The Alternative Relicensing Process

Chelan PUD is in the final stages obtaining a new license to operate the Rocky Reach Hydroelectric Project. The process is referred to as relicensing. As specified by federal regulations, owners of hydro projects are required to begin relicensing between 5 and 5 ½ years before the existing license expires.

The traditional relicensing process consists of a 3½-year consultation/study process conducted by the owner of the project, followed by a 2- to 7-year environmental review process conducted by the Federal Energy Regulatory Commission (FERC). As part of the environmental review phase, FERC produces an Environmental Assessment and if warranted an Environmental Impact Statement (EIS) depending on the significance of the project impacts. In the past, these two phases of the process were conducted independent of each other.

The Alternative Relicensing Process.
On October 29, 1997, FERC issued new regulations that allow both phases (consultation and environmental review) to be done at the same time. This new method, the Alternative Relicensing Process, differs from the traditional process in several ways:

  1. Combines into a single process the consultation process and the environmental review process.
  2. Allows for an applicant prepared preliminary draft Environmental Assessment.
  3. Promotes cooperative efforts by the applicant and interested parties early in the relicensing process and encourages them to share information about resource impacts and mitigation and enhancement proposals. This includes reaching agreement or settlements of the issues.
  4. Facilitates greater participation by and improved communication among the applicant, resource agencies, Indian tribes, the public and FERC staff in a flexible consultation process.
  5. Enhances communication efforts with FERC and all interested parties, including settlements when possible, early in the relicensing process.

Alternative Relicensing Process Advantages.

Balancing Resource Values.
In preparing its license application Chelan PUD is committed to balancing the many resource values provided by the Rocky Reach Hydro Project. This process will consider:

The Relicensing Schedule.
Chelan County Public Utility District (Chelan PUD) is seeking a new federal license to operate the Rocky Reach Hydroelectric Project. The process for relicensing a hydroelectric project is based on laws and regulations that require years of extensive planning, including environmental studies, agency consensus and public involvement. From 1999-2006, Chelan PUD worked with stakeholders to develop a proposal for relicensing that appropriately balanced the many resources associated with the Rocky Reach Hydro Project, such as fish and wildlife, water quality, recreation, aesthetics, land use and power production.

During 1999, Chelan PUD focused on identifying issues (agency and public), determining needed studies, and compiling information specific to hydro project operations. Studies were conducted from 2000 through 2002. The final license application and applicant prepared environmental assessment was submitted to the Federal Energy Regulatory Commission (FERC) in June 2004. On March 20, 2006, Chelan PUD and relicensing stakeholders submitted a Comprehensive Settlement Agreement to FERC.  The agreement is currently undergoing review by FERC, which expects to issue a final environmental impact statement in July, 2006.  Since the current license expires on June 30, 2006, FERC is expected to issue an annual license for the Project to extend current operating conditions while the new license is being finalized.

See also: Relicensing Hydroelectric Power Projects Handbook, written by National Hydropower Association, March 1999The Traditional Method.