,i #aafth ,,congress #b;d ,session ,h4 ,r4 #gdaj ,,in ,,the ,,house ,,of ,,representatives ,june #bi1 #bjbj,mrs4 ,rodgers of ,washington 7for herself1 ,mr4 ,duncan1 and ,mr4 ,newhouse7 introduced the following bill2 which was referred to the ,committee on ,energy and ,commerce1 and in addition to the ,committee on ,oversight and ,reform1 for a period to be subsequently determined by the ,speaker1 in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned ,a ,,bill ,to modernize the hydropower licensing process and to promote next generation hydropower projects1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,hydropower ,clean ,energy ,future ,act4 #b4 ,confirming that hydropower is an essential renewable resource 7a7 ,sense of ,congress on the use of hydropower renewable resources ,it is the sense of ,congress that-- 7#a7 hydropower is a renewable resource for purposes of all ,federal programs and is an essential source of energy in the ,united ,states2 and 7#b7 the ,united ,states should protect existing hydropower resources and increase substantially the capacity and generation of clean1 renewable hydropower resources to address a changing climate and improve environmental quality in the ,united ,states4 7b7 ,modifying definitions of renewable energy ,to include hydropower 7#a7 ,energy ,policy ,act of #bjje ,section #bjc of the ,energy ,policy ,act of #bjje 7#db ,u4,s4,c4 #aeheb7 is amended-- 7,a7 in subsection 7a71 by amending paragraphs 7#a7 through 7#c7 to read as follows3 7#a7 ,not less than #bj percent in fiscal years #bjba through #bjbb4 7#b7 ,not less than #bc percent in fiscal years #bjbc through #bjbd4 7#c7 ,not less than #be percent in fiscal year #bjbe and each fiscal year thereafter4 2 and 7,b7 in subsection 7b71 by striking paragraph 7#b7 and inserting the following3 7#b7 ,renewable energy ,the term renewable energy means energy produced from solar1 wind1 biomass1 landfill gas1 ocean 7including tidal1 wave1 current1 and thermal71 geothermal1 municipal solid waste1 or hydropower4 4 7#b7 ,other ,federal regulations1 orders1 and policies ,not later than #ahj days after the date of enactment of this ,act1 each ,federal department and agency shall submit to the ,committee on ,energy and ,natural ,resources of the ,senate and the ,committee on ,energy and ,commerce of the ,house of ,representatives a report demonstrating that the department or agency has amended any applicable regulation1 order1 or other policy of the department or agency related to renewable energy to ensure treatment of hydropower by the ,federal ,government consistent with the amendments made by paragraph 7#a74 7c7 ,licenses for construction ,section #d7;e7 of the ,federal ,power ,act 7#af ,u4,s4,c4 #gig7;e77 is amended1 in the first sentence1 by inserting to mitigate the effects of the applicable project on such reservation1 so as to provide after deem necessary in the first proviso4 7d7 ,operation of navigation facilities ,section #ah of the ,federal ,power ,act 7#af ,u4,s4,c4 #haa7 is amended by adding before the period at the end of the first sentence to mitigate effects of the applicable project4 #c4 ,protecting and promoting small and next-generation hydropower projects 7a7 ,exemptions from licensing requirements for certain small hydroelectric power projects ,section #dje of the ,public ,utility ,regulatory ,policies ,act of #aigh 7#af ,u4,s4,c4 #bgje7 is amended by striking subsection 7d7 and inserting the following3 7d7 ,exemptions from licensing in certain cases 7#a7 ,in general ,subject to paragraphs 7#b7 and 7#c71 the ,commission may in its discretion 7by rule or order71 upon application and on a case-by-case basis or on the basis of classes or categories of projects1 grant an exemption in whole or in part from the requirements 7including the licensing requirements7 of part ,i of the ,federal ,power ,act to any small hydroelectric power project-- 7,a7 having a proposed installed capacity of #aj1jjj kilowatts or less2 or 7,b7 for which a license was issued under part ,i of the ,federal ,power ,act and the licensee applies for an exemption under this subsection1 if-- 7i7 the license was issued after the date of enactment of the ,electric ,consumers ,protection ,act of #aihf2 7ii7 the ,commission determines1 based on information available to the ,commission1 that continued operation of the project is not likely to jeopardize the continued existence of any species listed as a threatened species or an endangered species under the ,endangered ,species ,act of #aigc2 7iii7 the ,commission determines1 based on information available to the ,commission1 that continued operation of the project is not likely to result in the destruction or adverse modification of an area designated as critical habitat for any species listed as a threatened species or an endangered species under the ,endangered ,species ,act of #aigc2 and 7iv7 the project has an installed capacity of #ae megawatts or less4 7#b7 ,requirements ,an exemption granted under paragraph 7#a7 shall be subject to the same limitations 7to ensure protection for fish and wildlife as well as other environmental concerns7 as those which are set forth in subsections 7c7 and 7d7 of section #cj of the ,federal ,power ,act with respect to determinations made and exemptions granted under subsection 7b7 of such section #cj and subsections 7c7 and 7d7 of such section #cj shall apply with respect to actions taken and exemptions granted under this subsection4 7#c7 ,effects 7,a7 ,in general ,except as provided in subparagraph 7,b71 the granting of an exemption to a project under this subsection shall in no case have the effect of waiving or limiting the application 7to such project7 of the second sentence of subsection 7b7 of this section4 7,b7 ,environmental review ,an exemption granted under paragraph 7#a77;,b7 shall be categorically exempt from review under the ,national ,environmental ,policy ,act of #aifi4 7#d7 ,exemption process ,the ,commission shall make a determination with respect to any application for an exemption under paragraph 7#a77;,b7 not later than #ij days after submission of such application1 which period shall include notice and opportunity for public comment4 ,any exemption granted under paragraph 7#a77;,b7 shall become effective upon the expiration of the applicable existing license4 4 7b7 ,expedited licensing of next-,generation hydropower ,part ,i of the ,federal ,power ,act 7#af ,u4,s4,c4 #gib et seq47 is amended by adding at the end the following3 #cg4 ,expedited licensing of next-generation hydropower projects 7a7 ,in general ,the ,commission shall issue licenses for all next-generation hydropower projects in accordance with this section4 7b7 ,definitions ,in this section3 7#a7 ,emerging hydropower technology project ,the term emerging hydropower technology project means a project that the ,commission determines-- 7,a7 will produce electricity from a generator driven by a turbine that converts the potential energy of falling or flowing water2 7,b7 will utilize turbine or generating technology1 an energy storage method1 or a measure to protect1 mitigate1 or enhance environmental resources1 that is not in widespread1 utility-scale use in the ,united ,states as of the date of enactment of this section2 7,c7 will not be1 based on information available to the ,commission1 likely to jeopardize the continued existence of any species listed as a threatened species or an endangered species under the ,endangered ,species ,act of #aigc2 and 7,d7 will not be1 based on information available to the ,commission1 likely to result in the destruction or adverse modification of an area designated as critical habitat for any species listed as a threatened species or an endangered species under the ,endangered ,species ,act of #aigc4 7#b7 ,next-generation hydropower project ,the term next-generation hydropower project means a project that-- 7,a7 is required to be licensed under this ,act2 7,b7 is not-- 7i7 a qualifying conduit hydropower facility under section #cj2 or 7ii7 exempted from licensing under-- 7,i7 section #cj2 or 7,,ii7 section #dje of the ,public ,utility ,regulatory ,policies ,act of #aigh2 and 7,c7 is-- 7i7 an emerging hydropower technology project2 7ii7 a qualifying facility1 as defined in section #cd2 7iii7 a closed-loop pumped storage project under section #ce2 7iv7 a marine or hydrokinetic project1 including a project that utilizes a wave technology1 tidal technology1 or in-river technology2 or 7v7 a hydropower facility within an irrigation1 water supply1 industrial1 agricultural1 or other open or closed water conduit system4 7c7 ,expedited licensing process 7#a7 ,notification of intent 7,a7 ,filing of notification ,an applicant for any next-generation hydropower project shall commence the licensing process by filing a notification of intent with the ,commission4 7,b7 ,deadline for filing ,notwithstanding section #ae7;b77#a71 an applicant for a next-generation hydropower project shall file a notification of intent at least #c years before the expiration of the existing license1 if applicable4 7#b7 ,filing of application 7,a7 ,general deadline ,an applicant for a next-generation hydropower project shall submit to the ,commission an application not later than #b years after filing the notification of intent under paragraph 7#a74 7,b7 ,existing licencee deadline ,notwithstanding section #ae7;c77#a71 an application for any next-generation hydropower project shall be filed with the ,commission at least #ab months before the expiration of the term of the existing license1 if applicable4 7#c7 ,deadline for issuance ,the ,commission shall take final action on a license for a next-generation hydropower project under this section not later than #c years after the applicant notifies the ,commission of its intent to file an application for a license1 as provided under paragraph 7#a74 7d7 ,requirements ,in issuing a license under this section the ,commission and all resource agencies with regulatory responsibilities in the licensing process shall-- 7#a7 maximize reliance on existing studies and information and require any person or agency requesting a new study or information to demonstrate that collection of any new data or preparation of any new study will not jeopardize the ,commission's ability to meet the licensing deadline under subsection 7c77#c72 7#b7 consider whether obligations under the ,national ,environmental ,protection ,act of #aifi may be met through preparation of an environmental assessment or supplementing a previously prepared environmental assessment or environmental impact statement2 7#c7 eliminate any nonessential meetings1 reports1 and paperwork1 including interim study reports and a draft license application or similar document1 without compromising effective consultation with1 and participation of1 ,federal and ,state resource agencies1 ,indian tribe1 and the public2 and 7#d7 consider existing project works and other infrastructure to be included in the environmental baseline4 7e7 ,rule ,not later than #ij days after the date of enactment of this section1 and after consultation with the task force described in subsection 7f71 which #ij days shall include public notice and opportunity for comment1 the ,commission shall issue a rule implementing this section4 ,such rule shall include a process1 not to exceed #fj days1 for the ,commission to determine on a case-by-case basis whether a proposed or existing project qualifies as a next-generation hydropower project prior to the initiation of the licensing or relicensing process4 7f7 ,task force ,the ,commission shall convene a task force1 with appropriate ,federal and ,state agencies1 ,indian tribes1 and licensees under this part represented1 to coordinate the regulatory processes associated with the authorizations required to license next-generation hydropower projects pursuant to this section4 7g7 ,choice of process ,an applicant for a licence for a project described in clause 7ii7 or 7iii7 of subsection 7b77#b77;,c7 may elect to apply under this section or under section #cd or #ce1 as applicable4 4 #d4 ,identifying and removing market barriers to hydropower 7a7 ,report on hydropower barriers 7#a7 ,in general ,not later than #bgj days after the date of enactment of this ,act1 the ,federal ,energy ,regulatory ,commission1 in consultation with the ,secretary of ,energy1 shall submit to the ,committee on ,energy and ,natural ,resources of the ,senate and the ,committee on ,energy and ,commerce of the ,house of ,representatives a report-- 7,a7 describing any barriers to the development and proper compensation of conventional1 storage1 conduit1 and emerging hydropower technologies caused by-- 7i7 rules of ,transmission ,organizations 7as defined in section #c of the ,federal ,power ,act 7#af ,u4,s4,c4 #gif772 7ii7 regulations or policies-- 7,i7 of the ,commission2 or 7,,ii7 under the ,federal ,power ,act 7#af ,u4,s4,c4 #gia;a et seq472 or 7iii7 other ,federal and ,state laws and policies unique to hydropower development1 operation1 and regulation1 as compared to other sources of electricity2 7,b7 containing recommendations of the ,commission for reducing barriers described in subparagraph 7,a7 across regulatory and market sectors2 7,c7 identifying and determining any regulatory1 market1 procurement1 or cost recovery mechanisms that would-- 7i7 encourage development of conventional1 storage1 conduit1 and emerging hydropower technologies2 and 7ii7 properly compensate conventional1 storage1 conduit1 and emerging hydropower technologies for the full range of services provided to the electric grid1 including-- 7,i7 balancing electricity supply and demand2 7,,ii7 ensuring grid reliability2 7,,iii7 providing ancillary services2 7,,iv7 contributing to the decarbonization of the electric grid2 and 7,v7 integrating intermittent power sources into the grid in a cost-effective manner2 and 7,d7 identifying ownership and development models that could reduce barriers to the development of conventional1 storage1 conduit1 and emerging hydropower technologies1 including-- 7i7 opportunities for risk-sharing mechanisms and partnerships1 including co-ownership models2 and 7ii7 opportunities to foster lease-sale and lease-back arrangements with publicly owned electric utilities4 7#b7 ,commission proceedings ,the ,commission shall base the report under paragraph 7#a7 on the findings of the ,commission in-- 7,a7 ,docket ,no4 ,,ad#af-bj2 7,b7 ,docket ,no4 ,,rm#af-bc2 and 7,c7 any other relevant proceedings4 7#c7 ,technical conference and public comment ,in preparing the report under paragraph 7#a71 the ,commission shall solicit public input1 including by convening a technical conference and providing an opportunity for public submission of written comments on a draft report4 7b7 ,definitions ,in this section3 7#a7 ,ancillary services ,the term ancillary services means the specialty services and functions provided by the electric grid that facilitate and support the continuous flow of electricity so that supply will continually meet demand1 including-- 7,a7 autonomous dynamic voltage support2 7,b7 balancing2 7,c7 black start capabilities2 7,d7 frequency control2 7,e7 load following2 7,f7 operating1 flexibility1 contingency1 and other reserves2 7,g7 reactive power2 and 7,h7 synchronized regulation4 7#b7 ,conventional1 storage1 conduit1 and emerging hydropower technologies ,the term conventional1 storage1 conduit1 and emerging hydropower technologies means hydropower in all its forms and modes of operation1 including-- 7,a7 the use of dams or similar infrastructure to store water in a reservoir or divert flows from a waterway1 and to release stored or diverted water through a turbine to generate electricity according to any mode of operation1 such as run-of-river1 peaking1 reregulating1 storage1 or load following2 7,b7 a configuration of two water reservoirs at different elevations that can generate power as water moves down through a turbine1 and pump water back to the upper reservoir when the turbine operations are reversed1 including both closed- and open-loop systems2 7,c7 marine and hydrokinetic technologies1 including wave1 tidal1 and in-river systems2 7,d7 mini- and micro-hydropower facilities within irrigation1 water supply1 industrial1 agricultural1 or other open or closed water conduit systems2 and 7,e7 other facilities that produce electricity from generators driven by turbines that convert the potential energy of falling or flowing water4 #e4 ,modernizing hydropower licensing ,part ,i of the ,federal ,power ,act 7#af ,u4,s4,c4 #gib et seq47 is further amended by adding at the end the following3 #ch4 ,licensing process coordination and improvement 7a7 ,definition of ,federal authorization ,in this section1 the term ,federal authorization means any authorization required under ,federal law 7including any license1 condition of any license by a ,secretary under section #d7;e71 prescription submitted by a ,secretary under section #ah1 permit1 special use authorization1 certification1 opinion1 consultation1 determination1 or other approval7 with respect to an application for a license under this part4 7b7 ,designation as lead agency 7#a7 ,in general ,the ,commission shall act at the lead agency for purposes of all applicable ,federal authorizations 7including for purposes of complying with the ,national ,environmental ,policy ,act of #aifi71 and for purposes of complying with any required ,state or local environmental reviews4 7#b7 ,other agencies ,each ,federal1 ,state1 and local government agency considering an aspect of an application for a ,federal authorization shall coordinate with the ,commission and comply with the deadline established in the schedule developed for the license under this part1 in accordance with the rule issued under subsection 7d77#b77;,c74 7c7 ,use of existing studies 7#a7 ,in general ,to the maximum extent practicable and in accordance with the best available science1 the ,commission and other ,federal and ,state agencies with a responsibility for a ,federal authorization shall-- 7,a7 use relevant existing studies and data2 and 7,b7 avoid duplicating current1 existing studies that are applicable to the relevant project4 7#b7 ,demonstration ,when requiring any new study or collection of information1 the ,commission or other ,federal or ,state agency with a responsibility for a ,federal authorization shall-- 7,a7 explain how the new study or other information is necessary to support the agency's decision making with respect to the ,federal authorization2 7,b7 identify how existing information reasonably available to the agency is inadequate to support the agency's decision making with substantial evidence2 and 7,c7 include an analysis of how the value of the required new study or other information outweighs the cost of producing it4 7d7 ,schedule 7#a7 ,timing for issuance ,it is the sense of ,congress that1 except as otherwise provided in this part1 all ,federal authorizations required for a project should be issued within a reasonable time1 so as to facilitate a final ,commission licensing decision within #b years after the date on which the license application for the project under this part is considered to be complete by the ,commission4 7#b7 ,commission schedule 7,a7 ,in general ,the ,commission1 in accordance with the rule issued under subparagraph 7,c71 shall-- 7i7 establish a schedule for-- 7,i7 all filings and issuances necessary and appropriate for its issuance of a license issued under this part2 and 7,,ii7 the issuance of all ,federal authorizations for the applicable project2 and 7ii7 issue such schedule when the ,commission determines that the license application for the project is ready for environmental analysis4 7,b7 ,requirements ,in establishing the schedule under subparagraph 7,a71 the ,commission shall-- 7i7 consult and cooperate with the ,federal and ,state agencies responsible for a ,federal authorization2 7ii7 ensure the expeditious completion of all proceedings relating to a ,federal authorization2 and 7iii7 comply with applicable schedules established by ,federal law with respect to a ,federal authorization4 7,c7 ,rulemaking 7i7 ,commission rulemaking to establish process to set schedule ,not later than #ahj days after the date of enactment of this section1 the ,commission1 in consultation with appropriate ,federal and ,state agencies and after providing notice and opportunity for public comment1 shall issue a final rule establishing a process for setting a schedule under subparagraph 7,a74 7ii7 ,considerations ,in issuing a rule under this subparagraph1 the ,commission shall ensure that the schedule for each ,federal authorization-- 7,i7 includes deadlines for actions by-- 7aa7 any ,federal or ,state agency with responsibilities for a ,federal authorization2 7bb7 the applicant2 7cc7 the ,commission2 and 7dd7 other agencies and participants in a proceeding2 7,,ii7 is developed in consultation with the applicant and any ,federal or ,state agency with responsibility for the applicable ,federal authorization2 7,,iii7 provides an opportunity for any ,federal or ,state agency with responsibility for a ,federal authorization to identify and resolve issues of concern1 consistent with subsections 7e7 and 7f72 7,,iv7 complies with applicable schedules established under ,federal law2 7,v7 ensures expeditious completion of all proceedings required under ,federal and ,state law1 to the maximum extent practicable2 and 7,,vi7 facilitates completion of ,federal and ,state agency studies1 reviews1 and any other procedures required prior to1 or concurrent with1 the preparation of the environmental document of the ,commission required under the ,national ,environmental ,policy ,act of #aifi1 to the maximum extent practicable4 7#c7 ,adherence to schedule 7,a7 ,in general ,the ,commission1 ,federal1 and ,state agencies with responsibility for a ,federal authorization1 the license applicant1 and all other agencies and other participants in proceedings for ,federal authorizations for the project shall meet the deadlines established by the schedule developed under paragraph 7#b74 7,b7 ,extension of schedule deadlines 7i7 ,federal authorizations ,a ,federal or ,state agency that is unable to complete its disposition of a ,federal authorization by the deadline set forth in the schedule established by the ,commission under paragraph 7#b7 shall1 not later than #cj days prior to such deadline1 file for an extension with the ,commission4 ,the ,commission shall issue a one-time extension of up to #ij days to any such ,federal or ,state agency upon a demonstration of good cause4 7ii7 ,other extensions ,the ,commission may grant extensions requested by the license applicant or other licensing participants to facilitate settlement1 address unforeseen circumstances1 or accommodate other showings of good cause if the ,commission determines that any such extension would reduce the overall time period for decision making on required ,federal authorizations for the project1 increase the administrative efficiency of the processes for ,federal authorizations1 or improve the quality of information available to ,federal and ,state agencies with a responsibility for a ,federal authorization4 7iii7 ,reissuance of schedule ,if the ,commission grants an extension under this paragraph1 the ,commission shall reissue the schedule and applicable deadlines to reflect the extension of time granted4 7,c7 ,limitation ,notwithstanding the ,commission's authority to extend the schedule as provided in subparagraph 7,b71 the ,commission shall not grant any extension that would increase by #a year or longer the time period in the original schedule issued under paragraph 7#b7 for obtaining all ,federal authorizations for the applicable project4 7#d7 ,failure to meet schedule deadlines 7,a7 ,in general ,subject to subparagraph 7,c71 if a ,federal or ,state agency fails to complete its disposition of a ,federal authorization in accordance with the schedule deadline established under paragraph 7#b7 7as may be extended under paragraph 7#c77-- 7i7 in the case of a ,federal agency1 #e1jjj of unobligated funds shall be rescinded2 or 7ii7 in the case of a ,state agency1 #e1jjj of unobligated funds shall be rescinded from ,federal fish and wildlife or water resources funding programs to the ,state4 7,b7 ,subsequent rescission ,subject to subparagraph 7,c71 for each additional week after any deadline established by the ,commission under paragraph 7#b7 7as may be extended under paragraph 7#c77 remains uncompleted by a ,federal or ,state agency with a responsibility for a ,federal authorization1 an additional rescission of #e1jjj shall occur as provided in subparagraph 7,a74 7,c7 ,maximum annual rescission ,for each individual ,federal authorization for a project1 the total amounts rescinded under subparagraphs 7,a7 and 7,b7 shall not exceed1 in any fiscal year1 #ajj1jjj4 7,d7 ,limitation ,no head of a ,federal or ,state department or agency shall reprogram funds from another ,federal account or program for the loss of the funds under this paragraph4 ,no head of a ,federal or ,state agency shall report or include any rescinded funds as an administrative cost for purposes of annual charges under section #aj7;e74 7e7 ,inconsistent or conflicting license terms 7#a7 ,consultation to resolve inconsistency or conflict 7,a7 ,in general ,if a term or condition of a ,federal authorization submitted for inclusion in a license under this part conflicts or is otherwise inconsistent with another such term or condition1 the ,commission shall initiate and facilitate consultation between the ,federal or ,state resource agencies submitting conflicting or inconsistent terms or conditions1 to attempt to resolve the inconsistency or conflict1 including with any such conditions recommended for inclusion in the license by the ,commission4 7,b7 ,meetings ,the consultation period under this subsection shall extend up to #ij days and shall include at least one technical conference or similar meeting4 ,the ,commission shall issue notice of any such conference or other consultation meeting1 which shall be open to participation by the license applicant1 other agencies1 and other licensing participants4 7,c7 ,amendment and reissuance ,if the agencies submitting the terms or conditions resolve the inconsistency or conflict1 the ,commission and other consulting agencies shall set a reasonable schedule and deadline1 that is not later than #ij days after the conclusion of the consultation1 for the agencies to amend and reissue their ,federal authorizations to reflect the resolution1 as appropriate4 7#b7 ,resolution of inconsistency or conflict 7,a7 ,statements ,if agencies are unable to resolve an inconsistency or conflict under paragraph 7#a71 not later than #cj days after the conclusion of the consultation process under such paragraph1 the agencies shall submit to the public record maintained by the ,commission a statement that identifies the inconsistency or conflict1 explains the position taken by each agency causing the inconsistency or conflict1 and provides an analysis1 supported by information in the public record1 of the factual basis for the inconsistent or conflicting position taken by each agency4 7,b7 ,referral ,following such submission1 the ,commission shall refer the matter for resolution as provided in subsection 7f74 7f7 ,resolution of interagency disputes 7#a7 ,referral to ,,omb ,for any dispute under subsections 7c71 7d71 or 7e7 among ,federal and ,state agencies with responsibility for a ,federal authorization1 as well as any dispute between any such agency and the license applicant1 the ,commission may1 upon its own motion or the request of the head of any such agency or the license applicant1 refer the matter to the ,director of the ,office of ,management and ,budget4 7#b7 ,action by ,,omb ,with respect to any dispute referred to the ,director under paragraph 7#a71 the ,director1 in consultation with the ,chair of the ,council on ,environmental ,quality1 shall act as appropriate-- 7,a7 to ensure a timely participation2 7,b7 to ensure a timely decision2 7,c7 to mediate the dispute2 or 7,d7 to refer the matter to the ,president4 7#c7 ,participation ,the license applicant and other interested participants shall be provided the opportunity to participate in the resolution of any issues under this subsection4 4