FERC Makes Ending Some Water-Power Licenses Easier—Without Big Environmental Reviews
Published Date: 7/23/2026
Rule
Summary
Starting August 24, 2026, the Federal Energy Regulatory Commission (FERC) is making it easier to end certain water power licenses or exemptions without a big environmental review, as long as the changes cause little or no impact on the land or water flow. This update helps speed up decisions for companies and communities involved with water power projects, saving time and cutting red tape. If you’re involved in water power, this means quicker, simpler license terminations with no extra costs.
Analyzed Economic Effects
2 provisions identified: 1 benefits, 0 costs, 1 mixed.
Quicker license endings for some hydropower projects
Starting August 24, 2026, FERC expanded a categorical exclusion so that terminations or revocations of water power licenses or exemptions that will result in "minor or no ground disturbing activity and minor or no changes in reservoir conditions and downstream flows" generally will not require an Environmental Assessment (EA) or Environmental Impact Statement (EIS). If your hydropower project meets those conditions, the Commission may use the CE instead of preparing an EA or EIS, which the Commission says provides more efficient oversight and can speed decisions for project sponsors.
Less site-specific NEPA documents for some terminations
By expanding the CE, FERC will in some cases no longer prepare site-specific NEPA documents (EAs or EISs) for terminations or revocations that meet the CE criteria. Commenters said this could reduce opportunities for case-specific environmental review and stakeholder input; FERC responded that the change only alters NEPA procedures and does not change its obligations under the Clean Water Act, Endangered Species Act, the Federal Power Act, or other statutes and that FERC can still coordinate with other agencies and stakeholders outside the NEPA document process.
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