Establishment of Categorical Reasonable Period of Time for Action on Requests for Water Quality Certification Under Section 401(a)(1) of the Clean Water Act and Clarifying Types of Hydroelectric Project Proceedings That May Require Water Quality Certification

DEPARTMENT OF ENERGY <SUBAGY>Federal Energy Regulatory Commission</SUBAGY> <CFR>18 CFR Parts 4, 5, 6, 7</CFR> <DEPDOC>[Docket No. RM24-5-000]</DEPDOC> <SUBJECT>Establishment of Categorical Reasonable Period of Time for Action on Requests for Water Quality Certification Under Section 401(a)(1) of the Clean Water Act and Clarifying Types of Hydroelectric Project Proceedings That May Require Water Quality Certification</SUBJECT> <HD SOURCE="HED">AGENCY:</HD> Federal Energy Regulatory Commission, Department of Energy. <HD SOURCE="HED">ACTION:</HD> Notice of proposed rulemaking. <SUM> <HD SOURCE="HED">SUMMARY:</HD> In this proposed rule, the Federal Energy Regulatory Commission (Commission) amends its regulations to clarify that for all proceedings before the Commission that require a water quality certification pursuant to section 401(a)(1) of the Federal Water Pollution Control Act (Clean Water Act), the reasonable period of time during which the certifying authority may act on the water quality certification request is one year from the certifying authority's receipt of the request. The proposed rule also clarifies that all Commission authorizations that have the potential to discharge into waters of the United States require a section 401 water quality certification or waiver, including hydropower exemptions, amendments, and surrenders. Finally, the proposed rule provides updated terminology in the Commission's hydropower regulations and updates the timing of the filing requirements for the Commission's expedited hydropower licensing process. </SUM> <EFFDATE> <HD SOURCE="HED">DATES:</HD> Comments are due July 8, 2024. </EFFDATE> <HD SOURCE="HED">ADDRESSES:</HD> You may send comments, identified by RM24-5-000, by either of the following methods: • <E T="03">Agency website:</E> Electronic Filing through <E T="03">http://www.ferc.gov.</E> Documents created electronically using word processing software should be filed in native applications or print-to-PDF format and not in a scanned format. • <E T="03">Mail:</E> Those unable to file electronically may mail comments to: Federal Energy Regulatory Commission, Secretary of the Commission, 888 First Street NE, Washington, DC 20426. Hand-delivered comments should be delivered to Health and Human Services, 12225 Wilkins Avenue, Rockville, Maryland 20852. <E T="03">Instructions:</E> For detailed instructions on submitting comments and additional information on the rulemaking process, see the Comment Procedures section of this document. <FURINF> <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD> <FP SOURCE="FP-1"> Amber Leasure-Earnhardt (Legal Information), Office of the General Counsel, Federal Energy Regulatory Commission, 888 First Street NE, Washington, DC 20426, (202) 502-6891, <E T="03">Amber.Leasure-Earnhardt@ferc.gov</E> </FP> <FP SOURCE="FP-1"> Miranda Millerick (Legal Information), Office of the General Counsel, Federal Energy Regulatory Commission, 888 First Street NE, Washington, DC 20426, (202) 502-8781, <E T="03">Miranda.Millerick@ferc.gov</E> </FP> <FP SOURCE="FP-1">Michael Tust (Technical Information), Office of Energy Projects, Federal Energy Regulatory Commission, 888 First Street NE, Washington, DC 20426, (202) 502-6522</FP> <FP SOURCE="FP-1">Jody Callihan (Technical Information), Office of Energy Projects, Federal Energy Regulatory Commission, 888 First Street NE, Washington, DC 20426, (202) 502-8278</FP> <FP SOURCE="FP-1">Andrea Claros (Technical Information), Office of Energy Projects, Federal Energy Regulatory Commission, 888 First Street NE, Washington, DC 20426, (202) 502-8171</FP> </FURINF> <SUPLINF> <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD> <HD SOURCE="HD1">Table of Contents</HD> <EXTRACT> <HD SOURCE="HD2">Paragraph Numbers</HD> <FP SOURCE="FP-2">I. Background—2</FP> <FP SOURCE="FP-2">II. Proposed Revisions—6</FP> <FP SOURCE="FP-2">III. Regulatory Requirements—9</FP> <FP SOURCE="FP1-2">A. Information Collection Statement—9</FP> <FP SOURCE="FP1-2">B. Environmental Analysis—10</FP> <FP SOURCE="FP1-2">C. Regulatory Flexibility Act—11</FP> <FP SOURCE="FP1-2">D. Comment Procedures—13</FP> <FP SOURCE="FP1-2">E. Document Availability—14</FP> </EXTRACT> <HD SOURCE="HD1">I. Background</HD> <HD SOURCE="HD2">A. Clean Water Act Section 401</HD> 1. Section 401 of the Clean Water Act (CWA) is a direct grant of authority to states and authorized Tribes  <SU>1</SU> <FTREF/> ( <E T="03">i.e.,</E> certifying authorities) to review for compliance with appropriate federal, state, and Tribal water quality requirements any discharge into waters of the United States that may result from a proposed activity that requires a federal license or permit. <SU>2</SU> <FTREF/> Section 401(a)(1) of the CWA prohibits a federal agency from issuing a federal license, permit, or other authorization for a project or activity that may result in a discharge into waters of the United States, such as a Federal Energy Regulatory Commission (Commission) order issuing a license for a hydroelectric project or order authorizing an amendment or surrender of a license, unless the appropriate certifying authority either grants certification or waives its certification authority. <SU>3</SU> <FTREF/> Under the Clean Water Act, if the certifying authority “fails or refuses to act on a request for certification, within a reasonable period of time (which shall not exceed one year) after receipt of such request,” then certification is waived. <SU>4</SU> <FTREF/> <FTNT> <SU>1</SU>  “Authorized Tribes” refers to Indian Tribes that have been approved for “treatment as a state” status under the CWA. Authorized Tribes may also have the authority under section 401 to issue water quality certifications. </FTNT> <FTNT> <SU>2</SU>  33 U.S.C. 1341(a)(1). </FTNT> <FTNT> <SU>3</SU>   <E T="03">Id.</E> </FTNT> <FTNT> <SU>4</SU>   <E T="03">Id.</E> </FTNT> 2. The January 2021 Executive Order 13990 entitled <E T="03">Protecting Public Health and the Environment and Restoring Science to Tackle the Climate Crisis,</E> among other things directed the Environmental Protection Agency (EPA) to review the water quality certification rule EPA promulgated in 2020 under section 401 of the CWA. <SU>5</SU> <FTREF/> In compliance with the Executive Order, on September 14, 2023, the EPA issued a final 2023 Clean Water Act Section 401 Water Quality Certification Improvement Rule (Certification Improvement Rule), <SU>6</SU> <FTREF/> which revised its regulations under 40 CFR part 121. <SU>7</SU> <FTREF/> The Certification Improvement Rule applies prospectively to all actions after the effective date of the rule. <FTNT> <SU>5</SU>  Exec. Order No. 13990, 86 FR 7037 (Jan. 25, 2021). EPA issued the Clean Water Act Section 401 Certification Rule on June 1, 2020. 85 FR 42210 (July 13, 2020). </FTNT> <FTNT> <SU>6</SU>  88 FR 66558 (Sept. 27, 2023). </FTNT> <FTNT> <SU>7</SU>  The rule was published in the <E T="04">Federal Register</E> on September 27, 2023, and became effective 60 days after publication on November 27, 2023. </FTNT> <HD SOURCE="HD2">B. Reasonable Period of Time</HD> 3. Regarding the statutory reasonable period of time in which a certifying authority must act on a request for certification, section 121.6(b) of the Certification Improvement Rule contemplates that the federal agency and certifying authority will establish a reasonable period of time on a case-by-case basis. If the federal agency and certifying authority do not agree, the rule sets a six-month default reasonable period of time. <SU>8</SU> <FTREF/> The rule, however, also provides that if a federal agency establishes a one-year reasonable period of time by regulation, the maximum time allowed under the CWA, the federal agency may use that one year as the reasonable period of time without negotiating with certifying authorities. <SU>9</SU> <FTREF/> <FTNT> <SU>8</SU>  88 FR 66663. </FTNT> <FTNT> <SU>9</SU>   <E T="03">Id.</E> at 66588. </FTNT> 4. With respect to licensing proceedings, the Commission promulgated regulations providing for a categorical one-year reasonable period of time for action by a certifying authority, as reflected in subsection 4.34(b)(5)(iii) of its regulations in 1987, <SU>10</SU> <FTREF/> subsection 5.23(b)(2) of its regulations in 2003, <SU>11</SU> <FTREF/> and subsection 7.2(b)(3)(ii) of its regulations in 2019. <SU>12</SU> <FTREF/> Although it is the Commission's practice to apply a one-year reasonable period of time for water quality certification applications in all hydropower proceedings where they are required, <SU>13</SU> <FTREF/> the current regulations are silent as to certain FPA proceedings, including those regarding hydropower exemptions (a subcategory of licensing proceedings), amendments to hydropower licenses, or surrenders of hydropower licenses, some of which may trigger CWA section 401. <FTNT> <SU>10</SU>   <E T="03">Waiver of the Water Quality Certification Requirements of Section 401(a)(1) of the Clean Water Act,</E> Order No. 464, FERC Stats. & Regs. ¶ 30,730 (1987) (cross-referenced at 38 FERC ¶ 61,146); 18 CFR 4.34(b)(5)(iii). Part 4 of the Commission's regulations governs applicants using the traditional licensing process and the alternative licensing process. </FTNT> <FTNT> <SU>11</SU>   <E T="03">Hydroelectric Licensing Under the Fed. Power Act,</E> Order No. 2002, 68 FR 51070 (Aug. 25, 2003), Order No. 2002-A, 69 FR 5268 (Feb. 4, 2004), 104 FERC ¶ 61,109 (2003), <E T="03">order on reh'g,</E> 106 FERC ¶ 61,037 (2004); 18 CFR 5.23(b)(2). Part 5 governs applicants using the integrated licensing process. </FTNT> <FTNT> <SU>12</SU>   <E T="03">Hydroelectric Licensing Reguls. Under the Am.'s Water Infrastructure Act of 2018,</E> Order ━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━ Preview showing 10k of 42k characters. Full document text is stored and available for version comparison. ━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━