This bill allows the Federal Energy Regulatory Commission to extend construction deadlines for certain hydropower projects licensed before March 13, 2020, and to reinstate expired licenses.
Steve Daines
Senator
MT
This bill permits the Federal Energy Regulatory Commission (FERC) to grant extensions, up to six years, for commencing construction on hydropower projects licensed before March 13, 2020. These extensions, in increments of up to two years, are available to licensees who demonstrate good cause. The bill also allows FERC to reinstate expired licenses under certain conditions, with the extension period calculated from the original expiration date.
Bill Offers Hydropower Projects Up to 6 Extra Years to Start Construction, Allows Some Expired Licenses Back
This proposed legislation gives the Federal Energy Regulatory Commission (FERC) the power to grant significant time extensions for building certain hydropower projects. Specifically, projects licensed before March 13, 2020, could get up to six additional years beyond their original deadline to start construction, doled out in chunks of no more than two years at a time. The catch? The company holding the license has to ask for it and show FERC 'good cause' for the delay.
More Time on the Clock, But What's 'Good Cause'?
So, what does this mean practically? Building big infrastructure like dams takes time, and delays happen. This bill acknowledges that reality by offering flexibility. A company facing unexpected hurdles could apply for a two-year extension, and potentially repeat that twice more, buying them up to six extra years total. However, the bill doesn't define 'good cause,' leaving it up to FERC to interpret. This vagueness (as noted in Section 1) could lead to inconsistency – what one official considers a good reason, another might not. For communities near these potential projects, it could mean a longer wait for expected economic benefits or, conversely, a longer period of uncertainty and potentially delayed environmental mitigation measures tied to the project's start.
Bringing Licenses Back from the Brink
The bill also throws a lifeline to projects whose licenses recently expired – specifically, any that lapsed between December 31, 2023, and whenever this bill might become law. FERC could reinstate these licenses, effectively turning back the clock to their original expiration date and then applying the potential new extensions from that point. While this gives projects a second chance, a key question arises (related to Section 1's reinstatement clause): could this allow older projects to proceed under potentially outdated environmental rules or assessments, bypassing the scrutiny a completely new application might face today? It's a shortcut back into the game, but raises questions about ensuring projects meet current standards.
The Balancing Act: Flexibility vs. Oversight
Ultimately, this bill tries to strike a balance. It offers hydropower developers, crucial players in renewable energy, more leeway to navigate the complexities of building large projects. This could keep investments flowing and potentially bring more clean energy online eventually. On the flip side, the extensions and reinstatements could delay environmental protections or community benefits tied to these projects. The lack of a clear definition for 'good cause' and the potential for reinstated licenses to bypass updated reviews are points worth watching, impacting how FERC manages the timeline and oversight for these significant energy infrastructure developments.