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sectors, also established by the NHPA. The Advisory Council’s implementing regulations, “Protection of Historic Properties” 36 CFR Part 800, lay out the complete Section 106 process.
To begin the Section 106 process, the lead federal agency responsible for the undertaking must first identify all parties to a consultation
– relevant SHPO and THPO, local governments, the public, and additional parties with a special interest in the undertaking in question. Next, the
lead agency identifies the Area of Potential Effect APE affected by the proposed undertaking, and gathers information from consulting parties, other experts, and written sources to identify
historic properties in the APE. If the lead agency finds that there are historic sites in the APE, it assesses the anticipated effects of the proposed undertaking on these properties to determine
whether any of these effects are adverse. An adverse effect is one that “may alter, directly or
indirectly, any of the characteristics of a historic property that qualify the property for inclusion in the National Register in a manner that would diminish the integrity of the propertys location,
desi gn, setting, materials, workmanship, feeling, or association 36 CFR Part 800.5.” If the lead
agency issues a finding of no adverse effect, it must give consulting parties 30 days to review the finding and contest it if they choose. If the lead agency finds that an undertaking may cause
adverse effects to historical properties, it engages consulting parties to develop alternatives or modifications to the proposed undertaking that could avoid, minimize, or mitigate these effects.
Following the consultation, the lead agency commits to a memorandum of agreement with SHPOTHPO.
FERC and the Advisory Council on Historic Preservation developed a set of “Guidelines for the Development of Historic Properties Management Plans for FERC Hydroelectric Projects
FERC an d Advisory Council on Historic Preservation 2002.” These guidelines encourage
hydropower license applicants to submit a Historic Properties Management Plan HPMP prior to, or along with, their FERC license application. An HPMP considers and plans to manage the
effects on historic properties of activities associated with construction, operation, and maintenance of hydropower projects. A complete HPMP should identify the nature and
significance of historic properties that may be affected by a project, any proposed improvements to project, goals for the preservation of historic properties, and plans for public access
http:www.ferc.govindustrieshydropowergen-infoguidelineshpmp.pdf . According to the
Council’s regulations, license applicants should consult with the relevant SHPO, THPO, and Indian tribes when developing their HPMPs, and should include in their HPMPs procedures for
consulting with these entities throughout the life cycle of the project.
4.1.11 Federal Hydropower Incentives
Over the years, a variety of federal incentives have been instituted to foster development of renewable energy. These are sometimes of short duration and are always subject to change,
due to Congressional reauthorization processes. Several federal incentives exist specifically to foster small hydropower projects and hydropower projects on existing dams. Others are more
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general, applying to a wider variety of renewable energy projects, but can be used by hydropower developers. These include the Department of Energy Loan Guarantee Program, the
Renewable Energy Production Tax Credit, the Public Utilities Regulatory Policy Act, and Clean Renewable Energy Bonds. The following incentives apply exclusively to hydropower. Several
general incentives that can be used for hydropower are presented in Chapter 1, Section 5 of this document.
The federal Hydropower Production Incentive program, enacted in 2005 42 U.S.C.S. § 15881, is available to non-federal entities generating power on previously existing dams or
conduits.” To be eligible, a project must be installed between 2005 and 2015 on a dam or conduit constructed before August 8, 2005 and may not involve any construction or enlargement
of impoundment or diversion structures. Qualifying facilities may receive incentive payments for a period of ten fiscal years, starting in the year in which the facility becomes eligible. The value
of the incentive payment offered is based on the amount of power generated. Qualifying facilities are eligible to receive 1.8 cents per kW hour, adjusted for inflation, up to a maximum of
750,000 per calendar year. Federal loans for Small Hydroelectric Power Projects, established in 1978 16 U.S.C. §
2701, aim to “encourage municipalities, electric cooperatives, industrial development agencies, nonprofit organizations, and other persons to undertake the development of small hydroelectric
power projects in connection with existing dams which are not being used to generate electric power.” According to the law, any of these entities is eligible to seek a loan from the Department
of Energy covering up to 90 percent of the costs associated with feasibility studies and license
application preparation. In addition, hydropower developers may seek loans from the Department of Energy covering up to 75 percent of the cost of constructing a hydroelectric
project. For the purposes of this statute, “small hydroelectric power project” is defined as any hydroelectric power project that is located at the site of any existing dam, uses the water power
potential of such a dam, and has no more than 30,000 kW of installed capacity. Hydropower projects that operate without the presence of a dam are also eligible. When awarding these loans,
the Department of Energy gives preference to projects that do not have other financing available, and that are expected to provide valuable proof-of-concept information on small scale
hydropower. The Hydroelectric Efficiency Improvement Incentive, enacted in 2005 42 U.S.C. 15882,
aims to make existing hydropower facilities more efficient. Incentive benefits must be used to make capital improvements that are directly related to improving the efficiency of existing
facilities by at least 3 percent. The benefits that any one project may receive are capped at 10 percent of the total cost of the capital improvements, and may not exceed 750,000 at a single
facility. Appropriations to this program end in 2015.
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4.2 Rhode Island Regulations S
ECTION
S
UMMARY
Rhode Island Water Quality Regulations require new uses of stream water and groundwater to obtain a permit from RIDEM if they include withdrawals of more
than 10,000 gallons of water per day. The R.I. Freshwater Wetlands Act may apply to hydropower projects located near
wetlands, particularly where a wetland is present as a result of the impoundment created by the dam that will support hydropower. This Act requires project
owners to solicit a wetlands permit from RIDEM. Rhode Island Fish and Wildlife legislation authorizes RIDEM to construct
fishways around and through existing dams in the state. Dam owners are required to cooperate with RIDEM in this endeavor.
Rhode Island legislation on Inspection of Dams and Reservoirs authorizes RIDEM to inspect every dam in Rhode Island for safety. If RIDEM finds a dam to
be unsafe i.e., if there is reasonable cause to believe it poses a danger to life or property, then RIDEM has the authority to require alterations to the dam to
minimize risk.
New hydropower facilities fall under the jurisdiction of the Rhode Island Coastal Resources Management Council CRMC if they are within 200 ft 61 meters of
any coastal feature or if they produce over 40 MW of electricity anywhere within the state. Facilities in these categories must comply with the Coastal Resource
Management Program also known as the “Redbook” and any applicable Special Area Management Plans SAMPs.
In recent years, the state of Rhode Island has established a variety of incentives to spur the development of renewable energy in the state. The most significant is the
Renewable Energy Standard, which guarantees a market for renewable energy by requiring electrical distribution companies to purchase a certain percentage of
energy from renewable sources each year.
4.2.1 RIDEM Water Diversion Permit
