---
kind: "section"
citation: "16 U.S.C. § 797d"
title: "16"
title_heading: "Conservation"
number: "797d"
heading: "Third party contracting by FERC"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/16/797d"
units:
  - "Chapter 12 — Federal Regulation and Development of Power"
  - "Subchapter I — Regulation of the Development of Water Power and Resources"
---

# §797d. Third party contracting by FERC

- (a) **Environmental impact statements—** Where the Federal Energy Regulatory [Commission](/usc/16/544.md?p=c) is required to prepare a draft or final environmental impact statement under the National Environmental Policy Act of 1969 ([42 U.S.C. 4321](/usc/42/4321.md) and following) in connection with an application for a license under part I of the Federal Power Act [[16 U.S.C. 791a](/usc/16/791a.md) et seq.], the [Commission](/usc/16/544.md?p=c) may permit, at the election of the applicant, a contractor, consultant or other [person](/usc/16/796.md?p=4) funded by the applicant and chosen by the [Commission](/usc/16/544.md?p=c) from among a list of such individuals or companies determined by the [Commission](/usc/16/544.md?p=c) to be qualified to do such work, to prepare such statement for the [Commission](/usc/16/544.md?p=c). The contractor shall execute a disclosure statement prepared by the [Commission](/usc/16/544.md?p=c) specifying that it has no financial or other interest in the outcome of the [project](/usc/16/796.md?p=11). The [Commission](/usc/16/544.md?p=c) shall establish the scope of work and procedures to assure that the contractor, consultant or other [person](/usc/16/796.md?p=4) has no financial or other potential conflict of interest in the outcome of the proceeding. Nothing herein shall affect the [Commission](/usc/16/544.md?p=c)’s responsibility to comply with the National Environmental Policy Act of 1969.
- (b) **Environmental assessments—** Where an environmental assessment is required under the National Environmental Policy Act of 1969 ([42 U.S.C. 4321](/usc/42/4321.md) and following) in connection with an application for a license under part I of the Federal Power Act [[16 U.S.C. 791a](/usc/16/791a.md) et seq.], the [Commission](/usc/16/544.md?p=c) may permit an applicant, or a contractor, consultant or other [person](/usc/16/796.md?p=4) selected by the applicant, to prepare such environmental assessment. The [Commission](/usc/16/544.md?p=c) shall institute procedures, including pre-application consultations, to advise potential applicants of studies or other information foreseeably required by the [Commission](/usc/16/544.md?p=c). The [Commission](/usc/16/544.md?p=c) may allow the filing of such applicant-prepared environmental assessments as part of the application. Nothing herein shall affect the [Commission](/usc/16/544.md?p=c)’s responsibility to comply with the National Environmental Policy Act of 1969.
- (c) **Effective date—** This section shall [take](/usc/16/3102.md?p=18) effect with respect to license applications filed after October 24, 1992.

## Source credit

(Pub. L. 102–486, title XXIV, § 2403, Oct. 24, 1992, 106 Stat. 3097.)

## Notes

### Editorial Notes

### References in Text

The National Environmental Policy Act of 1969, referred to in subsecs. (a) and (b), is Pub. L. 91–190, Jan. 1, 1970, 83 Stat. 852, which is classified generally to chapter 55 (§ 4321 et seq.) of Title 42, The Public Health and Welfare. For complete classification of this Act to the Code, see Short Title note set out under section 4321 of Title 42 and Tables.

The Federal Power Act, referred to in subsecs. (a) and (b), is act June 10, 1920, ch. 285, 41 Stat. 1063. Part I of the Act is classified generally to this subchapter (§ 791a et seq.). For complete classification of this Act to the Code, see section 791a of this title and Tables.

### Codification

Section was enacted as part of the Energy Policy Act of 1992, and not as part of the Federal Power Act which generally comprises this chapter.