Negotiating Terms and Conditions: An Overview of the Federal Energy Regulatory Commission Hydropower Settlement Agreement Process

The process for obtaining, transferring, or surrendering a Federal Energy Regulatory Commission (FERC) hydropower license or exemption from licensing can be a series of complex negotiations. In many instances, the process may include stakeholders with different and/or competing perspectives or objectives related to the original license, new license (i.e., relicense), transfer of a license, or surrender of a license. Divergent perspectives and objectives can lead to disputes among project participants, which may impact the development of FERC license terms and conditions. One mechanism to resolve disputes between project participants involving a FERC authorization is informal and formal settlement agreement conferences, which often result in settlement agreements addressing the disputed issues. This report provides hydropower stakeholders with a better understanding of the FERC settlement agreement process, including information on: How to initiate a settlement agreement. The procedural steps associated with the settlement agreement process. The legal standards the Commission must adhere to when determining whether settlement agreement provisions can become lawful and enforceable terms or conditions of a FERC authorization. Examples of settlement agreement provisions included as license terms and conditions or in off-license agreements from a collection of settlement agreements and Commission orders.