Licensing Hydropower Projects: Better Time and Cost Data Needed to Reach Informed Decisions About Process Reforms Page: 2 of 9
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Mr. Chairman and Members of the Subcommittee:
We are pleased to be here today to (1) discuss our May 2, 2001, report on
the process used by the Federal Energy Regulatory Commission (FERC)
to issue licenses to construct and to operate nonfederal hydroelectric
power (hydropower) projects' and (2) provide our preliminary views on
FERC's congressionally mandated May 8, 2001, report on hydroelectric
licensing policies, procedures, and regulations.2
In summary:
* FERC, federal and state land and resource agencies, licensees,
environmental groups, and other participants in the licensing process
acknowledge that the process to obtain a license is far more complex,
time-consuming, and costly today than it was 30 to 50 years ago when
FERC issued original licenses to own and operate about 1,000 nonfederal
hydropower projects. Today, FERC faces a formidable challenge in issuing
a license that is legally defensible, scientifically credible, and likely to
protect and enhance fish, wildlife, and other resources while still
preserving hydropower as an economically viable energy source.
* Both FERC and we have reported that participants in the licensing process
do not agree on the effectiveness of recent reforms to the process or on
the need for further reforms to shorten the process or make it less costly.
Some within and among the diverse parties believe that the time and
money spent on licensing a project reflect the level of complexity of the
issues involved and that recent reforms will likely reduce the time and
costs needed to obtain a license. Conversely, others believe that recent
reforms will do little to reduce time and costs. However, they cannot agree
on what further reforms are needed to shorten the process and make it
less costly.
* FERC and we do not agree, however, on the need for better time and cost
data to reach informed decisions about process reforms. To resolve the
disagreement among process participants and to reach informed decisions
1 Licensing Hydropower Projects: Better Time and Cost Data Needed to Reach Informed
Decisions About Process Reforms (GAO-01-499, May 2, 2001).
2 Report on Hydroelectric Licensing Policies, Procedures, and Regulations:
Comprehensive Review and Recommendations Pursuant to Section 603 of the Energy Act
of 2000, prepared by FERC staff (May 8, 2001).GAO-01-921T
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United States. General Accounting Office. Licensing Hydropower Projects: Better Time and Cost Data Needed to Reach Informed Decisions About Process Reforms, text, June 27, 2001; Washington D.C.. (https://digital.library.unt.edu/ark:/67531/metadc289687/m1/2/: accessed April 18, 2024), University of North Texas Libraries, UNT Digital Library, https://digital.library.unt.edu; crediting UNT Libraries Government Documents Department.