Interior Gives Exclusive Appeal Rights to Industry

A proposed rule from the Department of Interior would grant those in the hydroelectric industry the exclusive right to appeal rulings about how dams are licensed and operated. The rule could save the hydroelectric industry hundreds of millions of dollars in settlements while effectively cutting Indian tribes, states, federal agencies and environmental groups out of the appeals process. The rule comes at a pivotal time for the industry; more than half of licenses for dams on American rivers will come up for renewal during the next 15 years. Many of these licenses were issued before federal environmental laws that required the protection of fish and wildlife. In order to renew their licenses dam owners are now forced to pay large settlements to mitigate environmental harm caused by the dams. These settlements average $10 million and can be as high as $200 million. "By allowing the industry the exclusive right to present alternative settlement ideas, the proposed appeal rule could substantially reduce the cost of renewing a dam license," according to a Washington Post article. The rule is similar to provisions in the Energy Policy Act of 2003 H.R. 6 and S. 2095), which has repeatedly been shut down by the Democrats. By implementing the policy through the rulemaking process rather than through statute, the Bush administration is able to circumvent the Democratic blockade in Congress. According to the Washington Post, some DOI lawyers believe the rule violates due process and equal protection. The Washington Post quoted one senior Interior Department official who is involved in the dispute: It is not legal because one party is being treated very differently than another, and that is very much the opposite of what we have been trying to do for years .... Suddenly, a licensee can walk away from everybody else and have a private meeting with the assistant secretary and bring in new conditions that haven't been reviewed by anybody before. John Dingell (D-MI), ranking Democrat on the House Energy and Commerce Committee, sent a letter Oct. 25 to Department of Interior Secretary Gale Norton requesting information on the rule and on the process by which the Department of Interior developed the rule. "While I am concerned about the negative consequences that could result from the adoption of this proposed rule, specifically the one-sided appeals process that effectively eliminates certain parties from participating," Dingell wrote. "I am also very concerned about the process for recommendations that led to its development." In his questions, Dingell requested information about the relationship between the proposed rule to Cheney's National Energy Policy Development Group, questioned the statutory authority of the DOI to promulgate such a rule, and inquired whether the rule would conflict with DOI's responsibility to American Indians, asking, "how can the Department adequately meet its tribal trust responsibility when it grants a dam owner an appeal right for a condition but fails to do so for a tribe?" Responses to Dingell's questions are due Nov. 15. The proposed rule is open for public comment until Nov. 8.
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