EP 1165-2-1
30 Jul 99
possibilities for modifications in project operations which will have
beneficial results.
16-9. Non-Federal Development at Corps Projects. Non-Federal
hydroelectric power developments may be constructed at Corps projects
through FERC licensing procedures (paragraph 24-12). As a general
policy, development of suitable non-Federal hydropower at Corps
projects is encouraged. In evaluating proposals for such non-Federal
development, total power potential of a site must be considered. This
potential can be developed in stages as the local and regional demand
for electric power dictates. However, the first stage design and
construction should include provisions for future expansion of power
facilities compatible with the total power potential of the site and
other project uses. The Corps in reviewing an application for permit
will not object to issuance of a preliminary permit by FERC for a
feasibility study of hydropower development at Corps projects. FERC
is informed of any planned or concurrent Corps hydropower study
covering the same site as the applicant's study, but the status of
Corps studies should not be an impediment to non-Federal hydropower
development at Corps sites:
a. Potential New Project (No Existing Dam). Where potential
apparently exists, possible development of hydroelectric power should
be evaluated in Corps reconnaissance phase studies of new project
proposals. Such studies are entirely at Federal expense; if the
evaluation effort supports a conclusion that hydropower development
could be justifiable, the reconnaissance studies will have the further
goal of identifying a non-Federal sponsor willing to costs share,
50-50, project feasibility studies including hydropower. Upon
completion of feasibility studies in which hydropower development is
considered and found feasible, the resulting preauthorization report
will not recommend Federal development of the power unless it would be
impractical for non-Federal interests to develop it. Any
recommendation for Federal development will be founded on recognition
that priority for such development is afforded only to developments
for which a non-Federal sponsor willing to fund the investment costs
during the period of construction (with later repayment out of power
revenues) is available.
b. Addition of Hydropower at Existing Dams. Where Federal
development of hydropower is specifically authorized as an element of
a Corps project, FERC will not issue a license. Arrangements for
construction, including non-Federal financing, are reserved to the
Corps. In the absence of any specific hydropower provisions in the
project authorization, FERC licensing procedures have proven to be the
choice of non-Federal sponsors. (Such licensing is consistent with
Corps policy subject to provisions expressed in ER 1130-2-510.)
c. Special Studies. Special studies, such as those undertaken
pursuant to Section 216 of the 1970 Flood Control Act, that identify
hydropower potential from the reformulation of an existing project,
should also identify a non-Federal sponsor for development of that
potential. Studies will be programmed and cost shared in the same way
as studies responsive to Congressional directives (changes in existing
authorized project purposes, so as to include hydropower, require
Congressional authorization).
16-10. Corps Developments at Non-Corps Sites. The Corps has no
general legislative authority to construct hydroelectric facilities at
non-Federal dams. However, under specific congressional authorities,
the Corps has constructed multiple purpose projects which have
16-5
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