On February 22, 2022, FERC issued a Supplemental Notice regarding its planned Technical Conference on its Notice of Inquiry on Financial Assurance Measures for licenses, scheduled to take place on Tuesday, April 26 at 11:30am.
The Supplemental Notice provides a schedule for the program and proposed panel topics. The first panel, Protecting Hydroelectric Facilities and Communities with Financial Assurance Requirements, will focus on the project-specific factors the Commission should consider in evaluating the need for financial assurances, including the age and condition of facilities, dam safety hazard potential, and broader risks such as climate change and severe storm stressors. The second panel will explore factors informing the Commission’s establishment of financial assurance measures, including the methodology to set funding levels, how to treat projects at government dams with existing financial assurance requirements, and the level of funding to be required. The third panel will explore the mechanisms licensees might use to satisfy financial assurance requirements, including a performance or surety bond, an individual trust or escrow fund, or insurance. It will also consider the availability of these various instruments, the amount of information licensees will be required to share with the Commission, and whether the Commission will require a recertification process.
The Commission’s notice is available here.