Federal Energy Regulatory Commission's Hydroelectric Permitting and Licensing Efforts Are Being Hampered by Hybrid Applications and Staffing

Increases in the price of imported oil have brought renewed interest in developing domestic energy resources. One such resource is hydropower, the use of which has increased tremendously over the past few years. Applications for preliminary permits have increased rapidly, and the Federal Energy Regulatory Commission (FERC) estimates that these permits will more than double by September 1981.

Even though the number of applications has been escalating, FERC has been able to reduce its processing time by streamlining the methods used in issuing permits and licenses. However, GAO recently noted that the processing time is beginning to increase again. Two problem areas were identified. The first involves an increasing number of hybrid permit applications. At present, 100 hybrid cases are pending, and FERC has ruled on only one. A review of this area showed that no policy has been developed to handle these permits more expeditiously. The hybrid preliminary permit issue has presented FERC with questions which need to be resolved. The second area deals with staffing. Staffing has remained stable for the past few years while permit and license applications have increased substantially. In addition, the current budget proposals would reduce existing staff which could cause an increase in processing time.

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