A bill to improve hydropower, and for other purposes.

Summary: Hydropower Improvement Act of 2010 - Expresses the sense of Congress that the United States should increase substantially the capacity and generation of clean, renewable hydropower resources which will improve environmental quality in the United States and support hundreds of thousands of green energy jobs.

Instructs the Secretary of Energy to establish: (1) a grants program for increased hydropower production; and (2) a plan for research, development, and demonstration to increase hydropower capacity.

Directs the Federal Energy Regulatory Commission (FERC) to issue a notice of inquiry for the licensing of proposed minimal impact hydropower projects that take not more than two years from the beginning of the prefiling licensing process to the issuance of a FERC license.

Amends the Federal Power Act to authorize FERC to extend the term of a preliminary permit once for not more than two additional years if it finds that the permittee has carried out activities under the permit in good faith and with reasonable diligence.

Directs FERC to enter into a memorandum of understanding with relevant federal agencies that have conditioning authority to: (1) establish a coordinated and streamlined approach to any environmental impact statement or similar analysis relating to the consideration of conduit hydropower projects; and (2) develop an expedited approval process for conduit hydropower projects.

Directs the Commissioner of Reclamation and FERC to conduct public workshops on and develop pilot conduit hydropower projects. Requires the Commissioner also to study and report to Congress on barriers to non-federal hydropower development at Bureau of Reclamation projects.

Instructs the Secretary to study and report to Congress about federal land that is well-suited for pumped storage sites and is located near existing or potential sites of intermittent renewable resource development, such as wind farms.

Amends the Energy Independence and Security Act of 2007 to direct the Secretary to establish a national renewable energy construction grants program.

Directs the President to report to Congress on actions taken by the Department of Energy (DOE), the Department of the Interior, and the U.S. Army Corps of Engineers to carry out the memorandum of understanding on hydropower entered into on March 24, 2010.

Declares this Act inapplicable to the Federal Power Marketing Administrations.

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Hydropower 
Improvement Act of 2010''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings.
Sec. 3. Definitions.
Sec. 4. Sense of Congress on the use of hydropower renewable resources.
Sec. 5. Grants for improvements for increased hydropower production.
Sec. 6. Plan for research, development, and demonstration to increase 
                            hydropower capacity.
Sec. 7. Notice of inquiry for minimal impact hydropower projects.
Sec. 8. FERC authority to extend preliminary permit terms.
Sec. 9. Streamlining review process for conduit hydropower projects.
Sec. 10. Non-Federal hydropower development at Bureau of Reclamation 
                            projects.
Sec. 11. Pumped storage study.
Sec. 12. National Renewable Energy Deployment Program.
Sec. 13. Hydroelectric power worker training.
Sec. 14. Report on memorandum of understanding on hydropower.
Sec. 15. Nonapplication to Federal Power Marketing Administrations.
Sec. 16. Budgetary effects.

SEC. 2. FINDINGS.

    Congress finds that--
            (1) hydropower is the largest source of clean, renewable 
        electricity in the United States;
            (2) as of the date of enactment of this Act, hydropower 
        resources, including pumped storage facilities, provide--
                    (A) 7 percent of the electricity generated in the 
                United States, avoiding 225,000,000 metric tons of 
                carbon emissions each year; and
                    (B) approximately 96,000 megawatts of electric 
                capacity in the United States;
            (3) only 3 percent of the 80,000 dams in the United States 
        generate electricity so there is substantial potential for 
        adding hydropower generation to nonpower dams;
            (4) in every State, a tremendous untapped growth potential 
        exists in hydropower resources, including--
                    (A) efficiency improvements and capacity additions;
                    (B) adding generation to nonpower dams;
                    (C) conduit hydropower;
                    (D) conventional hydropower;
                    (E) pumped storage facilities; and
                    (F) new marine and hydrokinetic resources; and
            (5) improvements in increased hydropower production in the 
        United States have the potential--
                    (A) to create hundreds of thousands of new green 
                jobs during the next 15 years;
                    (B) to increase the clean energy generation of the 
                United States; and
                    (C) to provide ancillary benefits that include grid 
                reliability, energy storage, and integration services 
                for variable renewable resources.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Conduit.--The term ``conduit'' means any tunnel, canal, 
        pipeline, aqueduct, flume, ditch, or similar manmade water 
        conveyance that is operated for the distribution of water for 
        agricultural, municipal, or industrial consumption and not 
        primarily for the generation of electricity.
            (2) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.

SEC. 4. SENSE OF CONGRESS ON THE USE OF HYDROPOWER RENEWABLE RESOURCES.

    It is the sense of Congress that the United States should increase 
substantially the capacity and generation of clean, renewable 
hydropower resources which will improve environmental quality in the 
United States and support hundreds of thousands of green energy jobs.

SEC. 5. GRANTS FOR IMPROVEMENTS FOR INCREASED HYDROPOWER PRODUCTION.

    (a) In General.--As soon as practicable after the date of enactment 
of this Act, the Secretary shall establish in the Department of Energy 
a program under which the Secretary shall make competitive grants to 
eligible entities that--
            (1) make efficiency improvements or capacity additions at 
        an existing hydroelectric power generating facility;
            (2) add hydropower generation to a nonpower dam;
            (3) develop pumped storage facilities;
            (4) address aging infrastructure at existing hydroelectric 
        power generating facilities; and
            (5) develop hydroelectric generation within existing 
        conduits.
    (b) Administration.--
            (1) In general.--The Secretary shall establish terms and 
        conditions, including eligibility, for the receipt of grants 
        under this section.
            (2) Inclusions.--In carrying out this section, the 
        Secretary shall ensure that powerhouses and projects that 
        require new dam infrastructure are included among the eligible 
        entities that may receive grants under this section.
    (c) Cost Sharing.--The Secretary shall carry out the program under 
this section in compliance with sections 988 and 989 of the Energy 
Policy Act of 2005 (42 U.S.C. 16352, 16353).
    (d) Funding.--From amounts made available under section 625(e) of 
the Energy Independence and Security Act of 2007 (42 U.S.C. 17204(e)), 
the Secretary may use to carry out this section $50,000,000 for each of 
fiscal years 2011 through 2015, of which not more than 20 percent of 
the amount made available for a fiscal year may be used to carry out an 
individual project.

SEC. 6. PLAN FOR RESEARCH, DEVELOPMENT, AND DEMONSTRATION TO INCREASE 
              HYDROPOWER CAPACITY.

    (a) In General.--Not later than 270 days after the date of 
enactment of this Act, the Secretary shall establish, and 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 
plan--
            (1) to facilitate through technology research, development, 
        and demonstration the increased use of hydropower renewable 
        resources in accordance with section 4; and
            (2) to coordinate research and development on advanced 
        hydropower technologies.
    (b) Administration.--The Secretary shall--
            (1) implement the plan established under this section as 
        soon as practicable after the date of enactment of this Act; 
        and
            (2) review and update the plan on an annual basis.
    (c) Cost Sharing.--The Secretary shall carry out the program under 
this section in compliance with sections 988 and 989 of the Energy 
Policy Act of 2005 (42 U.S.C. 16352, 16353).
    (d) Coordination.--The Secretary shall coordinate, to the maximum 
extent practicable, activities under this section with other programs 
of the Department of Energy and other Federal research programs.
    (e) Funding.--From amounts made available under section 401(a) of 
the American Clean Energy Leadership Act of 2009, the Secretary may use 
to carry out this section $50,000,000 for each of fiscal years 2011 
through 2015.

SEC. 7. NOTICE OF INQUIRY FOR MINIMAL IMPACT HYDROPOWER PROJECTS.

    (a) Definitions.--In this section:
            (1) Commission.--The term ``Commission'' means the Federal 
        Energy Regulatory Commission.
            (2) Minimal impact hydropower project.--The term ``minimal 
        impact hydropower project'' means--
                    (A) the addition of hydropower generation to an 
                existing nonpower dam if the addition of the project 
                will not cause any significant environmental impact; or
                    (B) closed-loop hydropower storage that does not 
                require any change in an existing diversion or 
                impoundment of a river, and otherwise will not cause 
                any significant environmental impacts under applicable 
                law.
    (b) Notice of Inquiry.--Not later than 180 days after the date of 
enactment of this section, the Commission shall issue a notice of 
inquiry for the licensing of proposed minimal impact hydropower 
projects that take not more than 2 years from the beginning of the 
prefiling licensing process to the issuance of a license by the 
Commission.
    (c) Report.--Not later than 180 days after the completion of the 
notice of inquiry under subsection (b), the Commission 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 that describes the results of the notice of inquiry.

SEC. 8. FERC AUTHORITY TO EXTEND PRELIMINARY PERMIT TERMS.

    Section 5 of the Federal Power Act (16 U.S.C. 798) is amended--
            (1) by designating the first, second, and third sentences 
        as subsections (a), (c), and (d), respectively; and
            (2) by inserting after subsection (a) (as so designated) 
        the following:
    ``(b) Extension.--The Commission may extend the term of a 
preliminary permit once for not more than 2 additional years if the 
Commission finds that the permittee has carried out activities under 
the permit in good faith and with reasonable diligence.''.

SEC. 9. STREAMLINING REVIEW PROCESS FOR CONDUIT HYDROPOWER PROJECTS.

    (a) In General.--Section 30 of the Federal Power Act (16 U.S.C. 
823a) is amended--
            (1) in subsection (a), by striking paragraphs (1) and (2) 
        and inserting the following:
            ``(1) is located on non-Federal lands or Federal lands; and
            ``(2) uses for the generation only the hydroelectric 
        potential of a conduit.''; and
            (2) by adding at the end the following:
    ``(f) Savings Clause.--This section shall not apply to any 
reclamation projects under which hydroelectric power development has 
been reserved--
            ``(1) under Federal law or by regulation or order, 
        exclusively for development under Federal reclamation law; or
            ``(2) for non-Federal development under reclamation law.
    ``(g) Definition of Conduit.--In this section, the term `conduit' 
means any tunnel, canal, pipeline, aqueduct, flume, ditch, or similar 
manmade water conveyance that is operated for the distribution of water 
for agricultural, municipal, or industrial consumption and not 
primarily for the generation of electricity.''.
    (b) Memorandum of Understanding on Conduit Hydropower Projects.--
Not later than 180 days after the date of enactment of this Act, the 
Federal Energy Regulatory Commission shall enter into a memorandum of 
understanding with relevant Federal agencies that have conditioning 
authority under section 30(c)(1) of the Federal Power Act (16 U.S.C. 
823a(c)(1))--
            (1) to establish a coordinated and streamlined approach to 
        any environmental impact statement or similar analysis required 
        under the National Environmental Policy Act of 1969 (42 U.S.C. 
        4321 et seq.) relating to the consideration of conduit 
        hydropower projects; and
            (2) to develop and carry out an expedited approval process 
        for conduit hydropower projects.
    (c) Public Workshops and Pilot Projects on Conduit Hydropower 
Projects.--
            (1) In general.--As soon as practicable after the date of 
        enactment of this Act, the Commissioner of Reclamation and the 
        Federal Energy Regulatory Commission shall conduct 3 public 
        workshops with relevant stakeholders, including water users and 
        the environmental community, to identify ways in which the 
        conduit approval process may be modified--
                    (A) to reduce barriers to conduit hydropower 
                projects, including barriers created by project costs 
                or the timeframe for approval and maintain adequate 
                environmental, health, and safety protections; and
                    (B) to develop pilot projects in conjunction with 
                voluntary participants to demonstrate flexible and 
                innovative ways to reduce barriers to conduit 
                hydropower while maintaining adequate environmental, 
                health, and safety protections.
            (2) Report.--Not later than 180 days after the date of the 
        completion of the workshops under paragraph (1), the 
        Commissioner of Reclamation and the Federal Energy Regulatory 
        Commission shall submit to the appropriate committees of 
        Congress a report that describes any recommendations for the 
        conduit approval process developed in the workshops and pilot 
        projects described in paragraph (1).
            (3) Funding.--From amounts made available under section 
        9503(f) of the Omnibus Public Land Management Act of 2009 (42 
        U.S.C. 10363(f)), the Secretary may use to carry out pilot 
        projects described in paragraph (1)(B) $5,000,000 for the 
        period of fiscal years 2011 through 2015, to remain available 
        until expended.

SEC. 10. NON-FEDERAL HYDROPOWER DEVELOPMENT AT BUREAU OF RECLAMATION 
              PROJECTS.

    (a) Study of Non-Federal Hydropower Development at Bureau of 
Reclamation Projects.--Not later than 180 days after the date of 
enactment of this section, the Commissioner of Reclamation (in 
consultation with the Federal Energy Regulatory Commission, preference 
power customers, water users, and other interested stakeholders) 
shall--
            (1) conduct a study of barriers to non-Federal hydropower 
        development at Bureau of Reclamation projects; and
            (2) report to Congress the results of the study.
    (b) Memorandum of Understanding.--Not later than 180 days after the 
date of enactment of this section, the Commissioner of Reclamation and 
the Federal Energy Regulatory Commission shall develop and issue a 
revised interagency memorandum of understanding to improve the 
coordination and timeliness of the non-Federal development of 
hydropower resources at Bureau of Reclamation projects.

SEC. 11. PUMPED STORAGE STUDY.

    (a) In General.--The Secretary, in coordination with the Director 
of the United States Geological Survey, shall conduct a study 
(including identification) of Federal land that is well-suited for 
pumped storage sites and is located near existing or potential sites of 
intermittent renewable resource development, such as wind farms.
    (b) Report.--Not later than 1 year after the date of enactment of 
this Act, the Secretary 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 that describes the 
results of the study conducted under subsection (a), including any 
recommendations. 

SEC. 12. NATIONAL RENEWABLE ENERGY DEPLOYMENT PROGRAM.

    (a) In General.--Section 803 of the Energy Independence and 
Security Act of 2007 (42 U.S.C. 17282) is amended by striking the 
section heading and inserting ``national renewable energy deployment 
program''.
    (b) Definitions.--Section 803(a) of the Energy Independence and 
Security Act of 2007 (42 U.S.C. 17282(a)) is amended--
            (1) by striking paragraph (1);
            (2) by redesignating paragraphs (2) through (4) as 
        paragraphs (1) through (3), respectively; and
            (3) in paragraph (3)(B)(iv) (as so redesignated), by 
        striking ``Alaska small''.
    (c) Renewable Energy Construction Grants.--Section 803(b) of the 
Energy Independence and Security Act of 2007 (42 U.S.C. 17282(b)) is 
amended--
            (1) in paragraph (1), by inserting ``establish a national 
        renewable energy construction grants program under which the 
        Secretary shall'' after ``shall''; and
            (2) by adding at the end the following:
            ``(5) Priority.--In making grants to eligible applicants to 
        carry out renewable energy projects under this section, the 
        Secretary shall give priority to applicants that--
                    ``(A) have power costs that are 125 percent or more 
                of average national retail costs; or
                    ``(B) will use the grant to construct renewable 
                electricity projects to replace fossil fuel 
                projects.''.

SEC. 13. HYDROELECTRIC POWER WORKER TRAINING.

    Section 439(b) of the American Clean Energy Leadership Act of 2009 
is amended in the second sentence--
            (1) in paragraph (6), by striking ``and'' after the 
        semicolon at the end;
            (2) in paragraph (7), by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(8) hydroelectric power technology.''.

SEC. 14. REPORT ON MEMORANDUM OF UNDERSTANDING ON HYDROPOWER.

    Not later than 18 months after the date of enactment of this Act, 
the President 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 on actions taken by the Department of 
Energy, the Department of the Interior, and the Corps of Engineers to 
carry out the memorandum of understanding on hydropower entered into on 
March 24, 2010, with particular emphasis on actions taken by the 
agencies to work together and investigate ways to efficiently and 
responsibly facilitate the Federal permitting process for Federal and 
non-Federal hydropower projects at Federal facilities, within existing 
authority.

SEC. 15. NONAPPLICATION TO FEDERAL POWER MARKETING ADMINISTRATIONS.

    (a) In General.--This Act and the amendments made by this Act shall 
not--
            (1) apply to a hydroelectric project that provides power 
        marketed by a Federal Power Marketing Administration; or
            (2) impact any additions, improvements, or replacements of 
        hydroelectric generation at Federal projects carried out by a 
        Federal Power Marketing Administration;
    (b) Modifications.--Nothing in this Act limits the authority under 
existing law of a Federal Power Marketing Administrator in the event 
that operations at Federal projects with hydropower facilities are 
modified.

SEC. 16. BUDGETARY EFFECTS.

    The budgetary effects of this Act, for the purpose of complying 
with the Statutory Pay-As-You-Go Act of 2010, shall be determined by 
reference to the latest statement titled ``Budgetary Effects of PAYGO 
Legislation'' for this Act, submitted for printing in the Congressional 
Record by the Chairman of the Senate Budget Committee, provided that 
such statement has been submitted prior to the vote on passage.