6.3. ERMUSR 10-09-2007 - Laserfiche WebLink

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2.0 Relicensing Process Licensing of a hydroelectric generating plant is primarily regulated by the Federal Energy Regulatory Commission (FERC). As stated in FERC's Hydroelectric Project Licensing Handbook, "Under the authority of the Federal Power Act, as amended by the Electric Consumers Protection Act, the Federal Energy Regulatory Commission (FERC) has responsibility of issuing licenses for nonfederal hydroelectric powerplants." The handbook goes on to say, "FERC regulations provide two procedural alternatives for developing hydropower projects. First a developer may, as an initial step, seek a preliminary permit. A permit allows the developer time to perform feasibility studies while maintaining priority to file a later application for a license. Alternatively, since a preliminary permit is not a prerequisite, a developer may file directly for a license or an exemption without requesting a preliminary permit." Review of the FERC handbook indicates that based on the project site it would be appropriate to file for an exemption from a license at the site. Conservations with Dana Gauthier, Minnesota Department of Natural Resources Dam Safety, and Ed Abrams, FERC Licensing Washington DC, indicated a FERC license or possibly an exemption are required to develop the site. FERC staff also indicated that, in order to file and secure a license, the developer (Elk River Municipal Utilities) needs to have, among other items, rights to the water, must own the lands on which the project is located, and have a means for power transmission. Ownership of the lands must be clarified to determine if this is meant to be the land that the dam, generating, and transmission facilities are located or if this means the entire land around the impoundment. The issue of land ownership can be determined early in the licensing process. Copies of the current section titled, Obtaining an Exemption from Licensing, by FERC is included as Appendix 2-1. Ed Abrams indicated that among a large list of issues the licensing process is very dependent on site- specific conditions and the other regulatory concerns such as the presence of rare and endangered species, fish and other aquatic species migration, and water and water quality. He indicated that the licensing and exemption process can take from 18 months to well over 24 months to complete. The cost of relicensing is dependent upon the number of studies that need to be completed as part of the process. While the FERC is responsible for licensing hydroelectric projects, they will seek input from state and federal agencies and other stakeholders. Because the position of the agencies regarding development of hydroelectric generation is a critical part of the licensing process and ultimately the cost to obtain a license, Elk River Municipal Utilities should consider developing a letter that could be sent to all of the likely state and federal agencies that would be a stakeholder in the process indicating that the Utility is considering redevelopment of hydroelectric generation at the Lake Orono Dam site and is seeking feedback regarding possible issues related to the redevelopment. Alternatively, an invitation to a meeting could also be included to discuss the possible redevelopment. Responses to the letter or meeting would provide an initial assessment of the difficulty or ease of the licensing process. P:\Mpls\23 MN171\2371089 Elk River Municipal-Orono Dam\WorkFiles\Report\Lake Orono Dam Assessment Report.doc 2