FERC Proposes Skipping Eco-Reviews for Water Power License Cancellations
Published Date: 2/24/2026
Proposed Rule
Summary
The Federal Energy Regulatory Commission wants to speed things up by skipping extra environmental reviews when ending or canceling certain water power licenses that cause little to no change in the environment. This change mainly affects companies holding these licenses and could save time and money. Comments on this proposal are open until March 26, 2026, so now’s the time to speak up!
Analyzed Economic Effects
2 provisions identified: 2 benefits, 0 costs, 0 mixed.
New categorical exclusion for certain terminations
The Commission proposes to expand 18 CFR 380.4(a)(13) to add a categorical exclusion for terminations or revocations of water power licenses and exemptions that will result in "minor or no ground disturbing activity and minor or no changes in reservoir conditions and downstream flows." For those covered actions, neither an Environmental Assessment (EA) nor an Environmental Impact Statement (EIS) will normally be prepared under NEPA. Comments on the proposal are due March 26, 2026.
No economic impact on small hydropower entities
The Commission certifies under the Regulatory Flexibility Act that this proposed rule would apply to entities holding hydropower licenses or exemptions (some of which may be small) but "would have no effect on these entities" because it imposes no action or requirement on licensees. The Small Business Administration size standard for hydroelectric power generation (used in the analysis) is 750 or fewer employees.
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