HR 5892 RFS 
stantial potential for adding hydropower generation 
to nonpowered dams; and 
(5) according to one study, by utilizing cur-
rently untapped resources, the United States could 
add approximately 60,000 megawatts of new hydro-
power capacity by 2025, which could create 700,000 
new jobs over the next 13 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, LI-
CENSING REQUIREMENTS.—Section 30 of the Federal 
Power Act (16 U.S.C. 823a) is amended— 
(1) by striking subsections (a) and (b) and in-
serting the following: 
‘‘(a)(1) A qualifying conduit hydropower facility shall 
not be required to be licensed under this part. 
‘‘(2)(A) Any person, State, or municipality proposing 
to construct a qualifying conduit hydropower facility shall 
file with the Commission a notice of intent to construct 
such facility. The notice shall include sufficient informa-
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tion to demonstrate that the facility meets the qualifying 
criteria. 
‘‘(B) Not later than 15 days after receipt of a notice 
of intent filed under subparagraph (A), the Commission 
shall— 
‘‘(i) make an initial determination as to wheth-
er the facility meets the qualifying criteria; and 
‘‘(ii) if the Commission makes an initial deter-
mination, pursuant to clause (i), that the facility 
meets the qualifying criteria, publish public notice of 
the notice of intent filed under subparagraph (A). 
‘‘(C) If, not later than 45 days after the date of publi-
cation of the public notice described in subparagraph 
(B)(ii)— 
‘‘(i) an entity contests whether the facility 
meets the qualifying criteria, the Commission shall 
promptly issue a written determination as to wheth-
er the facility meets such criteria; or 
‘‘(ii) no entity contests whether the facility 
meets the qualifying criteria, the facility shall be 
deemed to meet such criteria. 
‘‘(3) For purposes of this section: 
‘‘(A) The term ‘conduit’ means any tunnel, 
canal, pipeline, aqueduct, flume, ditch, or similar 
manmade water conveyance that is operated for the 
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distribution of water for agricultural, municipal, or 
industrial consumption and not primarily for the 
generation of electricity. 
‘‘(B) The term ‘qualifying conduit hydropower 
facility’ means a facility (not including any dam or 
other impoundment) that is determined or deemed 
under paragraph (2)(C) to meet the qualifying cri-
teria. 
‘‘(C) The term ‘qualifying criteria’ means, with 
respect to a facility— 
‘‘(i) the facility is constructed, operated, or 
maintained for the generation of electric power 
and uses for such generation only the hydro-
electric potential of a non-federally owned con-
duit; 
‘‘(ii) the facility has an installed capacity 
that does not exceed 5 megawatts; and 
‘‘(iii) on or before the date of enactment of 
the Hydropower Regulatory Efficiency Act of 
2012, the facility is not licensed under, or ex-
empted from the license requirements contained 
in, this part. 
‘‘(b) Subject to subsection (c), the Commission may 
grant an exemption in whole or in part from the require-
ments of this part, including any license requirements con-
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tained in this part, to any facility (not including any dam 
or other impoundment) constructed, operated, or main-
tained for the generation of electric power which the Com-
mission determines, by rule or order— 
‘‘(1) utilizes for such generation only the hydro-
electric potential of a conduit; and 
‘‘(2) has an installed capacity that does not ex-
ceed 40 megawatts.’’. 
(2) in subsection (c), by striking ‘‘subsection 
(a)’’ and inserting ‘‘subsection (b)’’; and 
(3) 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 amend-
ed by striking ‘‘subsection (a) of such section 30’’ and in-
serting ‘‘subsection (b) of such section 30’’. 
SEC. 5. FERC AUTHORITY TO EXTEND PRELIMINARY PER-
MIT PERIODS. 
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), respec-
tively; and 
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(2) by inserting after subsection (a) (as so des-
ignated) the following: 
‘‘(b) The Commission may extend the period of a pre-
liminary permit once for not more than 2 additional years 
beyond the 3 years permitted by subsection (a) if the Com-
mission finds that the permittee has carried out activities 
under such permit in good faith and with reasonable dili-
gence.’’. 
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 (re-
ferred to in this section as the ‘‘Commission’’) shall inves-
tigate the feasibility of the issuance of a license for hydro-
power 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 proc-
ess shall include any prefiling licensing process of the 
Commission. 
(b) WORKSHOPS
AND PILOTS.—The Commission 
shall— 
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