Opinion ID: 788056
Heading Depth: 2
Heading Rank: 4

Heading: orders requiring compliance with license and regulations

Text: 32 Knott asserts that FERC acted unreasonably in demanding that he file project drawings on microfilm. Under the arbitrary and capricious standard, we consider whether an agency's decision is based on consideration of the relevant factors and articulates a rational connection between the facts found and the choice made. Bowman Transp., Inc. v. Arkansas-Best Freight Sys., Inc., 419 U.S. 281, 285, 95 S.Ct. 438, 42 L.Ed.2d 447 (1974) (citation omitted). FERC noted that its regulations require exhibit drawings to be microfilmed onto aperture cards, 18 C.F.R. § 4.39, and that [a]perture cards provide a durable medium for storing information about hydropower project features and are relatively inexpensive to produce, costing about $25-$50 for a set-up fee and one dollar for each original. FERC also noted that Knott had modified his Project, rendering some of his previous drawings inaccurate. Knott describes the microfilm requirement as antiquated and lobbies for an [i]nfusion of modern technology, but offers nothing further. FERC's decision requiring records to be submitted on microfilm, in conformity with its existing record-keeping system and because of the medium's durability and relatively inexpensive cost, is not overly burdensome and cannot be considered arbitrary or capricious. 33 Knott also argues that FERC acted arbitrarily in ordering him to install stream flow gages. He contends that such gages are not necessary because other gages exist, and that the license terms requiring such gages do not apply to his Project. These arguments are also unpersuasive. FERC specifically rejected Knott's argument that other gages sufficed to address the issue, finding that those gages were too distant to measure impacts from the Project. Knott's license explicitly requires him to install and thereafter maintain gages and stream-gaging stations for the purpose of determining the stage and flow of the stream or streams on which the project is located and to minimize fluctuations such that flow in the Blackstone River, as measured immediately below the project approximates the instantaneous sum of inflow to the project reservoir (emphasis added). 39 F.E.R.C. 62,308. FERC decided to enforce these conditions after receiving letters alleging extreme fluctuations in the Blackstone River below the Project, and expressions of concern by state agencies and conservation groups that the fluctuations might be the result of Knott's failure to operate his Project to allow a continuous stream flow. Knott's contention that the terms and conditions of the license do not apply to his Project are without merit; the order issuing the license explicitly states that the license is subject to such terms. 39 F.E.R.C. 62,308. FERC's orders for compliance with these terms are reasonable. See Clifton Power Corp. v. FERC, 88 F.3d 1258, 1262 (D.C.Cir.1996) (It is simply not unreasonable for FERC to require [licensee] to install [stream gaging] devices to determine whether the dam is operating in the mode described in its license application.).