Hydropower represents approximately 20% of the world’s energy supply, is viewed as both vulnerable to global climate warming and an asset to reduce climate altering emissions, and is increasingly the target of improved regulation to meet multiple ecosystem service benefits. It is within this context that the recent decision by the United States Federal Energy Regulatory Commission to reject studies of climate change in its consideration of reoperation of the Yuba-Bear Drum-Spaulding hydroelectric facilities in northern California is shown to be poorly reasoned and risky. Given the rapidity of climate warming, and its anticipated impacts to natural and human communities, future long-term fixed licenses of hydropower operation will be ill prepared to adapt if science-based approaches to incorporating reasonable and foreseeable hydrologic changes into study plans are not included. The licensing of hydroelectricity generation can no longer be issued in isolation due to downstream contingencies such as domestic water use, irrigated agricultural production, ecosystem maintenance, and general socioeconomic well-being. At minimum, if the Federal Energy Regulatory Commission is to establish conditions of operation for 30-50 years, licensees should be required to anticipate changing climatic and hydrologic conditions for a similar period of time.

In April 2009, the U.S. Department of the Interior (Interior) and Federal Energy Regulatory Commission (FERC) entered into a Memorandum of Understanding (MOU) regarding the development of hydrokinetic and renewable energy projects on the Outer Continental Shelf (OCS). While the MOU resolved a long-standing jurisdictional impasse between the agencies, there remain unresolved regulatory matters regarding the approval and oversight of these emerging technologies. Now that the agencies have resolved the jurisdictional matter and committed to work together on this matter, however, such matters may be further resolved in a manner that would promote development of this vast renewable energy resource.

The federal licensing or relicensing of a hydroelectric project involves long and convoluted processes that can be very daunting. Those who carefully plan and organize a projected licensing effort in a comprehensive manner will face less difficulty. Managers of licensing projects and key decision makers participating on a hydro licensing team need to appreciate the various nuances and challenges they could face through the multi year process in order to adjust their approach as circumstances change through the process.

Each licensing project is unique and each prospective license applicant has a different management structure and company business philosophies. The planned licensing project needs to be adapted to work within these constraints. The size and complexity of the hydro project also can significantly affect the approach and level of effort needed to get the job done. The purpose of this paper is to discuss how to take these variables into consideration when tailoring a licensing organization that is best adapted to suit the situation. The author will draw from his experience to present a variety of large and small licensing project examples.