HYDROPOWER

Themes:

1. Ongoing interest group conflict over:

• development vs. environment (universal)

• public vs. private ownership

2. How the licensing process deals with these conflicts

Introduction to administrative process

HYDROPOWER

When did people first start harnessing hydropower for industrial purposes?

HYDROPOWER

When did people first start harnessing hydropower for industrial purposes?

How do hydroelectric projects work? How do they generate electricity?

HYDROPOWER

When did people first start harnessing hydropower for industrial purposes?

How do hydroelectric projects work? How do they generate electricity?

How is hydroelectric development regulated in the United States?

HYDROELECTRIC LICENSING TIMELINE

1700s-early 1900s: development of water resources by private mill owners

Early 1900s: first development for power; first publicly-owned projects

1935: Modern version of Federal Power Act passed

• requires federal license to build project

NOTE: Federal water projects do not require a license. Many of these projects are publicly-owned (BPA, TVA, etc.)

Licensing Process

Administered by agency (FERC)

Subject to statutory constraints

• private intervenors

• agency intervenors/commenters

• owners (public and private)

Decisions appealable within agency and ultimately to the courts: grounds for appeal?

HYDROELECTRIC LICENSING TIMELINE

1700s-early 1900s: development of water resources by private mill owners

Early 1900s: first development for power; first publicly-owned projects

1935: Modern version of Federal Power Act passed

1944: First Iowa decision

(see also CA v. FERC)Who has the last word in the

licensing process? What power do other agencies and actors have?

How has FERC traditionally resolved environmental conflicts at licensing?

Udall v. FPC (1967)

1. What is the basis of this litigation? What (action) is being challenged here, and why?

2. What (allegedly) did the FPC do wrong in this case?

3. Is this a dispute over who gets the license? Whether to issue the license? What are the statutory standards at issue here?

Scenic Hudson v. FPC (1965)

1. What action is being challenged? By whom? Why?

2. What is the alleged failure on FPC’s part in this case?

3. What is the statutory standard that governs the FPC’s decision here?

Must all hydroelectric projects acquire a license from the FERC? Are there limits to FERC’s hydroelectric licensing jurisdiction?

Fairfax County Water Auth. (1988)

1. What is the basis of this dispute? Who is suing who and why?

2. What does the Federal Power Act say about the limit’s of the FERC’s licensing jurisdiction?

3. Must the Authority get a license for these projects? Why or why not?

Is FERC’s power to decide environmental issues in the licensing process absolute?

• FPA Sec. 4(e) amended by the Energy Policy Act of 2005

• ECPA?

American Rivers v. FERC (1997)

1. What is the basis of this dispute? Who is suing who and why?

2. What does CWA Sec. 401 say? What does it mean in the context of hydro licensing?

3. Must the Authority get a license for these projects? Why or why not?

Figure 1: FERC Licensing Activity, 1960-1990

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Figure 4: Avg. Generating Capacity, Licensed Projects

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Figure 5: New Dam Licenses, Post-NEPA

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Figure 2: Success Rates of Selected Intervenors in FERC Issue Decisions

00.10.20.30.40.50.60.70.80.9

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Fish andWildlifeService

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PCT. WIN PCT. PARTIAL WIN PCT. LOSE

HYDROELECTRIC LICENSING TIMELINE

1700s-early 1900s: development of water resources by private mill owners

Early 1900s: first development for power; first publicly-owned projects

1935: Modern version of Federal Power Act passed

1944: First Iowa decision

1953: Namekagon decision

1960s: Scenic Hudson decision

1969: NEPA

1978: PURPA

1986: ECPA

1997: RELICENSING: Edwards Dam decision - EXERCISE

Large hydro vs. small hydro

• UN commission on dams

• Displacement of people

• Cost / benefits analyses, with and without hindsight

Hydro Development by Governments

How do interest groups assert their interests when the government considers proposed hydroelectric projects? What are the avenues of influence?

What does the UN Commission on Dams say about how large dam projects have balanced development and environmental interests?

What role do the following factors play?– Wealth / economic conditions of the community/nation

(developed vs. developing world)– Political / governmental regime type (democratic vs.

other)– Awareness of ecosystem issues: development pre- or

post-1970s

NEXT CLASS: EXERCISE

Issue: Whether to relicense the Hells Canyon Project on the Snake River in Idaho

ROLES:

• FERC

• Idaho Power

• American Rivers