SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Promoting Closed-Loop Pumped Storage 
Hydropower Act''.

SEC. 2. CLOSED-LOOP PUMPED STORAGE PROJECTS.

    Part I of the Federal Power Act (16 U.S.C. 792 et seq.) is amended 
by adding at the end the following:

``SEC. 34. CLOSED-LOOP PUMPED STORAGE PROJECTS.

    ``(a) Expedited Licensing Process for Closed-Loop Pumped Storage 
Projects.--
            ``(1) In general.--As provided in this section, the 
        Commission may issue and amend licenses and preliminary 
        permits, as appropriate, for closed-loop pumped storage 
        projects.
            ``(2) Rule.--Not later than 180 days after the date of 
        enactment of this section, the Commission shall issue a rule 
        establishing an expedited process for issuing and amending 
        licenses and preliminary permits for closed-loop pumped storage 
        projects under this section.
            ``(3) Interagency task force.--In establishing the 
        expedited process under this section, the Commission shall 
        convene an interagency task force, with appropriate Federal and 
        State agencies and Indian tribes represented, to coordinate the 
        regulatory processes associated with the authorizations 
        required to construct and operate closed-loop pumped storage 
        projects.
            ``(4) Length of process.--The Commission shall ensure that 
        the expedited process under this section will result in final 
        decision on an application for a license by not later than 2 
        years after receipt of a completed application for such 
        license.
    ``(b) Dam Safety.--Before issuing any license for a closed-loop 
pumped storage project, the Commission shall assess the safety of 
existing dams and other structures related to the project (including 
possible consequences associated with failure of such structures).
    ``(c) Exemptions From Other Requirements.--
            ``(1) In general.--In issuing or amending a license or 
        preliminary permit pursuant to the expedited process 
        established under this section, the Commission may grant an 
        exemption from any other requirement of this part with respect 
        to any part of the closed-loop pumped storage project (not 
        including any dam or other impoundment).
            ``(2) Consultation.--In granting an exemption under 
        paragraph (1), the Commission shall consult with the United 
        States Fish and Wildlife Service and the State agency 
        exercising administration over the fish and wildlife resources 
        of the State in which the closed-loop pumped storage project is 
        or will be located, in the manner provided by the Fish and 
        Wildlife Coordination Act (16 U.S.C. 661 et seq.).
            ``(3) Terms and conditions.--In granting an exemption under 
        paragraph (1), the Commission shall include in any such 
        exemption--
                    ``(A) such terms and conditions as the Fish and 
                Wildlife Service, National Marine Fisheries Service, 
                and the State agency described in paragraph (2) each 
                determine are appropriate to prevent loss of, or damage 
                to, fish and wildlife resources and to otherwise carry 
                out the purposes of the Fish and Wildlife Coordination 
                Act; and
                    ``(B) such terms and conditions as the Commission 
                deems appropriate to ensure that such closed-loop 
                pumped storage project continues to comply with the 
                provisions of this section and terms and conditions 
                included in any such exemption.
            ``(4) Fees.--The Commission, in addition to the 
        requirements of section 10(e), shall establish fees which shall 
        be paid by an applicant for a license for a closed-loop pumped 
        storage project that is required to meet terms and conditions 
        set by fish and wildlife agencies under paragraph (3). Such 
        fees shall be adequate to reimburse the fish and wildlife 
        agencies referred to in paragraph (3) for any reasonable costs 
        incurred in connection with any studies or other reviews 
        carried out by such agencies for purposes of compliance with 
        this section. The fees shall, subject to annual appropriations 
        Acts, be transferred to such agencies by the Commission for use 
        solely for purposes of carrying out such studies and shall 
        remain available until expended.
    ``(d) Transfers.--Notwithstanding section 5, and regardless of 
whether the holder of a preliminary permit for a closed-loop pumped 
storage project claimed municipal preference under section 7(a) when 
obtaining the permit, the Commission may, to facilitate development of 
a closed-loop pumped storage project--
            ``(1) add entities as joint permittees following issuance 
        of a preliminary permit; and
            ``(2) transfer a license in part to one or more 
        nonmunicipal entities as co-licensees with a municipality, if 
        the municipality retains majority ownership of the project for 
        which the license was issued.
    ``(e) Interagency Communications.--Interagency cooperation in the 
preparation of environmental documents under the National Environmental 
Policy Act of 1969 (42 U.S.C. 4321 et seq.) with respect to an 
application for a license for a closed-loop pumped storage project 
submitted pursuant to this section, and interagency communications 
relating to licensing process coordination pursuant to this section, 
shall not--
            ``(1) be considered to be ex parte communications under 
        Commission rules; or
            ``(2) preclude an agency from participating in a licensing 
        proceeding under this part.
    ``(f) Developing Abandoned Mines for Pumped Storage.--
            ``(1) Workshop.--Not later than 6 months after the date of 
        enactment of this section, the Commission shall hold a workshop 
        to explore potential opportunities for development of closed-
        loop pumped storage projects at abandoned mine sites.
            ``(2) Guidance.--Not later than 1 year after the date of 
        enactment of this section, the Commission shall issue guidance 
        to assist applicants for licenses or preliminary permits for 
        closed-loop pumped storage projects at abandoned mine sites.
    ``(g) Qualifying Criteria for Closed-Loop Pumped Storage 
Projects.--
            ``(1) In general.--The Commission shall establish criteria 
        that a pumped storage project shall meet in order to qualify as 
        a closed-loop pumped storage project eligible for the expedited 
        process established under this section.
            ``(2) Inclusions.--In establishing the criteria under 
        paragraph (1), the Commission shall include criteria requiring 
        that the pumped storage project--
                    ``(A) cause little to no change to existing surface 
                and groundwater flows and uses; and
                    ``(B) is unlikely to adversely affect species 
                listed as a threatened species or endangered species 
                under the Endangered Species Act of 1973.''.

SEC. 3. OBLIGATION FOR PAYMENT OF ANNUAL CHARGES.

    Section 10(e) of the Federal Power Act (16 U.S.C. 803(e)) is 
amended by adding at the end the following:
    ``(5) Any obligation of a licensee for payment of annual charges 
under this subsection shall commence when the construction of the 
applicable facility commences.''.

            Passed the House of Representatives December 12, 2017.

            Attest:

                                                 KAREN L. HAAS,

                                                                 Clerk.
Promoting Closed-Loop Pumped Storage Hydropower Act (Sec.2)This bill amends the Federal Power Act to authorize the Federal Energy Regulatory Commission (FERC) to establish an expedited licensing process for issuing and amending licenses and preliminary permits for closed-loop pumped storage projects (in which the upper and lower reservoirs do not impound or directly withdraw water from navigable waters, or that are not continuously connected to a naturally flowing water feature). In establishing the expedited process, FERC shall convene an interagency task force with appropriate federal and state agencies and Indian tribes to coordinate the regulatory process associated with the authorizations required to construct and operate closed-loop pumped storage projects. FERC must assess the safety of existing dams and other structures related to the project before issuing any license for a closed-loop storage project. FERC must hold a workshop to explore potential opportunities for development of storage projects at abandoned mine sites. FERC must also establish criteria that a project shall meet to qualify as a closed-loop pumped storage under this bill, including requiring that the project cause little to no change to existing surface and groundwater flows and uses and that the project is unlikely to adversely affect species listed as threatened or endangered under the Endangered Species Act of 1973. (Sec.3)Licensees are not required to pay an annual charge for administrative expenses until construction commences.
Promoting Closed-Loop Pumped Storage Hydropower Act