To improve hydropower, and for other purposes.

Summary: Hydropower Regulatory Efficiency Act of 2011 - Amends the Public Utility Regulatory Policies Act of 1978 (PURPA) to increase from 5,000 to 10,000 kilowatts the size of small hydroelectric power projects which the Federal Energy Regulatory Commission (FERC) may exempt from its license requirements.

 Amends the Federal Power Act to revise the limitation on the maximum installation capacity of conduit hydroelectric facilities that are eligible for an exemption from licensing requirements.

Waives license requirements for any conduit hydroelectric facility that: (1) uses only the hydroelectric potential of a non-federally owned conduit, (2) has an installed capacity that does not exceed 5 megawatts, and (3) is not currently licensed or exempted from license requirements.

 Redefines "conduit" to specify any tunnel, canal, pipeline, aqueduct, flume, ditch, or similar manmade water conveyance operated for the distribution of water for agricultural, municipal, or industrial consumption and not primarily for the generation of electricity.

Authorizes FERC to: (1) grant an exemption from license requirements only to conduit hydroelectric facilities on non-federal land that have an installed capacity not exceeding 40 megawatts, and (2) extend the term of a preliminary permit once for up to 2 additional years if it finds that the permittee has carried out activities in good faith and with reasonable diligence.

 Directs FERC to: (1) investigate the feasibility of the issuance of a license for hydropower development at nonpowered dams and closed loop pumped storage projects during a two-year period, and (2) hold workshops and develop hydropower pilot projects.

Directs the Secretary of Energy (DOE) to study: (1) the potential megawatts of hydropower that may be obtained from U.S. conduits; and (2) land well-suited for pumped storage sites and located near existing or potential sites of intermittent renewable resource development, such as wind farms.

 Directs the President to report to certain congressional committees on actions taken by DOE to implement the memorandum of understanding on hydropower entered into on March 24, 2010.

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Hydropower 
Regulatory Efficiency Act of 2011''.
    (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. Promoting small hydroelectric power projects.
Sec. 4. Promoting conduit hydropower projects.
Sec. 5. FERC authority to extend preliminary permit terms.
Sec. 6. Promoting hydropower development at nonpowered dams and closed 
                            loop pumped storage projects.
Sec. 7. DOE study of pumped storage and potential hydropower from 
                            conduits.
Sec. 8. Report on memorandum of understanding on hydropower.
Sec. 9. Authorization of appropriations.

SEC. 2. FINDINGS.

    Congress finds that--
            (1) the hydropower industry currently employs approximately 
        300,000 workers across the United States;
            (2) hydropower is the largest source of clean, renewable 
        electricity in the United States;
            (3) as of the date of enactment of this Act, hydropower 
        resources, including pumped storage facilities, provide--
                    (A) nearly 7 percent of the electricity generated 
                in the United States; and
                    (B) approximately 100,000 megawatts of electric 
                capacity in the United States;
            (4) only 3 percent of the 80,000 dams in the United States 
        generate electricity, so there is substantial potential for 
        adding hydropower generation to nonpowered dams; and
            (5) by utilizing currently untapped resources, the United 
        States could add approximately 60,000 megawatts of new 
        hydropower capacity by 2025, which could create 700,000 new 
        direct jobs over the next 14 years.

SEC. 3. PROMOTING SMALL HYDROELECTRIC POWER PROJECTS.

    Subsection (d) of section 405 of the Public Utility Regulatory 
Policies Act of 1978 (16 U.S.C. 2705) is amended by striking ``5,000'' 
and inserting ``10,000''.

SEC. 4. PROMOTING CONDUIT HYDROPOWER PROJECTS.

    (a) Applicability of, and Exemption From, Licensing Requirements.--
Section 30 of the Federal Power Act (16 U.S.C. 823a) is amended--
            (1) by striking subsection (b);
            (2) by redesignating subsection (a) as subsection (b);
            (3) by inserting before subsection (b), as redesignated by 
        paragraph (2) of this subsection, the following:
    ``(a)(1) A facility described in this paragraph shall not be 
required to be licensed under this part. A facility described in this 
paragraph is a facility that--
                    ``(A) is constructed, operated, or maintained for 
                the generation of electric power and uses for such 
                generation only the hydroelectric potential of a non-
                federally owned conduit;
                    ``(B) is located on non-Federal lands or Federal 
                lands;
                    ``(C) has an installed capacity that does not 
                exceed 5 megawatts; and
                    ``(D) on or before the date of enactment of the 
                Hydropower Regulatory Efficiency Act of 2011, is not 
                licensed under, or exempted from the license 
                requirements contained in, this part.
    ``(2) For purposes of 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.'';
            (4) in subsection (b), as redesignated by paragraph (2) of 
        this subsection--
                    (A) in the matter preceding paragraph (1), by 
                striking ``(b) or'';
                    (B) in paragraph (1), by striking ``, and'' and 
                inserting ``or Federal lands;'';
                    (C) in paragraph (2), by striking ``manmade 
                conduit, which is operated for the distribution of 
                water for agricultural, municipal, or industrial 
                consumption and not primarily for the generation of 
                electricity.'' and inserting ``conduit; and''; and
                    (D) by adding at the end the following new 
                paragraph:
    ``(3) has an installed capacity that does not exceed 40 
megawatts.'';
            (5) in subsection (c), by striking ``subsection (a)'' and 
        inserting ``subsection (b)''; and
            (6) in subsection (d), by striking ``subsection (a)'' and 
        inserting ``subsection (b)''.
    (b) Conforming Amendment.--Subsection (d) of section 405 of the 
Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2705), as 
amended, is further amended by striking ``subsection (a) of such 
section 30'' and inserting ``subsection (b) of such section 30''.

SEC. 5. 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. 6. PROMOTING HYDROPOWER DEVELOPMENT AT NONPOWERED DAMS AND CLOSED 
              LOOP PUMPED STORAGE PROJECTS.

    (a) In General.--To improve the regulatory process and reduce 
delays and costs for hydropower development at nonpowered dams and 
closed loop pumped storage projects, the Federal Energy Regulatory 
Commission (referred to in this section as the ``Commission'') shall 
investigate the feasibility of the issuance of a license for hydropower 
development at nonpowered dams and closed loop pumped storage projects 
in a 2-year period (referred to in this section as a ``2-year 
process''). Such a 2-year process shall include any prefiling licensing 
process of the Commission.
    (b) Workshops and Pilots.--The Commission shall--
            (1) not later than 60 days after the date of enactment of 
        this Act, hold an initial workshop to solicit public comment 
        and recommendations on how to implement a 2-year process;
            (2) develop criteria for identifying projects featuring 
        hydropower development at nonpowered dams and closed loop 
        pumped storage projects that may be appropriate for licensing 
        within a 2-year process;
            (3) not later than 180 days after the date of enactment of 
        this Act, develop and implement pilot projects to test a 2-year 
        process, if practicable; and
            (4) not later than 3 years after the date of implementation 
        of the final pilot project testing a 2-year process, hold a 
        final workshop to solicit public comment on the effectiveness 
        of each tested 2-year process.
    (c) Memorandum of Understanding.--The Commission shall, to the 
extent practicable, enter into a memorandum of understanding with any 
applicable Federal or State agency to implement a pilot project 
described in subsection (b).
    (d) Reports.--
            (1) Pilot projects not implemented.--If the Commission 
        determines that no pilot project described in subsection (b) is 
        practicable because no 2-year process is practicable, not later 
        than 240 days after the date of enactment of this Act, the 
        Commission shall submit to the Committee on Energy and Commerce 
        of the House of Representatives and the Committee on Energy and 
        Natural Resources of the Senate a report that--
                    (A) describes the public comments received as part 
                of the initial workshop held under subsection (b)(1); 
                and
                    (B) identifies the process, legal, environmental, 
                economic, and other issues that justify the 
                determination of the Commission that no 2-year process 
                is practicable, with recommendations on how Congress 
                may address or remedy the identified issues.
            (2) Pilot projects implemented.--If the Commission develops 
        and implements pilot projects involving a 2-year process, not 
        later than 60 days after the date of completion of the final 
        workshop held under subsection (b)(4), the Commission shall 
        submit to the Committee on Energy and Commerce of the House of 
        Representatives and the Committee on Energy and Natural 
        Resources of the Senate a report that--
                    (A) describes the outcomes of the pilot projects;
                    (B) describes the public comments from the final 
                workshop on the effectiveness of each tested 2-year 
                process; and
                    (C)(i) outlines how the Commission will adopt 
                policies under existing law (including regulations) 
                that result in a 2-year process;
                    (ii) outlines how the Commission will issue new 
                regulations to adopt a 2-year process; or
                    (iii) identifies the process, legal, environmental, 
                economic, and other issues that justify a determination 
                of the Commission that no 2-year process is 
                practicable, with recommendations on how Congress may 
                address or remedy the identified issues.

SEC. 7. DOE STUDY OF PUMPED STORAGE AND POTENTIAL HYDROPOWER FROM 
              CONDUITS.

    (a) In General.--The Secretary of Energy shall conduct a study--
            (1) of the potential megawatts of hydropower that may be 
        obtained from conduits (as defined by the Secretary) in the 
        United States; and
            (2) of land, including identification of land, that is 
        well-suited for pumped storage sites and is located near 
        existing or potential sites of intermittent renewable energy 
        resource development, such as wind farms.
    (b) Report.--Not later than 1 year after the date of enactment of 
this Act, the Secretary of Energy shall submit to the Committee on 
Energy and Commerce of the House of Representatives and the Committee 
on Energy and Natural Resources of the Senate a report that describes 
the results of the study conducted under subsection (a), including any 
recommendations.

SEC. 8. REPORT ON MEMORANDUM OF UNDERSTANDING ON HYDROPOWER.

    Not later than 180 days after the date of enactment of this Act, 
the President shall submit to the Committee on Energy and Commerce of 
the House of Representatives and the Committee on Energy and Natural 
Resources of the Senate a report on actions taken by the Department of 
Energy and other Federal agencies 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. 9. AUTHORIZATION OF APPROPRIATIONS.

    (a) Authorization of Appropriations.--There is authorized to be 
appropriated $5,000,000 to carry out this Act and the amendments made 
by this Act, of which not more than $1,000,000 shall be appropriated to 
the Department of Energy.
    (b) Offset.--Section 422(f) of the Energy Independence and Security 
Act of 2007 (42 U.S.C. 17082(f)) is amended--
            (1) by redesignating paragraph (4) as paragraph (5);
            (2) in paragraph (3), by striking ``2012; and'' and 
        inserting ``2012;'';
            (3) by inserting after paragraph (3) the following 
        paragraph:
            ``(4) $145,000,000 for fiscal year 2013; and''; and
            (4) in paragraph (5), as redesignated by paragraph (1) of 
        this subsection, by striking ``2013'' and inserting ``2014''.