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Hydroelectric power projects built by the federal government are authorized by Congress and constructed primarily by the U.S. Department of the Interior (Bureau of Reclamation), the U.S. Army Corps of Engineers, and the Tennessee Valley Authority. For most non-federal hydroelectric power projects, the Federal Energy Regulatory Commission must issue a license authorizing construction, or in the case of an existing project, continued project operation. Most hydroelectric projects serve other purposes such as navigation, flood control, recreation, and irrigation, and flow augmentation.
FERC Engineering Guidelines for the Evaluation of Hydropower Projects
The Commission issues two types of exemptions.
One is for small hydropower projects, which are 5 megawatts or less, that will be built at an existing dam, or utilize a natural water feature for head or an existing project that has a capacity of 5 megawatts or less and proposes to increase capacity.
The second type is a conduit exemption that would be issued for constructing a hydropower project on an existing conduit (for example irrigation canal). Authorized generating capacities must be 15 megawatts or less for non-municipal and 40 megawatts or less for a municipal project. The conduit has to have been constructed primarily for purposes other than power production and be located entirely on non-federal lands.