[Code of Federal Regulations] [Title 18, Volume 1] [Revised as of April 1, 2004] From the U.S. Government Printing Office via GPO Access [CITE: 18CFR5.18] [Page 156-163] TITLE 18--CONSERVATION OF POWER AND WATER RESOURCES CHAPTER I--FEDERAL ENERGY REGULATORY COMMISSION, DEPARTMENT OF ENERGY PART 5_INTEGRATED LICENSE APPLICATION PROCESS--Table of Contents Sec. 5.18 Application content. (a) General content requirements. Each license application filed pursuant to this part must: (1) Identify every person, citizen, association of citizens, domestic corporation, municipality, or state that has or intends to obtain and will maintain any proprietary right necessary to construct, operate, or maintain the project; (2) Identify (providing names and mailing addresses): (i) Every county in which any part of the project, and any Federal facilities that would be used by the project, would be located; (ii) Every city, town, or similar local political subdivision: (A) In which any part of the project, and any Federal facilities that would be used by the project, would be located; or (B) That has a population of 5,000 or more people and is located within 15 miles of the project dam; (iii) Every irrigation district, drainage district, or similar special purpose political subdivision: (A) In which any part of the project, and any Federal facilities that would be used by the project, would be located; or (B) That owns, operates, maintains, or uses any project facilities that would be used by the project; (iv) Every other political subdivision in the general area of the project that there is reason to believe would likely be interested in, or affected by, the application; and (v) All Indian tribes that may be affected by the project. (3)(i) For a license (other than a license under section 15 of the Federal Power Act) state that the applicant has made, either at the time of or before filing the application, a good faith effort to give notification by certified mail of the filing of the application to: (A) Every property owner of record of any interest in the property within the bounds of the project, or in the case of the project without a specific project boundary, each such owner of property which would underlie or be adjacent to any project works including any impoundments; and (B) The entities identified in paragraph (a)(2) of this section, as well as any other Federal, state, municipal or other local government agencies that there is reason to believe would likely be interested in or affected by such application. (ii) Such notification must contain the name, business address, and telephone number of the applicant and a copy of the Exhibit G contained in the application, and must state that a license application is being filed with the Commission. (4)(i) As to any facts alleged in the application or other materials filed, be subscribed and verified under oath in the form set forth in paragraph (a)(3)(B) of this Section by the person filing, an officer thereof, or other person having knowledge of the matters set forth. If the subscription and verification is by anyone other than the person filing or an officer thereof, it must include a statement of the reasons therefor. (ii) This application is executed in the: State of_______________________________________________________________ County of______________________________________________________________ By:____________________________________________________________________ (Name)_________________________________________________________________ [[Page 157]] (Address)______________________________________________________________ being duly sworn, depose(s) and say(s) that the contents of this application are true to the best of (his or her) knowledge or belief. The undersigned Applicant(s) has (have) signed the application this---- -- day of--------, 2----. ________________________________________________________________________ (Applicant(s)) By:____________________________________________________________________ Subscribed and sworn to before me, a [Notary Public, or title of other official authorized by the state to notarize documents, as appropriate] this------ day of --------, 2----. /SEAL [if any] (Notary Public, or other authorized official) (5) Contain the information and documents prescribed in the following Sections of this chapter, except as provided in paragraph (b) of this Section, according to the type of application: (i) License for a minor water power project and a major water power project 5 MW or less: Sec. 4.61 (General instructions, initial statement, and Exhibits A, B, C, D, F, and G); (ii) License for a major unconstructed project and a major modified project: Sec. 4.41 of this chapter (General instructions, initial statement, Exhibits A, B, C, D, F, and G); (iii) License for a major project--existing dam: Sec. 4.51 of this chapter (General instructions, initial statement, Exhibits A, B, C, D, F, and G); or (iv) License for a project located at a new dam or diversion where the applicant seeks PURPA benefits: Sec. 292.208 of this chapter. (b) Exhibit E--Environmental Exhibit. The specifications for Exhibit E in Sec. Sec. 4.41, 4.51, or 4.61 of this chapter shall not apply to applications filed under this part. The Exhibit E included in any license application filed under this part must address the resources listed in the Pre-Application Document provided for in Sec. 5.6; follow the Commission's ``Preparing Environmental Assessments: Guidelines for Applicants, Contractors, and Staff,'' as they may be updated from time- to-time; and meet the following format and content requirements: (1) General description of the river basin. Describe the river system, including relevant tributaries; give measurements of the area of the basin and length of stream; identify the project's river mile designation or other reference point; describe the topography and climate; and discuss major land uses and economic activities. (2) Cumulative effects. List cumulatively affected resources based on the Commission's Scoping Document, consultation, and study results. Discuss the geographic and temporal scope of analysis for those resources. Describe how resources are cumulatively affected and explain the choice of the geographic scope of analysis. Include a brief discussion of past, present, and future actions, and their effects on resources based on the new license term (30-50 years). Highlight the effect on the cumulatively affected resources from reasonably foreseeable future actions. Discuss past actions' effects on the resource in the Affected Environment Section. (3) Applicable laws. Include a discussion of the status of compliance with or consultation under the following laws, if applicable: (i) Section 401 of the Clean Water Act. The applicant must file a request for a water quality certification (WQC), as required by Section 401 of the Clean Water Act no later than the deadline specified in Sec. 5.23(b). Potential applicants are encouraged to consult with the certifying agency or tribe concerning information requirements as early as possible. (ii) Endangered Species Act (ESA). Briefly describe the process used to address project effects on Federally listed or proposed species in the project vicinity. Summarize any anticipated environmental effects on these species and provide the status of the consultation process. If the applicant is the Commission's non-Federal designee for informal consultation under the ESA, the applicant's draft biological assessment must be included. (iii) Magnuson-Stevens Fishery Conservation and Management Act. Document from the National Marine Fisheries Service (NMFS) and/or the appropriate Regional Fishery Management Council any essential fish habitat (EFH) that may be affected by the project. Briefly discuss each managed species and life stage for which EFH was designated. Include, as appropriate, the abundance, distribution, available habitat, and habitat use by [[Page 158]] the managed species. If the project may affect EFH, prepare a draft ``EFH Assessment'' of the impacts of the project. The draft EFH Assessment should contain the information outlined in 50 CFR 600.920(e). (iv) Coastal Zone Management Act (CZMA). Section 307(c)(3) of the CZMA requires that all Federally licensed and permitted activities be consistent with approved state Coastal Zone Management Programs. If the project is located within a coastal zone boundary or if a project affects a resource located in the boundaries of the designated coastal zone, the applicant must certify that the project is consistent with the state Coastal Zone Management Program. If the project is within or affects a resource within the coastal zone, provide the date the applicant sent the consistency certification information to the state agency, the date the state agency received the certification, and the date and action taken by the state agency (for example, the agency will either agree or disagree with the consistency statement, waive it, or ask for additional information). Describe any conditions placed on the state agency's concurrence and assess the conditions in the appropriate section of the license application. If the project is not in or would not affect the coastal zone, state so and cite the coastal zone program office's concurrence. (v) National Historic Preservation Act (NHPA). Section 106 of NHPA requires the Commission to take into account the effect of licensing a hydropower project on any historic properties, and allow the Advisory Council on Historic Preservation (Advisory Council) a reasonable opportunity to comment on the proposed action. ``Historic Properties'' are defined as any district, site, building, structure, or object that is included in or eligible for inclusion in the National Register of Historic Places (NRHP). If there would be an adverse effect on historic properties, the applicant may include a Historic Properties Management Plan (HPMP) to avoid or mitigate the effects. The applicant must include documentation of consultation with the Advisory Council, the State Historic Preservation Officer, Tribal Historic Preservation Officer, National Park Service, members of the public, and affected Indian tribes, where applicable. (vi) Pacific Northwest Power Planning and Conservation Act (Act). If the project is not within the Columbia River Basin, this section shall not be included. The Columbia River Basin Fish and Wildlife Program (Program) developed under the Act directs agencies to consult with Federal and state fish and wildlife agencies, appropriate Indian tribes, and the Northwest Power Planning Council (Council) during the study, design, construction, and operation of any hydroelectric development in the basin. Section 12.1A of the Program outlines conditions that should be provided for in any original or new license. The program also designates certain river reaches as protected from development. The applicant must document consultation with the Council, describe how the act applies to the project, and how the proposal would or would not be consistent with the program. (vii) Wild and Scenic Rivers and Wilderness Acts. Include a description of any areas within or in the vicinity of the proposed project boundary that are included in, or have been designated for study for inclusion in, the National Wild and Scenic Rivers System, or that have been designated as wilderness area, recommended for such designation, or designated as a wilderness study area under the Wilderness Act. (4) Project facilities and operation. Provide a description of the project to include: (i) Maps showing existing and proposed project facilities, lands, and waters within the project boundary; (ii) The configuration of any dams, spillways, penstocks, canals, powerhouses, tailraces, and other structures; (iii) The normal maximum water surface area and normal maximum water surface elevation (mean sea level), gross storage capacity of any impoundments; (iv) The number, type, and minimum and maximum hydraulic capacity and installed (rated) capacity of existing and proposed turbines or generators to be included as part of the project; [[Page 159]] (v) An estimate of the dependable capacity, and average annual energy production in kilowatt hours (or mechanical equivalent); (vi) A description of the current (if applicable) and proposed operation of the project, including any daily or seasonal ramping rates, flushing flows, reservoir operations, and flood control operations. (5) Proposed action and action alternatives. (i) The environmental document must explain the effects of the applicant's proposal on resources. For each resource area addressed include: (A) A discussion of the affected environment; (B) A detailed analysis of the effects of the applicant's licensing proposal and, if reasonably possible, any preliminary terms and conditions filed with the Commission; and (C) Any unavoidable adverse impacts. (ii) The environmental document must contain, with respect to the resources listed in the Pre-Application Document provided for in Sec. 5.6, and any other resources identified in the Commission's scoping document prepared pursuant to the National Environmental Policy Act and Sec. 5.8, the following information, commensurate with the scope of the project: (A) Affected environment. The applicant must provide a detailed description of the affected environment or area(s) to be affected by the proposed project by each resource area. This description must include the information on the affected environment filed in the Pre-Application Document provided for in Sec. 5.6, developed under the applicant's approved study plan, and otherwise developed or obtained by the applicant. This section must include a general description of socio- economic conditions in the vicinity of the project including general land use patterns (e.g., urban, agricultural, forested), population patterns, and sources of employment in the project vicinity. (B) Environmental analysis. The applicant must present the results of its studies conducted under the approved study plan by resource area and use the data generated by the studies to evaluate the beneficial and adverse environmental effects of its proposed project. This section must also include, if applicable, a description of any anticipated continuing environmental impacts of continued operation of the project, and the incremental impact of proposed new development of project works or changes in project operation. This analysis must be based on the information filed in the Pre-Application Document provided for in Sec. 5.6, developed under the applicant's approved study plan, and other appropriate information, and otherwise developed or obtained by the Applicant. (C) Proposed environmental measures. The applicant must provide, by resource area, any proposed new environmental measures, including, but not limited to, changes in the project design or operations, to address the environmental effects identified above and its basis for proposing the measures. The applicant must describe how each proposed measure would protect or enhance the existing environment, including, where possible, a non-monetary quantification of the anticipated environmental benefits of the measure. This section must also include a statement of existing measures to be continued for the purpose of protecting and improving the environment and any proposed preliminary environmental measures received from the consulted resource agencies, Indian tribes, or the public. If an applicant does not adopt a preliminary environmental measure proposed by a resource agency, Indian tribe, or member of the public, it must include its reasons, based on project- specific information. (D) Unavoidable adverse impacts. Based on the environmental analysis, discuss any adverse impacts that would occur despite the recommended environmental measures. Discuss whether any such impacts are short- or long-term, minor or major, cumulative or site-specific. (E) Economic analysis. The economic analysis must include annualized, current cost-based information. For a new or subsequent license, the applicant must include the cost of operating and maintaining the project under the existing license. For an original license, the applicant must estimate the cost of constructing, operating, and maintaining the proposed project. For either [[Page 160]] type of license, the applicant should estimate the cost of each proposed resource protection, mitigation, or enhancement measure and any specific measure filed with the Commission by agencies, Indian tribes, or members of the public when the application is filed. For an existing license, the applicant's economic analysis must estimate the value of developmental resources associated with the project under the current license and the applicant's proposal. For an original license, the applicant must estimate the value of the developmental resources for the proposed project. As applicable, these developmental resources may include power generation, water supply, irrigation, navigation, and flood control. Where possible, the value of developmental resources must be based on market prices. If a protection, mitigation, or enhancement measure reduces the amount or value of the project's developmental resources, the applicant must estimate the reduction. (F) Consistency with comprehensive plans. Identify relevant comprehensive plans and explain how and why the proposed project would, would not, or should not comply with such plans and a description of any relevant resource agency or Indian tribe determination regarding the consistency of the project with any such comprehensive plan. (G) Consultation Documentation. Include a list containing the name, and address of every Federal, state, and interstate resource agency, Indian tribe, or member of the public with which the applicant consulted in preparation of the Environmental Document. (H) Literature cited. Cite all materials referenced including final study reports, journal articles, other books, agency plans, and local government plans. (2) The applicant must also provide in the Environmental Document: (A) Functional design drawings of any fish passage and collection facilities or any other facilities necessary for implementation of environmental measures, indicating whether the facilities depicted are existing or proposed (these drawings must conform to the specifications of Sec. 4.39 of this chapter regarding dimensions of full-sized prints, scale, and legibility); (B) A description of operation and maintenance procedures for any existing or proposed measures or facilities; (C) An implementation or construction schedule for any proposed measures or facilities, showing the intervals following issuance of a license when implementation of the measures or construction of the facilities would be commenced and completed; (D) An estimate of the costs of construction, operation, and maintenance, of any proposed facilities, and of implementation of any proposed environmental measures. (E) A map or drawing that conforms to the size, scale, and legibility requirements of Sec. 4.39 of this chapter showing by the use of shading, cross-hatching, or other symbols the identity and location of any measures or facilities, and indicating whether each measure or facility is existing or proposed (the map or drawings in this exhibit may be consolidated). (c) Exhibit H. The information required to be provided by this paragraph (c) must be included in the application as a separate exhibit labeled ``Exhibit H.'' (1) Information to be provided by an applicant for new license: Filing requirements--(i) Information to be supplied by all applicants. All Applicants for a new license under this part must file the following information with the Commission: (A) A discussion of the plans and ability of the applicant to operate and maintain the project in a manner most likely to provide efficient and reliable electric service, including efforts and plans to: (1) Increase capacity or generation at the project; (2) Coordinate the operation of the project with any upstream or downstream water resource projects; and (3) Coordinate the operation of the project with the applicant's or other electrical systems to minimize the cost of production. (B) A discussion of the need of the applicant over the short and long term for the electricity generated by the project, including: [[Page 161]] (1) The reasonable costs and reasonable availability of alternative sources of power that would be needed by the applicant or its customers, including wholesale customers, if the applicant is not granted a license for the project; (2) A discussion of the increase in fuel, capital, and any other costs that would be incurred by the applicant or its customers to purchase or generate power necessary to replace the output of the licensed project, if the applicant is not granted a license for the project; (3) The effect of each alternative source of power on: (i) The applicant's customers, including wholesale customers; (ii) The applicant's operating and load characteristics; and (iii) The communities served or to be served, including any reallocation of costs associated with the transfer of a license from the existing licensee. (C) The following data showing need and the reasonable cost and availability of alternative sources of power: (1) The average annual cost of the power produced by the project, including the basis for that calculation; (2) The projected resources required by the applicant to meet the applicant's capacity and energy requirements over the short and long term including: (i) Energy and capacity resources, including the contributions from the applicant's generation, purchases, and load modification measures (such as conservation, if considered as a resource), as separate components of the total resources required; (ii) A resource analysis, including a statement of system reserve margins to be maintained for energy and capacity; and (iii) If load management measures are not viewed as resources, the effects of such measures on the projected capacity and energy requirements indicated separately; (iv) For alternative sources of power, including generation of additional power at existing facilities, restarting deactivated units, the purchase of power off-system, the construction or purchase and operation of a new power plant, and load management measures such as conservation: The total annual cost of each alternative source of power to replace project power; the basis for the determination of projected annual cost; and a discussion of the relative merits of each alternative, including the issues of the period of availability and dependability of purchased power, average life of alternatives, relative equivalent availability of generating alternatives, and relative impacts on the applicant's power system reliability and other system operating characteristics; and the effect on the direct providers (and their immediate customers) of alternate sources of power. (D) If an applicant uses power for its own industrial facility and related operations, the effect of obtaining or losing electricity from the project on the operation and efficiency of such facility or related operations, its workers, and the related community. (E) If an applicant is an Indian tribe applying for a license for a project located on the tribal reservation, a statement of the need of such Indian tribe for electricity generated by the project to foster the purposes of the reservation. (F) A comparison of the impact on the operations and planning of the applicant's transmission system of receiving or not receiving the project license, including: (1) An analysis of the effects of any resulting redistribution of power flows on line loading (with respect to applicable thermal, voltage, or stability limits), line losses, and necessary new construction of transmission facilities or upgrading of existing facilities, together with the cost impact of these effects; (2) An analysis of the advantages that the applicant's transmission system would provide in the distribution of the project's power; and (3) Detailed single-line diagrams, including existing system facilities identified by name and circuit number, that show system transmission elements in relation to the project and other principal interconnected system elements. Power flow and loss data that represent system operating conditions may be appended if applicants believe such data would be useful to show that the operating impacts described would be beneficial. [[Page 162]] (G) If the applicant has plans to modify existing project facilities or operations, a statement of the need for, or usefulness of, the modifications, including at least a reconnaissance-level study of the effect and projected costs of the proposed plans and any alternate plans, which in conjunction with other developments in the area would conform with a comprehensive plan for improving or developing the waterway and for other beneficial public uses as defined in Section 10(a)(1) of the Federal Power Act. (H) If the applicant has no plans to modify existing project facilities or operations, at least a reconnaissance-level study to show that the project facilities or operations in conjunction with other developments in the area would conform with a comprehensive plan for improving or developing the waterway and for other beneficial public uses as defined in Section 10(a)(1) of the Federal Power Act. (I) A statement describing the applicant's financial and personnel resources to meet its obligations under a new license, including specific information to demonstrate that the applicant's personnel are adequate in number and training to operate and maintain the project in accordance with the provisions of the license. (J) If an applicant proposes to expand the project to encompass additional lands, a statement that the applicant has notified, by certified mail, property owners on the additional lands to be encompassed by the project and governmental agencies and subdivisions likely to be interested in or affected by the proposed expansion. (K) The applicant's electricity consumption efficiency improvement program, as defined under Section 10(a)(2)(C) of the Federal Power Act, including: (1) A statement of the applicant's record of encouraging or assisting its customers to conserve electricity and a description of its plans and capabilities for promoting electricity conservation by its customers; and (2) A statement describing the compliance of the applicant's energy conservation programs with any applicable regulatory requirements. (L) The names and mailing addresses of every Indian tribe with land on which any part of the proposed project would be located or which the applicant reasonably believes would otherwise be affected by the proposed project. (ii) Information to be provided by an applicant licensee. An existing licensee that applies for a new license must provide: (A) The information specified in paragraph (c)(1) of this section. (B) A statement of measures taken or planned by the licensee to ensure safe management, operation, and maintenance of the project, including: (1) A description of existing and planned operation of the project during flood conditions; (2) A discussion of any warning devices used to ensure downstream public safety; (3) A discussion of any proposed changes to the operation of the project or downstream development that might affect the existing Emergency Action Plan, as described in subpart C of part 12 of this chapter, on file with the Commission; (4) A description of existing and planned monitoring devices to detect structural movement or stress, seepage, uplift, equipment failure, or water conduit failure, including a description of the maintenance and monitoring programs used or planned in conjunction with the devices; and (5) A discussion of the project's employee safety and public safety record, including the number of lost-time accidents involving employees and the record of injury or death to the public within the project boundary. (C) A description of the current operation of the project, including any constraints that might affect the manner in which the project is operated. (D) A discussion of the history of the project and record of programs to upgrade the operation and maintenance of the project. (E) A summary of any generation lost at the project over the last five years because of unscheduled outages, including the cause, duration, and corrective action taken. (F) A discussion of the licensee's record of compliance with the terms [[Page 163]] and conditions of the existing license, including a list of all incidents of noncompliance, their disposition, and any documentation relating to each incident. (G) A discussion of any actions taken by the existing licensee related to the project which affect the public. (H) A summary of the ownership and operating expenses that would be reduced if the project license were transferred from the existing licensee. (I) A statement of annual fees paid under part I of the Federal Power Act for the use of any Federal or Indian lands included within the project boundary. (iii) Information to be provided by an applicant who is not an existing licensee. An applicant that is not an existing licensee must provide: (A) The information specified in paragraph (c)(1) of this section. (B) A statement of the applicant's plans to manage, operate, and maintain the project safely, including: (1) A description of the differences between the operation and maintenance procedures planned by the applicant and the operation and maintenance procedures of the existing licensee; (2) A discussion of any measures proposed by the applicant to implement the existing licensee's Emergency Action Plan, as described in subpart C of part 12 of this chapter, and any proposed changes; (3) A description of the applicant's plans to continue safety monitoring of existing project instrumentation and any proposed changes; and (4) A statement indicating whether or not the applicant is requesting the licensee to provide transmission services under section 15(d) of the Federal Power Act. (d) Consistency with comprehensive plans. An application for license under this part must include an explanation of why the project would, would not, or should not, comply with any relevant comprehensive plan as defined in Sec. 2.19 of this chapter and a description of any relevant resource agency or Indian tribe determination regarding the consistency of the project with any such comprehensive plan. (e) Response to information requests. An application for license under this Section must respond to any requests for additional information-gathering or studies filed with comments on its preliminary licensing proposal or draft license application. If the license applicant agrees to do the information-gathering or study, it must provide the information or include a plan and schedule for doing so, along with a schedule for completing any remaining work under the previously approved study plan, as it may have been amended. If the applicant does not agree to any additional information-gathering or study requests made in comments on the draft license application, it must explain the basis for declining to do so. (f) Maps and drawings. All required maps and drawings must conform to the specifications of Sec. 4.39 of this chapter. [Order 2002, 68 FR 51121, Aug. 25, 2003; 68 FR 61742, Oct. 30, 2003; 68 FR 69957, Dec. 16, 2003]