Categorical Exclusion Under the National Environmental Policy Act for Certain Terminations or Revocations of Water Power Licenses or Exemptions
Key claim: FERC is expanding its NEPA categorical exclusion so terminations or revocations of water power licenses and exemptions that cause only minor or no ground disturbance and minor or no changes in reservoir conditions and downstream flows do not require fuller environmental review.
Abstract
(Rule · Energy Department, Federal Energy Regulatory Commission) The Federal Energy Regulatory Commission amends its regulations implementing the National Environmental Policy Act (NEPA) to expand an existing Categorical Exclusion (CE) to include “terminations or revocations of water power licenses and exemptions that will result in minor or no ground disturbing activity and minor or no changes in reservoir conditions and downstream flows.”
Why this matters
Expanding categorical exclusions for terminating or revoking water power licenses lets FERC close out inactive hydropower authorizations without preparing environmental assessments or impact statements, cutting administrative time and cost when the on-the-ground effects are minimal. Critics may worry about lost opportunities to scrutinize decommissioning-related effects on reservoirs and downstream flows, while proponents argue full NEPA review is disproportionate where physical changes are negligible. The rule fits a broader cross-agency pattern of narrowing NEPA scope through added exclusions after the rescission of CEQ regulations.