Appeal Denied, Maintaining and Enhancing Hydroelectricity Incentives Program
Office of Hearings and Appeals
July 17, 2024
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On July 17, 2024, the Department of Energy's (DOE) Office of Hearings and Appeals (OHA) issued a decision denying an appeal by Monterey County Water Resources Agency relating to the Maintaining and Enhancing Hydroelectricity Incentives Program (Program) authorized by Section 247 of the Energy Policy Act of 2005. DOE denied Monterey County Water Resources Agency's application for incentive payments under the Program because the capital improvement project covered by the application required FERC authorization and the application did not include documentation of FERC authorization. Monterey County Water Resources Agency argued that the Program guidance was ambiguous as to what constituted FERC authorization and that DOE's application of the Program guidance contravened the intent of the Program by preventing early -stage projects from receiving incentive payments. OHA concluded that DOE had not acted arbitrarily or capriciously in denying the application, and therefore denied the appeal. (OHA Case No. HEA-24-0083, Harmonick)