On December 9, 2019, the U.S. Supreme Court decided not to revisit the U.S. Court of Appeals for D.C. Circuit’s decision in Hoopa Valley Tribe v. FERC, 913 F.3d 1099 (2019), allowing the lower court’s ruling to stand.  The key holding of the D.C. Circuit’s opinion, which concerned the ongoing Federal Energy Regulatory Commission’s (“FERC”) relicensing of the Klamath Hydroelectric Project, is that the States of California and Oregon waived their authorities under section 401 of the Clean Water Act (CWA), 33 U.S.C. § 1341, by failing to rule on the applicant’s submitted request for water quality certification within one year.  The D.C. Circuit held that the plain language of CWA section 401 establishes a maximum period of one year for states to act on a request for water quality certification.  Accordingly, the court further held that FERC erred in concluding that the “withdrawal-and-resubmittal” of the water quality certification application on an annual basis resets the one-year statutory time period for state action under section 401.
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On December 3, 2019, FERC issued an order in response to South Carolina Public Service Authority’s (“SCPSA”) October 8, 2019 request for a determination under section 36(c) of the Federal Power Act (“FPA”) that certain project investments made over the term of the existing license for the Santee Cooper Project meet the criteria set forth in FPA section 36(b)(2), and therefore should be considered when the Commission establishes the length of the next license term for the Project.  The Commission’s December 3 order held that most of the prior investments identified in SCPSA’s request—approximately $90 million—met the statutory criteria and will be considered when the Commission sets the new license term in its future order on relicensing. 
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On October 17, 2019, FERC denied requests for rehearing filed by the California State Water Resources Control Board (“SWRCB”) and conservation organizations in response to the Commission’s unanimous April 18, 2019 order finding that SWRCB had waived its authority under section 401(a)(1) of the Clean Water Act (“CWA”), 33 U.S.C. § 1641, to issue a water quality certification for the relicensing of Placer County Water Agency’s Middle Fork American River Hydroelectric Project (“Middle Fork Project”) (see April 24, 2019 edition of the WER).
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On October 17, 2019, FERC amended its Policy Statement on Consultation with Indian Tribes in Commission Proceedings (“Policy Statement”) by adding a specific reference to treaty rights, noting that the Commission addresses input from tribes in its National Environmental Policy Act (“NEPA”) documents, and adding consultation with Alaska Native Corporations to the Policy Statement.
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On October 17, 2019, pursuant to the America’s Water Infrastructure Act (AWIA) of 2018, FERC issued a guidance document for applicants seeking preliminary permits or licenses for closed-loop pumped storage projects at abandoned mine sites.  It also issued a list of 230 existing nonpowered federal dams that FERC—along with the Secretaries of the Interior, Army, and Agriculture (collectively, the Secretaries)—determined have the greatest potential for nonfederal hydropower development.
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On September 30, 2019, FERC accepted in part and rejected in part, the California Independent System Operator’s (“CAISO”) July 2, 2019 proposed revisions (“July 2 Filing”)  to its open access transmission tariff (“Tariff”) to include three unrelated mitigation measures designed to facilitate the participation of fast-ramping hydroelectric resources in the western energy imbalance market (“EIM”). FERC accepted two aspects of CAISO’s proposal related to the mitigation timing (the “Mitigation Timing” proposal and a hydro default energy bid (“DEB”) proposal, referred to as the “Hydro DEB” proposal), but rejected CAISO’s proposal to allow an EIM entity balancing authority area (“BAA”) in the real-time market to limit dispatch of incremental net exports under certain conditions (the “Net Export Limit” proposal).
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On September 20, 2019, FERC issued an original license to McMahan Hydroelectric, LLC (“McMahan”) for the 600-kilowatt Bynum Hydroelectric Project, located on the Haw River in Chatham County, North Carolina. In its licensing order, FERC held that North Carolina waived authority under section 401 of the Clean Water Act (“CWA”) by failing to act within one year of receiving McMahan’s request for water quality certification under section 401. In a separate statement, Commissioner Glick—while agreeing with the conclusion that North Carolina had waived section 401 authority—dissented in the Commission’s rationale for finding waiver.
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On August 9, 2019, the Federal Energy Regulatory Commission (“FERC”) ruled that hundreds of millions of dollars of ongoing and future investments by Chelan County Public Utility District (“Chelan PUD”) in the Rock Island Hydroelectric Project qualified as early-action investments under the new section 36(c) of the Federal Power Act (“FPA”).  Accordingly, FERC will consider these significant investments when the Rock Island Project undergoes relicensing of its FERC license prior to the 2028 expiration of the license.

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On May 23, 2019, FERC issued a 10-year pilot license to the Igiugig Village Council (“Igiugig Village”) to construct, operate, and maintain its 70-kilowatt hydrokinetic project located on the Kvichak River near the town of Igiugig, Alaska (“Igiugig Project”).  The Igiugig Project will enable to Igiugig Village to test new hydrokinetic technology to power the Igiugig Village.
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On May 21, 2019, the U.S. Department of Energy (“DOE”) announced that its Hydroelectric Production Incentive Program is offering $6.6 million in new funding for projects that would add hydropower generating capabilities to existing dams throughout the U.S.  Qualified facilities will be selected for funding based on the number of kilowatt hours generated in calendar year 2018.
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