Federal Power Commission v. Oregon

Background

A private power company applied for a federal license to build the Pelton hydroelectric project on the Deschutes River in Oregon. The project would put a 205-foot dam and a powerhouse with three large generators on lands reserved by the United States, including part of the Warm Springs Indian Reservation. Oregon and state wildlife agencies objected, especially over impacts on salmon and steelhead and whether the State’s permission was also required.

Reasoning

The Court examined whether the Federal Power Commission could license a project on U.S. reserved lands and whether older public-lands laws took away that federal authority. The Court held the Federal Power Act covers projects on reservations and the title and reservations here give the United States power to authorize the license, provided existing private water rights are respected. The Court found the Commission reasonably required a reregulating dam and fish-conservation facilities and concluded the Commission acted within its discretion.

Real world impact

The decision lets the federal license move forward, subject to the conservation and engineering conditions the Commission approved. The licensee must fund reregulation and fish measures estimated to cost millions and annual upkeep. The ruling limits the State of Oregon’s power to veto a federally licensed project on U.S. reserved lands, though existing water rights and future federal or congressional action could still change outcomes.

Dissents or concurrances

A dissent argued the United States cannot confer water rights beyond what state law allows, relying on earlier decisions that separate land and water rights and warning about broad executive withdrawals upsetting state economies.