Swanson Mining Corporation v. Federal Energy Regulatory Commission

790 F.2d 96, 252 U.S. App. D.C. 274, 16 Envtl. L. Rep. (Envtl. Law Inst.) 20735, 1986 U.S. App. LEXIS 23497
CourtCourt of Appeals for the D.C. Circuit
DecidedApril 8, 1986
Docket85-1189
StatusPublished
Cited by6 cases

This text of 790 F.2d 96 (Swanson Mining Corporation v. Federal Energy Regulatory Commission) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Swanson Mining Corporation v. Federal Energy Regulatory Commission, 790 F.2d 96, 252 U.S. App. D.C. 274, 16 Envtl. L. Rep. (Envtl. Law Inst.) 20735, 1986 U.S. App. LEXIS 23497 (D.C. Cir. 1986).

Opinion

Opinion for the Court filed by Circuit Judge WALD.

WALD, Circuit Judge:

Petitioners Swanson Mining Corporation and Walter M. Gleason seek review of a decision by the Federal Energy Regulatory Commission vacating an exemption from the licensing requirements imposed by Part I of the Federal Power Act, 16 U.S.C. §§ 791a-825r. The Commission vacated the exemption on the ground that it lacked authority to grant an exemption for a project located on a wild and scenic river. For the reasons that follow, we uphold the Commission in its determination that it lacked statutory authority to grant any exemption to Swanson.

I. Background

A. The Statutory Framework

Part I of the Federal Power Act requires in general that anyone seeking to construct, operate or maintain any hydroelectric power facility must obtain a license from the Federal Energy Regulatory Commission (FERC or the Commission). See 16 U.S.C. § 817. Under the Energy Security Act, however, Congress has empowered the Commission to exempt certain small hydroelectric projects from this licensing requirement. See 16 U.S.C. § 2705(d). Prior to issuing an exemption under the Energy Security Act, the Commission must consult with the United States Fish and Wildlife Service and any state agency charged with administering fish and wildlife resources and must include in any exemption all terms and conditions which these agencies determine to be appropriate to “ensure protection for fish and wildlife as well as other environmental concerns.” See 16 U.S.C. § 2705(d); cf 16 U.S.C. § 823a(c)-(d).

The Wild and Scenic Rivers Act limits FERC’s authority to issue licenses under the Federal Power Act or to issue exemptions under the Energy Security Act. 1 See 16 U.S.C. §§ 1271-1287. The Wild and Scenic Rivers Act provides for the protection and preservation of certain rivers and their immediate environments by instituting a national wild and scenic rivers system. Rivers may be included in this system either by act of Congress or by an act of the legislature of the state or states through which the river flows. State-designated wild and scenic rivers are to be permanently administered by state agencies without expense to the United States. See 16 U.S.C. § 1273(a). Section 7(a) of the Wild and Scenic Rivers Act prohibits FERC from licensing construction of any project under the Federal Power Act “on or directly affecting” a wild and scenic river and also limits the power of any federal department or agency to assist in the construction of any “water resources project” having “a direct and adverse effect on the values for which [the] river was established.” See 16 U.S.C. § 1278(a).

B. Swanson’s Exemption Application

In November of 1981, Swanson Mining Corporation and its sole stockholder Walter M. Gleason (hereinafter both referred to as “Swanson”) applied for an exemption from FERC’s licensing requirements for a small hydroelectric project located on the South Fork of the Trinity River in California. 2 *99 The South Fork had become a state-administered component of the national wild and scenic rivers system in January of 1981. See 46 Fed.Reg. 7484 (1981). Swanson’s exemption application proposed to refurbish and operate a hydroelectric facility originally constructed in the late 1930s to provide electricity for a gold mining operation owned by Swanson. Although operation and .maintenance of the hydroelectric project had ceased to be economically feasible after 1942, the enactment of section 210 of the Public Utility Regulatory Policies Act (PURPA), 16 U.S.C. § 824a-3(a), which requires electric utilities to purchase electricity from small power generating facilities, now made it worthwhile for Swanson to resume operation of its facility. Swanson proposed to restore and rehabilitate its facility and sell the electricity generated to Pacific Gas & Electric Co. (PG & E). Part of its proposal included the installation of new aerial transmission lines to connect its powerhouse to existing PG & E lines 1000 feet away.

Prior to filing its exemption application, Swanson consulted with the relevant federal and state fish and wildlife agencies and included their comments in its application as required by FERC’s regulations. See 18 C.F.R. § 4.107(e)(3) (1981). Important for purposes of this appeal were certain comments by the Resources Agency of California and the California Department of Fish and Game. Both agencies noted that the Wild and Scenic Rivers Act barred FERC’s issuance of an exemption for Swanson’s proposed construction. Each agency then went on to set forth conditions which it considered necessary to protect fish and wildlife should FERC determine that it could license the project. Joint Appendix (“J.A.”) at 43, 63. First, the Resources Agency of California required that the water used to generate power be returned upstream to Madden Creek. Swanson’s proposal would channel this water directly into the South Fork of the Trinity River. Second, both agencies proposed certain “minimum streamflows” limiting the amount of water which Swanson could divert from Madden Creek.

The Commission accepted Swanson’s exemption application for filing on December 21, 1981. The Commission’s regulations provide that an application for an exemption will be deemed approved and granted 120 days after its acceptance for filing if FERC takes no action within that period affirmatively to grant or deny the exemption or to suspend operation of the 120-day rule. See 18 C.F.R. § 4.105(b) (1981). Since the Commission took no action on Swanson’s application, Swanson’s exemption was automatically granted as of April 20, 1982. Swanson’s exemption contained both the conditions proposed by the Resources Agency and the California Department of Fish and Game.

Swanson filed a timely petition for rehearing, see 18 C.F.R. § 1.34 (1982), challenging these two conditions contained in its exemption.

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790 F.2d 96, 252 U.S. App. D.C. 274, 16 Envtl. L. Rep. (Envtl. Law Inst.) 20735, 1986 U.S. App. LEXIS 23497, Counsel Stack Legal Research, https://law.counselstack.com/opinion/swanson-mining-corporation-v-federal-energy-regulatory-commission-cadc-1986.