Conditions must only address direct project environmental impacts, and do so at the lowest project cost. Requires documentation of agency consideration of the broad range of factors. Requires FERC to impose deadlines by which federal agencies must submit proposed mandatory and recommended conditions to a license. Stand alone legislation providing production tax credit for incremental hydropower and other renewable resources - expands Section 45 Credit currently available to wind and biomass resources. Tax credit is 1.5 cents per KwH, adjusted for inflation.
Tax credit is made permanent.
Trading, transferring and selling mechanism allows public power companies and municipal power companies to benefit from credit. Contains language which provides production tax credits for incremental hydropower - Section 45 expansion. Incorporates all of Senator Craig's hydropower licensing reform bill, S. 71. Requires an inventory of existing federal dams and a requirement to report whether and how additional hydropower can be produced. Several other smaller provisions favorable or will provide opportunities for hydropower.