148 FERC ¶ 61,197

DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

18 CFR Part 4, Part 380

[Docket No. RM14-22-000; Order No. 800]

Revisions and Technical Corrections to Conform the Commission’s Regulations to the 

Hydropower Regulatory Efficiency Act of 2013

AGENCY: Federal Energy Regulatory Commission.

ACTION: Final Rule.

SUMMARY: The Federal Energy Regulatory Commission (Commission) issues this 

Final Rule to amend its regulations to conform to the enacted Hydropower Regulatory 

Efficiency Act of 2013 (Hydropower Efficiency Act). Although the Commission has 

been complying with the Hydropower Efficiency Act, and made its compliance 

procedures available on its website, this Final Rule now formalizes the Commission’s 

compliance procedures in its revised regulations on preliminary permits, small conduit 

hydroelectric facilities, and small hydroelectric power projects, and in a new subpart on 

qualifying conduit hydropower facilities. In addition, this Final Rule corrects 

grammatical and typographical errors. All revisions in this Final Rule are intended to be 

ministerial in nature. 

EFFECTIVE DATE: This rule will become effective February 23, 2015. 
Docket No. RM14

-22-000 ii

FOR FURTHER INFORMATION CONTACT

:

Carolyn Clarkin (Legal Information)

Office of the General Counsel

Federal Energy Regulatory Commission 

888 First Street NE 

Washington, DC 20426

(202) 502-8563

Carolyn.Clarkin@ferc.gov 

Christopher Chaney (Technical Information)

Office of Energy Projects

Federal Energy Regulatory Commission

888 First Street NE 

Washington, DC 20426

(202) 502-6778

Christopher.Chaney@ferc.gov

Shana Murray (Technical Information)

Office of Energy Projects 

Federal Energy Regulatory Commission 

888 First Street NE 

Washington, DC 20426

(202) 502-8333

Shana.Murray@ferc.gov

SUPPLEMENTARY INFORMATION

:
148 FERC ¶ 61,197

UNITED STATES OF AMERICA

FEDERAL ENERGY REGULATORY COMMISSION

Before Commissioners: Cheryl A. LaFleur, Chairman;

 Philip D. Moeller, Tony Clark,

 and Norman C. Bay.

Revisions and Technical Corrections to Conform the 

Commission’s Regulations to the Hydropower 

Regulatory Efficiency Act of 2013

Docket No. RM14-22-000

ORDER NO. 800

FINAL RULE

(Issued September 18, 2014)

I. Background and Discussion 

1. By this Final Rule, the Commission is amending Parts 4 and 380 of its regulations 

to conform to the Hydropower Regulatory Efficiency Act of 2013 (Hydropower 

Efficiency Act or Act).1

 On August 9, 2013, Congress enacted the Hydropower 

Efficiency Act to encourage the hydropower industry to utilize non-power dams 

for electric generation, noting that roughly 97 percent of the 80,000 dams in the 

United States do not generate electricity. Congress recognized that it could encourage 

hydropower development by reducing costs and regulatory burden during the project 

 1 Pub. L. 113-23 (2013).
Docket No. RM14-22-000 - 2 -

study and licensing stages. To that end, the Hydropower Efficiency Act amends statutory 

provisions pertaining to preliminary permits and projects that are exempt from licensing. 

A. Amendment Pertaining to Preliminary Permits

2. Under section 5 of the Federal Power Act (FPA),2 the Commission can issue 

preliminary permits with maximum three-year terms. A preliminary permit preserves the 

right of the permit holder to have the first priority in applying for a license or exemption 

for the project site. During the preliminary permit term, permittees conduct 

investigations and secure necessary data to determine the feasibility of a proposed project 

and to prepare a development (i.e., license or exemption) application. 

3. Before the new law, upon expiration of its permit, a permittee could apply for a 

successive preliminary permit to continue its feasibility studies. When such an 

application is filed, the Commission issues public notice and provides other entities an 

opportunity to file competing preliminary permit or development applications, of which 

the Commission would select the winning applicant using procedures outlined in its 

regulations.3

 

4. The Hydropower Efficiency Act amends section 5 of the FPA to give the 

Commission the authority to extend a preliminary permit once for not more than 

 2 16 U.S.C. 798 (2012), amended by, Hydropower Regulatory Efficiency Act of 

2013, Pub. L. No. 113-23, 5, 127 Stat. 493 (2013).

3 See 18 CFR 4.36-4.37 (2014).
Docket No. RM14-22-000 - 3 -

two additional years, allowing permittees more time to complete their feasibility studies 

without facing possible competition for the site from others. 

B. Amendments Pertaining to Projects Exempt from Licensing 

5. Certain projects may qualify for an exemption from the licensing requirements of 

Part I of the FPA: specifically, small conduit hydroelectric facilities or small 

hydroelectric power projects. A small conduit hydroelectric facility (small conduit), as 

defined in section 30 of the FPA,4 is an existing or proposed hydroelectric facility that 

utilizes for electric power generation the hydroelectric potential of a conduit, or 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 not primarily for the generation of electricity. A small hydroelectric 

power project, as defined in the Public Utilities Regulatory Policies Act of 1978 

(PURPA),5 is a project that utilizes for electric generation the water potential of either 

an existing non-federal dam or a natural water feature (e.g., natural lake, water fall, 

gradient of a stream, etc.) without the need for a dam or man-made impoundment. 

6. Before the new law, small conduit exemptions could be located only on nonfederal lands and only municipal small conduit exemptions could have an installed 

 4 16 U.S.C. 823a (2012), amended by, Hydropower Regulatory Efficiency Act of 

2013, Pub. L. No. 113-23, 4, 127 Stat. 493 (2013).

5 16 U.S.C. 2708 (2012).
Docket No. RM14-22-000 - 4 -

capacity of up to 40 megawatts (MW) (the maximum installed capacity of non-municipal 

projects was limited to 15 MW). To increase the number of projects eligible for small 

conduit exemptions, the Act amends section 30 of the FPA6 to allow small conduit 

exemptions to be located on federal lands, and to increase the maximum installed 

capacity for all small conduit exemptions to 40 MW. Similarly, the Hydropower 

Efficiency Act increases the number of projects eligible for small hydroelectric power 

project exemptions. Previously, small hydroelectric power projects could not have an 

installed capacity that exceeded 5 MW. Now, pursuant to the Act’s amendment to 

section 405 of PURPA,7 small hydroelectric power projects may have a maximum 

installed capacity of up to 10 MW. 

7. In addition to its amendments of existing exemptions, the Hydropower Efficiency 

Act creates a subset of small conduit exemptions, called “qualifying conduit hydropower 

facilities,” which are not required to be licensed under Part I of the FPA. A qualifying 

conduit hydropower facility is a facility that meets the following qualifying criteria: 

(1) the facility would be constructed, operated, or maintained for the generation of 

electric power using only the hydroelectric potential of a non-federally owned conduit, 

without the need for a dam or impoundment; (2) the facility would have a total installed 

 6 16 U.S.C. 823(a) (2012), amended by, Hydropower Regulatory Efficiency Act 

of 2013, Pub. L. No. 113-23, 4, 127 Stat. 493 (2013).

7 16 U.S.C. 2705, amended by, Hydropower Regulatory Efficiency Act of 2013, 

Pub. L. No. 113-23, 3, 127 Stat. 493 (2013).
Docket No. RM14-22-000 - 5 -

capacity that does not exceed 5 MW; and (3) the facility is not licensed under, or 

exempted from, the license requirements in Part I of the FPA on or before the date of 

enactment of the Hydropower Efficiency Act (i.e., August 9, 2013). To obtain a 

determination that a project is a qualifying conduit hydropower facility, an entity must 

file with the Commission a notice of its intent to construct the facility that demonstrates 

the facility meets the qualifying criteria discussed above. 

C. Revised Regulations 

8. By this Final Rule, the Commission is conforming its regulations to the 

Hydropower Efficiency Act. Nevertheless, the Commission has complied with the 

requirements of the Act since its enactment. The Commission has issued two-year 

extensions to preliminary permit holders, granted a small conduit exemption on federal 

lands, and issued conduit facility determinations on whether proposed projects are

qualifying conduit hydropower facilities. The Commission’s compliance procedures are 

available on its website at http://www.ferc.gov/industries/hydropower.asp.8

9. In this Final Rule, the Commission modifies and deletes language on preliminary 

permits and exemptions in Parts 4 and 380 of its regulations. Further, the Commission 

adds language to Part 4. For example, now that small conduit exemptions are permitted 

to be located on federal lands, the Commission adds a provision requiring an exemptee 

with a small conduit exemption on federal lands to notify the respective federal land 

 8 See Federal Energy Regulatory Commission, Hydropower Regulatory Efficiency 

Act of 2013, http://www.ferc.gov/industries/hydropower/indus-act/efficiency-act.asp.
Docket No. RM14-22-000 - 6 -

agency when it requests to surrender its exemption. The Commission also adds a new 

subpart to Part 4 (i.e., Subpart N) on qualifying conduit hydropower facilities to set forth 

the required contents of a notice of intent to construct, which will provide the 

Commission with information necessary to determine whether the proposed facility meets 

the requirements of the Hydropower Efficiency Act. 

10. Along with conforming the Commission’s regulations, this Final Rule corrects 

miscellaneous grammatical and typographical mistakes to improve the clarity and 

accuracy of the regulations. All revisions provided in the Final Rule are intended to be 

ministerial. 

II. Information Collection Statement

11. The Paperwork Reduction Act9 requires each federal agency to seek and obtain 

Office of Management and Budget (OMB) approval before undertaking a collection of 

information directed to ten or more persons or contained in a rule of general applicability. 

OMB regulations require approval of certain information collection requirements 

imposed by agency rules.10 Upon approval of a collection of information, OMB will 

assign an OMB control number and an expiration date. Respondents subject to the filing 

requirements of an agency rule will not be penalized for failing to respond to the 

 9 44 U.S.C. 3501-3520 (2012).

10 See 5 CFR 1320.10 (2014).
Docket No. RM14-22-000 - 7 -

collection of information unless the collection of information displays a valid OMB 

control number. 

12. The Commission will submit the revised information collection requirements to 

OMB for its review and approval. The entities affected by this rule would be those with: 

(1) preliminary permits who request extensions, (2) proposed non-municipal small 

conduit hydroelectric facilities (with a total installed capacity of greater than 15 MW and 

up to 40 MW) requesting exemptions, (3) proposed small conduit hydroelectric facilities 

(located on federal lands) requesting exemptions, (4) proposed small hydroelectric power 

projects (with total installed capacity of greater than 5 MW and up to 10 MW) requesting 

exemptions, and (5) proposals to construct projects eligible to be qualifying conduit 

hydropower facilities. The Commission will submit the information collection 

requirements in this Final Rule to OMB for its review. The information collection 

requirements are included in the following FERC collection numbers: (a) FERC-505, 

“Small Hydropower Projects and Conduit Facilities including License/Relicense, 

Exemption, and Qualifying Conduit Facility Determination,”11 and (b) FERC-512, 

“Preliminary Permit.”

13. Information Collection Costs: The Commission’s estimated average annual 

reporting burden and cost associated with implementation of this rule follows. Overall, 

the rule reduces the current burden for affected entities. As noted earlier, permittees may 

 11 The former title of FERC collection number FERC-505 was “Application for 

License/Relicense for Hydropower Projects with 5 MW or Less Capacity.”
Docket No. RM14-22-000 - 8 -

request a two-year extension of their preliminary permit term without preparing a 

successive preliminary permit application or competing with other entities for the site. 

Moreover, more entities may qualify for exemption from certain licensing requirements 

(i.e., small conduit hydroelectric facilities or small hydroelectric power projects), and 

others may qualify to operate their projects without Commission oversight (i.e., 

qualifying conduit hydropower facilities). 

Annual Changes Implemented by the Final Rule in RM14-2212

Type of 

Respondents 

Number of 

Respondents

(a)

Annual 

Number of 

Responses13

per 

Respondent

(b)

Total 

Number of 

Responses

(a)X(b)=(c)

Average 

Burden 

& Cost 

Per 

Response 

(d)

Total 

Annual 

Burden 

Hours & 

Total 

Annual 

Cost

(c)X(d)=(e)

Cost per 

Respondent

(e)/(a)

FERC-505, Small Hydropower Projects and Conduit Facilities including License/Relicense, 

Exemption, and Qualifying Conduit Facility Determination

Small 

conduit 

exemption 

applications 

(40 MW or 

less, which 

can now be 

on fed. 

lands)14 515 1 5

46 hrs. 230 hrs. 

$3,243 $16,215 $3,243

 12 The estimated average hourly cost (salary plus benefits) is $70.50. 

13 We consider the filing of an application to be a “response.”

14 The estimates provided for small conduit exemption applications are for all 

conduit exemption applications, including applications for non-municipal conduit

(continued ...)
Docket No. RM14-22-000 - 9 -

Small 

conduit 

exemption 

holder—

notice to fed. 

agencies of 

petition to 

surrender 

and steps to 

be taken to 

restore lands 1 0.116 0.1

46 hrs. 4.6 hrs.

$3,243 $324 $324 

Small 

hydroelectric 

power 

project 

exemption 

applications 

(greater than 

5 MW and 

up to 10 

MW)17 2 1 2

46 hrs. 92 hrs. 

$3,243 $6,486 $3,243

 

exemptions that have an installed capacity of greater than 15 MW and up to 40 MW, and 

for any conduit exemption located on federal land. 

15 The Commission previously received roughly nine small conduit exemption 

applications annually, many of which are now likely to be eligible to be qualifying 

conduit hydropower facilities, and thus are not required to be licensed under Part I of the 

FPA. After implementation of this rule, we estimate five new small conduit exemption 

applications per year.

16 Since August 2013, the Commission has received three small conduit exemption 

applications, one of which proposes to locate the project on federal lands. We anticipate 

surrenders of conduit exemptions on federal lands to be rare, and therefore, we estimate 

one surrender of a conduit exemption on federal lands to be filed every ten years

(equaling on average 0.1 applications per year). The one surrender would trigger agency 

notification, which is estimated to take 46 hours. The burden and cost are being averaged 

over that ten-year period (equaling on average 4.6 hours per year).

17 The Commission received six license applications between 2010 and 2013 that 

(continued ...)
Docket No. RM14-22-000 - 10 -

Qualifying 

conduit 

hydropower 

facility -

notices of 

intent18 819 1 8

46 hrs. 368 hrs. 

$3,243 $25,944 $3,243

FERC-512, Application for Preliminary Permit

Request for 

extension to 

5 years 8020 1 80

4 hrs. 320 hrs. 

$282 $22,560 $282

14. Title: FERC-505, “Small Hydropower Projects and Conduits including 

License/Relicense, Exemption, and Qualifying Conduit Facility Determination,” and 

FERC-512, “Preliminary Permit.” 

15. Action: Revisions to FERC-505 and FERC-512. 

16. OMB Control Nos.: 1902-0115 (FERC-505) and 1902-0073 (FERC-512).

 

proposed projects with installed capacity greater than 5 MW, which could now qualify 

for a small hydroelectric power project exemption. Therefore, Commission staff 

estimates that on average the Commission receives two applications per year. 

18 A notice of intent is a request that the Commission determine a project is a 

qualifying conduit hydropower facility.

19 While the Commission initially received a rash of notices of intent to construct 

qualifying conduit hydropower facilities, we expect notices of intent to taper off. Nearly 

75 percent of the 23 notices of intent we received in the past year were filed within the 

first 6 months of the program. In the last three months, we have received two notices of 

intent. Therefore, we estimate that we will receive eight notices of intent per year. 

20 Based on the number of preliminary permits issued in the past 3 years, 

Commission staff estimates that an annual average of 80 permits will be eligible to 

request an extension. 
Docket No. RM14-22-000 - 11 -

17. Respondents: Municipalities, businesses, private citizens, and for-profit and notfor-profit institutions.

18. Necessity of Information: The revised regulations implement the Hydropower 

Efficiency Act’s amendments to preliminary permits, small conduit hydroelectric 

facilities, and small hydroelectric power projects, and the Act’s addition of qualifying 

conduit hydropower facilities. The revised regulations for the most part affect only the 

number of entities that would file applications with the Commission in addition to 

imposing two new information collection requirements. 

19. The new requirement for a respondent requesting to surrender a small conduit 

exemption on federal lands to notify the respective federal land agency is necessary for 

the Commission to carry out its responsibilities under the FPA, as amended by the 

Hydropower Efficiency Act. The information provided to the respective federal land 

agency will help inform the agency of activities occurring on federal lands or reservations 

under the agency’s jurisdiction. 

20. The new requirement to file a notice of intent to construct a qualifying conduit 

hydropower facility with the Commission is necessary to carry out the Commission’s 

responsibilities under section 30(a) of the FPA, as amended by the Hydropower 

Efficiency Act. The information provided to the Commission enables the Commission to 

review the features of the proposed project and make a determination on whether a 

proposed project is a qualifying conduit hydropower facility. As noted earlier, the 

Commission already complies with the Hydropower Efficiency Act by requiring entities 

requesting qualifying conduit facility determinations to file with the Commission a notice 
Docket No. RM14-22-000 - 12 -

of intent to construct, which follows the procedural guidance provided on the 

Commission’s website. 

21. Internal Review: The Commission has reviewed the revisions and has 

determined that they are necessary. These requirements conform to the Commission’s 

need for efficient information collection, communication, and management within the 

energy industry. The Commission has assured itself, by means of internal review, that 

there is specific, objective support for the burden estimates associated with the 

information collection requirements.

22. Comments: The revised information collection requirements will not be effective 

or enforceable until OMB approves the information collection changes described in this 

order. The Commission, however, will continue to use its existing regulations and 

procedures available on its website to accept requests for two-year extensions of 

preliminary permits, applications for non-municipal small conduit exemptions with 

installed capacity greater than 15 MW and up to 40 MW, applications for small conduit 

exemptions located on federal lands, applications for small hydroelectric power project 

exemptions greater than 5 MW and up to 10 MW, and notices of intent to construct 

qualifying conduit hydropower facilities. 

23. The Commission solicits comments on the Commission’s need for this 

information; whether the information will have practical utility; the accuracy of provided 

burden estimates; ways to enhance the quality, utility, and clarity of the information to be 

collected; and any suggested methods for minimizing the respondent’s burden, including 

the use of automated information techniques. Comments are due within 60 days of the 
Docket No. RM14-22-000 - 13 -

date this order is published in the Federal Register. After receipt and analysis of public 

comments, the Commission will issue a second notice in this docket requesting public 

comment, and will submit the reporting requirements to OMB for approval.

24. Interested persons may obtain information on the reporting requirements by 

contacting the Federal Energy Regulatory Commission, 888 First Street, NE, 

Washington, DC 20426 [Attention: Ellen Brown, Office of the Executive Director], by 

phone (202) 502-8663, or by email to DataClearance@ferc.gov. 

25. Comments concerning the information collections in this Final Rule and the 

associated burden estimates should be sent to the Commission and reference 

Docket No. RM14-22-000. The Commission encourages comments to be filed 

electronically via the eFiling link on the Commission's website at http://www.ferc.gov. 

Commenters that are not able to file comments electronically should send an original of 

their comments to: Federal Energy Regulatory Commission, Secretary of the 

Commission, 888 First Street NE, Washington, DC 20426. 

III. Environmental Analysis

26. The Commission is required to prepare an Environmental Assessment or an 

Environmental Impact Statement for any action that may have a significant adverse effect 

on the human environment.21 Excluded from this requirement are rules that are 

 21 Regulations Implementing the National Environmental Policy Act of 1969, 

Order No. 486, 52 FR 47897 (Dec. 17, 1987), FERC Stats. & Regs., Regulations 

Preambles 1986-1990 ¶ 30,783 (1987).
Docket No. RM14-22-000 - 14 -

clarifying, corrective, or procedural, or that do not substantially change the effect 

of legislation or the regulations being amended.22 This Final Rule amends the 

Commission’s regulations to conform to recent legislation and corrects grammatical and 

clerical errors; and does not substantially change the effect of the underlying legislation 

or regulations being revised. 

IV. Regulatory Flexibility Act

27. The Regulatory Flexibility Act of 1980 (RFA)23 generally requires a description 

and analysis of final rules that will have significant economic impact on a substantial 

number of small entities. 

28. However, final rules promulgated without the publication of a general notice of 

proposed rulemaking under section 553 of the Administrative Procedure Act (APA)24

are 

exempt from the RFA’s requirements.25 Section 553(b)(3)(A) of the APA states that 

final rules that are interpretive rules may be published without general notice of proposed 

rulemaking. Interpretive rules are defined as rules that “generally interpret the intent 

expressed by Congress” where an agency “does not insert its own judgments in 

 22 18 CFR 380.4(a)(2)(ii) (2014).

23 5 U.S.C. 601-612 (2012).

24 5 U.S.C. 553 (2012).

25 5 U.S.C. 604(a) (2012). 
Docket No. RM14-22-000 - 15 -

implementing a rule, and simply regurgitates statutory language.”26 They are an 

“agency’s reading of a statute” that do not “intend to create new rights or duties, but only 

remind[] affected parties of existing duties.”27 

29. This Final Rule is an interpretive rule because it modifies the Commission’s 

regulations to conform to the Hydropower Efficiency Act. It does not create new rights 

or duties. Rather, it reminds affected parties of existing duties required by the 

Hydropower Efficiency Act, with which the Commission and non-agency entities have 

complied since the Act’s enactment. 

V. Document Availability

30. In addition to publishing the full text of this document in the Federal Register, the 

Commission provides all interested persons an opportunity to view and/or print the 

contents of this document via the Internet through the Commission’s Home Page 

(http://www.ferc.gov) and in the Commission’s Public Reference Room during normal 

business hours (8:30 a.m. to 5:00 p.m. Eastern Time) at 888 First Street, NE, Room 2A, 

Washington DC 20426.

31. From the Commission’s Home Page on the Internet, this information is available 

on eLibrary. The full text of this document is available on eLibrary in PDF and 

 26 Small Business Administration, Office of Advocacy, A Guide for Government 

Agencies: How to Comply with the Regulatory Flexibility Act 9 (May 2012), available at 

http://www.sba.gov/sites/default/files/rfaguide_0512_0.pdf.

27 Orengo Caraballo v. Reich, 11 F.3d 186, 195 (D.C. Cir. 1993).
Docket No. RM14-22-000 - 16 -

Microsoft Word format for viewing, printing, and/or downloading. To access this 

document in eLibrary, type the docket number excluding the last three digits of this 

document in the docket number field.

32. User assistance is available for eLibrary and the Commission’s website during 

normal business hours from FERC Online Support at (202) 502-6652 (toll free at 1-866-

208-3676) or by email at ferconlinesupport@ferc.gov, or the Public Reference Room at 

(202) 502-8371, TTY (202) 502-8659. Email the Public Reference Room at 

public.referenceroom@ferc.gov.

VI. Effective Date and Congressional Notification

33. These regulations are effective February 23, 2015. The Commission has 

determined, with the concurrence of the Administrator of the Office of Information and 

Regulatory Affairs of OMB, that this rule is not a “major rule” as defined in section 351 

of the Small Business Regulatory Enforcement Fairness Act of 1996.

28 This rule is being 

submitted to the Senate, House, and Government Accountability Office.

List of subjects 

18 CFR Part 4

Administrative practice and procedure, Electric power, Reporting and recordkeeping 

requirements 

 28 5 U.S.C. 804(2) (2012).
Docket No. RM14-22-000 - 17 -

18 CFR Part 380

Environmental impact statements, Reporting and recordkeeping requirements 

By the Commission.

( S E A L )

Nathaniel J. Davis, Sr.,

Deputy Secretary.
Docket No. RM14-22-000 - 18 -

In consideration of the foregoing, the Commission is amending Parts 4 and 380, 

Chapter I, Title 18, Code of Federal Regulations, as follows.

PART 4—LICENSES, PERMITS, EXEMPTIONS, AND DETERMINATION OF 

PROJECT COSTS

1. The authority citation for Part 4 continues to read as follows:

Authority: 16 U.S.C. 791a-825v, 2601-2645; 42 U.S.C. 7101-7352.

§ 4.30 [Amended]

2. Amend § 4.30 as follows: 

a. Revise paragraph (b)(4); 

b. Revise paragraph (b)(8);

c. Revise paragraph (b)(20);

d. Redesignate paragraphs (b)(25) through (b)(30) as (b)(27) through (b)(32); 

and redesignate paragraphs (b)(21) through (b)(24) as (b)(22) and (b)(25); 

e. Add paragraph (b)(21); 

f. Revise redesignated paragraph (b)(24); 

g. Add paragraph (b)(26);

h. Revise redesignated paragraph (b)(30);

i. Revise redesignated paragraph (b)(31). 

The revisions, redesignations, and additions are as follows:

§ 4.30 Applicability and definitions.

* * * * *

(b) * * *
Docket No. RM14-22-000 - 19 -

(4) * * * 

(ii) Dam, for the purposes of provisions governing an application for exemption 

of a small conduit hydroelectric facility or a notice of intent to construct a qualifying 

conduit hydropower facility, means any structure that impounds water.

(5) * * *

(8) Federal lands, for the purposes of provisions governing an application for 

exemption of a small conduit hydroelectric facility or a small hydroelectric power 

project, means any lands to which the United States holds fee title.

(9) * * *

(20) Non-Federal lands, for the purposes of provisions governing application for 

exemption of a small conduit hydroelectric facility or a small hydroelectric power 

project, means any lands except lands to which the United States holds fee title. 

(21) Non-federally owned conduit, for the purposes of provisions governing the 

notice of intent to construct qualifying conduit hydropower facilities, means any conduit 

except a conduit to which the United States holds fee title.

(22) Person * * *

(23) Project * * *

(24) Qualified exemption applicant, means any person who meets the 

requirements specified in § 4.31(c)(2) with respect to a small hydroelectric power project 

for which exemption from licensing is sought.

(25) Qualified license applicant * * *
Docket No. RM14-22-000 - 20 -

(26) Qualifying conduit hydropower facility, means a facility, not including any 

dam or impoundment, that is not required to be licensed under Part I of the FPA because 

it is determined to meet the following criteria: 

(i) Generates electric power using only the hydroelectric potential of a nonfederally owned conduit; 

(ii) Has an installed capacity that does not exceed 5 megawatts (MW); and, 

(iii) Was not licensed or exempted from the licensing requirements of Part I of the 

FPA on or before August 9, 2013. 

(27) Ready for environmental analysis * * *

(28) Real property interests * * *

(29) Resource agency * * *

(30) Small conduit hydroelectric facility, means an existing or proposed 

hydroelectric facility that is constructed, operated, or maintained for the generation of 

electric power, and includes all structures, fixtures, equipment, and lands used and useful 

in the operation or maintenance of the hydroelectric facility, but excludes the conduit on 

which the hydroelectric facility is located and the transmission lines associated with the 

hydroelectric facility and which:

(i) Utilizes for electric power generation the hydroelectric potential of a conduit;

(ii) Has an installed generating capacity that does not exceed 40 MW;

(iii) Is not an integral part of a dam;

(iv) Discharges the water it uses for power generation either:

(A) Into a conduit;
Docket No. RM14-22-000 - 21 -

(B) Directly to a point of agricultural, municipal, or industrial consumption; or

(C) Into a natural water body if a quantity of water equal to or greater than the 

quantity discharged from the hydroelectric facility is withdrawn from that water body 

downstream into a conduit that is part of the same water supply system as the conduit on 

which the hydroelectric facility is located; and

(v) Does not rely upon construction of a dam, which construction will create any 

portion of the hydrostatic head that the facility uses for power generation unless that 

construction would occur for agricultural, municipal, or industrial consumptive purposes 

even if hydroelectric generating facilities were not installed.

(31) Small hydroelectric power project, means any project in which capacity will 

be installed or increased after the date of application under subpart K of this chapter, 

which will have a total installed capacity of not more than 10 MW, and which: 

(i) * * *

(32) PURPA * * * 

§ 4.31 [Amended]

3. Revise paragraphs (b) and (c) of § 4.31 to read as follows:

§ 4.31 Initial or competing application: who may file.

* * * * *

(b) Application for exemption of a small conduit hydroelectric facility—

(1) Exemption from provisions other than licensing—

(i) Only federal lands involved. If only rights to use or occupy federal lands 

would be necessary to develop and operate the proposed small conduit hydroelectric 
Docket No. RM14-22-000 - 22 -

facility, any citizen, association of citizens, domestic corporation, municipality, or state 

may apply for exemption of a small conduit hydroelectric facility from provisions of 

Part I of the Federal Power Act, other than licensing provisions.

(ii) Some non-federal lands involved. If real property interests in any nonfederal lands would be necessary to develop and operate the proposed small conduit 

hydroelectric facility, any citizen, association of citizens, domestic corporation, 

municipality, or state that has all of the real property interests in the lands necessary to 

develop and operate that project, or an option to obtain those interests, may apply for 

exemption of a small conduit hydroelectric facility from provisions of Part I of the 

Federal Power Act, other than licensing provisions. 

(2) Exemption from licensing—

(i) Only federal lands involved. If only rights to use or occupy federal lands 

would be necessary to develop and operate the proposed small conduit hydroelectric 

facility, any citizen, association of citizens, domestic corporation, municipality, or state 

may apply for exemption of that facility from licensing under Part I of the Federal Power 

Act. 

(ii) Some non-federal lands involved. If real property interests in any non-federal 

lands would be necessary to develop and operate the proposed small conduit hydroelectric 

facility, any citizen, association of citizens, domestic corporation, municipality, or state 

who has all the real property interests in the lands necessary to develop and operate the 

small conduit hydroelectric facility, or an option to obtain those interests, may apply for 

exemption of that facility from licensing under Part I of the Federal Power Act.
Docket No. RM14-22-000 - 23 -

(c) Application for case-specific exemption of a small hydroelectric power 

project—

(1) * * * 

(2) Exemption from licensing—

(i) Only Federal lands involved. If only rights to use or occupy Federal lands 

would be necessary to develop and operate the proposed small hydroelectric power 

project, any citizen, association of citizens, domestic corporation, municipality, or state 

may apply for exemption of that project from licensing. 

(ii) Some non-Federal lands involved. If real property interests in any non-Federal 

lands would be necessary to develop and operate the proposed small hydroelectric power 

project, any citizen, association of citizens, domestic corporation, municipality, or state 

who has all of the real property interests in non-Federal lands necessary to develop and 

operate that project, or an option to obtain those interests, may apply for exemption of that 

project from licensing.

§ 4.34 [Amended]

4. Revise paragraph (f)(2) of § 4.34 to read as follows: 

§ 4.34 Hearings on applications; consultation on terms and conditions; motions to 

intervene; alternative procedures.

* * * * *

(f) Licenses and exemption conditions and required findings—

(1) * * * 
Docket No. RM14-22-000 - 24 -

(2) Exemption conditions. Any exemption from licensing issued for conduit 

facilities, as provided in section 30(b) of the Federal Power Act, or for small 

hydroelectric power projects having a proposed installed capacity of 10,000 kilowatts or 

less, as provided in section 405(d) of the Public Utility Regulatory Policies Act of 1978, 

as amended, shall include such terms and conditions as the fish and wildlife agencies may 

timely determine are appropriate to carry out the responsibilities specified in 

section 30(c) of the Federal Power Act.

* * * * *

§ 4.38 [Amended]

5. In § 4.38(a)(1), remove the words “United States lands” and add, in their place, the 

words “federal lands.”

§ 4.39 [Amended]

6. In § 4.39(d), remove the reference “§ 4.31(c)” and add, in its place, the reference 

“§ 4.32(d).”

§ 4.82 [Amended]

7. In § 4.82(a):

a. Remove the word “three” and add, in its place, the word “five.”

b. Remove the reference “4.81(b), (c), (d), and (e)” and add, in its place, the 

reference “4.81(b), (c), and (d).”

8. In § 4.82(c), remove the word “three” and add, in its place, the word “five.”

§ 4.90 [Amended]

9. Revise § 4.90 to read as follows:
Docket No. RM14-22-000 - 25 -

§ 4.90 Applicability and purpose.

This subpart implements section 30(b) of the Federal Power Act and provides 

procedures for obtaining an exemption for constructed or unconstructed small conduit 

hydroelectric facilities, as defined in § 4.30(b)(30), from all or part of the requirements of 

Part I of the Federal Power Act, including licensing, and the regulations issued under 

Part I.

§ 4.92 [Amended]

10. Revise paragraph (a) of § 4.92 to read as follows: 

§ 4.92 Contents of exemption application.

(a) * * *

(1) An introductory statement, including a declaration that the facility for which 

application is made meets the requirements of § 4.30(b)(30), or if the facility qualifies but 

for the discharge requirement of § 4.30(b)(30)(iv), the introductory statement must 

identify that fact and state that the application is accompanied by a petition for waiver of 

§ 4.30(b)(30)(iv) filed pursuant to § 385.207 of this chapter;

(2) * * *

(3) If the project structures would use or occupy any lands other than federal 

lands, an appendix containing documentary evidence showing that the applicant has the 

real property interests required under § 4.31(b); and 

* * * * *

11. In § 4.92(b): 
Docket No. RM14-22-000 - 26 -

a. Remove the two references to “§ 4.30(b)(28)” and add, in their place, 

the reference “§ 4.30(b)(30)”; 

b. Remove the three references to “§ 4.30(b)(28)(v)” and add, in their 

place, the reference “§ 4.30(b)(30)(iv);” 

c. In the sentence “[t]he exact name and business address of each 

applicant is,” correct the word “is” to read “are.”

d. In the sentence “[t]he exact name and business address of each person 

authorized to act as agent for the applicant in this application is,” correct the word 

“is” to read “are”; and,

e. Remove the duplicate clause “as appropriate.” 

12. Revise paragraph (c) of § 4.92 to read as follows: 

§ 4.92 Contents of exemption application.

* * * * *

(c) * * *

(9) If the hydroelectric facility discharges directly into a natural body of water 

and a petition for waiver of § 4.30(b)(30)(iv) has not been submitted, evidence that a 

quantity of water equal to or greater than the quantity discharged from the hydroelectric 

facility is withdrawn from that water body downstream into a conduit that is part of the 

same water supply system as the conduit on which the hydroelectric facility is located.

(10) * * *

(11) A description of the nature and extent of any construction of a dam that 

would occur in association with construction of the proposed small conduit hydroelectric 
Docket No. RM14-22-000 - 27 -

facility, including a statement of the normal maximum surface area and normal maximum 

surface elevation of any existing impoundment before and after that construction; and any 

evidence that the construction of the dam would occur for agricultural, municipal, or 

industrial consumptive purposes even if hydroelectric generating facilities were not 

installed.

* * * * *

§ 4.93 [Amended]

13. In § 4.93(a), remove the reference “§ 4.30(b)(28)(v)” and add, in its place, the 

reference “§ 4.30(b)(30)(iv).”

§ 4.94 [Amended]

14. Amend § 4.94 as follows:

a. Redesignate paragraphs (d) through (f) as (e) through (g); 

b. In redesignated paragraphs (e) through (g), redesignate articles 4 through 6 as 

articles 5 through 7; 

c. Add paragraph (d) to read as follows:

§ 4.94 Standard terms and conditions of exemption.

* * * * *

(d) Article 4. This exemption does not confer any right to use or occupy any 

federal lands that may be necessary for the development or operation of the project. Any 

right to use or occupy any federal lands for those purposes must be obtained from the 

administering federal land agencies. The Commission may accept a license application 

submitted by any qualified license applicant and revoke this exemption, if any necessary 
Docket No. RM14-22-000 - 28 -

right to use or occupy federal lands for those purposes has not been obtained within one 

year from the date on which this exemption was granted.

* * * * *

§ 4.95 [Amended]

15. In § 4.95, add paragraph (e) to read as follows: 

§ 4.95 Surrender of exemption. 

* * * * * 

(e) Where occupancy of federal lands or reservations has been permitted by a 

federal agency having supervision over such lands, the exemption holder must 

concurrently notify that agency of the petition to surrender and of the steps that will be 

taken to restore the affected federal lands or reservations. 

Subpart K [Amended]

16. In the title of Subpart K, remove the number “5” and add, in its place, the number 

“10.”

§ 4.101 [Amended]

17. In § 4.101, remove the reference “§ 4.30(b)(29)” and add, in its place, the 

reference “§ 4.30(b)(31).”

§ 4.102 [Amended]

18. In § 4.102(e), remove the words “United States lands” and add, in their place, the 

words, “federal lands.”

§ 4.106 [Amended]

19. In § 4.106(h), remove the end punctuation “:” and add, in its place, a period. 
Docket No. RM14-22-000 - 29 -

§ 4.107 [Amended]

20. In § 4.107(b)(1), remove the number “5” and add, in its place, the number “10.”

Subpart N [Added]

21. Add new Subpart N to read as follows:

Subpart N—Notice of Intent to Construct Qualifying Conduit Hydropower 

Facilities

Sec.

§ 4.400 Applicability and purpose.

§ 4.401 Contents of notice of intent to construct a qualifying conduit hydropower 

facility.

§ 4.400 Applicability and purpose. This part implements section 30(a) of the Federal 

Power Act, as amended by the Hydropower Regulatory Efficiency Act of 2013, and 

provides procedures for obtaining a determination from the Commission that the facility 

to be constructed is a qualifying conduit hydropower facility, as defined in § 4.30(b)(26), 

and thus, is not required to be licensed under Part I of the FPA. 

§ 4.401 Contents of notice of intent to construct a qualifying conduit hydropower 

facility. 

(a) A notice of intent to construct a qualifying conduit hydropower facility 

submitted under this subpart must contain the following: 

(1) An introductory statement as described in paragraph (b) of this section;

(2) A statement that the proposed project will use the hydroelectric potential of a 

non-federally owned conduit as set forth in paragraph (c) of this section;
Docket No. RM14-22-000 - 30 -

(3) A statement that the proposed facility has not been licensed or exempted 

from the licensing requirements of Part I of the FPA, on or before August 9, 2013, the 

date of enactment of the Hydropower Regulatory Efficiency Act, as set forth in in 

paragraph (d) of this section;

(4) A description of the proposed facility as set forth in paragraph (e) of this 

section;

(5) Project drawings as set forth in paragraph (f) of this section; 

(6) If applicable, the preliminary permit project number for the proposed facility; 

and,

(7) Verification as set forth in paragraph (g) of this section.

(b) Introductory Statement. The introductory statement must be set forth in the 

following format: 

BEFORE THE FEDERAL ENERGY REGULATORY COMMISSION

NOTICE OF INTENT TO CONSTRUCT QUALIFYING CONDUIT HYDROPOWER 

FACILITY

[Name of applicant] applies to the Federal Energy Regulatory Commission for a 

determination that the [facility name] is a qualifying conduit hydropower facility, 

meeting the requirements of section 30(a) of the Federal Power Act, as amended by 

section 4 of the Hydropower Regulatory Efficiency Act of 2013.

The location of the facility is:

State or Territory: ____________________

County: ____________________
Docket No. RM14-22-000 - 31 -

Township or nearby town: ____________________

Water source: ____________________

The exact name and business address of the applicant(s) are: 

Applicant’s Name: ____________________

Address: ____________________

Telephone Number: ____________________

Email Address: ____________________

The exact name and business address of each person authorized to act as an agent for the 

applicant(s) in this notice of intent are:

Name of Agent: ____________________

Address: ____________________

Telephone Number: ____________________

Email Address: ____________________

[Name of applicant] is [a citizen of the United States, an association of citizens of the 

United States, a municipality, State, or a corporation incorporated under the laws of 

(specify the United States or the state of incorporation), as appropriate].

(c) Non-Federal Conduit Statement. The non-federal conduit statement must be 

set forth in the following format:

The [facility name] will use the hydroelectric potential of a non-federally owned 

conduit.
Docket No. RM14-22-000 - 32 -

(d) Original Facility Statement. The original facility statement must be set forth 

in the following format:

The [facility name] has not been licensed or exempted from the licensing 

requirements of Part I of the FPA, on or before August 9, 2013, the date of enactment of 

the Hydropower Regulatory Efficiency Act.

(e) Description of Proposed Facility. Description of proposed facility must 

include: 

(1) A detailed description of any conduits and associated consumptive water 

supply facilities, intake facilities, powerhouses, and any other structures associated with 

the facility;

(2) The purposes for which the conduit is used;

(3) The number, type, generating capacity (kW or MW), and estimated average 

annual generation (kWh or MWh) of the generating units and brief description of any 

plans for future units; and,

(4) A description of the nature and extent of the dam that would occur in 

association with construction of the proposed qualifying conduit hydroelectric facility, 

including a statement of the normal maximum surface area and normal maximum surface 

elevation of any existing impoundment before and after that construction; and any 

evidence that the construction of the dam would occur for agricultural, municipal, or 

industrial consumptive purposes even if the hydropower generating facilities were not 

installed. 
Docket No. RM14-22-000 - 33 -

(f) Drawings, Maps, Diagrams. Include a set of drawings/maps/diagrams 

showing the structures and equipment of the hydropower facility in relation to the 

existing conduit. Drawings of the facility must include:

(1) A Plan View (overhead view) drawing of the proposed hydropower facilities, 

which includes the following:

(i) The hydropower facilities, including all intake and discharge pipes, and how 

those pipes connect to the conduit; 

(ii) The portion of the conduit in proximity to the facilities on which the 

hydropower facilities will be located;

(iii) The dimensions (e.g., length, width, diameter) of all facilities, intakes, 

discharges, and conduits;

(iv) Identification of facilities as either existing or proposed; 

(v) The flow direction labelled on all intakes, discharges, and conduits; and,

(2) A Location Map showing the facilities and their relationship to the nearest 

town, which includes the following:

(i) The powerhouse location labeled, and its latitude and longitude identified; 

and,

(ii) The nearest town, if possible, or other permanent monuments or objects, such 

as roads or other structures that can be easily noted on the map and identified in the field.

(3) If a dam would be constructed in association with the facility, a profile 

drawing showing the conduit, and not the dam, creates the hydroelectric potential.

(g) Verification. Provide verification using either a sworn, notarized statement 
Docket No. RM14-22-000 - 34 -

set forth in paragraph (g)(1) of this section or an unsworn statement set forth in paragraph 

(g)(2) of this section.

(1) As to any facts alleged in the notice of intent to construct or other materials 

filed, be subscribed and verified under oath in the form set forth below by the person 

filing, an officer thereof, or other person having knowledge of the matters set forth. If the 

subscription and verification is by anyone other than the person filing or an officer 

thereof, it shall include a statement of the reasons therefor.

This (notice of intent to construct, etc.) is executed in the:

State of: ______________________

County of: ______________________

by: (Name) _____________________________________________

(Address)____________________________________________ 

being duly sworn, depose(s) and say(s) that the contents of this (notice of intent to 

construct, etc.) are true to the best of (his or her) knowledge or belief. The undersigned 

applicant(s) has (have) signed the (notice of intent to construct, etc.) this ________ day of 

______________, 20____.

By: __________________________________________________

Subscribed and sworn to before me, a ___________________________ [Notary 

Public, or title of other official authorized by the state to notarize documents, as 

appropriate] of the State of _________ this day of _________, 20____.

/SEAL/ [if any]

____________________________________
Docket No. RM14-22-000 - 35 -

(Notary Public, or other authorized official)

(2) I declare (or certify, verify, or state) under penalty of perjury that the 

foregoing is true and correct. Executed on __________________ [date].

____________________________________

(Signature)

PART 380—REGULATIONS IMPLEMENTING THE NATIONAL 

ENVIRONMENTAL POLICY ACT

22. The authority citation for Part 380 continues to read:

Authority: 42 U.S.C. 4321-4370h, 7101-7352; E.O. 12009, 3 CFR 1978 

Comp., p. 142.

§ 380.4 [Amended]

23. In § 380.4(a)(14), remove the reference “§ 4.30(b)(26)” and add, in its place, the 

reference “§ 4.30(b)(30).”

§ 380.5 [Amended]

24. In § 380.5(b)(7):

a. Remove the reference “§ 4.30(b)(29)” and add, in its place, the reference 

“§ 4.30(b)(31).”

b. Remove the number “5” and add, in its place, the number “10.”