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003113 A final environmental impact statement was issued in January. In addition, DOE evaluated the potential impact of the project on the Pueblo Indians living in the area. States and Municipalities May Get FERC Preference in Hydro Project Re-Licensing The FERC announced on June 26 that it has decided that states and municlpalities may receive preference over private companies in the relicensing of hydroelectric projects whose original licenses have expired. As a result of the ruling, states and municipalities could acquire hydroelectric projects owned by private companies at minimal cost if the Commission determines in relicensing proceedings that their plans to develop and operate the project are equally well adapted to conserve and utilize the water resources of the region in the public interest. Although the Federal Power Water Act of 1920, which established the hydro- electric licensing responsibilities administered by FERC, gave clear preference to states and municipalities over private companies in the granting of initial licenses, the Act's language regarding preference in relicensing is subject to conflicting interpretations. Since many of the original 50-year licenses begin to expire in the 1970's, the question of whether municipalities and states should be. given preference over the original private company license- holder in relicensing old hydro projects. has become a major issue. The City of Santa Clara, CA, has filed petition for a license for the Mokelumne River Project in California, now operated by Pacific Gas and Electric Company, .which is asking for a new license. On the basis of the June 26 decision, FERC will have to determine in separate proceedings whether the municipality will receive the license. A decision to award a private company's project to a state or muqicipality on relicensing must take into account "the public interest in its broadest sense," as determined by FERC. The Commission's decision would include consideration of physical aqd tech- nical factors as well as broader social impacts such as economic costs and benefits, the distribution of the benefits of hydropower and similar per- tinent potential impacts. All of these would playa role in the Commis- sion's determination as to whether states' and municipalities' plans are equally well adapted to conserve and use the water resources of the region in the public interest. FERC Announces New Short- Term Incentive Program The FERC on May 23 announced a short-term incentive program to encourage owners of constructed hydroelectric projects who had deficient license applications to promptly file applications complying with FERC regulations. C-45 .