HYDROELECTRIC PROJECT HANDBOOK

FOR FILINGS OTHER THAN

LICENSES AND EXEMPTIONS

______________________________________________________________

Federal Energy Regulatory Commission

Washington, DC 

April 2001
HYDROELECTRIC PROJECT HANDBOOK FOR FILINGS OTHER THAN LICENSES AND EXEMPTIONS

i

NOTICE

The regulations cited in this publication are subject to change. The

applicant may identify any changes in Federal Energy Regulatory

Commission (Commission or FERC) regulations that may affect

any application by monitoring the formal documents issued by the

Commission each business day using the Commission’s website

home page at www.ferc.fed.us or by using one or more of the

services described below. 

The Commission makes information available to the public via the

Internet through the Records and Information Management System

(RIMS) database and the Commission Issuance Posting System

(CIPS). RIMS is an electronic database containing indexes and

images of documents filed with and issued by the Commission

since November 16, 1981. Documents from 1981 through 1995

are available on microfilm, and documents from 1996 to the

present are scanned documents (11" x 17" or smaller) available for

viewing and printing. RIMS can be accessed through the

Commission’s home page or directly at

www.ferc.fed.us/online/rims.htm. 

CIPS provides timely access to Commission issuances including

orders, notices, rulemakings, and many other types of documents.

CIPS contains issuances dating back to November 14, 1994. The

documents can be read or downloaded in either ASCII or

WordPerfect. CIPS also includes new releases, Commission

Agenda and Action Agenda, Daily Filing List, Formal Documents

Issued List, and the Daily Calendar of hearings and meetings.

CIPS can be accessed through the Commission’s home page or

directly at www.cips.ferc.fed.us/cips.

To submit questions, comments, and suggestions about either of

these services, users may contact RIMS Support

(RIMSMaster@ferc.fed.us) or CIPS Support

(ContentMaster@ferc.fed.us) via electronic mail (e-mail). When

sending an e-mail, please include a current mail address,

telephone number, and an Internet address. In addition, questions

can be directed to the Help Desk at (202) 208-2222. Most of the

Commission issuances discussed in this handbook may be

obtained through the Internet using the Commission home page

address. 

Public Reference Room. Applicants also may visit the Public

Reference Room at Room 2-A, Commission Headquarters, 888

First Street, NE, Washington, DC, 20246. Filings and other official

documents may be viewed free of charge. The free publication A

Guide to Public Information at the Federal Energy Regulatory

Commission is also available from the Public Reference Room, on

the Internet, or through the mail. It may be ordered by contacting

public.referenceroom@ferc.fed.us., or by calling (202) 208-1371.

Federal Register. Published each business day, the Federal

Register contains official notices of initial filings and applications, as

well as the Commission’s proposed and final rulemakings. Online

access to the Federal Register can be found at
HYDROELECTRIC PROJECT HANDBOOK FOR FILINGS OTHER THAN LICENSES AND EXEMPTIONS

ii

www.access.gpo.gov/su_docs/index.htm or

www.nara.gov/fedreg. To subscribe, contact the Superintendent

of Documents, U.S. Government Printing Office, Washington, DC

20402.

Federal Energy Guidelines. FERC Reports and FERC Statutes

and Regulations are looseleaf, indexed services that contain

proposed and final rulemakings, orders, notices, opinions, initial

decisions, and final decisions. To subscribe, contact Commerce

Clearing House, Inc., 4025 West Peterson Ave., Chicago, IL 60646,

or call (800) 835-5224. 

Other Electronic Databases. Several services provide access to

Commission documents by computer. These include LEXIS and

WESTLAW. For information, write or call the offices below.

LEXIS—Available from Mead Data Central, P.O. Box 933, Dayton,

OH 45401. Phone (800) 544-7390.

WESTLAW—Available from West Publishing Company, P.O. Box

64779, St. Paul, MN 55164. Phone (800) 328-9833.
HYDROELECTRIC PROJECT HANDBOOK FOR FILINGS OTHER THAN LICENSES AND EXEMPTIONS

iii

FOREWORD

The Hydroelectric Project Handbook For Filings Other Than

Licenses and Exemptions updates information on applying for

preliminary permits, conduit exemptions, amendments of licenses

and exemptions, surrenders and transfers. Updated information

includes more recent policy statements and rulemakings that affect

these proceedings. 

On September 15, 1999, the Commission issued a final rule for offthe-record communications (Docket No. RM98-1-000, Order No.

607). Consistent with the Administrative Procedures Act, the

Commission’s off-the-record communication rules are based on the

basic tenets of fairness that “a hearing is not fair when any party

has private access to the decision maker and can present evidence

or argument that other parties have no opportunity to rebut,” and

“reliance on secret evidence may foreclose meaningful judicial

review.” The final rule sets forth when communications between

the Commission and Commission staff, and persons outside the

Commission, may take place on the record, as well as directions on

how the Secretary’s office will handle and notice both prohibited

and exempted off-the-record communications. 

In 1997, the Commission issued a final rule revising its procedural

regulations governing applications for licenses and exemptions for

hydroelectric projects to provide alternative administrative

processes whereby, in appropriate circumstances, the pre-filing

consultation process and the environmental review process can be

combined. This alternative process is designed to improve

communication among affected entities and to be flexible and

tailored to the facts and circumstances of the particular proceeding

(Docket No. RM95-16-000, Order No. 596).

The final rule offers alternative administrative procedures for the

processing of applications that are subject to the pre-filing

consultation rules contained in §4.38 and §16.8 of the regulations,

such as licenses to construct, operate, and maintain hydropower

projects, including applications for certain major amendments to

such licenses, and for applications for exemption from licensing.

Under alternative processes, applicants would complete the

scoping requirements of the National Environmental Policy Act

(NEPA) during the pre-filing consultation. 

Also in 1998, the Commission participated in a National Review

Group (NRG) convened by the Electric Power Research Institute

(EPRI) comprising more than 30 organizations representing a

diverse cross-section of stakeholders in the hydroelectric licensing

process for the purpose of improving the outcomes of hydroelectric

licensing. The NRG report, Hydro Licensing Forum: Relicensing

Strategies, published in December 2000, includes a section on

anticipating and addressing issues of post-licensing administraiton

and compliance. The report may be obtained from the EPRI

website at www.epri.com.

The Commission published its Electronic Filing Initiative designed

to facilitate licensing proceedings in 1998. As part of this initiative,

the Commission began permitting participants in FERC

proceedings, including preliminary permit applications, conduit

exemption applications, and amendment applications to voluntarily
HYDROELECTRIC PROJECT HANDBOOK FOR FILINGS OTHER THAN LICENSES AND EXEMPTIONS

iv

serve documents on one another electronically. Effective

November 1, 2000, the Commission began accepting certain filings

via the Internet in lieu of paper (Docket No. RM00-12, Order No.

691). Protests, comments on filings, comments on environmental

documents, and reply comments may be filed electronically using

the Commission filing protocol. Effective in March 2001,

interventions also may be filed electronically. These actions give

participants in licensing proceedings more flexibility in meeting the

service requirements and the opportunity to gain experience with

electronic service, and are important steps in the Commission’s

plan to convert to a broad-based electronic filing policy. This new

rule applies only to electronic filings via the Internet. The

Commission does not accept facsimile or e-mail transmission of

filings in its proceedings. 

These policy statements and new rules may be obtained using the

Commission website at www.ferc.fed.us.
HYDROELECTRIC PROJECT HANDBOOK FOR FILINGS OTHER THAN LICENSES AND EXEMPTIONS

v

TABLE OF CONTENTS

NOTICE .................................................................................................... i

FOREWORD ................................................................................................ iii

1.0 INTRODUCTION ...................................................................................... 1-1

1.1 Purpose and Overview of this Handbook .............................................................. 1-1

1.2 The Federal Energy Regulatory Commission’s Role in Hydropower Licensing ................................ 1-1

2.0 APPLYING FOR A PRELIMINARY PERMIT ................................................................. 2-1

2.1 Purpose of a Preliminary Permit .................................................................... 2-1

2.2 Content of a Preliminary Permit Application ............................................................ 2-1

2.3 Securing a Preliminary Permit ..................................................................... 2-2

2.4 Other Rules Relevant to Preliminary Permits .......................................................... 2-5

3.0 APPLYING FOR A CONDUIT EXEMPTION ................................................................. 3-1

3.1. Application Content .............................................................................. 3-1

3.2 Development of Terms and Conditions ............................................................... 3-1

3.3 Surrender and Amendment ....................................................................... 3-2

4.0 AMENDMENT OF LICENSE ............................................................................ 4-1

4.1 Content of an Application for a Capacity-Related Amendment .............................................. 4-1

4.2 Procedural Steps in Securing a Capacity-Related Amendment ............................................. 4-2

4.3 Content of an Application for a Non-Capacity-Related Amendment .......................................... 4-3

4.4 Procedural Steps in Securing a Non-Capacity-Related Amendment ......................................... 4-4
HYDROELECTRIC PROJECT HANDBOOK FOR FILINGS OTHER THAN LICENSES AND EXEMPTIONS

vi

5.0 AMENDMENT OF EXEMPTION .......................................................................... 5-1

5.1 Surrender of Exemption .......................................................................... 5-1

5.2 Amendment of Exemption ......................................................................... 5-1

6.0 SURRENDER OR TERMINATION OF LICENSE ............................................................. 6-1

6.1 Surrender of License ............................................................................. 6-1

6.2 Termination of License ........................................................................... 6-2

7.0 TRANSFER OF LICENSE ............................................................................... 7-1

TABLES

Table 1. Construction Status ........................................................................ 4-2
INTRODUCTION

1-1

1.0 INTRODUCTION 

1.1 PURPOSE AND OVERVIEW OF THIS

HANDBOOK

This handbook is for all interested parties involved in the

hydropower authorization process for all filings except applications

for licenses and exemptions from licensing. The handbook

provides a step-by-step guide to applying for a preliminary permit,

a conduit exemption, and amendments of an original license,

relicense, or exemption from licensing, and can be used to improve

the quality and consistency of applications. The handbook clarifies

the responsibilities of the interested entities in these proceedings:

prospective applicants, the Commission staff, resource agencies,

Indian tribes, non-governmental organizations, and members of the

public. 

The handbook presents detailed information on obtaining a

preliminary permit in chapter 2, and obtaining a conduit exemption

in chapter 3. Chapters 4 and 5 discuss how to apply for an

amendment of a license or an exemption from licensing. We also

provide detailed information on the steps for the surrender or

transfer of a license or exemption from licensing in chapters 6

and 7. 

While this handbook provides helpful information about application

procedures for filings other than licenses and exemptions from

licensing, it is not a substitute for the Commission’s implementing

regulations at 18 CFR Subchapter B. For specific guidance,

prospective applicants and other participants in these proceedings

should rely on the regulations, supplemented as necessary with

legal advice. 

1.2 THE FEDERAL ENERGY

REGULATORY COMMISSION’S ROLE

IN HYDROPOWER LICENSING

Under the authority of the Federal Power Act (FPA), as amended,1

the Federal Energy Regulatory Commission (Commission) has the

exclusive authority to license nonfederal hydropower projects on

navigable waterways, federal lands, and under other certain

criteria. 

The Division of Hydropower Administration and Compliance

(DHAC) is primarily responsible for reviewing and ensuring

compliance by owners of hydropower project with the conditions

1

16 U.S.C. §§791(a)-825r, as amended by the Electric

Consumers Protection Act of 1986, Public Law 99-495 (1986), and

the Energy Policy Act of 1992, Public Law 102-486 (1992).
INTRODUCTION

1-2

specified in their licenses and exemptions. DHAC also determines

the jurisdiction of operating, unlicensed projects to ensure full

compliance with the Commission’s regulations and the provisions

of the FPA. Finally DHAC is responsible for the processing of

preliminary permit applications, conduit exemption applications, all

license amendments not requiring the preparation of NEPA

documents, applications for license surrenders, and applications for

the transfers of licenses. It is this set of activities that are the focus

of this handbook. 

Applicants for amendments of licenses or amendments of

exemptions from licensing may use either traditional or alternative

licensing processes. In the traditional licensing process, the

Commission conducts scoping after an application is accepted for

filing by the Commission. An alternative process allows an

applicant to conduct scoping during the pre-filing consultation prior

to filing the application with the Commission. 

The DHAC staff evaluate applications and make recommendations

to the Commission on hydropower compliance matters. Many

hydropower amendments involve natural resource issues. The

amendment of license process requires that the Commission

address both the economics and engineering issues and the

potential environmental and socioeconomic effects of project

development and operation. The following principles, established

in the FPA, guide the Commission’s treatment of these issues and

potential effects during the application process.

! In deciding whether to issue a major

capacity amendment to a license or

exemption, the Commission must

give equal consideration to

developmental and environmental

values including: hydroelectric

development; fish and wildlife

resources, including their spawning

grounds and habitat; visual

resources; cultural resources; 

recreational opportunities and other

aspects of environmental quality;

irrigation; flood control; and water

supply.

FPA Section

4(e)

Equal

Consideration

Standard
INTRODUCTION

1-3

! The Commission must ensure that

the project to be licensed is best

adapted to a comprehensive plan for

developing the waterway for

beneficial public purposes. In making

this judgment, the Commission

considers comprehensive plans

(including those that are resourcespecific) prepared by federal and

state entities and the

recommendations of federal and

state resource agencies, Indian

tribes, and the public, affected by the

proposed project.

FPA Section

10(a)(1)

Comprehensive

Development

Standard

! In issuing major amendments of

licenses, the Commission must

include conditions to adequately

protect, mitigate damage to, and

enhance fish and wildlife (and their

habitats), based on recommendations

of state and federal fish and wildlife

agencies.

FPA Section

10(j)

! Exemptions from licensing are subject

to mandatory, terms and conditions

from the Fish and Wildlife Service, the

National Marine Fisheries Service,

and the state fish and wildlife agency.

FPA Section

30(c)

! In cases where the proposed

amendment to a licensed project or

proposed conduit exemption would

be located on a federal reservation,

the federal agency responsible for

managing that land can file terms and

conditions to protect the reservation

that become, upon filing, mandatory

upon the Commission to include in

amendment to license or exemption

issued.

! The FPA authorizes the Secretaries

of Commerce and the Interior to

prescribe fishways at licensed

projects.

FPA Section

4(e)

FPA Section

18
INTRODUCTION

1-4

! After an amendment of license, an

exemption from licensing, or conduit

exemption is issued, the Commission

monitors the licensee’s or exemptee’s

compliance with the conditions of the

license or exemption. Failure to

comply with these conditions would

subject the licensee or exemptee to

civil penalties or even recission of the

license or exemption. 

FPA Section

31(a)
APPLYING FOR A PRELIMINARY PERMIT

2-1

2.0 APPLYING FOR A

PRELIMINARY PERMIT

2.1 PURPOSE OF A PRELIMINARY

PERMIT

A preliminary permit secures priority of application for license, and

it provides the prospective developer with time to evaluate the

feasibility of the proposed project and to complete the studies

required to support a development application. A preliminary

permit is not a prerequisite to filing a license application.

 18 CFR 4.80

Any citizen, association of citizens, domestic corporation,

municipality, or state can file an application for preliminary permit.

 18 CFR 4.31(a)

The Commission will not accept a preliminary permit application,

however, for a proposed project that:

! would develop the same water resource that would be

developed by a project for which there already is a

preliminary permit in effect; 18 CFR 4.33(a)(1)

! would develop the same water resource that would be

developed by a project for which there has already been

filed and accepted an application for license; or

 18 CFR 4.33(a)(2)

! would be precluded by law (e.g., the project is already

licensed or would be located on a wild and scenic river).

 18 CFR 4.32(e)

2.2 CONTENT OF A PRELIMINARY

PERMIT APPLICATION

Once a prospective applicant identifies a proposed project, the

project must be characterized in sufficient detail to prepare a

preliminary permit application.

An application for preliminary permit must include an initial

statement, a verification statement, and four numbered exhibits.

 18 CFR 4.32 and 4.81

Having a preliminary permit offers certain advantages

when there are multiple license applications filed for the

same project (see Licensing Handbook, chapter 9.0),

and it precludes the acceptance of another party’s

permit or development application during the term of

the permit, or until the permittee files its developmental
APPLYING FOR A PRELIMINARY PERMIT

2-2

The initial statement must contain information about the

applicant, the project, the requested term of the permit, affected

political jurisdictions, and a verification of the facts presented.

 18 CFR 4.32 and 4.81(a)

The verification statement contains the signature of a Notary

Public or other authorized official verifying that the information

contained in the application is true. 18 CFR 4.32 (a)(4)

Exhibit 1 must describe the proposed project. The description

contains four items: (1) a characterization of the project structures,

reservoir, and transmission facilities; (2) estimates of energy and

capacity; (3) identification of affected United States lands; and (4)

other information demonstrating how the proposed development

of the water resource would be in the public interest.

 18 CFR 4.81(b)

Exhibit 2 must describe project studies, either completed or

planned, for assessing project feasibility, determining

environmental impacts, and preparing the application. When the

proposed project involves constructing a new dam, additional

detail must be included about proposed test pits, borings or other

foundation explorations, with particular regard to reducing adverse

environmental impact during the explorations.

 18 CFR 4.81(c)

Exhibit 3 is a statement of costs and financing that must provide

an estimate of the costs of doing the project studies described in

Exhibit 2, the source of funding for these studies, and a description

of the anticipated market for the power to be generated by the

proposed project. 18 CFR 4.81(d)

Exhibit 4 must include maps that clearly show the location of the

project, the location and relationship of the principal project

features, a proposed boundary for the project, and any areas with

special protected status under the National Wild and Scenic River

System or Wilderness Act. 18 CFR 4.81(e)

2.3 SECURING A PRELIMINARY PERMIT

The first formal step in the preliminary permit process is filing the

application. 18 CFR 4.32(b)(1)

The applicant must file an original application and 8 copies with the

Secretary, FERC, 888 First Street, NE, Washington, DC 20426.

It is recommended that another copy be provided to the Division

of Hydropower Administration and Compliance at the same

address.

The Commission staff reviews the application for adequacy. The

application must be complete, and omission of any required

information must be justified. After its review, the
APPLYING FOR A PRELIMINARY PERMIT

2-3

Commission makes one of three determinations:

 18 CFR 4.32(e)

1. The application is adequate. The Commission sends the

applicant a letter of acceptance. The notification of

acceptance will specify the project number assigned to the

applicant’s project and will confirm the filing date. 

2. The application is deficient. If the application is found

deficient but not patently deficient, the Commission will

issue a deficiency letter. An applicant notified of a deficient

application is allowed up to 45 days from the date of the

letter to correct the deficiencies. Deficiencies must be

corrected by submitting an original and 8 copies of the

materials specified in the deficiency letter.

3. The application is rejected. The Commission can reject the

application as patently deficient if it determines that the

application substantially fails to comply with the

requirements of application content (18 CFR 4.32 and

4.81) or determines that the proposed project is precluded

by law. An application that is rejected can be resubmitted

if the inadequacies are corrected, but the date of

resubmission will be considered the official filing date.

There is a possibility for rehearing if an applicant wishes to contest

the Commission’s decision on the preliminary permit application.

Under Rule 713 (section 385.713), an applicant may request a

rehearing on the decision to reject the preliminary permit

application provided that the order rejecting the preliminary permit

allows rehearing and the rehearing request is filed within 30 days

of the date of the decision. Rehearing requests must state

concisely the alleged error in the final decision or order. 

 18 CFR 385.713

Upon acceptance, the Commission notifies the public of the

application in the following three ways: 18 CFR 4.32(d)

! Publication in the Federal Register.

! Publication in a local newspaper (four separate times).

! Mailing notice directly to the project mailing list, which

includes resource agencies and affected Indian tribes.

If the project affects lands of the United States, the Commission

also must notify the responsible federal agency.

If the preliminary permit application is the first application filed for

a particular site, the public notice will set an intervention deadline

for filing protests and motions to intervene, comments,

prescriptions, terms, and conditions, competing applications, and

notices of intent. 

At this stage of the process, other parties have an opportunity to

file a competing application to develop the same water resource.
APPLYING FOR A PRELIMINARY PERMIT

2-4

The competing application can be for a preliminary permit or for a

development application (i.e., license or exemption). A competing

application must meet the following criteria: 18 CFR 4.36

! a competing preliminary permit application must conform

to all the requirements of an initial preliminary permit

application; 

! a competing development application must conform to all

the requirements of an initial development application; and

! proof must be included that a copy of the competing

application was served on the persons designated in the

public notice of the initial application.

A potential applicant that intends to file a competing application

and needs additional time to prepare the competing application

may file a notice of intent to file the competing application. A 

competing applicant that files a notice of intent is given extra time

to file a competing application.

! A competing preliminary permit application not preceded

by a notice of intent must be filed by the set intervention

deadline.

! A competing preliminary permit application filed with a

notice of intent must be submitted not later than 30 days

after the set intervention deadline.

A competing development application filed with a notice of intent

must be submitted not later than 120 days after the established

intervention deadline.

If two or more acceptable applications are filed for a preliminary

permit to develop the same water resource, the Commission will

select between or among the applicants on the basis of

established criteria. The factors for determining preference of

selection between competing preliminary permit applications

include: 18 CFR 4.37

! whether the applications are for preliminary permits (not

developmental stage) or exemptions and licenses

(developmental stage);

! filing date (order of time in filing the applications);

! whether applicants are private entities or municipalities or

states (municipalities and states have preference); and

! for development applications (exemptions and licenses),

the best adapted plan. 

These factors are generally applied as follows: 

! if application for a preliminary permit proposes to use the

same water resource as an accepted application for a 
APPLYING FOR A PRELIMINARY PERMIT

2-5

license the Commission would take action on the license

application first;

! If both of the applicants for a preliminary permit are either

a municipality or a state or neither of them is a municipality

or a state and the plans of the applicants are equally well

adapted to develop, conserve, and utilize in the public

interest the water resources, the Commission will favor the

applicant with the earliest filing date;

! if one of the two applicants is a municipality or a state and

the other is not, and the plans are both well adapted to

develop, conserve, and utilize the water resource, the

Commission will favor the municipality or the state

2.4 OTHER RULES RELEVANT TO

PRELIMINARY PERMITS

! The term of the permit cannot be extended beyond 3

years. FPA Section 5

! Permits are prohibited from being transferred.

 FPA Section 5

! A request for a material change in the proposed project will

trigger issuance of a public notice of the application, which

may allow further competition for the site.

The Commission may cancel a preliminary permit if the permittee

fails to comply with the terms and conditions of the permit or for

other good cause. 18 CFR 4.83

! Prior to cancellation, notice and an opportunity for hearing

is given.

! Permit cancellation will result in the loss of the permittee’s

priority of application for a license for the proposed project,

but it does not preclude the permittee from filing a license

application.

A permittee can voluntarily surrender its permit but only by

submitting a petition to the Commission requesting the surrender.

 18 CFR 4.84

If a permittee fails to file an acceptable license

application during the term of the permit, the

permittee’s priority of application for a license is lost,

but the permittee can still file a license application.
APPLYING FOR A CONDUIT EXEMPTION

3-1

3.0 APPLYING FOR A CONDUIT 

EXEMPTION

This section describes aspects of the regulations that pertain

specifically to conduit exemptions. 18 CFR 4.92

3.1 APPLICATION CONTENT

An application for a conduit exemption must include: 

 18 CFR 4.92(a) and 4.92(b)

! Introductory statement.

! Exhibit A, describing the small conduit hydroelectric facility

and proposed mode of operation.

! Exhibit B, a general location map that shows the physical

structures, the proposed project boundary, and land

ownership by parcel.

! Exhibit E, an environmental report that must reflect prefiling consultation requirements. Commensurate with the

scope and degree of environmental impact, it must include

a description of the project’s environmental setting, the

expected environmental impacts, and a description of 

alternative means of obtaining an equivalent amount of

power.

! Exhibit G, a set of drawings showing the project structures

and equipment, including plan, elevation, profile, and

section views of the power plant and other principal

structures.

! Appendix containing evidence that the applicant has the

necessary real property interests in the lands to develop

and operate the project.

! Identification of all potentially affected Indian tribes.

! Fish and wildlife agency reimbursement fees must

accompany filed applications. 18 CFR 4.301

3.2 DEVELOPMENT OF TERMS AND 

CONDITIONS

The procedural steps for a conduit exemption application are

essentially the same as for a license application, including the

three-stage consultation process. See the Hydroelectric Project
APPLYING FOR A CONDUIT EXEMPTION

3-2

Licensing Handbook for a discussion of the procedures, from initial

actions through the public notice accepting the application, which

also requests the filing of terms and conditions. After comments

and fish and wildlife recommendations are filed, the procedural

steps differ for a conduit exemption than from those applicable to

either a license or a 5 MW or less exemption application 

The Commission staff then does its environmental analysis based

upon the record, but does not prepare an EA. Conduit exemptions

are categorically exempt from the preparation of an EA under

380.4(a)(14). The Commission then decides whether an

exemption is to be granted. In granting an exemption from

licensing, the Commission will set certain standard terms and

conditions 18 CFR 4.94 and may set additional terms and

conditions. 18 CFR 4.93(c)

If an application for a conduit exemption is denied, the applicant is

given a chance to convert the exemption application into an 

application for license.

If conversion is sought, the applicant must:

! provide the Commission written notification within 30 days

of the order denying the exemption; and 

! provide any additional information necessary to make the

exemption application conform to the requirements of a

license application.

If a timely notification for conversion is not received, application

processing is terminated.

3.3 SURRENDER AND AMENDMENT

An exemption holder can petition the Commission to voluntarily

surrender its exemption. 18 CFR 4.95

If construction has begun:

! the exemption holder must have consulted with interested

fish and wildlife agencies on the plans for disposition of

facilities and site restoration;

The Commission must include those terms and

conditions that fish and wildlife agencies determine, in

a timely manner, are appropriate to prevent loss of, or

damage to, fish and wildlife resources. 18 CFR

4.34(f)(2)
APPLYING FOR A CONDUIT EXEMPTION

3-3

! the Commission will issue a public notice of the surrender

request and seek comments and terms and conditions for

site restoration from relevant agencies and the public; and

! the exemption holder must fulfill any obligations imposed

by the Commission and the fish and wildlife agencies for

the disposition and site restoration of facilities.

If no construction has begun:

! the exemption holder must fulfill any obligations under the

exemption that the Commission may prescribe;

! the exemption will remain in effect for 30 days after the

public notice of the petition is issued; and

! new applications involving the site may be filed as early as

the next business day.

A holder of an exemption may file an application to amend its

exemption, but changes can be made in some cases without the

need for an application and the Commission’s approval. The

exemption holder may implement the changes without the

Commission’s approval if: 18 CFR 4.96

! after being notified in writing by the exemption holder of its

intended changes, the appropriate fish and wildlife

agencies determine that the proposed changes would not

cause the project to violate the terms and conditions

imposed by the agencies; and

! the changes would not materially alter the design, location,

or method of construction or operation.

In the absence of these two conditions, the exemption holder may

not make the changes without first acquiring the Commission’s

authorization. The exemption holder should contact the Director

of the Division of Hydropower Administration and Compliance for

further guidance on filing requirements.
AMENDMENTS TO LICENSE

4-1

4.0 AMENDMENTS OF LICENSE

License amendments are generally required when there is a

proposed change to a project previously authorized by a

Commission order issuing a license. 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. 

4.1 CONTENT OF AN APPLICATION FOR A

CAPACITY-RELATED AMENDMENT

A capacity-related amendment is a project modification for

additional capacity not previously authorized, which would: 

 18 CFR 4.201(b)

! increase the project’s actual or proposed total installed

capacity;

! result in an increase in the project’s maximum hydraulic

capacity by 15 percent or more; and

! result in an increase in the installed nameplate capacity of

2 MW or more.

Amendments that do not meet the foregoing criteria are called

noncapacity-related amendments. Section 4.3 of this Handbook

contains guidance on preparing applications for noncapacity-related amendments.

An application for a license amendment must contain an initial

statement; certain specified exhibits; pre-filing consultation; and,

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

certification. The licensee must provide the following information:

 18 CFR 4.201(b)

! number and type of exhibits required for a capacity-related

amendment which depend on:

- the installed capacity of the project proposed for

modification, and

- the current stage of the project’s development 

(see table 1).

! The content of the required exhibits is governed by the

same rules as those that apply to original licenses (18 CFR

4.41, 4.51 or 4.61).
AMENDMENTS TO LICENSE

4-2

Table 1. Construction Status (at the time the amendment

application is filed)

Installed

Capacity

Not Constructed Constructed

>5 MW A, B, C, D, E, F, G 

[18 CFR 4.41]

A, B, C, D, E, F, G

[18 CFR 4.51]

<5 MW BUT

>1.5 MW

F, G, 

[18 CFR 4.61]

E 

[18 CFR 4.41]

E, F, G 

[18 CFR 4.61]

< 1.5 MW E, F, G 

[18 CFR 4.61]

E, F, G 

[18 CFR 4.61]

! The pre-filing consultation requirements of 18 CFR 4.38

(or 4.3.4[i] if using an alternative licensing process) must

be completed.

! Evidence of a new request for water quality certification is

only required if the amendment would result in a material

adverse effect on the water quality in the discharge from

the project or proposed project.

If a licensee wishing to file an application for amendment wants

information on the appropriate exhibits, the licensee may seek

advice from the Commission staff. 

4.2 PROCEDURAL STEPS IN SECURING A

CAPACITY-RELATED AMENDMENT

The capacity-related amendment process has six major steps: 

 18 CFR 4.38(a)(4)

Step 1 - First Stage Consultation or Alternative Pre-filing

Consultation Process if using an alternative licensing process

Step 2 - Studies and Draft Application Preparation or Preliminary

Draft Environmental Assessment if using an alternative licensing

process

Step 3 - Completion of Second Stage Consultation or Pre-filing

Consultation Process of an alternative licensing proceeding

Step 4 - Application Filing and Acceptance by the Commission

Step 5 - Filing of Comments, Terms and Conditions, Prescriptions,

and NEPA Compliance Activities
AMENDMENTS TO LICENSE

4-3

Step 6 - Completion of the Section 10j Process and Granting or

Denying a License Amendment 

The rules governing these six steps, including pre-filing

consultation (18 CFR 4.38) and the 10j process (18 CFR 4.34),

are the same as those that govern applications for license using

either the traditional or an alternative licensing process. Refer to

the Commission’s Hydroelectric Project Licensing Handbook

(chapters 4 and 5) for procedural guidance. 

4.3 CONTENT OF AN APPLICATION FOR A

NON-CAPACITY-RELATED

AMENDMENT

A non-capacity-related amendment is a project modification

involving:

! design changes in the physical features of a project such

as new structures, relocation of transmission lines, or

alterations of existing structures;

! operational changes such as modifications to operating

levels, minimum instream flows, revised ramping rates and

other changes affecting environmental resources;

! land status changes including altered usage of lands of the

United States, changes in land rights, non-project use of

project lands, or changes in the recreational usage of the

site;

! compliance filings (filings pursuant to license articles or

other Commission orders) such as filing of study results,

mitigation plans, study plans, or schedules ordered in the

license articles; 

! as-built extensions; and

! time extensions.

Depending on the type of amendment, the level of detail may vary

from a one-page letter to a comprehensive, multi-volume

amendment application.

Noncapacity-related amendments must be filed with the

Commission at the address provided in section 2.3 of this

handbook. The filing must provide reasons for the amendment,

and include relevant resource agency letters of comment, exhibits,

and applicable drawings, as discussed in the following section.
AMENDMENTS TO LICENSE

4-4

4.4 PROCEDURAL STEPS IN SECURING A

NON-CAPACITY-RELATED

AMENDMENT

An application for a license amendment must contain an initial

statement; certain specified exhibits; pre-filing consultation; and,

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

certification.

If only one of the criterion discussed in section 4.1 applies, the

amendment is considered a noncapacity-related amendment.

If the proposed change is not a capacity-related amendment, the

licensee must consult with any appropriate resource agencies and

discuss the results of such consultation in the application.

Licensees are encouraged to contact DHAC if they need help

identifying the appropriate resource agencies or the appropriate

exhibits, or revisions or additions to any exhibits on file, to include

in the amendment application. 

The three stage agency consultation process (18 CFR 4.38) does

not apply to noncapacity-related amendments, except for those

changes identified in 18 CFR 4.38(a)(4)(v). These changes

involve: 

(a) the construction of a new dam or diversion in a

location where there is no existing dam or

diversion; 

(b) any repair, modification, or reconstruction of an

existing dam that would result in a significant

change in the normal maximum surface area or

elevation of an existing impoundment; or 

(c) the addition of new water power turbines other

than to replace existing turbines.

For noncapacity-related amendments, the nature of the proposed

change, the type of project (based on proposed capacity), and the

construction status of the project determine which exhibits to

include in the amendment application. 

All exhibits that require revision because of the nature of the

proposed amendments must be filed. However, only revisions to

appropriate portions of exhibits on file with the Commission are

required. For example, if an amendment would affect only a

portion of the environmental resources under the Exhibit E on file,

such as water quality and fish, the amendment application should

contain a revised Exhibit E addressing water quality and fish. The

revised exhibit should also contain a statement of effect for the 
AMENDMENTS TO LICENSE

4-5

remaining resources not adversely affected by the amendment

(e.g., wildlife and botanical resources, historical and archeological

resources, or recreational resources).

The revised exhibits are governed by regulations contained in 18

CFR 4.41, 4.51, or 4.61. (18 CFR 4.41 regulations apply to a

major unconstructed or major modified project; 18 CFR 4.51

regulations apply to a major project-existing dam; and 18 CFR

4.61 regulations apply to a minor water power project, or a major

water power project of 5 MW or less.)
SURRENDERS AND AMENDMENTS OF EXEMPTIONS

5-1

5.0 SURRENDERS AND

AMENDMENTS OF 

EXEMPTIONS

5.1 SURRENDER OF EXEMPTIONS

An exemption holder can petition to voluntarily surrender its

exemption. 18 CFR 4.102

If construction has begun: 

! the exemption holder must consult with interested fish and

wildlife agencies on the plans for disposition of facilities

and site restoration;

! where occupancy of federal lands or reservations has

been permitted, the exemption holder must notify the

affected federal land agency of the petition to surrender

and of the steps to be taken to restore the affected lands;

! the Commission will issue a public notice of the surrender

request and seek comments and terms and conditions for

site restoration from relevant agencies and the public; and

! the exemption holder must fulfill any obligations imposed

by the Commission and the fish and wildlife agencies for

disposition of facilities and site restoration.

If no construction has begun:

! the exemption holder must fulfill any obligations under the

exemption that the Commission may prescribe;

! the exemption will remain in effect for 30 days after the

public notice of the petition is issued; and

! a new application involving the site may be filed on the

next business day.

The rules governing amendments to exemptions for small

hydroelectric projects 5 MW or less are identical to those for

conduit exemptions. 18 CFR 4.104

5.2 AMENDMENTS OF EXEMPTIONS

The Commission requires much of the same information for

exemption amendment applications as it does for capacity-related

amendment applications. Exemption amendments can be for: (1)

capacity changes; (2) compliance filings; and (3) time extensions
SURRENDERS AND AMENDMENTS OF EXEMPTIONS

5-2

(see previous discussion of licensed projects). The notable

exceptions are for commencing and completing construction of a

new project. Whereas a licensee can receive only a one-time

extension, the Commission may grant exemptees more than one

extension for a good cause. Generally, construction of exempt

facilities should be completed within 4 years from the effective date

of the exemption. However, the Commission may grant multiple

extensions for completion of specific construction.

The following paragraph describes more detailed amendments of

exemption for operational changes. However, regulations at 18

CFR 4.96 and 18 CFR 4.104 should always be relied on before

submitting an application. The exemptee also may contact the

Commission staff for advice in preparing exhibits.

An application for amendment to an exempted project follows the

same format as the original exemption application. The primary

difference is that the exemptee must provide only the information

for exhibits requiring revisions. The application should start with

an introductory statement that includes:

! the project number and name;

! the name of the applicant;

! the location of the project;

! business address of the applicant;

! names and business addresses of all the applicant's

agents; and

! the applicant's status (e.g., private citizen, corporation, or

municipality).

In Exhibit A, the exemptee should describe proposed repairs or

modifications planned for any dam, impoundment, conduit, or

appurtenant facilities used by the project; the number and capacity

of existing and proposed generating units; the type of each

hydraulic turbine; the proposed power plant operations (run-ofriver or peaking); the estimated average annual electric

generation; average and design head of the plant; hydraulic

capacity for each turbine; size of any impoundment used for

electric generation (at normal maximum elevation); and the dates

for beginning and completing construction.

Exhibit B, a general location map of the project, should be revised

to reflect changes to existing and proposed structure locations, or

property ownership.

Exhibit E, the environmental report, or draft EA if using an ALP,

must discuss expected environmental effects from any proposed

changes to operation or construction of the project. Measures to

protect and enhance affected environmental resources and
SURRENDERS AND AMENDMENTS OF EXEMPTIONS

5-3

values, mitigation measures for adverse project effects, and any

additional information deemed important by the applicant should

be provided. The level of detail for the environmental report

should match the scope of the project. Exhibit E also must include

resource agency letters.

Exhibit G, drawings showing the structures and equipment, must

be revised to reflect proposed modifications to the structures and

project equipment.
SURRENDER OR TERMINATION OF LICENSE

6-1

6.0 SURRENDER OR

TERMINATION OF LICENSE

6.1 SURRENDER OF LICENSE

 18 CFR 6.1

Licensees and exemptees may decide to surrender their

hydropower authorizations because a project is no longer

economical, because natural catastrophes have damaged or

destroyed project facilities, or for a variety of other reasons. To

protect the environment and the public, a license or exemption

may be surrendered only upon agreement between the licensee

or exemptee and the Commission. The surrender review process

often can be complex because there are many environmental

implications of ending Commission jurisdiction.

If construction of a licensed project has commenced: 

 18 CFR 6.2

(1) the Commission must consult the resource agencies that

provided the original terms and conditions. It seeks input

from the public to ensure that local environmental issues

are considered in the surrender proceeding. 

(2) the Commission also prepares an environmental

assessment of any need for restoration for public safety

and environmental integrity, which includes measures may

range from simply locking a perimeter gate to removing a

dam. 

Licenses may be surrendered if the licensee has satisfied all

conditions imposed by the Commission to protect the public

interest, including those related to disposition of constructed

facilities. 18 CFR 6.2

If an existing licensee elects not to file a relicense application (i.e.,

application for new license, nonpower license, subsequent license,

or an exemption), and no other applicant files an application in a

timely fashion, the existing licensee is responsible for:

! filing a schedule for the submittal of a surrender

application;

! filing a surrender application according to the approved

schedule; and

! providing for disposition of all project facilities.
SURRENDER OR TERMINATION OF LICENSE

6-2

Where project facilities have been constructed on federal lands,

the licensee must:

! restore the project lands to a satisfactory condition; and

! continue paying annual charges until the effective date of

the order accepting surrender.

A licensee wanting to surrender a license must file an application

that:

! states the reason for surrender;

! is prepared by the licensee and filed in the same form and

manner as the application for license; and

! is accompanied by the license and any amendments.

At least 30 days before taking action on the surrender application,

the Commission must issue a public notice to alert 

potentially affected parties.

6.2 TERMINATION OF LICENSE

The Commission can terminate a license for two reasons: 

! the licensee fails to begin construction of the project within

the prescribed time; or 18 CFR 6.3

! 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 prior notice before it acts

as follows:

! 90-day prior notice to the licensee where there is a failure

to commence construction; and

! 90-day public notice in the case of project abandonment.
TRANSFER OF LICENSE

7-1

7.0 TRANSFER OF LICENSE

Licensees may decide to transfer a hydropower license to another

entity or entities for a variety of other reasons. Deregulation of the

energy industry has resulted in numerous transfers of licenses to

qualified transferees. To protect the environment and the public,

a license may be transferred only with Commission approval.

An application for a transfer of license must be filed jointly by the

existing licensee and the potential transferee. 18 CFR 9.1

A licensee who desires to transfer a license must file an application

that includes: 18 CFR 9.2

! a statement consistent with section 131.20 18 CFR

Subchapter D;

! a verification statement;

! a description of the qualifications of transferee to hold the

license; 

! a statement providing evidence of compliance by the

transferee with all applicable state laws or, how the

transferee proposes to comply; and

! four originals plus one additional copy for each interested

State Commission.

Commission approval of the transfer is contingent upon: 

 18 CFR 9.3

! transfer of title to the properties under license;

! acknowledgment of acceptance by the transferee filed in

triplicate within 60 days of the order approving the transfer;

! delivery of all license instruments within 60 days of the

order approving the transfer;and 

! a showing that the transfer is in the public interest. 

A transferee shall be subject to all the conditions of the license and

to all the provisions and conditions of the FPA, as though the

transferee were the original licensee and shall be responsible for

the payment of annual charges which accrue prior to the date of

transfer.