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<br />those waters may be permitted if it would contribute to the conditions <br />that produced the violations," <br /> <br />California v. Federal Ener;gy Regulatory Commission, 49 5 D .S. _, 109 <br />L.Ed,2d 474, no S.Ct, _' Pursuant to the Federal Power Act (FPA), <br />the Federal Energy Regulatory Commission (FERC) issued a license <br />authorizing operation of the Rock Creek hydroelectric project in Califor- <br />nia. FERC also set minim\lm flow rates for the project. The licensee also <br />applied for State water permits. When the State Water Resources Control <br />Board (WRCB) considered a draft order requiring much higher minimum <br />flow rates, the licensee petitioned FERC for a declaration that FERC <br />possessed exclusive jurisdiction to determine the project's minimum flow <br />requirements, FERC issued an order directing the licensee to comply <br />with the Federal permit requirements, reasoning that setting minimum <br />flows was integral to FERC's planning and licensing process under section <br />10(a) of the FPA. Four days after FERC's order, the WRCB issued an <br />order directing the licensee to comply with the higher State-mandated <br />minimum flows, WRCB also asked FERC for a rehearing of its order. <br />FERC denied the request for a rehearing, and the Ninth Circuit affirmed, <br />holding that FPA section 27, as construed in First Iowa Hydro-Electric <br />Cooperative v. FPC, 328 D,S. 152 (1946), did not preserve California's <br />right to regulate minimum flow rates and that the FP A preempted WRCB's <br />minimum flow rate requirements. The Supreme Court affirmed the <br />decision of the Ninth Circuit, holding that if the meaning of section 27 <br />and the preemptive effect of the FP A were matters of first impression, <br />California's argument that the stream flow requirements relate to a use <br />encompassed by section 27-the generation of power or protection of <br />fish---could be said to present a close question. However, the Court found <br />that First Iowa previously construed section 27 and held that the section <br />is "limited to laws as to the control, appropriation, use or distribution of <br />water in irrigation or for municipal or other uses of the same nature" and <br />has primary, if not exclusive, reference to such proprietary rights. The <br />Supreme Court "decline [ d] at this late date to revisit and disturb the <br />understanding of ~27 as set forth in First Iowa," The Court also found <br />that Congress has amended the FPA to elaborate and reaffirm First Iowa)s <br />holding that the FP A establishes a broad and paramount Federal regulatory <br />role. Finally, the Court held that allowing California to impose the <br />challenged minimum flow requirements would be contrary to congres- <br />sional intent regarding FERC's licensing authority and would, as the Ninth <br />Circuit found, "constitute a veto of the project that was approved and <br />licensed by FERC," <br /> <br />30 <br />