Relicensing the Carmen-Smith Hydroelectric Project

Background:

In the 1940's-50's, over 290 hydroelectric projects were licensed and constructed on National Forest lands. Power generated by these facilities has played a vital role in the economic development of the nation. Reservoirs and other facilities created by these projects are important recreation sites.

The Federal Power Act of 1920 authorizes the use of federal lands by non-federal entities to construct waterpower facilities (dams, power plants, transmission lines, etc.). The Federal Energy Regulatory Commission (FERC), an independent federal commission in the Department of Energy, has jurisdiction over all hydropower dams not owned by the federal government that either: (1) occupy federal public lands or federal reservations; (2) are located on navigable streams; (3) use surplus water or water power from a federal government dam; or (4) were constructed after August 26, 1935 and are located on a non-navigable stream that affects the interests of interstate or foreign commerce (including providing power to an interstate power grid).

For most non-federal hydroelectric power projects, FERC must issue a license authorizing construction, or in the case of an existing project, continued project operation. Most hydroelectric projects serve other purposes such as navigation, flood control, recreation, and irrigation, and flow augmentation.

The Commission issues Licenses for hydroelectric projects for periods up to 50 years, after reviewing engineering, environmental, and economic aspects of the proposal; preparing environmental documents analyzing the project's effects, and making recommendations for mitigating adverse effects. The analysis is based on reviewing comments and recommendations submitted by other government agencies, interested organizations, and the public; and determining that the proposed project is best adapted to a comprehensive plan for improving or developing a waterway or waterways for beneficial public uses.

The Relicensing Process:

When a license expires, the Commission may issue a new license to the original licensee, or to a new licensee. Competition for a project license is allowed during all new license proceedings.

At least 5 years before a license expires, the licensee must file a notice of intent declaring whether or not it intends to seek a new license. At least 2 years before a license expires, the licensee must submit a relincensing application to FERC. The procedures for processing a new license are practically identical to those for an original license.

The application process is prescriptive and a more detailed description of the process may be found at the Federal Energy Regulatory Commission website at http://www.ferc.gov/help/processes/hydro-proj.asp

In general terms, the process involves the applicant consulting with appropriate federal, state, local government agencies and tribes; conducting studies; holding meetings; and filing an application with the Commission. The application contains an engineering analysis, economic and financial information, an environmental report, and proposed mitigation, protection, and enhancement measures.

After the application is filed, the Commission seeks participation by interested parties, organizations, tribes and government agencies in reviewing the license application; conducts an environmental review and prepares an environmental document, such as an Environmental Assessment (EA). Before issuing a license (relicense) the Commission must determine consistency with federal and state comprehensive plans; must weigh competing interests, including both power and non-power uses; and must strike a balance between developmental and non-developmental interests.

In any license issued, the Commission includes terms and conditions (license articles) that are required to keep the license in effect. These requirements include engineering, safety, economic, and environmental considerations. For example, they could require water quality monitoring, wildlife habitat creation, a public safety plan, an erosion control plan, and engineering design specifications.

The Carmen-Smith Project
(FERC Project 2242):

The Eugene Water & Electric Board, (EWEB), a publicly owned utility, constructed the Carmen-Smith Hydroelectric Project on the upper McKenzie River in the early 1960's. The project consists of the Carmen Reservoir, Diversion Dam and Tunnel, Smith River Reservoir and Dam, and Trail Bridge Re-regulating Reservoir. The power plant generators at Carmen and Trail Bridge produce a maximum of 120,000 kilowatts, used to supplement the production of EWEB's hydroelectric plants at Leaburg and Walterville. Together these facilities provide approximately 30% of Eugene's electric needs.

A 50-year license was issued for the project in December 1, 1958 and will expire at the end of November 30, 2008.