Hydropower Projects Get Up to Six More Years to Start Building: FERC Gains Retroactive Power Over Expired Licenses

This legislation gives the Federal Energy Regulatory Commission (FERC) the power to grant significant extensions—up to six additional years—for certain hydropower projects to begin construction. Specifically, the bill targets projects that received their license before March 13, 2020. If you’re a developer holding one of these licenses, you can now apply for this extra time, provided you can show “good cause” and give reasonable notice to FERC. Crucially, the bill also allows FERC to bring back to life any covered licenses that expired after December 31, 2023, making the new extension period effective from the original expiration date.

The Long Game: Why Developers Need a Six-Year Head Start

Normally, the Federal Power Act sets a pretty firm deadline for starting construction on these major infrastructure projects. But getting large hydropower facilities off the ground is complicated, often involving massive financing hurdles, complex land-use negotiations, and lengthy environmental reviews. The bill recognizes this reality by letting FERC grant up to three separate two-year extensions, totaling six years, beyond the existing maximum deadline. This is huge for developers who’ve sunk millions into planning but hit unexpected snags, like supply chain issues or difficulty securing massive capital commitments. For those companies, this extension means regulatory certainty and a second chance to push a project forward that might otherwise have been scrapped.

The Fine Print: What Does “Good Cause” Even Mean?

While the extra time sounds like a straightforward win for the energy sector, there’s a catch in the language: the extension is only granted if the licensee can “show good cause.” The bill doesn’t define what counts as “good cause.” This is where things get a little fuzzy. Since the criteria are subjective, FERC will have a lot of discretion. For everyday people, this matters because it means the process for granting these lengthy delays isn't fully transparent or predictable. Will it be granted for genuine, unforeseen economic hardship, or just for standard business delays? The lack of clear standards here could lead to inconsistent decisions, which is something smart policy tries to avoid.

Bringing Licenses Back from the Dead

Perhaps the most surprising provision is the ability to retroactively reinstate licenses. If a covered project’s license expired any time after the end of 2023, FERC can now revive it. Think of it like hitting the rewind button on a regulatory deadline. This is a massive relief for any developer whose license recently lapsed because they couldn't meet the construction start date. However, this raises questions about public interest. Typically, when a license expires, the public and environmental groups might expect the project to face a fresh review, considering any changes in local environmental conditions or energy needs since the original license was issued. By simply reviving the old license and tacking on six more years, the bill potentially bypasses the need for a modern assessment of the project’s impact on public resources, like rivers and surrounding lands.