the Chicago Regional Office (CRO) 418; 

the New York Regional Office (NYRO) 827; 

the Portland Regional Office (PRO) 394; and 

the San Francisco Regional Office (SFRO) 568. 

31 The Form 80 is used to gather information pursuant to the Commission’s regulations at 18 CFR §8.11, to identify recreational facilities located at licensed 

projects, whether public recreational needs are being accommodated by the facilities, and whether additional efforts could be made to meet future needs. 

32 Part 12 of the Commission’s regulations (18 CFR Part 12) concerns the safety of water power projects and project works under FERC jurisdiction, 

based on Order 122, issued in 1981. 

Hydropower Primer 27
 
28 Hydropower Primer 

4. Hydropower permitS and aUtHorizationS
 

4.1 Overview 

Mission 

As discussed in chapter 3, when applicants are seeking 

authorization to construct and operate a non-federal 

hydropower project, they must file an application with 

the Commission. Commission staff is then responsible for 

analyzing the proposal and making recommendations to 

the Commission on whether to authorize the proposal, 

and if so, what measures to include in the authorization. 

The overall principles and objectives of the Commission’s 

hydropower licensing program are to: 

•	 give equal consideration to environmental, recreational, 

cultural, and developmental resources when evaluating 

hydropower projects; 

•	 provide assistance to and foster coordination among 

applicants and stakeholders to process applications 

efficiently; 

•	 employ the best possible technical expertise in 

evaluating development applications, environmental 

measures, and alternatives to provide sound 

recommendations to the Commission; 

•	 facilitate the development of hydropower and marine 

and hydrokinetic technologies through a flexible 

regulatory framework; and 

•	 increase domestic renewable energy capacity and 

infrastructure to serve the public interest. 

The Commission issues three types of authorizations for 

non-federal hydroelectric projects in the United States, 

pursuant to the FPA: preliminary permits, licenses, and 

exemptions. As discussed previously, authorizations may 

also be needed from the Corps, Reclamation, and the Forest 

Service, if located on federal lands or at federal facilities. 

Jurisdictional Determinations 

Some non-federal hydroelectric projects in the United 

States have been constructed without first obtaining a 

license from the Commission, and some potential project 

owners may contemplate constructing a project and may 

need to know if a license is required. Commission staff is 

charged with determining when a hydroelectric project 

requires licensing, and may order entities owning or 

proposing an unlicensed project to apply for a license with 

the Commission. Section 23(b)(1) of the FPA requires any 

person who intends to construct a hydroelectric project to 

file with the Commission either a license application for a 

proposed project or a Declaration of Intention to allow the 

Commission to determine if a proposed project requires 

a license. If a project is currently operating, the owner 

must file for a Petition for Declaratory Order to allow the 

Commission to determine if the project requires licensing. 

Part 24 of the Commission’s regulations (18 CFR Part 24) 

outlines the information needed for Commission staff to 

determine whether a project is required to be licensed. 

Project owners/developers should use these regulations 

as a reference guide to file a Declaration of Intention or 

Petition for Declaratory Order. The filing must include: 

•	 The location of the project (state, town, street, county, 

stream, river basin name: township, range, and meridian); 

•	 The exact name, business address, telephone number, 

FAX number, and E-Mail address of the applicant, 

authorized agent, existing dam owner, existing 

powerhouse owner; or local electric utility company; 

•	 A project description (proposed or existing), proposed 

mode of operation (peaking or run-of-river) and initial 

and ultimate installed capacity of the project; 

•	 Project history, if applicable; 

•	 Jurisdictional analysis of navigability of the stream, 

including current and historical uses, land status 

(private, state owned, federally owned), a statement 

of whether the project will use surplus water or 

waterpower from a government dam or affect 

interstate commerce, and state which power company 

will be used; and 

•	 A profile of the river and general maps of the area. 

Commission staff then reviews these filings and issues a 

determination of whether a project must be licensed. 

Three Rivers Project, MI 
Hydropower Primer 29 

4.2 Preliminary Permits (18 CFR §4.80) 

A preliminary permit grants a permittee priority over other 

potential applicants for that hydroelectric project site and 

authorizes a permittee to study a project site for a 3 year 

period. During the permit period, a permittee typically 

conducts feasibility and environmental studies and 

conducts pre-filing consultations with other stakeholders. 

Permits require 6-month progress reports related to 

these activities. Permits do not authorize construction 

or operation of a project, nor do they authorize any 

groundbreaking activities. A permittee has the option 

to extend the permit for an additional 2 years if it files 

an extension application and the Commission finds that 

the permittee has carried out activities under the permit 

in good faith and with reasonable diligence, such that 

Commission staff is able to discern from the permittee’s 

progress reports a pattern of progress toward the 

preparation of a development application.33 

During or at the end of the permit period, the permittee 

may file a license application, depending on the results 

of feasibility and other studies. A preliminary permit, 

however, is not a prerequisite to filing a license application. 

A permittee may also voluntarily surrender a preliminary 

permit. A preliminary permit cannot be transferred to 

another entity. The Commission may cancel a preliminary 

permit after notice and opportunity for hearing, if the 

permittee fails to comply with the specific terms and 

conditions of the permit or for other good cause shown. 

Cancellation of a permit will result in the loss of the 

permittee’s priority of application for development of the 

proposed project, which will free the site to be developed 

by another entity. 

Preliminary Permit Process 

Any citizen, association of citizens, domestic corporation, 

municipality, or state may file an initial application or a 

competing application for a preliminary permit for a water 

power project under Part I of the FPA. The required contents 

of a preliminary permit application are found in 18 CFR 

§4.81. The application must contain three exhibits: Exhibit 1 

contains an engineering description of all the components 

of the proposed project, the total estimated average annual 

energy production and installed capacity, and a description 

of any lands of the United States that are enclosed within 

the proposed project boundary; Exhibit 2 describes studies 

conducted or to be conducted with respect to the proposed 

project, a work plan for new dam construction, if applicable, 

and a statement of costs and financing; 

and Exhibit 3 includes a map or series of maps, to be 

prepared on USGS topographic quadrangle sheets or similar 

topographic maps of a state agency, showing the location of 

the project and its components in relation to water bodies 

and towns/municipalities, and a project boundary enclosing 

the principal project features, any public lands and 

reservations of the United States, and any areas protected 

under the National Wild and Scenic Rivers System and the 

Wilderness Act. 

Once an application is filed with the Commission, staff 

determines whether the application is adequate (contains 

all the components required by 18 CFR §4.81), and if 

the application is adequate, issues a public notice of 

the application, allowing all interested stakeholders to 

comment on the application, or potential competitors to 

file a competing application. Commission staff considers all 

comments filed in response to the notice, and if there is no 

major opposition or legal reasons for denying the permit, 

issues the permit for a period of 3 years. The Commission, 

however, will not accept or approve an application for a 

preliminary permit for project works that: (1) would use in 

whole or in part, the same water resources that would be 

used by a project for which there is an unexpired preliminary 

permit; (2) would interfere with a licensed project in a 

manner that, absent the licensee’s consent, would be 

precluded by Section 6 of the FPA; and (3) would use in whole 

or in part, the same water resources that would be used by 

a project for which an initial development application has 

already been filed, unless the preliminary permit application 

is filed not later than the time allowed under §4.36(a) for the 

filing of competing applications for a preliminary permit that 

would use in whole or in part, the same water resources. 

Upper Middle Dam, ME 

33 FFP Project 132, LLC, 156 FERC ¶ 62,010 (2016); S. Martinez Livestock, Inc., 155 FERC ¶ 62,064 (2016). 
4.3 Licenses (18 CFR Parts 4, 5, and 16) 

A hydropower license authorizes a licensee to construct 

and operate a hydroelectric project (referred to as an 

original license) or to continue to operate an existing project 

(relicense).34 An original license is granted for a period of 

up to 50 years, while a relicense is issued for a period of 

30 to 50 years. License terms are based on the amount 

of redevelopment, new construction, new capacity, or 

environmental mitigation, and other factors such as 

coordination of license terms for multiple projects in the 

a river basin. Hydropower licenses contain terms and 

conditions (articles) that require environmental measures 

to protect, mitigate effects on, or enhance environmental 

resources; engineering measures to ensure safe 

construction and operation of the project; and certain 

administrative requirements (such as filing exhibit 

drawings, paying annual charges to FERC,35 establishing 

a project amortization reserve,36 and filing a Public 

Safety Plan). Mandatory terms and conditions may also 

be prescribed by certain state and federal agencies and 

become part of the license. A license gives the licensee 

the ability to use eminent domain to acquire the property 

required for project development. At the end of the 

license period, a licensee may apply for a new license or 

surrender the license. 

Licensing Process Overview 

Pre-filing 

Before filing a license application with the Commission, 

applicants are required to conduct a pre-filing process 

that consists of: (1) presenting the proposed project to 

appropriate stakeholders (e.g., state and federal agencies, 

Indian tribes, local landowners, and NGOs); (2) consulting 

with those stakeholders; (3) identifying issues; and (4) 

gathering information. The purpose of this pre-filing process 

is to fully inform stakeholders about the project proposal, 

engage those stakeholders in consultations to identify 

issues and study needs, and conduct those studies to 

provide the information needed to develop mitigation and 

enhancement measures and prepare the license application. 

The first steps in the process, to be conducted by the 

applicant, are advanced notification to stakeholders and 

Indian tribes that the applicant will be applying for a license, 

and a formal notice of intent (NOI) to the Commission and 

stakeholders that a license application will be filed with the 

Commission. The NOI is accompanied by a pre-application 

document (PAD) that describes the proposed project and 

environmental resources likely to be affected. 

For a relicense, the NOI and PAD must be filed with the 

Commission between 5 and 5.5 years before the expiration 

date of the current license. The pre-filing process concludes 

once an applicant has completed consultations with 

stakeholders, gathered all the necessary information for 

licensing the project, and prepared the license application 

for filing with the Commission. 

License Application Filed 

Comments Environmental 

Document 

Agency 

Decision/ 

License Order 

Advanced 

Notification and Tribal 

Consultation Letters 

Consultation Issue 

Identification 

Information 

Gathering 

Notice of Intent/ 

Pre-Application 

Document 

Pre-filing Post-filing 

34 The FPA refers to this as either a new or subsequent license, but for clarity we will refer to this as a “relicense” throughout. 

35 The Commission receives an annual appropriation from Congress to defray its operating costs and recovers 100 percent of this appropriation 

through the collection of filing fees and annual charges. Filing fees are fees that the Commission assesses for specific services and benefits provided 

to identifiable beneficiaries (see 18 CFR Part 381). Annual charges are assessed to recover costs incurred by the Commission in the performance of 

its regulatory responsibilities and are based on a project’s annual generation. 

36 Pursuant to section 10(d) of the FPA, a specified reasonable rate of return upon the net investment in the project must be used for determining 

surplus earnings of the project for the establishment and maintenance of amortization reserves. 

30 Hydropower Primer 
Components of an Application 

The end product of pre-filing is a complete license 

application that provides Commission staff with sufficient 

information to process the application. The components 

of a license application and the corresponding sections of 

the regulations for each type of project are described in 

the following table. If Commission staff determines that 

insufficient information is provided in the application, it will 

issue either a deficiency letter or an additional information 

request (AIR)37. An applicant must correct the deficiencies 

in the application within a specific time frame (usually 

90 days), or the application may be dismissed. Applicant 

responses to AIRs may be required on different time frames, 

depending on the nature of the information requested. 

Post-filing 

The post-filing process begins once the applicant files the 

license application with the Commission. Then, Commission 

staff: (1) determines whether the application contains all the 

necessary components (see description of the components 

of an application above) and is adequate for processing; (2) 

if the application is adequate, solicits formal comments from 

stakeholders; and (3) prepares an environmental document. 

Once Commission staff determines that the application 

is adequate and ready for environmental analysis, formal 

comments from the stakeholders are requested through 

issuance of a public notice, which also requests motions to 

intervene on the project.38 Agencies and stakeholders 

then comment on the proposed project and submit 

recommendations, prescriptions, terms, and conditions for any 

license that may be issued. In the environmental document, 

Commission staff analyzes effects of the project proposal and 

alternatives, analyzes comments and any agency terms and 

conditions, and makes recommendations to the Commission 

regarding whether the project should or should not be 

licensed. A final Commission decision follows the issuance 

of the environmental document, and that decision considers 

all information in the public record for the project. If the 

Commission decides to authorize the project, the measures it 

determines necessary for operating the project and protecting 

the environment, as well as any mandatory terms and conditions 

filed by the agencies, are included in the license. More 

information on the final Commission decision is included below. 

A typical relicensing action takes about 5 years to complete, 

including the pre-filing and post-filing processes using 

the Integrated Licensing Process (explained below). The 

processing time for applications depends on the number and 

complexity of issues at the project and the completeness 

of the application. It will be very project-specific, The 

Hydropower Regulatory Efficiency Act of 2013, however, 

directed the Commission to investigate the feasibility of a 

2-year licensing process for hydropower development at nonpowered dams and closed-loop pumped storage projects. 

That investigation is ongoing. 

Required Application Components 

Major Unconstructed 

or Major Modified 

Project (>5 MW)a 

Major Project-Existing 

Dam 

(>5 MW)b 

Minor Project (≤1.5 

MW) or Major Project 

Existing Dam (>1.5 MW 

but ≤5 MW)c 

Major Unconstructed or 

Major Modified Project 

(>1.5 MW but ≤5 MW)d 

Pertinent Regulations 18 CFR §4.41 18 CFR §4.51 18 CFR §4.61 18 CFR §4.61

Initial Statement 

Exhibit A – Project Description 

Exhibit B – Project Operation NRf NR 

Exhibit C – Construction Schedule NR NR 

Exhibit D – Costs and Financing NR NR 

Exhibit E – Environmental Report 

a This is a major hydroelectric project (with a generating capacity greater d This is a major hydroelectric project (with a generating capacity greater than 1.5 

than 5 MW) that is proposed but not yet constructed, or is an existing major MW and not more than 5 MW) that is proposed but not yet constructed, or is an 

project (capacity greater than 5 MW) that will require major construction for existing major project (capacity greater than 1.5 MW and not more than 5 MW) 

improvements or modifications to the project. that will require major construction for improvements or modifications to the 

b This is a major hydroelectric project (with a generating capacity greater than 5 project. 

MW) located at an existing dam, typically proposed for relicensing. e Additional information on the requirements for license applications can be found 

c This is a minor hydroelectric project (with a generating capacity of 1.5 MW or less), on the Commission’s website at: http://www.ferc.gov/industries/hydropower/genor a major project (with a generating capacity greater than 1.5 MW and not more info/guidelines.asp. 

than 5 MW) located at an existing dam, typically proposed for relicensing. f NR = not required. 

37 A deficiency letter is a document issued by Commission staff notifying the applicant that its application is incomplete or fails to provide information 

adequate for Commission filing requirements. The applicant is notified that the official filing date is withheld, pending receipt of the requested 

information. An AIR is a document issued by staff notifying the applicant that staff has determined that additional information beyond the content of 

the original application is necessary or desirable to complete the Commission’s review, analyses and action on the application. The AIR may include a 

Schedule A or Schedule B specifying the types of information to be submitted, with due dates for scheduled compliance. 

38 Any stakeholder may request intervenor status, which means that the stakeholder becomes an official party to the licensing proceeding, and the 

applicant must serve all project filings made with the Commission on all the intervenors. An intervenor may or may not oppose the project. 

Hydropower Primer 31
 
Specific Licensing Processes 

The default licensing process is the Integrated Licensing 

Process, or ILP. However, an applicant may request to use 

two other processes: the Alternative Licensing Process, or 

ALP, and the Traditional Licensing Process, or TLP. When 

considering the ALP or TLP in place of the default ILP, the 

applicant should seek input from the stakeholders for the 

specific project. If the applicant decides to use the ALP or 

TLP, it must make a written request to the Commission with 

its NOI and PAD filing. The applicant must also publish notice 

of its request to use the ALP or TLP in a daily or weekly 

newspaper and solicit comments. In deciding whether or not 

to approve an applicant’s request to use the ALP or TLP, the 

Commission considers, among other things, the complexity of 

the resource issues, level of anticipated controversy, and the 

amount of available information and potential for significant 

disputes over studies. If approved by the Commission, the 

applicant then follows the steps for the ALP or TLP. Each 

process is described in more detail below. 

-

Integrated Licensing 

Process (ILP) 

Alternative Licensing 

Process (ALP) 

Traditional Licensing 

Process (TLP) 

Default process

Available upon

request and FERC

approval

Available upon

request and FERC

approval

Projects with

complex issues

and study needs;

FERC oversight in

prefiling

Projects that

effectively promote

a self-driven

collaborative prefiling process; some

FERC involvement

Projects with less

complex issues and

study needs; no

FERC oversight in

pre-filing

Predictable

scheduling in both

pre-filing and postfiling stages

Collaboratively

determined schedule

in pre-filing stage

Paper-driven

process; no set

timeframes

Post filing elements of each process are similar 

Integrated Licensing Process (18 CFR §5.1) 

The ILP is the default process (since 2005). This process is most 

appropriate for projects with complex issues and study needs that 

require close coordination and cooperation with stakeholders 

during the pre-filing stage. Commission staff is also an active 

participant during the pre-filing stage, providing oversight and 

advice to the applicant and all stakeholders. NEPA scoping 

is conducted during the pre-filing phase of the ILP, allowing 

identification of issues and acting to focus the studies that may 

be required. Commission staff makes the final determination 

on studies that are required during the pre-filing period, and a 

dispute resolution process is available for parties not in agreement 

with the studies that would be required. The ILP has specific 

timelines and filing requirements that all participants must adhere 

to during both the pre-filing and post-filing stages. The basic steps 

of the ILP pre-filing process are as follows: 

•	 Applicant files NOI and PAD (18 CFR §5.5 and 5.6); 

•	 Commission staff holds tribal consultation meetings, if 

requested by affected tribes (18 CFR §5.7); 

•	 Commission staff notices NOI/PAD and conducts 

scoping (18 CFR §5.8); 

•	 Participants, including Commission staff, file study requests 

and comments on the PAD and SD1 (18 CFR §5.9); 

•	 Commission staff issues a second scoping document, 

if necessary (18 CFR §5.10); 

•	 Applicant and participants, including Commission staff, 

collaborate in study plan development (18 CFR §§5.11, 

5.12, 5.13); 

•	 Director of the Office of Energy Projects issues a study 

plan determination (18 CFR §5.13); 

•	 If there are disputes on the study plans, mandatory 

conditioning agencies may request to go through a 

formal study dispute resolution process, which may 

amend the approved study plan (18 CFR §5.14); 

•	 If there are no disputes on the studies required by the 

study plan determination, or after dispute resolution 

is completed on any disputed studies, the applicant 

conducts the studies, providing annual updates that 

include opportunities for participants and Commission 

staff to review study progress and request modifications 

(18 CFR §5.15); 

•	 Not later than 150 days before the license application 

is due, the applicant files its Preliminary Licensing 

Proposal (PLP) for review and comment by participants 

and Commission staff (18 CFR §5.16); and 

•	 Applicant files its license application in accordance with 

the ILP schedule. 

The post-filing process follows the steps outlined above in 

the section entitled “Post-filing.” 

Alternative Licensing Process (18 CFR §4.34(i)) 

The ALP is an alternative process that an applicant may 

use if approved by the Commission. Under 18 CFR §5.3, 

a request for authorization to use the ALP must include 

justification for the request and any existing written 

comments on the potential applicant’s proposal and a 

response thereto. For the ALP, a potential applicant must 

demonstrate that a reasonable effort has been made to 

contact all stakeholders and that a consensus exists that 

32	 Hydropower Primer 
the use of the ALP is appropriate; submit a communications 

protocol, supported by interested entities, governing 

how the applicant and other participants in the pre-filing 

consultation process, including the Commission staff, may 

communicate with each other; and provide a copy of the 

request to all interested stakeholders. Similar to the ILP, 

the ALP encourages coordination among the applicant, 

Commission staff, and stakeholders during the pre-filing 

process, and it also coordinates the NEPA process (scoping) 

and administrative processes associated with the CWA for 

water quality certification. Timelines are not specified but, 

instead, are developed collaboratively among the applicant 

and stakeholders early in the pre-filing process, tailored to 

the issues associated with the project. Commission staff may 

be involved in pre-filing consultations to facilitate the process 

but does not make the final determination on studies. In lieu 

of an Exhibit E for the license application (see description of 

the components of an application above), the applicant is 

given the option to prepare a draft EA or file a draft EIS that is 

prepared by a contractor chosen and directed by Commission 

staff and paid for by the applicant. The ALP encourages 

the applicant and stakeholders to come to agreement 

on proposed protection, mitigation, and enhancement 

measures, ultimately leading to a settlement agreement. 

The basic steps of the ALP pre-filing process are as follows: 

•	 Applicant forms agency/NGO work group, establishes 

communication protocol, and obtains consensus on 

process; 

•	 Applicant files NOI and PAD and request to use the ALP 

with FERC (18 CFR §5.3, 5.5, 5.6); 

•	 Commission staff notices NOI/PAD and request to use 

the ALP (18 CFR §5.3); 

•	 Commission approves use of ALP; 

•	 Applicant holds initial information meeting, scoping of 

environmental issues (18 CFR §4.34(i)(4)); 

•	 Applicant conducts studies, prepares draft application; and 

•	 Applicant files final license application and preliminary 

draft EA or EIS prepared by third party contractor. 

The post-filing process follows the steps outlined above in 

the section entitled “Post-filing.” 

Traditional Licensing Process 

The TLP is a licensing process initially developed in 

the 1980s that is still available for applicants’ use with 

Commission approval. Under 18 CFR §5.3, a request 

to use the TLP must also include justification for the 

request and any existing written comments on the 

potential applicant’s proposal and a response thereto. 

An applicant must also address: the likelihood of timely 

license issuance; the complexity of the resource issues; 

the level of anticipated controversy; the relative cost 

of the traditional process compared to the integrated 

process; the amount of available information and potential 

for significant disputes over studies; and other factors 

believed by the applicant to be pertinent. The TLP is most 

appropriate for less controversial or less complex projects 

requiring fewer studies, although it still requires a threestage pre-filing consultation process with stakeholders, 

including coordination with stakeholders in the pre-filing 

studies. Commission staff is typically not involved in the 

pre-filing process, although they may be requested to 

attend meetings and provide advice regarding the prefiling process. The TLP has no set timelines for the prefiling process, except that the final license application for 

relicenses must be filed no later than 2 years prior to the 

expiration date of the existing license. The basic steps of the 

TLP pre-filing process are as follows: 

•	 Applicant files NOI and PAD and request to use the TLP 

with FERC (18 CFR §5.3, 5.5, 5.6); 

•	 Commission staff notices NOI/PAD and request to use 

the TLP (18 CFR §5.3); 

•	 Commission approves use of TLP;39 

•	 Stage 1 - Applicant holds initial information meeting, 

scoping of environmental issues, prepares study plans 

(18 CFR §4.38(b)); 

•	 Stage 2 - Applicant conducts studies, prepares draft 

application (18 CFR §4.38(c)); 

•	 Stakeholders provide comments on draft application 

(18 CFR §4.38(c)); and 

•	 Stage 3 - Applicant files final license application 

(18 CFR §4.38(d)). 

The post-filing process follows the steps outlined above in 

the section entitled “Post-filing.” 

39 Typically, the Commission approves use of the TLP for smaller, less controversial projects where the stakeholders have also agreed to its use. 

Hydropower Primer 33
 
34 Hydropower Primer 

Marine and Hydrokinetic Pilot Project Licensing Process40 

The Commission specifically developed this licensing process 

for marine and hydrokinetic projects. It is not a stand-alone 

process; rather, it involves a waiver of some provisions of the 

ILP regulations. Because marine and hydrokinetic technology 

is experimental to date, this process allows developers to 

test new marine and hydrokinetic technologies to determine 

appropriate siting of 

these technologies 

and to confirm 

their environmental 

effects, while 

continuing to 

maintain FERC 

oversight and 

agency input. Pilot 

projects are small 

(typically less than 

5 MW), short-term 

(generally no more 

than 5 to 10 years), 

removable with site 

restoration, and 

carefully monitored 

to avoid placement 

in sensitive
	

locations. The pilot 

project procedures 

(1) could lead to

a license under the FPA; (2) are reviewed and overseen by 

the Commission; (3) allow the transmission of electricity 

into the national power grid if licensed; and (4) are available 

to those who wish to test technology, whether or not they 

intend to pursue a standard license application to follow the 

pilot project license. 

Verdant Policy 

The Commission has also determined 

that applicants wanting to test 

MHK technologies are not required 

to obtain a license if the following 

conditions are met:

1. the technology is experimental;

2. the proposed facilities are to

be utilized for a short period

for the purpose of conducting

studies necessary to prepare a

license application; and

3. power generated from the test

project will not be transmitted

into, or displace power from,

the national energy grid.

See Declaratory Order (Docket No. P 12178 

001), 111 FERC ¶ 61,024 (2005).
 

The process completes licensing in as few as 6 months to 

allow for project installation, operation, and environmental 

testing as soon as possible. The duration of a pilot license is 

generally between 5 and 10 years. As of September 2016, 

two pilot licenses have been issued for two tidal projects.41 

Six additional projects with active preliminary permits are 

currently under study, and three projects are in post-filing, 

having completed the pre-filing licensing process. The basic 

steps of the marine and hydrokinetic pilot project pre-filing 

process are as follows: 

• Applicant files NOI, draft license application with proposed

monitoring plan, request for waiver/process plan, and

request for designation as non-federal representative for

ESA and section 106 of the NHPA consultation;

• Commission notices pre-filing process and document

availability, and designates applicant as non-federal

representative for ESA and section 106 consultation;

• Agencies and others file comments on draft license

application and process plan;

• Commission solicits tribal consultation;

• If needed, Commission holds public meeting/

technical conference;

• Commission notices conclusion of pre-filing process and 

makes determination on request for waiver/process plan; and 

• Applicant files final license application with revised

monitoring plan, draft Biological Assessment, CZMA

application, and section 401 of the CWA application,

if needed.

Hydrokinetic Turbine by Smart Hydro Power http://www.smart-hydro.de/ 

40 See FERC White Paper on Licensing Hydrokinetic Pilot Projects, April 14, 2008. 

41 These are the 1,050-kW Roosevelt Island Project No. 12611, New York, and the 300-kW Cobscook Bay Project No. 12711, Maine. 

Both are tidal hydrokinetic projects. 
Hydropower Primer 35 

License Order 

Following issuance of the final NEPA document, the 

Commission issues an order acting on the license 

application. It may either issue an order, typically with 

conditions, approving the license application, or an order 

denying the application. The final order may, depending 

on the circumstances, be issued by the Commissioners 

or may be delegated to the Director of OEP for issuance. 

Most orders are not contested (that is, no party argues 

that the license should not be issued) and thus can be 

delegated to the Director of OEP pursuant to the delegation 

authority. However, contested applications are decided 

by the Commission. Also, large, controversial, or policy 

setting projects may be handled by the Commission 

even if they are not contested. A typical license order 

includes background information on the project; a 

description of the proposed project and its operation; 

project economics; proposed environmental measures; a 

summary of the license requirements; a summary of other 

federal law requirements, including mandatory conditions; 

administrative provisions of the license; and license articles 

that state the specific terms and conditions42 of the license. 

The order also addresses any issues raised by intervenors 

and other commenting entities, particularly any intervenors 

who are opposed to the project. A license order constitutes 

final Commission action, unless an intervenor files a request 

for rehearing within 30 days of the date of the order.43 

4.4 Exemptions (18 CFR §4.90 and §4.101) 

Small hydroelectric projects having limited environmental 

impacts and meeting certain criteria may be exempt from 

the licensing requirements of Part I of the FPA. As with 

a license, a license exemption authorizes a licensee to 

construct and operate a project; however, exemptions are 

issued in perpetuity. The exempted project is subject to 

mandatory terms and conditions set by federal and state 

fish and wildlife agencies and by the Commission, and 

exemptions do not convey the right of eminent domain. 

Applicants for exemption must have all real property 

rights necessary to develop and operate the project, or 

an option to obtain such interests, at the time of filing of 

the application. Obtaining an exemption can be a more 

simplified process than applying for a license. 

The two categories of exempted projects are conduit 

exemptions and case-specific (10-MW) exemptions. Conduit 

exemptions are projects that would be located on a conduit 

used for agricultural, municipal, or industrial consumption; 

would not be an integral part of a dam; and would have 

an installed generating capacity of 40 MW or less. Casespecific exemptions are projects that would be located at an 

existing non-federal dam (built prior to 1977) or located at 

a natural water feature (such as a waterfall) that would not 

require construction of a dam and would have an installed 

generating capacity of 10 MW or less. 

Finally, certain hydropower facilities located on nonfederally owned conduits are not required to be licensed 

or exempted by the Commission at all. These facilities are 

referred to as “qualifying conduit hydropower facilities” and 

must be located at conduits that meet the same criteria as 

conduit exemptions, have a maximum installed capacity of 5 

MW, and cannot have been previously licensed or exempted 

on or before August 9, 2013. These facilities are discussed in 

more detail below. 

Exemption Process 

The application process for exemptions is similar to that 

for licenses, with both pre-filing and post-filing processes, 

and preparation of exemption applications. The pre-filing 

consultation process for exemptions follows 18 CFR §4.38, 

which is the same pre-filing consultation process required 

under the TLP. The basic steps of the exemption pre-filing 

process are as follows: 

•	 Applicant files NOI and PAD and request to use the TLP 

with FERC (18 CFR §5.3, 5.5, 5.6); 

•	 Commission staff notices NOI/PAD and request to use 

the TLP (18 CFR §5.3); 

•	 Commission approves use of TLP; 

•	 Stage 1 - Applicant holds initial information meeting, 

scoping of environmental issues, prepares study plans 

(18 CFR §4.38(b)); 

•	 Stage 2 - Applicant conducts studies, prepares draft 

application (18 CFR §4.38(c)); 

•	 Stakeholders provide comments on draft application 

(18 CFR §4.38(c)); and 

•	 Stage 3 - Applicant files final license application 

(18 CFR §4.38(d)). 

42 Some conditions or prescriptions filed by other agencies are mandatory and must be included in a license. These include conditions provided by 

federal land management agencies for projects located on federal lands (pursuant to section 4(e) of the FPA), and fishway prescriptions made by the 

Secretaries of the Departments of Interior or Commerce (pursuant to section 18 of the FPA). The conditions of the CWA water quality certification 

issued for the project are also mandatory. Conditions to avoid or minimize incidental take are also required to comply with the ESA prohibition 

against taking threatened or endangered species. See chapter 3.5 for more information on mandatory conditions. 

43		 An intervenor who is aggrieved by a Commission or delegated license order may file a request for rehearing, asking the Commission to reconsider its 

decision. If a rehearing is not granted, an intervenor that sought rehearing may appeal the Commission decision to the U.S. Court of Appeals for the D.C. 

Circuit or the Circuit Court where the licensee is located or has its principal place of business, and ultimately may seek review from the U.S. Supreme Court. 
The required contents for exemption applications are 

described in the following table. 

Required 

Application 

Components 

Conduit 

Exemptions 

(<40 MW) 

Case-specific 

Exemptions 

(<10 MW) 

Pertinent Regulations 18 CFR §4.92 18 CFR §4.107

Introductory 

Statement 

Exhibit A 

Project Description

Exhibit E 

Environmental Report

Exhibit F 

Design Drawings

Exhibit G 

Project Boundary Map

The post-filing process generally follows the steps outlined 

above for licenses in the section entitled “Post-filing.” 

One difference is that terms and conditions filed by state 

and federal resource agencies to protect fish and wildlife 

resources are mandatory, pursuant to section 30(c) of the 

FPA. In addition, while a NEPA document is prepared for a 

case-specific exemption, conduit exemptions are categorically 

exempt from preparing an environmental document under 18 

CFR §380.4(a)(14), unless determined necessary. 

Exemption Order 

An exemption order follows the issuance of the final 

NEPA document and is formatted similarly to a license 

order; however, exemption orders typically include fewer 

license articles than standard licenses, but do include any 

mandatory terms and conditions filed by state and federal 

resource agencies pursuant to section 30(c). While a conduit 

exemption typically does not require preparation of a NEPA 

document, the order does include any mandatory terms and 

conditions filed by state and federal resource agencies. As 

with a license order, an exemption order constitutes final 

Commission action, unless an intervenor files a request for 

rehearing within 30 days of the date of the order. 

Qualifying Conduit 

Under the Hydropower Regulatory Efficiency Act of 

2013, the Commission is required to determine whether 

proposed projects meet the criteria to be considered 

“qualifying conduit hydropower facilities.” Qualifying 

conduit hydropower facilities are not required to be 

licensed or exempted by the Commission; however, any 

person, state, or municipality proposing to construct a 

facility that meets the criteria must file a Notice of Intent 

to Construct a Qualifying Conduit Hydropower Facility with 

the Commission. A “qualifying conduit hydropower facility” 

must meet the following provisions: 

1.		 A conduit is any tunnel, canal, pipeline, aqueduct, 

flume, ditch, or similar manmade water conveyance 

that is operated for the distribution of water for 

agricultural, municipal, or industrial consumption, and 

is not primarily for the generation of electricity. 

2.		 The facility generates electric power using only the 

hydroelectric potential of a non-federally owned conduit. 

3.		 The facility has an installed capacity that does not 

exceed 5 megawatts (MW). 

4.		 The facility was not licensed or exempted from the 

licensing requirements of Part I of the FPA on or before 

August 9, 2013. 

After an applicant files the Notice of Intent, Commission 

staff reviews the information and makes an initial 

determination about whether the project meets 

the qualifications for a qualifying conduit within 15 

days. Commission staff then issues notice of its initial 

determination and provides a 45-day period for the public 

to comment. If no comments are received, Commission staff 

issues a letter with a final determination. On average, this 

process takes about two months. 

4.5 Amendments 

License Amendment Process (18 CFR §4.200-4.202) 

A licensee may file an application for a license amendment 

if it proposes to: (1) make a change in the physical features 

of the project or its boundary, or make an addition, 

betterment, abandonment, or conversion of the project 

that would constitute an alteration of the license; (2) make 

a change in the plans for the project under license; or (3) 

extend the time fixed in the license for commencement or 

completion of project works. Most project changes that 

require an amendment can be classified into six categories: 

capacity changes, design changes, operational changes, land 

status changes, compliance filings, and time extensions. 

Capacity-related amendments (18 CFR §4.201[b]) are 

requested when the proposed changes would: (1) increase 

the project’s actual or proposed total installed capacity; (2) 

result in an increase in the project’s maximum hydraulic 

capacity by 15 percent or more; and (3) result in an 

increase in the installed nameplate capacity of 2 MW or 

more. Any amendment that does not meet the criteria for 

a capacity-related amendment will be considered to be a 

non-capacity-related amendment (18 CFR §4.38[a][4]) (i.e., 

project changes fit into one of the other five categories 

36	 Hydropower Primer 
Hydropower Primer 37 

of amendment listed above - design changes, operational 

changes, land status changes, compliance filings, and time 

extensions). Capacity-related and non-capacity amendment 

processes are described below. The Commission staff 

reviews the application, and as appropriate, the Commission 

or staff acting under delegated authority issues an order 

approving or denying the amendment of license.44 

Capacity-related Amendments (18 CFR 4.201(b)) 

As noted above, a capacity-related amendment is one 

that involves additional generating capacity not previously 

authorized, and would increase a project’s hydraulic capacity 

by 15 percent or more and its installed generating capacity by 

2 MW or more. The licensee completes the following steps as 

part of the capacity-related amendment process: 

•	 Participates in the First Stage Consultation Process 

(18 CFR §4.38(b)); 

•	 Conducts studies and prepare a draft application 

(18 CFR §4.38(c)); 

•	 Completes Second Stage Consultation 

(18 CFR §4.38(c)); 

•	 Requests and receives a water quality certification, 

if required; and 

•	 Files an amendment application with the Commission 

(18 CFR §4.201). 

In turn, Commission staff processes the application, 

as follows: 

•	 Completes the NEPA process, similar to an application 

for license; preparing an EA or EIS, depending on the 

scope of the amendment; and 

•	 Completes the section 10(j) process for fish and wildlife 

recommendations, if required (18 CFR §4.34). 

The process concludes with the Commission or Commission 

staff approving or denying the license amendment. The 

rules governing these activities are the same as those that 

govern applications for license using any of the available 

licensing processes. 

Non-capacity Amendments (18 CFR 4.201(c)) 

The format and process for an application for a non-capacityrelated amendment may vary from a one-page letter to 

a comprehensive, multi-volume amendment application, 

depending on the type of amendment and the level of detail 

required. The application must provide reasons for the 

amendment and include relevant resource agency letters 

of comment, exhibits, and applicable drawings as specified 

in 18 CFR §4.201(c). The application must contain an initial 

statement; certain specified exhibits; pre-filing consultation; 

and, in some cases, evidence of a request for water quality 

certification. The three-stage agency consultation process 

(18 CFR §4.38) does not apply to non-capacity-related 

amendments, except for those changes identified in 18 

CFR §4.38(a)(6)(v), which include: (1) the construction of 

a new dam or diversion in a location where there is no 

existing dam or diversion; (2) any repair, modification, or 

reconstruction of an existing dam that would result in a 

significant change in the maximum surface area or elevation 

of an existing impoundment; or (3) the addition of new water 

power turbines other than to replace existing turbines. The 

nature of the proposed change, the type of project, and the 

construction status of the project determine which exhibits to 

include in the amendment application. 

Commission staff processes the application, which may or 

may not include the preparation of a NEPA document, and 

the Commission or Commission staff issues an order either 

approving or denying the amendment. 

Exemption Amendment Process [18 CFR §4.96 for Small

Conduit Exemption and 18 CFR §4.104 for Small (CaseSpecific) Hydroelectric Exemption] 

The holder of an exemption for either a small conduit 

hydroelectric facility or a small hydroelectric project must 

construct and operate its project as described in the 

exemption application approved by the Commission. If an 

exemption holder wishes to change the design, location, or 

method of construction or operation of the project works, 

it must first notify the appropriate federal and state fish and 

wildlife agencies and inform them in writing of the changes 

it intends to implement. If these agencies determine that 

the changes would not cause the project to violate the terms 

and conditions imposed by the agencies, and if the changes 

would not materially alter the design, location, or method of 

construction or operation of the project works, the exemption 

holder may implement the changes. If any of these agencies 

determines that the changes would cause the project to 

violate the terms and conditions imposed by the agencies, or 

if the changes would materially alter the design, location, or 

method of construction or operation of the project works, the 

exemption holder may not implement the changes without 

first acquiring authorization from the Commission to amend its 

exemption, or applying for a license that authorizes the project, 

as changed. Commission staff reviews the application and the 

Commission or Commission staff issues an order approving 

or denying the request for amendment. As appropriate, 

Commission staff may prepare a NEPA document prior to 

issuance of a final order on the application. 

44 Depending on the nature of the amendment, Commission staff may need to prepare a NEPA document (EA or EIS). 
38 Hydropower Primer 

An application to amend an exemption may be filed only 

by the holder of the exemption and is governed by the 

Commission’s regulations for applications for an exemption. 

This means that the amendment application process 

must follow the process described in Section 4.4 for an 

application for an exemption. 

4.6 Surrenders, Transfers, and Terminations 

Surrenders 

A license may be surrendered by the licensee for a variety 

of reasons, such as that the project is no longer economical, 

or natural catastrophes have damaged or destroyed project 

facilities. To protect the environment and public, a license 

may only be surrendered upon agreement between the 

licensee and the Commission. The surrender process often 

can be complex because there are many environmental 

implications associated with ending Commission jurisdiction 

over a project. Commission staff would review the surrender 

application, typically prepare a NEPA document (particularly 

if the surrender would involve removal of project facilities), 

and then, after reviewing the record, the Commission or 

Commission staff would act by issuing an order either 

approving or denying the surrender. 

License Surrender Process (18 CFR §6.1 and §6.2) 

Licenses may be surrendered only after the licensee fulfills 

the obligations that the Commission may prescribe. If the 

project works have been constructed on lands of the United 

States, the licensee is required to restore the lands to a 

condition satisfactory to the federal agency with supervision 

over them, and must continue to pay annual charges until 

the restoration has been completed. A licensee must 

prepare an application for a license surrender as specified 

in 18 CFR §6.1, which includes the reason for surrendering 

the license and a copy of the license and all amendments 

associated with the project. Once the application is 

filed, Commission staff reviews the application and the 

Commission or Commission staff issues an order approving 

or denying the request for surrender. If appropriate, a NEPA 

document is prepared before an order is issued. 

Licenses may only be surrendered after fulfilling the 

obligations under the license order that the Commission 

may prescribe and, if construction has begun, after fulfilling 

any conditions for disposing of project works and restoring 

project lands that may be required by the Commission and 

the federal and state fish and wildlife agencies. 

Exemption Surrender Process [18 CFR §4.95 for Small

Conduit Facilities and 18 CFR §4.102 for Small

(Case-Specific) Hydroelectric Projects] 

The surrender process for a license exemption is the 

same regardless of whether the exemption is for a 

small hydroelectric project or for a small conduit 

hydroelectric project. The holder of the exemption must 

file an application with the Commission to surrender 

the exemption. If project construction has begun before 

the surrender application is filed with the Commission, 

the exemption holder must consult with fish and wildlife 

agencies in accordance with 18 CFR §4.38, substituting for 

the information required under 4.38(b)(1), information 

describing the exemptee’s plans for disposing of project 

works and restoring project lands. The Commission issues 

a public notice of the application, and, at least 30 days 

later, the Commission or Commission staff issues an order 

approving or denying the application. If appropriate, an EA 

is prepared before an order is issued. 

If construction has not yet begun, unless the Commission 

issues an order to the contrary, the exemption remains in 

effect through the 30th day after the Commission issues 

a public notice of receipt of the application. Any new 

application for an exemption by another party for the site 

of the surrendered exemption may be filed on the next 

business day. 

Exemptions may only be surrendered after fulfilling the 

obligations under the exemption order that the Commission 

may prescribe and, if construction has begun, after fulfilling 

any conditions for disposing of project works and restoring 

project lands that may be required by the Commission and 

the federal and state fish and wildlife agencies. 

If a federal agency has authorized the use of federal lands 

or reservations under its supervision, the exemption holder 

must concurrently notify that agency of the application to 

surrender the exemption and the steps it will take to restore 

the affected federal lands or reservations. 

Implied Surrender 

Where the entity responsible for a project has, by action 

or inaction (for example, allowing a project to be in a state 

of disrepair for a long period, with no plan to put it back 

in operation in the foreseeable future) clearly indicated its 

intent to abandon the project, but has not filed a surrender 

application, the Commission may, on its own initiative,issue 

an order terminating a license or exemption by implied 

surrender. Before final Commission action, notice of proposed 

implied surrender will be given to the licensee or exemptee. 
Hydropower Primer 39 

Transfers 

A license can also be transferred to a different entity by a 

licensee, subject to Commission approval (18 CFR §9.1-9.3). 

This transfer typically does not require a NEPA document 

because it is an administrative action not involving any 

environmental impacts. 

License Transfer Process (18 CFR §9.1-9.3) 

A licensee desiring to transfer a license must file a transfer 

application jointly with the person, association, corporation, 

state, or municipality that would gain the license and 

acquire the project after approval of the transfer and 

acquisition. The application must conform to 18 CFR 

§131.20, and must be filed in accordance with 18 CFR 

§4.32. The application must state in appropriate detail the 

qualifications of the transferee to hold the license and to 

operate the project under the license. Commission staff 

reviews the application, determines whether or not the 

transfer should be granted, and issues an order approving or 

denying the transfer. Approval of the transfer is contingent 

on the transfer of title to the properties under the license, 

delivery of all license instruments, and a showing that the 

transfer is in the public interest. The transferee is subject to 

all of the conditions of the license and to all the provisions 

and conditions of the FPA, as if the transferee was the 

original licensee, and is responsible for the payment of 

annual charges that accrue before the date of transfer. 

When the Commission issues a transfer order, the order 

is forwarded to the transferee for acknowledgment of 

acceptance. Unless a request for rehearing is filed, or 

the Commission issues a stay, the order becomes final 

30 days after the date of issuance. The acknowledgment 

of acceptance is filed in triplicate with the Commission 

within 60 days after the date of issuance, accompanied 

by a certified copy of the deed of conveyance or other 

instrument evidencing transfer of the property under the 

license, together with evidence of the recording of the 

transfer. Because a license transfer is an administrative 

process, a NEPA document is typically not required. 

Exemption Transfer Process [18 CFR §4.94(g), Article 7 for

Small Conduit Exemptions, and 18 CFR §4.106(i), Article 9

for Small (Case-Specific) Hydroelectric Exemptions] 

An exemptee may transfer any property interests in an 

exemption for either a small conduit exemption or a 

small hydroelectric exemption, but must first inform the 

transferee of the terms and conditions of the exemption 

as provided in 18 CFR §4.106(i). Within 30 days of 

transferring the property interests, the exemption holder 

must inform the Commission in writing of the identity 

and address of the transferee. As long as the transferee 

has the necessary property rights, it is authorized to 

operate the project. Commission staff then issues a public 

notice of the exemption transfer. The notice contains all 

of the information concerning the exemption holder and 

transferee. The notice does not have a public comment 

period because exemption transfers do not require prior 

Commission approval. The purpose of the notice is to 

advise interested parties that there is a new project owner/ 

exemptee. An Acknowledgment of Transfer of Exemption 

letter is mailed out to the new owner/exemptee that 

includes filing instructions and mailing address, explanation 

of article and terms and conditions of compliance, extension 

of time requirements, guidance on exemption amendments, 

and where to obtain additional assistance. Because an 

exemption transfer is an administrative process, a NEPA 

document is typically not required. 

Holyoke Dam, MA 
40 Hydropower Primer 

Terminations 

License Termination (18 CFR §6.1-6.5) 

The Commission can terminate a license for two reasons: 

(1) the licensee fails to begin construction of the project 

within the prescribed time (18 CFR §6.3); or (2) the licensee 

fails to make a good faith effort to maintain and operate 

the project (18 CFR §6.4). In both cases, the Commission 

provides notice before it acts, as follows: (1) 90 day prior 

notice to the licensee where there is a failure to commence 

construction; and (2) 90-day prior notice in the case of 

project abandonment. Commission staff would review the 

project record and the Commission or Commission staff, 

would issue an order either approving or denying the 

termination. This may or may not require a NEPA document, 

depending on the extent of measures required to restore 

the project site. 

With respect to the failure to commence construction, 

Section 13 of the FPA requires the Commission to establish 

a deadline for the commencement of construction of a 

new (original) project, which can be no more than 2 years 

from the date the project license is issued, and allows the 

Commission to extend the deadline once, for no more 

than two additional years. If a licensee does not begin 

construction by the deadline, section 13 requires the 

Commission to terminate the license. It is important to note 

that a licensee cannot begin construction until it has met all 

of the pre-construction requirements in its license. 

Exemption Termination [18 CFR §4.94, Articles 3, 4, and 6 for

Small Conduit Exemptions, and 18 CFR §4.106, Articles 3, 5

and 7 for Small (Case-Specific) Hydroelectric Exemptions] 

Because license exemptions are issued in perpetuity, 

there are no regulations pertaining to termination of an 

exemption by the Commission; however, the Commission 

may revoke an exemption if, during the application process, 

material discrepancies, inaccuracies, or falsehoods were 

found to be made by or on behalf of the applicant. The 

Commission may also revoke an exemption if construction 

of any proposed generating facilities has not begun within 

2 years or has not been completed within 4 years from the 

effective date of the exemption. Further, the Commission 

may revoke an exemption if any necessary rights to use or 

occupy federal lands for the proposed project purposes 

have not been obtained within 1 year from the date the 

exemption was granted. If an exemption is revoked, the 

Commission will not accept a subsequent application for 

an exemption from licensing for the same project from the 

prior exemption holder within 2 years of the revocation. 

Stevenson Dam, CT 
Hydropower Primer 41 

5. Hydropower adminiStration and compLiance
 

5.1 Overview 

Mission 

The overall mission of the Commission’s administration 

and compliance program is to: 

•	 ensure compliance with license conditions; 

•	 protect and enhance beneficial uses of hydropower 

projects; 

•	 serve the public interest; and 

•	 provide leadership and vision in promoting economic 

and environmental benefits for the nation. 

Responsibilities 

As with the licensing process, the administration and 

compliance process must follow the relevant parts 

of the FPA and other federal laws in carrying out its 

responsibilities, particularly related to license amendments, 

license/exemption surrenders, and license/exemption 

transfers. The Commission (or Commission staff, by 

delegation) takes final action on any applications for 

amendment, surrender, or transfer by issuing an order 

approving or denying the application. 

Once a hydropower authorization is issued, Commission 

staff is responsible for overseeing compliance with the 

terms and conditions of licenses for the length of the license 

period (up to 50 years), and of exemptions in perpetuity 

(exemptions do not expire). Specific administration and 

compliance responsibilities include: 

•	 administering licenses and tracking license 

requirements (see section 5.3 of this chapter); 

•	 reviewing and approving amendments, license/ 

exemption surrenders, and license/exemption transfers 

(see sections 4.5 and 4.6 of chapter 4); 

•	 inspecting and recording site conditions (environmental 

inspections) (see section 5.2 of this chapter); 

•	 acting on compliance filings, mandated or voluntary 

(see section 5.3 of this chapter); 

•	 monitoring license effectiveness (see section 5.3 of 

this chapter); 

•	 investigating compliance issues (see section 5.3 of 

this chapter); 

•	 working with the Office of Enforcement to issue 

penalties as necessary (see section 5.7 of this chapter); 

•	 determining whether operating unlicensed projects 

should be licensed (see section 4.1 of chapter 4); 

•	 determining and assessing headwater benefit charges 

(see section 5.8 of this chapter); and 

•	 conducting outreach and technical workshops (see 

section 7.2 of chapter 7). 

Sturgis Dam, MI 
42 Hydropower Primer 

5.2 Environmental Inspections 

Commission staff conducts environmental inspections of 

licensed and exempted projects to evaluate and assess 

compliance with the environmental and public use 

requirements of the license or exemption. Environmental 

inspectors look specifically at a licensee’s or exemptee’s 

compliance with license or exemption requirements 

for the protection and enhancement of environmental 

resources at the project. Environmental inspections also 

allow Commission staff to identify problem areas and to 

share information with licensees and exemptees, to assist 

them with their responsibilities for maintaining compliance 

with license or exemption requirements. The nature and 

frequency of environmental inspections at projects depends 

on the type of project, the environmental and public use 

impacts, and whether any non-compliance issues have 

occurred. Typical inspections review the physical and 

operational features of a project’s facilities and compliance 

with license terms and conditions related to fish and 

wildlife, recreation, cultural resources, and public safety. 

5.3 Compliance Tracking and Monitoring 

Licensing in the twenty-first century has resulted in 

an increase in the number and complexity of license 

requirements. Tracking large projects with complex 

settlement agreements and many requirements creates a 

need for additional measures to ensure compliance. One way 

to assist licensees is through improved compliance tracking. 

Important strategies include transition meetings with new 

licensees, and technical workshops on issues of interest 

to licensees and stakeholders. Commission staff has 

conducted or participated in workshops on subjects such 

as: fish passage, invasive species management, shoreline 

management, and recreation. Commission staff also uses 

data from inspections, monitoring, and filings to assist 

licensees in understanding how to comply, which helps 

licensees to achieve compliance in practical and effective 

ways. Monitoring of project requirements and outcomes can 

identify problems common to licensed or exempted projects 

and can lead to proactive strategies that help licensees and 

exemptees identify and correct common problems. 

Monitoring plans and reports are typical license 

requirements, and their filing (with copies to consulted 

agencies) allows Commission staff and other stakeholders 

to review data and identify potential issues to see if project 

requirements are being met and whether changes are 

needed. Examples include water quality monitoring, river 

flow monitoring, fish passage reports, and reports on 

recreational facility usage. 

Licensee self-reporting and stakeholder reporting can be 

an important means to track compliance. While licensee 

self-reporting is required with the filing of monitoring 

reports, licensees also routinely report unusual occurrences 

to the Commission (such as boat accidents, drownings, 

and minimum flow deviations). Stakeholder reporting (via 

hotlines,45 phone calls, and letters) allows the reporting 

of events that the licensee or Commission staff may not 

have observed or known about, and that may require the 

licensee to take some corrective action. Commission staff 

uses the information from licensee and stakeholder reports 

to open investigations into compliance with the license and 

to assist licensees with getting into compliance with license 

conditions or, when necessary, working with licensees to 

amend the license in consultation with the appropriate state 

and federal agencies. 

5.4 License Transition Meetings 

License transition meetings with new licensees and 

Commission staff allow staff to review with the licensee the 

requirements of the license and what is expected of the 

licensee during the license term. While some licensees are 

familiar with the compliance process, others may be new 

to the process and need clarification of requirements for 

license compliance. Even experienced licensees may benefit 

from a “refresher” meeting with Commission staff, and a 

discussion of specific requirements of the license. 

45 Hotlines are typically toll-free numbers that allow the public to report incidents directly to a licensee. 
Shoreline fishing access, Conowingo Project, MD 

5.5 Shoreline Management 

Licensees have a responsibility to ensure that the reservoir 

shorelines within their project boundaries are managed in 

a manner that is consistent with project purposes, license 

requirements, and operations. Project purposes may include 

operation and maintenance, flowage, public recreation, 

public access, shoreline control, and the protection of 

environmental resources. Additionally, licensees must have 

sufficient property rights to manage project lands to protect 

and maintain project purposes. 

A comprehensive shoreline management plan (SMP), can 

assist a licensee in meeting its responsibilities throughout 

the term of its license and in managing the multiple 

resources and uses of the project’s shorelines in a manner 

that is consistent with license requirements and project 

purposes, and with the needs of the public. SMPs are best 

developed during project licensing, but circumstances may 

arise during the term of the license that would require 

development of an SMP. The Commission expects all 

licensees developing SMPs to involve the public and allow 

for agency consultation, review, and comment. 

An SMP typically consists of the following components: 

(1) a description of the purpose and goals of the plan; 

(2) shoreline use classifications for protecting sensitive 

shoreline resources and allowing for existing and future use 

and development of the shoreline; (3) GIS location data and 

maps showing the shoreline classifications in relation to 

the project reservoir and project boundary; (4) permitting 

and enforcement programs or guidelines for managing 

shoreline development and uses; and (5) provisions for 

periodic review and update of the plan in consultation 

with interested stakeholders and agencies to determine 

the need for any changes to the plan. It is important to 

note that an approved SMP only applies to those lands 

and waters within the project boundary to the extent the 

licensee has ownership or rights over such property and 

does not, in itself, change existing property rights. As part 

of its approval of a proposed SMP, Commission staff may 

require the licensee to conduct an inventory of its project 

shoreline property and file a comprehensive report to 

identify property rights and address any encroachments 

on project lands and waters. To assist licensees in meeting 

shoreline management challenges and stakeholder interests 

in a manner consistent with their license obligations, 

Commission staff has regularly conducted technical 

workshops with licensees throughout the United States on a 

variety of shoreline management and development topics. 

Commission staff also has prepared and recently updated 

outreach materials related to shoreline management: 

(1) Guidance for Shoreline Management Planning at 

Hydropower Projects, and (2) Guidelines for Preparing 

Shoreline Development Applications. These guidance 

documents provide information on a number of related 

topics to assist both licensees and stakeholders and are 

available on the Commission’s website. 

5.6 Recreation Facilities 

The Commission’s policy is to seek development of the 

recreational resources of all projects, consistent with the 

needs of the project area and the primary purposes of 

the project. While a variety of recreation facilities may 

exist within the project boundary of Commission-licensed 

hydropower projects, only those required by Commission 

action are considered Commission-approved, and licensees 

are required to specify Commission-approved recreation 

facilities on Form 80 (see section 3.3). 

Commission-approved recreation facilities may be required 

by the project license, an approved recreation plan or 

recreation plan amendment, or any other requirements that 

address the provision of recreation at the project (e.g., a 

water quality certificate). Other recreation facilities at the 

project that are not necessarily required by the Commission 

may include state parks, municipal and/or county agency 

facilities, and/or non-project uses at the project. Typically, 

Commission-approved recreation facilities are incorporated 

into the project boundary, and the licensee is ultimately 

responsible for the operation and maintenance of the 

recreation facilities, or may contract with others to manage 

the facilities. Other non-project recreation opportunities 

may be located either in the project boundary or in the 

vicinity of the project, but the licensee is not responsible 

for operation and maintenance of such facilities. Finally, 

Commission staff collaborates with licensees to participate 

in workshops to discuss recreation management and 

compliance issues at Commission-licensed hydro projects, 

including the Form 80 process. 

Hydropower Primer 43
 
5.7 Compliance Penalties 

The Commission has the authority to issue penalties to 

licensees who fail to comply with license requirements 

and other violations of Part I of the FPA, as a means to 

prompt the licensee to comply. These penalties are in the 

form of civil penalties (fines). Congress established this civil 

monetary penalty at $10,000 in 1986. The Commission’s 

civil monetary penalty authority was increased in 2002 

to $11,000 per violation per day, under section 31(c) of 

the FPA. Based on inflation between October 198646 and 

October 2015, which was 115.628 percent, the civil penalty 

authority was increased to $21,563 per violation per day.47 

OEP staff may consult with staff in the Commission’s Office 

of Enforcement to determine appropriate penalties. 

Before the Commission can assess penalties, Commission 

staff notifies the licensee of the violation and provides 

ample and reasonable opportunity for the licensee to 

bring the project into compliance, determined by the 

seriousness of the violation and all of the consequences 

of non-compliance. If the Commission determines that 

the licensee’s actions or inaction warrant a penalty, it will 

issue a notice of proposed penalty, to which a licensee may 

respond, and can then assess penalties. 

5.8 Headwater Benefits 

Headwater benefits are the additional electric generation 

that occurs at a downstream hydroelectric project resulting 

from regulation of river flow by upstream projects, 

usually by increasing or decreasing the release of water 

from upstream reservoirs. Commission staff performs 

an assessment to determine if headwater benefits occur 

and sets annual charges that the downstream beneficiary 

project is required to pay the Commission for these 

benefits. The Commission then distributes the funds to the 

owner(s) of the upstream project(s), which may include 

both federal agencies (for federal dams) and non-federal 

entities. These charges amount to an equitable part of the 

annual costs of interest, maintenance, and depreciation 

expenses for the headwater project and the Commission’s 

costs of determining the headwater benefits charges. The 

owner of any downstream project that receives headwater 

benefits must pay these charges, unless the project has an 

installed generating capacity of 1.5 MW (2,000 horsepower) 

or less. The Commission has exempted these small projects 

from the requirement to pay headwater benefits charges. 

The benefits are determined as outlined in 18 CFR Parts 

11.11 through 11.16. 

44 Hydropower Primer 

Chester Dam, ID 

46 Electric Consumers Protection Act of 1986, Section 12(c), Pub. L. 99–495, 100 Stat 1243. 

47 See Bureau of Labor Statistics, Table 24, Historical Consumer Price Index for All Urban Consumers (CPI-U): U.S. City Average, All Items-Continued, 

http://www.bls.gov/cpi/cpid1602.pdf (last visited March 22, 2016), Statement of Administrative Policy Regarding the Process for Assessing Civil 

Penalties (Docket No. AD07-4-000), 117 FERC ¶ 61,317 (2006), and Civil Monetary Penalty Inflation Adjustments, (Docket No. RM16-16-000; Order 

No. 826), 155 FERC ¶ 61,320 (2016). 
6. dam SaFety and inSpectionS oF Hydropower projectS 

6.1 Overview	 

Mission 

FERC’s dam and public safety program’s mission is to protect 

life, health, property, and the environment of regulated 

projects by implementing numerous strategies including the 

Commission’s programs on dam safety, physical security, 

cyber security, and public safety. 

Responsibilities	 

Develop and implement policies, programs, and standards 

for dam safety, and inspect/evaluate jurisdictional projects. 

Take action to ensure that jurisdictional projects are 

inspected and evaluated in their design, construction, 

operation, and maintenance phases in order to: (1) protect 

life, health, property and the environment; and (2) assess 

project compliance with the terms and conditions of 

licenses and exemptions. 

6.2 Regulations 

The requirements and guidelines for the dam safety 

program come from Part 12 of the Commission’s regulations 

which concerns the safety of water power projects and 

project works under FERC jurisdiction. It is based on Order 

122, issued in 1981. Part 12 describes the responsibilities of 

the Commission regarding dam safety and the requirements 

of licensees/exemptees for reporting to the Commission. 

Part 12 addresses, in pertinent parts, reports and 

recording keeping, Emergency Action Plans, inspections 

by Independent Consultants,48 public safety, and other 

responsibilities of the applicant or licensee. Emergency 

Action Plans and Inspection by Independent Consultants 

are discussed further below. Part 12 applies not only to 

licensed projects, but also to existing unlicensed projects 

that the Commission has determined require licensing. 

Part 12 also applies to certain exempted projects if the 

Commission conditioned the exemption on compliance with 

any particular provisions of Part 12 (18 CFR § 12.1).49 

 

 

Number of Dams under FERC Dam Safety 

Jurisdiction and their Hazard Potential 

Classifications (as of December 2016) 

Hazard Potential 

Classification ARO CRO NYRO PRO SFRO Total 

High 183 171 190 112 159 815 

Significant 14 24 104 16 27 185 

Low 114 223 533 266 382 1,518 

Total 311 418 827 394 568 2,518 

Hazard Potential 

Dams are classified as having high, significant, or low hazard 

potential in order for Commission staff to assign the proper 

level of resources (i.e., inspection frequency) and design 

requirements (low hazard dams do not have to meet the same 

strict stability requirements as high hazard dams). 

This rating does not reflect the dam’s stability but rather the

potential losses should the dam fail. High hazard dams are assigned

that classification because their failure or mis-operation would cause

a probable loss of human life. Significant hazard dams are those for

which failure or mis-operation results in no probable loss of human

life, but can cause economic loss, environmental damage, disruption

of lifeline facilities, or other concerns. They are often located in

predominantly rural or agricultural areas, but could be located in

areas with population and significant infrastructure. Low hazard

dams are those for which failure or mis-operation results in no

probable loss of human life and low economic and/or environmental

losses. Losses are principally limited to the owner’s property.49

Dams with “high” and “significant” hazard potential classification are

inspected annually by Commission staff and those assigned a “low”

hazard potential classification are inspected every three years.

48 An Independent Consultant is defined as a licensed professional engineer who has at least 10 years of experience and expertise in dam design and 

construction and in the investigation of the safety of existing dams. 

49 For more information about hazard potential classification, see 18 CFR § 12.31(b) and the Engineering Guidelines, Section 1-2 of chapter 1. 

Hydropower Primer 45
 
46 Hydropower Primer 

Pursuant to Part 12, Commission staff ensures that the 

water-retaining features of hydropower projects are 

designed, constructed, operated, and maintained using 

current engineering standards that meet the federal 

guidelines for dam safety. Commission staff inspects 

projects to investigate potential dam safety problems, 

complaints about constructing and operating a project, 

safety concerns related to natural disasters, and issues 

concerning compliance with the terms and conditions 

of a license. Every 5 years, a Commission-approved 

independent consulting engineer must inspect and 

evaluate projects with dams higher than 32.8 feet or 

with a total storage capacity of more than 2,000 acrefeet, or that are classified as high-hazard potential. The 

inspection reports include detailed engineering studies 

that provide a recommendation as to whether a dam is 

safe or requires a plan of action for further investigation 

or potential remediation. 

6.3 Reporting Safety-Related Incidents 

Under Part 12, Subpart B, licensees are required to report 

conditions affecting the safety of a project or its works to 

the Regional Engineer. Such reporting includes oral reports 

to the Regional Engineer as soon as practicable after the 

condition is discovered, followed by a written report that 

should include the cause of the condition, measures taken 

to prevent worsening of the condition, and a description of 

the damages to project works or any personal injuries. The 

level of detail of the written reports must be commensurate 

with the severity and complexity of the condition. 

Drownings or other accidents resulting in serious injury or 

death must also be reported, in writing, to the Regional 

Engineer. The written report should include a description of 

the cause and location of the accident and, if appropriate, 

remedial actions taken or proposed to avoid or reduce the 

chance of a similar occurrences in the future. 

6.4 Emergency Action Plans 

Emergency action plans (EAPs) are required under Part 12, 

Subpart C, for all projects unless the applicant or licensee 

satisfactorily demonstrates to the appropriate Regional 

Engineer that no reasonably foreseeable project emergency 

would endanger life, health, or property. EAPs are 

developed in consultation and cooperation with appropriate 

federal, state, and local agencies responsible for public 

health and safety and are designed to provide early warning 

to upstream and downstream inhabitants, property owners, 

operators of water-related facilities, recreational users, 

and other persons in the vicinity who might be affected by 

a project emergency. Project emergencies in this case are 

defined in the regulations as an impending or actual sudden 

release of water at the project caused by natural disaster, 

accident, or failure of project works. EAPs must include: 

(1) instruction to project operators and attendants and 

other responsible personnel about the actions they are to 

take during a project emergency; and (2) detailed plans for 

notifying federal, state, and local agencies, including public 

safety and law enforcement bodies. Licensees must review 

their EAP annually to determine if the plan is adequate and 

update the plan if changes are necessary. The two main 

parts of an EAP are a notification flowchart and inundation 

maps. The sample notification flowchart on the following 

page illustrates the public notification process and shows 

the types of contact information required. An inundation 

map is a map that shows the maximum potential areal 

extent that the water released from a dam failure could 

impact. The EAP guidance includes more complex example 

inundation maps that may be warranted depending on 

the structures and hazards that are located within the 

inundation area.50 

50 https://www.ferc.gov/industries/hydropower/safety/guidelines/eap.asp. 
 

# 

State Emergency 

Management 

Al Sanders 

Work: 111-665-8791

24 Hour: 111-369-2277

Satellite: 1-909-732-1764

Secondary Local 

Emergency Management 

Joe Giradi 

Work: 111-261-4679

24 Hour: 111-261-2258

1 

2 

Downstream Dam 

Phone: 111-594-1234

24 Hour: 111-594-6785

Upstream Dam 

Phone: 111-727-7575

24 Hour: 111-7272-2222

National 

Weather Service 

1- 800-326-3000

3 

Utility Public

Relations** 

Judith Robertson 

Work: 111-333-8108

Home: 111-356-7000

Federal Dam 

Regulator (if applicable) 

Walter Johnson 

Work: 321-496-9009

Home: 428-999-6976

State Dam 

Regulator 

Phyllis Kline 

Work: 111-665-8810

Home: 111-727-0100

2 

3 

2 

1 

Local 911 

(24 Hour)*** 

111-555-3721

111-555-3722

111-555-3723

Primary Local Emergency 

Management** 

Ralph Watts 

Work: 111-555-3742

24 Hour: 111-555-7948

Satellite: 1-909-698-3562

Utility Operations 

Manager** 

Thomas Knapp 

Work: 111-333-8000

Home: 111-333-0909

Utility Senior 

Management** 

Jason Morgan 

Work: 111-333-8107

Home: 111-356-7000

Downstream Camp 

Mom & Pop Jones 

111-222-4567 2 

1 

1 

3 

4 

Observer of Dam Incident 

Dam Owner/Operator** 

Joe Smith 

Joe Smith Work: 111-222-222

24 Hour: 111-356-1325

Satellite: 1-877-378-2256

= call sequence

* Use this chart in coordination with Notification Contact Table for additional contact information.

** Utility personnel should refer to EAP for sample warning messages.

*** Call Dam Operator if 911 is notified by non-utility observer.

These names and numbers are for example purposes only.

Example Notification Flowchart* 

Hydropower Primer 47
 
48 Hydropower Primer 

As part of the EAP, each licensee must annually test the state of training and readiness of key licensee personnel and 

coordinate with state and federal emergency management agencies. Such testing would occur in the form of one or 

more of the following exercises: 

EAP Seminar 

An EAP seminar is an informal 

discussion, designed to orient 

participants to new or updated 

plans, policies, or procedures (e.g., a 

seminar to review a new evacuation 

standard operating procedure). 

EAP Drill 

An EAP drill tests, develops, 

or maintains skills in a single 

emergency response procedure 

(e.g., conducting a call-down drill of 

contacts listed on the notification 

flowchart). 

EAP Tabletop Exercise 

An EAP tabletop exercise involves key 

personnel (i.e., the licensee and EAP 

plan holders, including state and local 

emergency management officials) 

discussing simulated scenarios in an 

informal setting. Tabletop exercises 

are used to assess plans, policies, 

and procedures. 

EAP Full-Scale Exercise 

A full-scale EAP exercise evaluates the operational 

capability of all facets of the emergency management 

system (both licensee and state and local emergency 

management authorities) interactively in a stressful 

environment with the actual mobilization of 

personnel and resources. It includes field movement 

and deployment to demonstrate coordination and 

response capability. 

EAP Functional Exercise 

An EAP functional exercise simulates a dam failure 

and other specified events in a stress-induced 

environment with time constraints. The participants 

act out their actual roles in a simulated emergency. 

It tests participants’ responses in a full simulation 

under real life conditions, but without a field 

deployment of resources. 

A seminar and a drill would be conducted annually, except 

in a year when a tabletop, functional, or full-scale exercise

 is planned. A tabletop exercise is recommended at least 

30 days before a functional or full-scale exercise or 

as required by the Regional Engineer. A functional or 

full-scale exercise is required every 5 years. 

6.5 Independent Safety Inspections 

Independent safety inspections are required under Part 12, 

Subpart D, for all licensed projects that have a dam that: 

(a) is more than 32.8 feet (10 meters) in height above the 

streambed (as measured in section 12.31(c)); (b) impounds 

a reservoir with a gross storage capacity of more than 

2,000 acre-feet (2.5 million cubic meters); or (c) has a high 

hazard potential and is determined by the Regional Engineer 

or other authorized Commission representative to require 

inspection by an Independent Consultant under Subpart D 

(18 CFR § 12.30). 

The inspection must include: 

•	 due consideration of all relevant reports on the safety of 

the development made by or written under the direction 

of federal or state agencies and submitted under 

Commission regulations, or made by other consultants; 

•	 physical field inspection of the project works and 

review and assessment of all relevant data concerning: 

settlement, movement, erosion, seepage, leakage, 

cracking, deterioration, seismicity, internal stress 

and hydrostatic pressures in project structures or 

their foundations or abutments, the functioning of 

foundation drains and relief wells, the stability of critical 

slopes adjacent to a reservoir or project works, and 

regional and site geological conditions; and 

•	 specific evaluation of: the adequacy of spillways; the 

effects of overtopping of non-overflow structures; the 

structural adequacy and stability of structures under all 

credible loading conditions; the relevant hydrological 

data accumulated since the project was constructed 

or inspected under this subpart; the history of the 

performance of the project works through analysis of 

data from monitoring instruments; and the quality and 

adequacy of maintenance, surveillance, and methods of 

project operations for the protection of public safety 

(18 CFR § 12.35). 
Hydropower Primer 49 

The report must include any recommendations by the 

independent consultant for emergency corrective measures 

or for new or additional monitoring instruments, periodic 

observations, or other methods of monitoring project works 

or conditions that may be required (18 CFR § 12.37). 

After the initial independent safety inspection report 

has been approved, the licensee is required to hire an 

independent consultant to complete a new inspection and 

file a report not later than every 5 years from the date of 

the last report (18 CFR § 12.38). 

Depending on the results of the report, Commission 

staff may require additional information or may require a 

licensee to take action to address concerns raised in the 

report (18 CFR § 12.39). 

6.6 Public Safety 

Ensuring public safety around hydropower projects 

is ultimately the responsibility of the project owner; 

however, public safety is one of the Commission’s many 

oversight responsibilities. Part 12 Subpart E Section 12.42 

of the Commission’s regulations gives each Regional 

Engineer the authority to require licensees to install 

“...safety devices that may reasonably be necessary or 

desirable to warn the public of fluctuations in flow from 

the project or otherwise to protect the public in the use 

of the project lands and waters.” 

Public safety measures include: educational and 

informational signage, warning devices, restraining devices, 

escape devices, and project operating procedures. Warning 

devices include danger and warning signs, audible devices, 

lights, beacons, buoys, and verbal announcements. 

Restraining devices are boat barriers, fences, and trashracks. 

Escape devices include life preservers, safety ropes, escape 

nets, escape ladders, suspended cables, canoe/kayak 

portages, and boat ramps. 

At most projects, the Commission has required owners to 

file public safety plans (PSPs) as a means to oversee and 

monitor an owner’s public safety efforts. The Commission’s 

requirement for PSPs at non-federal hydropower projects 

originated in 1991 following an incident where several 

boaters were injured or killed at a project, and questions 

arose regarding which public safety devices were required 

at the site. Since that time, the Commission has required 

project owners to file PSPs that (i) are not overly complex, (ii) 

list each existing safety device at the project, and (iii) include 

a schematic drawing showing the general location of each 

device. A schematic of a public safety plan is shown below. 

The Commission has developed guidelines entitled 

Guidelines for Public Safety at Hydropower Projects, 

which is available on the Commission’s website at: 

https://www.ferc.gov/industries/hydropower/safety/

guidelines/public-safety.pdf.
50 Hydropower Primer 

Schematic of Typical Public Safety Devices 

Commission staff reviews public safety measures during their routine dam safety inspections and during periodic 

environmental and public safety specific inspections of the project. From these inspections, additional actions may 

be required to enhance public safety at the project. 
Hydropower Primer 51 

6.7 Security 

The Commission also regulates physical and cyber security 

at hydropower projects. The Commission has developed 

a guidance document entitled Security Program for 

Hydropower Projects.

51

The foundation for the FERC Hydropower Security Program is 

the three security groups (Security Groups 1, 2, and 3) which 

are based on potential dam hazard classification, project size, 

potential upstream and downstream consequences, and 

installed generation capacity. As a special focus of the dam 

safety inspections, the project engineer conducting the dam 

safety inspection assesses the level of security, both physical 

and cyber, in place at the project. Although the criteria for 

the Security Groupings are not published, dams with a higher 

potential consequences and asset vulnerability (as well as 

being accessible and attractive as a target) were grouped 

higher than those with lower potential consequences 

when paired with their vulnerabilities. Requirements vary 

depending on the assigned Security Group, but may include 

vulnerability assessments, security assessments, security 

plans, annual security compliance certification letters, and 

cyber and industrial control systems (e.g., supervisory control 

and data acquisition) security. 

6.8 Engineering Guidelines 

The Commission developed Engineering Guidelines for 

the Evaluation of Hydropower Projects to assist staff in 

implementing the dam safety program as well as provide 

information to licensees.52 

These guidelines provide technical guidance for the dam 

safety evaluation of hydropower project facilities that are 

included in applications for a license or exemption. The 

guidelines also are used to evaluate proposed modifications 

to dams and project facilities that are required under Part 

12 of the Commissions regulations. The guidelines include 

chapters covering various topics on the evaluation of the 

safety of various types of dams and other structures - 

including spillway design, stability analyses, hazard potential 

evaluation, seismic impacts, flood loading, geotechnical 

and foundation explorations, and instrumentation and 

monitoring. These guidelines also include information on 

Emergency Action Plans and Independent Safety Inspections. 

6.9 Owners Dam Safety Program 

The Owners Dam Safety Program is an important element in 

maintaining safe dams and preventing dam failures. Dams 

with owners who do not have an effective Owners Dam 

Safety Program represent a higher risk. Recognizing the 

lessons learned from recent dam failures (e.g., Teton dam 

– 1976, Silver Lake dam – 2003, Taum Sauk dam - 2005), 

Commission staff developed, and provided to owners, 

an Owner’s Dam Safety Self-assessment Evaluation form 

designed to assist dam owners in judging the effectiveness 

of their programs. The form is composed of questions 

related to the basic principles of a good dam safety program, 

including: acknowledgments of dam safety responsibilities, 

communication, clear designation of responsibility, allocation 

of resources to dam safety, and learning organization. 

A dam safety program that is well documented, reviewed 

annually, and up-to-date sends a message to all affected 

parties up to the highest level of authority, both within 

and outside an owner’s organization, that dam safety is 

important. Recognizing that each organization is unique, an 

Owners Dam Safety Program should be specifically tailored 

to the particular situation considering the portfolio of dams, 

dam types, and the associated life safety and financial risks. 

Taum Sauk failed dam 

Taum Sauk rebuilt dam 

51 https://www.ferc.gov/industries/hydropower/safety/guidelines/security.asp. 

52 https://www.ferc.gov/industries/hydropower/safety/guidelines/eng-guide.asp. 
52 Hydropower Primer 

6.10 Dam Safety Performance Monitoring 

Program, Potential Failure Mode Analysis, and 

Risk-Informed Decision Making 

The licensee is required to institute a dam safety 

performance monitoring program. This program 

focuses on the licensee’s surveillance and monitoring of 

instrumentation and equipment. The program is meant 

to ensure that project structures are performing properly 

and to identify any developing problems so they can be 

addressed before becoming serious dam safety problems. 

The licensee of a high or significant hazard dam is also 

required to conduct a potential failure mode analysis 

(PFMA) as described in the Commission’s Engineering 

Guidelines. A potential failure mode is the chain of events 

leading to an unsatisfactory performance of the dam or 

a portion thereof. A PFMA is an exercise to identify and 

assess all potential failure modes under normal operating 

water levels, floods, earthquakes and any other pertinent 

external loading conditions for the water retaining 

structures. The PFMA determines those potential failure 

modes of significance that warrant continued awareness 

and attention to visual observation, monitoring, and 

remediation as appropriate. 

The Commission’s 2014 to 2018 Strategic Plan had a stated 

objective to minimize risk to the public. One strategy to 

achieve this goal has been identified as incorporating riskinformed decision-making (RIDM) into the Commission’s dam 

safety program. RIDM is a method of dam safety evaluation 

that uses the likelihood of loading, dam fragility, and 

consequences of failure to estimate risk. Commission staff 

developed draft guidelines on RIDM, convened workshops 

with licensees and consultants on RIDM procedures, and is 

implementing a RIDM pilot program at several projects. 

6.11 Dam Safety Remediation 

The Commission may require a licensee to perform 

modifications to their dams to correct deficiencies found in 

the design or if conditions are discovered that may affect 

dam safety. Deficiencies can be identified by an owner, 

operator, FERC inspector, or Independent Consultant 

either through a site inspection, review of instrumentation 

data, and/or engineering analysis. For major and complex 

construction, the Commission requires licensees to 

retain the services of a Board of Consultants to oversee 

investigations and the design and construction of remedial 

measures needed to correct the deficiency.53 Since 1981, 

the Commission has directed the completion of about 600 

dam safety modifications at a cost of about $1.5 billion, 

with costs ranging from about $2,000 to $460 million 

(Saluda dam in South Carolina – FERC Project Number 516). 

Currently there are over 100 dams that do or may require 

some type of dam safety remediation. It is anticipated that 

the majority of dam safety fixes will either be completed 

or under construction over the next few years. The 

remaining ones are those that require additional analyses to 

determine the need for remediation. 

The number of new projects at existing dams is increasing 

and the dam safety program has oversight over the 

construction of new powerhouses and facilities at existing 

dams. While the number of new dams under construction 

diminishes, and the number of existing dams requiring 

upgrades decreases, the next era of the dam safety program 

will concentrate more on performance monitoring coupled 

with potential failure modes identification to make certain 

that the dams are performing properly and new construction 

is done appropriately. The dam safety program will continue 

to identify any developing problems so they can be addressed 

before they become serious dam safety problems. 

53 A Board of Consultants is approved by the Director, Division of Dam Safety and Inspections, to review the design, plans and specifications, and 

construction of the project. The Board is expected to assess the construction inspection program, construction procedures, and progress, planned 

instrumentation, the filling procedures for the reservoir, and plans for surveillance during initial filling of the reservoir. 
Hydropower Primer 53 

7. pUbLic reSoUrceS and oUtreacH 

Public involvement is an important part of authorizing 

hydropower projects that are best adapted to comprehensive 

improvement/development of U.S. waterways. As a result, 

the Commission provides significant opportunities for 

the public and other stakeholders (e.g., state and federal 

agencies, Indian tribes, local landowners, and NGOs) 

participation in licensing, exemption, and post-licensing 

proceedings with mandated consultation opportunities, 

scoping, comment periods, and public meetings, as described 

in chapters 4 and 5. Commission staff encourages licensees, 

resource agencies, and other stakeholders to contact 

staff with questions or concerns regarding any aspect of a 

project. In order to facilitate stakeholder involvement, the 

Commission has developed numerous tools and guidelines 

to provide education about the many aspects of the 

Commission’s Hydropower Program and to make it easier 

for stakeholders to provide and access information about 

projects under the Commission’s jurisdiction. 

7.1 Electronic Systems 

An important tool available to anyone with internet access 

is FERC Online, the Commission’s portal to documents and 

dockets. All services are free and available via any internet 

connection (no installation required). The electronic 

systems available on FERC Online include: 

• www.ferc.gov – The overall FERC website that provides

comprehensive information about FERC

(all industries and resources) and links

to all electronic systems available.

• eLibrary – A free, centralized, searchable records

information system that contains more than 20 years

of documents submitted to and issued by FERC; use

project number, docket number, and date ranges to

narrow search.

• eRegister – Used to create an account with FERC

Online; create a username and password to access

eFiling, eSubscription, and eService.

• eFiling – Used to file comments, study requests,

interventions, etc. electronically, and other public and

non-public documents; faster than mailing, secure,

reduced cost and paper use.

• eSubscription – Receive automatic email notification of

issuances and filings for projects; subscribe by project

or docket number, and manage individual subscriptions.

• eService – Method by which intervening parties

receive Commission issuances; intervenors must be

eRegistered, and eRegistered users can access the

service list to fulfill their service obligation.

The following are helpful links to the FERC electronic 

systems described above. 

• Guide to Electronic Information at FERC: http://www.

ferc.gov/docs-filing/elec-info-guide.pdf

• Hydropower Filing Guide: http://www.ferc.gov/

industries/hydropower/safety/guidelines/filing-guide.pdf

• eRegister User guide: http://www.ferc.gov/docs-filing/

eregister-user-guide.pdf

• eFiling User guide: http://www.ferc.gov/docs-filing/

efiling-user-guide.pdf

• How to Intervene: http://www.ferc.gov/help/how-to/

intervene.asp

• Ex Parte: https://www.ferc.gov/legal/maj-ord-reg/

land-docs/exparte.asp

• eService User guide: http://www.ferc.gov/docs-filing/

eservice-user-guide.pdf
54 Hydropower Primer 

7.2 Outreach 

Outreach activities with licensees and stakeholders are 

an important opportunity to hear all applicable views and 

opinions, educate parties about the licensing process and 

all it entails, and identify unforeseen problems. This may 

include evaluation of projects on site with the licensee 

and other stakeholders, or participation by Commission 

staff in both industry and environmental conferences and 

workshops that allow both industry and environmental 

(agency) stakeholders to gain a better understanding of the 

Commission’s regulatory program. 

One of the most important periods for public and other 

stakeholder involvement in Commission regulatory 

activities is during the initial and subsequent licensing of 

a hydroelectric project. As described in Section 4.3, all 

licensing processes used by the Commission (the ILP, ALP, 

and TLP) have significant opportunities for stakeholder 

participation. Stakeholder participation is also available 

for other Commission activities, including preliminary 

permits, license amendments, exemptions, preparation of 

NEPA documents (EAs and EISs), and issuances of proposed 

regulations. The Commission has a guide that provides 

additional information on the licensing process and how the 

public can participate in the licensing process (Hydropower 

Licensing–Get Involved. A Guide for the Public), available 

on the Commission’s website. Other sources of information 

on Commission activities and the opportunities for 

stakeholder participation include the following handbooks 

and publications: 

1. Handbook for Hydroelectric Project Licensing

www.ferc.gov/industries/hydropower/gen-info/

handbooks/licensing_handbook.pdf

2. Hydroelectric Project Handbook For Filings

Other Than Licenses And Exemptions

http://www.ferc.gov/industries/hydropower/gen-info/

handbooks/post_licensing_handbook.pdf

3. Compliance Handbook

www.ferc.gov/industries/hydropower/gen-info/

handbooks/compliance_handbook.pdf

4. Information for Citizens

www.ferc.gov/for-citizens/for-citizens.asp
Hydropower Primer 55 

8. gLoSSary
 

Arch dam: An arch dam is similar to a gravity dam but 

thinner, and it curves upstream in a narrowing curve that 

directs the water pressure against the shoreline (typically 

canyon rock walls), providing the force to compress and 

maintain the strength of the dam. 

Area of Potential Effect (APE): According to the Advisory 

Council on Historic Preservation’s regulations, the APE is 

defined as “the geographic area or areas within which an 

undertaking may directly or indirectly cause alterations 

in the character or use of historic properties, if any such 

properties exist.” 

Baseload power: Baseload power is the electrical power 

needed to satisfy minimum demand on an electrical grid. 

That demand is called the baseload requirement and is the 

minimum level of demand over 24 hours. Baseload power 

is typically provided by thermal and other power plants that 

operate continuously. 

Black-start capabilities: Black-start capability is the 

capability to restore an electric power station or a part of 

an electric grid to operation without relying on the external 

transmission network. Normally, the electric power 

used within the plant is provided from the station’s own 

generators. 

Bypassed reach: A bypassed reach is the stretch of river 

from which water is diverted into a canal or penstock 

leading to the powerhouse, where it is used for generation 

and then returned to the river. 

Canal: A man-made open channel for conveying water 

typically from a reservoir to a powerhouse. 

Commerce Clause: The Commerce Clause of the U.S. 

Constitution (Article I, Section 8, Clause 3) gives Congress 

power to regulate commerce with foreign nations and 

among the states and with Indian tribes. 

Critical Energy Infrastructure Information (CEII): Specific 

engineering, vulnerability, or detailed design information 

about proposed or existing critical infrastructure (physical or 

virtual) that: 

1.		 Relates details about the production, generation,
	

transmission, or distribution of energy;
	

2.		 Could be useful to a person planning an attack on 

critical infrastructure; 

3.		 Is exempt from mandatory disclosure under the
	

Freedom of Information Act; and
	

4.		 Gives strategic information beyond the location of 

the critical infrastructure. 

Diadromous fish: Diadromous fish include anadromous 

species, which spawn in freshwater and reside in the ocean, 

and catadromous species, which spawn in the ocean and 

reside in freshwater. 

Draft tube: A draft tube is a water conduit that maintains 

a flow of water from the turbine outlet to the downstream 

water level. 

EAP seminar: An EAP seminar is an informal discussion, 

designed to orient participants to new or updated plans, 

policies, or procedures (e.g., a seminar to review a new 

Evacuation Standard Operating Procedure). 

EAP drill: An EAP drill tests, develops, or maintains skills in 

a single emergency response procedure (e.g., conducting 

a call-down drill of contacts listed on the notification 

flowchart). 

EAP full-scale exercise: A full-scale EAP exercise evaluates 

the operational capability of all facets of the emergency 

management system (both licensee and state and local 

emergency management authorities) interactively in a 

stressful environment with the actual mobilization of 

personnel and resources. It includes field movement and 

deployment to demonstrate coordination and response 

capability. 

EAP functional exercise: An EAP functional exercise 

simulates a dam failure and other specified events in a 

stress-induced environment with time constraints. The 

participants act out their actual roles in a simulated 

emergency. It tests participants’ responses in a full 

simulation under real life conditions, but without a field 

deployment of resources. 

EAP tabletop exercise: An EAP tabletop exercise involves 

key personnel (i.e., the licensee and EAP plan holders, 

including state and local emergency management officials) 

discussing simulated scenarios in an informal setting. 

Tabletop exercises are used to assess plans, policies, and 

procedures. 
56 Hydropower Primer 

eLibrary: eLibrary is a database of documents that 

have been issued by or submitted to the Federal 

Energy Regulatory Commission that is accessed on the 

Commission’s website, www.ferc.gov. This database is 

accessible to the public, but access to some documents may 

be limited if labeled as privileged or CEII. Privileged or CEII 

materials may be requested using the process at https:// 

www.ferc.gov/legal/ceii-foia.asp. 

Embankment dam: Massive dam created by the placement 

and compaction of a complex semi-plastic mound of various 

compositions of soil, sand, clay and/or rock, with a typically 

dense impervious core. 

Essential fish habitat: Under the Magnuson-Stevens 

Fishery Conservation and Management Act, EFH applies to 

federally managed species. EFH includes all types of aquatic 

habitat where these managed fish spawn, breed, feed, or 

grow to maturity. 

Exemption: An exemption is a small hydroelectric project 

having limited environmental impacts and meeting certain 

criteria so that it is exempt from licensing under Part I of 

the FPA. Exemptions are issued in perpetuity, and include 

mandatory environmental terms and conditions prescribed 

by state and federal fish and wildlife agencies. 

Flume: A man-made structure for conveying water in the 

form of an open, declined gravity chute with walls that are 

raised above the surrounding terrain. 

Gate: A structure, typically on a dam or canal, that allows 

passage of water when open. 

Generator: A device that converts the rotational energy 

from a turbine to electrical energy. 

Gravity dam: Constructed from concrete or stone masonry 

and designed to hold back water by primarily using the 

weight of the dam itself to resist the horizontal pressure of 

water pushing against it. 

Head: Head is the difference between the water surface 

elevations upstream (the reservoir) and downstream of a 

project (the tailrace), providing the energy for the falling water. 

Intervenor (or motion to intervene): Pursuant to 18 CFR 

§385.214, any stakeholder may file a “motion to intervene,” 

and become an intervenor in a Commission proceeding for 

a project, meaning an official party to the proceeding who is 

entitled to receive a copy of any filing made on the project 

by any other party, including the Commission. Intervenors 

must also serve any filings with all other parties to the 

proceeding. 

An intervenor has the right to seek rehearing of a license 

order and to appeal the Commission’s final decision to 

the appropriate federal court. Stakeholders may also file 

a “motion to intervene, in opposition,” meaning that the 

intervening party is opposed to licensing the project. 

Littoral habitat: Wetted habitat that is close to the 

shoreline of a water body. 

New license: A new license (relicense) is issued for an 

existing hydroelectric project that is subject to sections 14 

and 15 of the FPA. License terms (of 30 to 50 years) are 

based on the amount of redevelopment, new construction, 

new capacity, or environmental mitigation, and other factors 

such as coordination of license terms for multiple projects 

in a river basin. 

Original license: An original hydropower license authorizes 

a licensee to construct and operate a new hydroelectric 

project. An original license is granted for a period of up to 

50 years. 

Peaking project: Project in which water can be stored in a 

reservoir until needed, and then released through turbines 

to generate power to help supply the peakload demand. 

Penstock: An enclosed pipe-like structure that typically 

conveys water directly from a reservoir to a powerhouse. 

Powerhouse: The building that houses the project’s 

turbines/generating units. 

Preliminary permit: A preliminary permit authorizes a 

permittee for a hydroelectric project to study a project site 

for a 3-year period, with the option to extend the permit 

for an additional 2 years, if the Commission finds that the 

permittee has carried out activities under the permit in 

good faith and with reasonable diligence during the first 3 

years of the permit. During this period, the permittee has 

priority for that site over other potential license applicants. 

Privileged material: Materials that customarily are treated 

by a party as sensitive or proprietary and are not available 

to the public. 

Public safety plan: A public safety plan is a plan that 

ensures that public safety is protected in the vicinity of a 

project, and at a minimum, includes a listing of each existing 

safety device at a project and a schematic drawing showing 

the general location of each device. All safety devices, 

including fences, signs, boat barriers, buoys, log booms, 

alarms, illumination and beacon lights are listed and shown 

on the drawing. Additional information, such as height and 

type of fences, size and type of boat barriers, distance of 

barriers from spillways and intakes, sign wording, and type 

and schedule of alarms are also provided. 
Hydropower Primer 57 

Recommendations, prescriptions, and terms and 

conditions: Upon notice by the Commission that a project 

is ready for environmental analysis, agencies and other 

stakeholders submit recommendations, prescriptions, and 

terms and conditions that these stakeholders believe should 

become conditions of any license that may be issued. 

Recommendations are not mandatory, but prescriptions 

and some agency conditions are mandatory and must be 

included in any license issued. 

Rehearing: If any intervenor is harmed by the Commission’s 

final order, that intervenor may file a request for rehearing, 

which is a request that the Commission reconsider 

its decision. If rehearing is granted, Commission staff 

reexamines the record, to determine whether the final 

Commission decision should be affirmed or revised. 

Riparian habitat: Terrestrial habitat found along the banks 

of a river or stream. 

Rockfill dam: A type of embankment dam constructed 

of compacted free-draining granular earth typically with 

an impervious zone, using a high percentage of large 

particles (rock). 

Roller compacted concrete (RCC) dam: A gravity dam 

constructed using a mix of cement/fly ash, water, sand, 

aggregate and common additives, but containing less water, 

compacted by vibratory rollers. 

Runner: A runner is the rotating part of the turbine that 

converts the energy of falling water into mechanical energy. 

Run-of-river project: A type of hydropower project in which 

limited storage capacity is available and water is released at 

roughly the same rate as the natural flow of the river. 

Scroll case: A scroll case is a spiral-shaped steel intake 

guiding the flow into the wicket gates located just prior to 

the turbine. 

Slab and buttress dam: Reinforced concrete buttresses 

proportioned to transfer the water load to the foundation 

rock through individual buttress footings, using the weight 

of the impounding water and the weight of the structure to 

provide resistance against sliding and overturning. 

Stakeholders: State and federal agencies, Indian tribes, 

local landowners, the general public, and NGOs. 

Subsequent license: A subsequent license (also a relicense) 

authorizes a licensee to continue to operate an existing 

minor project not subject to sections 14 and 15 of the 

FPA. License terms (of 30 to 50 years) are based on the 

amount of redevelopment, new construction, new capacity, 

or environmental mitigation, and other factors such as 

coordination of license terms for multiple projects in a river 

basin. 

Take: Pursuant to Endangered Species Act, “take” means to 

harass, harm, pursue, hunt, shoot, wound, kill, trap, capture, 

or collect, or to attempt to engage in any such conduct, for 

any federally listed threatened or endangered species. 

Transmission lines: Those lines that convey electricity to 

the interconnected grid (referred to as “primary lines”). 

Transmission yards: Electrical substations that receive 

power generated by a project and increase the voltage for 

transmission to the power grid. 

Turbine: A machine that produces continuous power in 

which a wheel or runner revolves, pushed by a fast-moving 

flow of water. 

Undertaking: According to the Advisory Council on Historic 

Preservation’s regulations, an ‘undertaking’’ means a 

project, activity, or program funded in whole or in part 

under the direct or indirect jurisdiction of a federal agency, 

including: (1) those carried out by or on behalf of the 

federal agency; (2) those carried out with federal financial 

assistance; (3) those requiring a federal permit, license, or 

approval; and (4) those subject to state or local regulation 

administered pursuant to a delegation or approval by a 

federal agency. 

Wicket gates: Wicket gates are adjustable elements that 

control the flow of water to the turbine. 
58 Hydropower Primer 

9. LiSt oF acronymS and abbreviationS
 

AIR additional information request 

ARO Atlanta Regional Office 

ALP Alternative Licensing Process 

BA biological assessment 

CFR Code of Federal Regulations 

Corps U.S. Army Corps of Engineers 

CRO Chicago Regional Office 

CWA Clean Water Act 

CZMA Coastal Zone Management Act 

Dam Safety and Inspections Division of Dam Safety and Inspections 

EA environmental assessment 

EAP emergency action plan 

EFH essential fish habitat 

EIS environmental impact statement 

ESA Endangered Species Act 

FERC Federal Energy Regulatory Commission 

FPA Federal Power Act 

FWCA Fish and Wildlife Coordination Act 

FWS U.S. Fish and Wildlife Service 

HPMP Historic Properties Management Plan 

Hydropower Administration Division of Hydropower Administration and Compliance 

Hydropower Licensing Division of Hydropower Licensing 

ILP Integrated Licensing Process 

LNG liquefied natural gas 

MMPA Marine Mammal Protection Act 

MOU Memorandum of Understanding 

MW megawatt 

NEPA National Environmental Policy Act 

NGO nongovernmental organization 

NHPA National Historic Preservation Act 

NMFS National Marine Fisheries Service 

NOI Notice of Intent 

Northwest Council Pacific Northwest Planning Council 

NYRO New York Regional Office 

OEP Office of Energy Projects 

PAD preliminary application document 

PFMA potential failure mode analysis 

PRO Portland Regional Office 

RIDM risk-informed decision-making 

SFRO San Francisco Regional Office 

THPO Tribal Historic Preservation Officer 

TLP Traditional Licensing Process 

Hydropower Prime

A Handbook of Hydropower Basics

Federal Energy Regulatory Commission | www.ferc.gov

888 First Street, NE | Washington, D.C. 20426