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A FERC Preliminary Permit Is Not Permission to Build

For a pumped storage project, a preliminary permit is an important first step. Here is what it does, what it does not do, and what comes next.

Key to remember about any Federal Energy Regulatory Commission preliminary permit: it is an important first step for a pumped storage project. It is not permission to build.

What it does

  • Secures first-to-file priority for a license application for up to four years, with one extension of up to four more.
  • Gives the developer time to study feasibility, engineering, and environmental conditions.

What it does not do

  • Authorize construction or any land-disturbing activity.
  • Grant access to land the developer does not own or control.
  • Guarantee a license.

What comes next

  • A Notice of Intent and Pre-Application Document open the Integrated Licensing Process.
  • Two to three years of scoping, stakeholder consultation, and studies produce a final license application.
  • The developer negotiates mitigation measures with resource agencies, tribes, and other stakeholders, often through a settlement agreement.
  • FERC then completes its environmental review while the developer secures state water quality certification and other approvals, typically about two more years.
  • FERC issues the license, which sets the terms, conditions, and mitigation requirements the project must meet.
  • The developer completes final design and files final plans, specifications, and a supporting design report with FERC's Division of Dam Safety and Inspections at least sixty days before construction.
  • FERC authorizes the start of construction only after its engineers review the design and confirm all pre-construction requirements are met.

Construction generally must begin within two years of license issuance, though FERC can extend that deadline.

Bottom line: permit to groundbreaking is rarely less than five years.

Sources:

Originally posted on LinkedIn.

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