I 
115TH CONGRESS 
1ST SESSION H. R. 3043 
To modernize hydropower policy, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 23, 2017 
Mrs. MCMORRIS RODGERS introduced the following bill; which was referred 
to the Committee on Energy and Commerce, and in addition to the Com-
mittee on Oversight and Government Reform, for a period to be subse-
quently determined by the Speaker, in each case for consideration of such 
provisions as fall within the jurisdiction of the committee concerned 
A BILL 
To modernize hydropower policy, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Hydropower Policy 
Modernization Act of 2017’’. 
SEC. 2. HYDROPOWER REGULATORY IMPROVEMENTS. 
(a) SENSE OF CONGRESS ON THE USE OF HYDRO-
POWER RENEWABLE RESOURCES.—It is the sense of Con-
gress that— 
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(1) hydropower is a renewable resource for pur-
poses of all Federal programs and is an essential 
source of energy in the United States; and 
(2) the United States should increase substan-
tially the capacity and generation of clean, renewable 
hydropower that would improve environmental qual-
ity in the United States. 
(b) MODIFYING THE DEFINITION OF RENEWABLE 
ENERGY TO INCLUDE HYDROPOWER.—Section 203 of the 
Energy Policy Act of 2005 (42 U.S.C. 15852) is amend-
ed— 
(1) in subsection (a), by striking ‘‘the following 
amounts’’ and all that follows through paragraph (3) 
and inserting ‘‘not less than 15 percent in fiscal year 
2017 and each fiscal year thereafter shall be renew-
able energy.’’; and 
(2) in subsection (b), by striking paragraph (2) 
and inserting the following: 
‘‘(2) RENEWABLE ENERGY.—The term ‘renew-
able energy’ means electric energy generated from 
solar, wind, biomass, landfill gas, ocean (including 
tidal, wave, current, and thermal), geothermal, or 
municipal solid waste, or from a hydropower 
project.’’. 
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(c) PRELIMINARY PERMITS.—Section 5 of the Fed-
eral Power Act (16 U.S.C. 798) is amended— 
(1) in subsection (a), by striking ‘‘three’’ and 
inserting ‘‘4’’; and 
(2) by amending subsection (b) to read as fol-
lows: 
‘‘(b) The Commission may— 
‘‘(1) extend the period of a preliminary permit 
once for not more than 4 additional years beyond 
the 4 years permitted by subsection (a) if the Com-
mission finds that the permittee has carried out ac-
tivities under such permit in good faith and with 
reasonable diligence; and 
‘‘(2) if the period of a preliminary permit is ex-
tended under paragraph (1), extend the period of 
such preliminary permit once for not more than 4 
additional years beyond the extension period granted 
under paragraph (1), if the Commission determines 
that there are extraordinary circumstances that war-
rant such additional extension.’’. 
(d) TIME LIMIT FOR CONSTRUCTION OF PROJECT 
WORKS.—Section 13 of the Federal Power Act (16 U.S.C. 
806) is amended in the second sentence by striking ‘‘once 
but not longer than two additional years’’ and inserting 
‘‘for not more than 8 additional years,’’. 
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(e) LICENSE TERM.—Section 15(e) of the Federal 
Power Act (16 U.S.C. 808(e)) is amended— 
(1) by striking ‘‘(e) Except’’ and inserting the 
following: 
‘‘(e) LICENSE TERM ON RELICENSING.— 
‘‘(1) IN GENERAL.—Except’’; and 
(2) by adding at the end the following: 
‘‘(2) CONSIDERATION.—In determining the 
term of a license under paragraph (1), the Commis-
sion shall consider, among other things, project-re-
lated investments to be made by the licensee under 
a new license issued under this section, as well as 
project-related investments made by a licencee over 
the term of the existing license (including any terms 
under annual licenses). In considering such invest-
ments, the Commission shall give the same weight 
to— 
‘‘(A) investments to be made by the li-
censee to implement a new license issued under 
this section, including— 
‘‘(i) investments in redevelopment, 
new construction, new capacity, efficiency, 
modernization, rehabilitation, and safety 
improvements; and 
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‘‘(ii) investments in environmental, 
recreation, and other protection, mitiga-
tion, or enhancement measures that will be 
required or authorized by the license; and 
‘‘(B) investments made by the licensee over 
the term of the existing license (including any 
terms under annual licenses), beyond those re-
quired by the existing license when issued, 
that— 
‘‘(i) resulted in, during the term of 
the existing license— 
‘‘(I) redevelopment, new con-
struction, new capacity, efficiency, 
modernization, rehabilitation, or safe-
ty improvements; or 
‘‘(II) environmental, recreation, 
or other protection, mitigation, or en-
hancement measures; and 
‘‘(ii) did not result in the extension of 
the term of the existing license by the 
Commission.’’. 
(f) ALTERNATIVE
CONDITIONS
AND
PRESCRIP-
TIONS.—Section 33 of the Federal Power Act (16 U.S.C. 
823d) is amended— 
(1) in subsection (a)— 
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(A) in paragraph (1), by striking ‘‘deems’’ 
and inserting ‘‘determines’’; 
(B) in paragraph (2)(B), in the matter 
preceding clause (i), by inserting ‘‘determined 
to be necessary’’ before ‘‘by the Secretary’’; 
(C) by striking paragraph (4); and 
(D) by striking paragraph (5); 
(2) in subsection (b)— 
(A) by striking paragraph (4); and 
(B) by striking paragraph (5); and 
(3) by adding at the end the following: 
‘‘(c) FURTHER CONDITIONS.—This section applies to 
any further conditions or prescriptions proposed or im-
posed pursuant to section 4(e), 6, or 18.’’. 
SEC. 3. HYDROPOWER LICENSING AND PROCESS IMPROVE-
MENTS. 
(a) HYDROPOWER LICENSING
AND PROCESS IM-
PROVEMENTS.—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. HYDROPOWER LICENSING AND PROCESS IM-
PROVEMENTS. 
‘‘(a) DEFINITION.—In this section, the term ‘Federal 
authorization’— 
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‘‘(1) means any authorization required under 
Federal law with respect to an application for a li-
cense, license amendment, or exemption under this 
part; and 
‘‘(2) includes any permits, special use author-
izations, certifications, opinions, or other approvals 
as may be required under Federal law to approve or 
implement the license, license amendment, or exemp-
tion under this part. 
‘‘(b) DESIGNATION AS LEAD AGENCY.— 
‘‘(1) IN GENERAL.—The Commission shall act 
as the lead agency for the purposes of coordinating 
all applicable Federal authorizations and for the 
purposes of complying with the National Environ-
mental Policy Act of 1969 (42 U.S.C. 4321 et seq.). 
‘‘(2) OTHER AGENCIES AND INDIAN TRIBES.— 
‘‘(A) IN GENERAL.—Each Federal, State, 
and local government agency and Indian tribe 
considering an aspect of an application for Fed-
eral authorization shall coordinate with the 
Commission and comply with the deadline es-
tablished in the schedule developed for the li-
cense, license amendment, or exemption under 
this part in accordance with the rule issued by 
the Commission under subsection (c). 
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‘‘(B) IDENTIFICATION.—The Commission 
shall identify, as early as practicable after it is 
notified by the applicant for a license, license 
amendment, or exemption under this part, any 
Federal or State agency, local government, or 
Indian tribe that may consider an aspect of an 
application for a Federal authorization. 
‘‘(C) NOTIFICATION.— 
‘‘(i) IN GENERAL.—The Commission 
shall notify any agency and Indian tribe 
identified under subparagraph (B) of the 
opportunity to participate in the process of 
reviewing an aspect of an application for a 
Federal authorization. 
‘‘(ii) DEADLINE.—Each agency and 
Indian tribe receiving a notice under clause 
(i) shall submit a response acknowledging 
receipt of the notice to the Commission 
within 30 days of receipt of such notice 
and request. 
‘‘(D) ISSUE IDENTIFICATION AND RESOLU-
TION.— 
‘‘(i) IDENTIFICATION
OF
ISSUES.— 
Federal, State, and local government agen-
cies and Indian tribes that may consider 
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an aspect of an application for Federal au-
thorization shall identify, as early as pos-
sible, and share with the Commission and 
the applicant, any issues of concern identi-
fied during the pendency of the Commis-
sion’s action under this part relating to 
any Federal authorization that may delay 
or prevent the granting of such authoriza-
tion, including any issues that may prevent 
the agency or Indian tribe from meeting 
the schedule established for the license, li-
cense amendment, or exemption under this 
part in accordance with the rule issued by 
the Commission under subsection (c). 
‘‘(ii) ISSUE RESOLUTION.—The Com-
mission may forward any issue of concern 
identified under clause (i) to the heads of 
the relevant State and Federal agencies 
(including, in the case of an issue of con-
cern identified by a State or local govern-
ment agency or Indian tribe, the Federal 
agency overseeing the delegated authority, 
or the Secretary of the Interior with re-
gard to an issue of concern identified by 
an Indian tribe, as applicable) for resolu-
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tion. If the Commission forwards an issue 
of concern to the head of a relevant agen-
cy, the Commission and the relevant agen-
cy shall enter into a memorandum of un-
derstanding to facilitate interagency co-
ordination and resolution of such issues of 
concern, as appropriate. 
‘‘(c) SCHEDULE.— 
‘‘(1) COMMISSION RULEMAKING TO ESTABLISH 
PROCESS TO SET SCHEDULE.—Not later than 180 
days after the date of enactment of this section the 
Commission shall, in consultation with the appro-
priate Federal agencies, issue a rule, after providing 
for notice and public comment, establishing a proc-
ess for setting a schedule following the filing of an 
application under this part for a license, license 
amendment, or exemption for the review and disposi-
tion of each Federal authorization. 
‘‘(2) ELEMENTS
OF
SCHEDULING
RULE.—In 
issuing a rule under this subsection, the Commission 
shall ensure that the schedule for each Federal au-
thorization— 
‘‘(A) includes deadlines for actions by— 
‘‘(i) any Federal or State agency, local 
government, or Indian tribe that may con-
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sider an aspect of an application for the 
Federal authorization; 
‘‘(ii) the applicant; 
‘‘(iii) the Commission; and 
‘‘(iv) other participants in any appli-
cable proceeding; 
‘‘(B) is developed in consultation with the 
applicant and any agency and Indian tribe that 
submits 
a 
response 
under 
subsection 
(b)(2)(C)(ii); 
‘‘(C) provides an opportunity for any Fed-
eral or State agency, local government, or In-
dian tribe that may consider an aspect of an 
application for the applicable Federal authoriza-
tion to identify and resolve issues of concern, as 
provided in subsection (b)(2)(D); 
‘‘(D) complies with applicable schedules es-
tablished under Federal and State law; 
‘‘(E) ensures expeditious completion of all 
proceedings required under Federal and State 
law, to the extent practicable; and 
‘‘(F) facilitates completion of Federal and 
State agency studies, reviews, and any other 
procedures required prior to, or concurrent 
with, the preparation of the Commission’s envi-
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ronmental document required under the Na-
tional Environmental Policy Act of 1969 (42 
U.S.C. 4321 et seq.). 
‘‘(d) TRANSMISSION OF FINAL SCHEDULE.— 
‘‘(1) IN GENERAL.—For each application for a 
license, license amendment, or exemption under this 
part, the Commission shall establish a schedule in 
accordance with the rule issued by the Commission 
under subsection (c). The Commission shall publicly 
notice and transmit the final schedule to the appli-
cant and each agency and Indian tribe identified 
under subsection (b)(2)(B). 
‘‘(2) RESPONSE.—Each agency and Indian 
tribe receiving a schedule under this subsection shall 
acknowledge receipt of such schedule in writing to 
the Commission within 30 days. 
‘‘(e) ADHERENCE
TO SCHEDULE.—All applicants, 
other licensing participants, and agencies and Indian 
tribes considering an aspect of an application for a Fed-
eral authorization shall meet the deadlines set forth in the 
schedule established pursuant to subsection (d)(1). 
‘‘(f) APPLICATION PROCESSING.—The Commission, 
Federal, State, and local government agencies, and Indian 
tribes may allow an applicant seeking a Federal authoriza-
tion to fund a third-party contractor selected by such an 
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agency or tribe to assist in reviewing the application. All 
costs of an agency or tribe incurred pursuant to direct 
funding by the applicant, including all costs associated 
with the third-party contractor, shall not be considered 
costs of the United States for the administration of this 
part under section 10(e). 
‘‘(g) COMMISSION RECOMMENDATION ON SCOPE OF 
ENVIRONMENTAL REVIEW.—For the purposes of coordi-
nating Federal authorizations for each license, license 
amendment, or exemption under this part, the Commis-
sion shall consult with and make a recommendation to 
agencies and Indian tribes receiving a schedule under sub-
section (d) on the scope of the environmental review for 
all Federal authorizations for such license, license amend-
ment, or exemption. Each Federal and State agency and 
Indian tribe shall give due consideration and may give def-
erence to the Commission’s recommendations, to the ex-
tent appropriate under Federal law. 
‘‘(h) EXTENSION OF DEADLINE.— 
‘‘(1) APPLICATION.—A Federal, State, or local 
government agency or Indian tribe that is unable to 
complete its disposition of a Federal authorization 
by the deadline set forth in the schedule established 
under subsection (d)(1) shall, not later than 30 days 
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prior to such deadline, file for an extension with the 
Commission. 
‘‘(2) EXTENSION.—The Commission shall only 
grant an extension filed for under paragraph (1) if 
the agency or Indian tribe demonstrates, based on 
the record maintained under subsection (i), that 
complying with the schedule established under sub-
section (d)(1) would prevent the agency or tribe 
from complying with applicable Federal or State law. 
If the Commission grants the extension, the Com-
mission shall set a reasonable schedule and deadline, 
that is not later than 90 days after the deadline set 
forth in the schedule established under subsection 
(d)(1), for the agency or tribe to complete its dis-
position of the Federal authorization. 
‘‘(i) CONSOLIDATED
RECORD.—The Commission 
shall, with the cooperation of Federal, State, and local 
government agencies and Indian tribes, maintain a com-
plete consolidated record of all decisions made or actions 
taken by the Commission or by a Federal administrative 
agency or officer (or State or local government agency or 
officer or Indian tribe acting under delegated Federal au-
thority) with respect to any Federal authorization. Such 
record shall constitute the record for judicial review under 
section 313(b). 
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‘‘(j) SUBMISSION OF LICENSE RECOMMENDATIONS, 
CONDITIONS, AND PRESCRIPTIONS.— 
‘‘(1) SUBMISSION
OF
RECOMMENDATIONS.— 
Any Federal or State agency that is providing rec-
ommendations with respect to a license proceeding 
under this part shall submit to the Commission for 
inclusion in the consolidated record relating to the li-
cense proceeding maintained under subsection (i)— 
‘‘(A) the recommendations; 
‘‘(B) the rationale for the recommenda-
tions; and 
‘‘(C) any supporting materials relating to 
the recommendations. 
‘‘(2) WRITTEN
STATEMENT.—In a case in 
which a Federal agency is making a determination 
with respect to a covered measure (as defined in sec-
tion 35(a)), the head of the Federal agency shall 
submit to the Commission for inclusion in the con-
solidated record, in addition to the information re-
quired under paragraph (1), a written statement 
demonstrating that the Federal agency gave equal 
consideration to the effects of the covered measure 
on— 
‘‘(A) energy supply, distribution, cost, and 
use; 
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‘‘(B) flood control; 
‘‘(C) navigation; 
‘‘(D) water supply; and 
‘‘(E) air quality and the preservation of 
other aspects of environmental quality. 
‘‘(3) INFORMATION FROM OTHER AGENCIES.— 
In preparing a written statement under paragraph 
(2), the head of a Federal agency may make use of 
information produced or made available by other 
agencies with relevant expertise in the factors de-
scribed in subparagraphs (A) through (E) of that 
paragraph. 
‘‘(k) DELEGATION.— 
‘‘(1) DEPARTMENT
OF
AGRICULTURE.—The 
Secretary of Agriculture shall not delegate the au-
thority to require a condition under section 4(e), 
other than to the Chief of the Forest Service or the 
Under Secretary for Natural Resources and Envi-
ronment. 
‘‘(2) DEPARTMENT OF COMMERCE.—The Sec-
retary of Commerce shall not delegate the authority 
to prescribe fishways under section 18, other than to 
the Assistant Administrator for Fisheries or the 
Under Secretary for Oceans and Atmosphere. 
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‘‘(3) DEPARTMENT
OF
THE
INTERIOR.—The 
Secretary of the Interior shall not delegate the au-
thority to require a condition under section 4(e), 
other than to, as appropriate, the Assistant Sec-
retary for Fish, Wildlife and Parks, the Assistant 
Secretary for Indian Affairs, the Assistant Secretary 
for Land and Minerals Management, the Assistant 
Secretary for Water and Science, the Director of the 
U.S. Fish and Wildlife Service, the Director of the 
Bureau of Indian Affairs, the Director of the Bu-
reau of Land Management, or the Commissioner of 
the Bureau of Reclamation. The Secretary of the In-
terior shall not delegate the authority to prescribe 
fishways under section 18, other than to the Assist-
ant Secretary for Fish, Wildlife and Parks or the 
Director of the U.S. Fish and Wildlife Service. 
‘‘(l) NO EFFECT ON FEDERAL WATER POLLUTION 
CONTROL ACT.—Nothing in this section shall be con-
strued to affect any requirement of the Federal Water Pol-
lution Control Act with respect to an application for a li-
cense, license amendment, or exemption under this part. 
‘‘SEC. 35. TRIAL-TYPE HEARINGS. 
‘‘(a) DEFINITION OF COVERED MEASURE.—In this 
section, the term ‘covered measure’ means— 
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‘‘(B) the Secretary exercises reserved authority 
under the license to prescribe, submit, or revise any 
condition to a license under the first proviso of sec-
tion 4(e) or fishway prescribed under section 18, as 
appropriate. 
‘‘(d) NO REQUIREMENT TO EXHAUST.—By electing 
not to request a trial-type hearing under subsection (c), 
a license applicant and any other party to a license pro-
ceeding shall not be considered to have waived the right 
of the applicant or other party to raise any issue of fact 
or law in a non-trial-type proceeding, but no issue may 
be raised for the first time on rehearing or judicial review 
of the license decision of the Commission. 
‘‘(e) ADMINISTRATIVE LAW JUDGE.— 
‘‘(1) IN GENERAL.—All disputed issues of mate-
rial fact raised by a party in a request for a trial- 
type hearing submitted under subsection (c) shall be 
determined in a single trial-type hearing to be con-
ducted by an Administrative Law Judge within the 
Office of Administrative Law Judges and Dispute 
Resolution of the Commission, in accordance with 
the Commission rules of practice and procedure 
under part 385 of title 18, Code of Federal Regula-
tions (or successor regulations), and within the time-
frame established by the Commission for each li-
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cense proceeding (including a proceeding for a li-
cense under section 15) under section 34(d). 
‘‘(2) REQUIREMENT.—The trial-type hearing 
shall include the opportunity— 
‘‘(A) to undertake discovery; and 
‘‘(B) to cross-examine witnesses. 
‘‘(f) STAY.—The Administrative Law Judge may im-
pose a stay of a trial-type hearing under this section for 
a period of not more than 120 days to facilitate settlement 
negotiations relating to resolving the disputed issues of 
material fact with respect to the covered measure. 
‘‘(g) DECISION
OF
THE
ADMINISTRATIVE
LAW 
JUDGE.— 
‘‘(1) CONTENTS.—The decision of the Adminis-
trative Law Judge shall contain— 
‘‘(A) findings of fact on all disputed issues 
of material fact; 
‘‘(B) conclusions of law necessary to make 
the findings of fact, including rulings on mate-
riality and the admissibility of evidence; and 
‘‘(C) reasons for the findings and conclu-
sions. 
‘‘(2) LIMITATION.—The decision of the Admin-
istrative Law Judge shall not contain conclusions as 
to whether— 
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‘‘(A) any condition or prescription should 
be adopted, modified, or rejected; or 
‘‘(B) any alternative condition or prescrip-
tion should be adopted, modified, or rejected. 
‘‘(3) FINALITY.—A decision of an Administra-
tive Law Judge under this section with respect to a 
disputed issue of material fact shall not be subject 
to further administrative review. 
‘‘(4) SERVICE.—The Administrative Law Judge 
shall serve the decision on each party to the hearing 
and forward the complete record of the hearing to 
the Commission and the Secretary that proposed the 
original condition or prescription. 
‘‘(h) SECRETARIAL DETERMINATION.— 
‘‘(1) IN
GENERAL.—Not later than 60 days 
after the date on which the Administrative Law 
Judge issues the decision under subsection (g) and 
in accordance with the schedule established by the 
Commission under section 34(d), the Secretary pro-
posing a covered measure shall file with the Com-
mission a final determination to adopt, modify, or 
withdraw any condition or prescription that was the 
subject of a hearing under this section, based on the 
decision of the Administrative Law Judge. 
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‘‘(2) RECORD OF DETERMINATION.—The final 
determination of the Secretary filed with the Com-
mission shall identify the reasons for the decision 
and any considerations taken into account that were 
not part of, or were inconsistent with, the findings 
of the Administrative Law Judge and shall be in-
cluded in the consolidated record maintained under 
section 34(i). 
‘‘(i) RESOLUTION
OF MATTERS.—Notwithstanding 
sections 4(e) and 18, if the Commission finds that a final 
determination under (h)(1) of the Secretary is inconsistent 
with the purposes of this part or other applicable law, the 
Commission may enter into a memorandum of under-
standing with the Secretary to facilitate interagency co-
ordination and resolve the matter. 
‘‘(j) JUDICIAL REVIEW.—The decision of the Admin-
istrative Law Judge and the record of determination of 
the Secretary shall be included in the record of the appli-
cable licensing proceeding and subject to judicial review 
of the final licensing decision of the Commission under 
section 313(b). 
‘‘SEC. 36. LICENSING STUDY IMPROVEMENTS. 
‘‘(a) IN GENERAL.—To facilitate the timely and effi-
cient completion of the license proceedings under this part, 
the Commission shall, in consultation with applicable Fed-
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eral and State agencies and interested members of the 
public— 
‘‘(1) compile current and accepted best prac-
tices in performing studies required in such license 
proceedings, including methodologies and the design 
of studies to assess the full range of environmental 
impacts of a project that reflect the most recent 
peer-reviewed science; 
‘‘(2) compile a comprehensive collection of stud-
ies and data accessible to the public that could be 
used to inform license proceedings under this part; 
and 
‘‘(3) encourage license applicants, agencies, and 
Indian tribes to develop and use, for the purpose of 
fostering timely and efficient consideration of license 
applications, a limited number of open-source meth-
odologies and tools applicable across a wide array of 
projects, including water balance models and 
streamflow analyses. 
‘‘(b) USE OF STUDIES.—To the extent practicable, 
the Commission and other Federal, State, and local gov-
ernment agencies and Indian tribes considering an aspect 
of an application for Federal authorization (as defined in 
section 34) shall use studies and data based on current, 
accepted science in support of their actions. Any partici-
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pant in a proceeding with respect to such a Federal au-
thorization shall demonstrate that a study requested by 
the participant is not duplicative of current, existing stud-
ies that are applicable to the project. 
‘‘(c) BASIN-WIDE
OR
REGIONAL
REVIEW.—The 
Commission shall establish a program to develop com-
prehensive plans, at the request of project applicants, on 
a regional or basin-wide scale, in consultation with the ap-
plicants, appropriate Federal agencies, and affected 
States, local governments, and Indian tribes, in basins or 
regions with respect to which there are more than one ap-
plication for a project. Upon such a request, the Commis-
sion, in consultation with the applicants, such Federal 
agencies, and affected States, local governments, and In-
dian tribes, may conduct or commission regional or basin- 
wide environmental studies, with the participation of at 
least 2 applicants. Any study conducted under this sub-
section shall apply only to a project with respect to which 
the applicants participate. 
‘‘SEC. 37. LICENSE AMENDMENT IMPROVEMENTS. 
‘‘(a) QUALIFYING PROJECT UPGRADES.— 
‘‘(1) IN GENERAL.—As provided in this section, 
the Commission may approve an application under 
this section for an amendment to a license issued 
under this part for a qualifying project upgrade. 
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‘‘(2) APPLICATION.—A licensee filing an appli-
cation for an amendment to a project license under 
this section shall include in such application infor-
mation sufficient to demonstrate that the proposed 
change to the project described in the application is 
a qualifying project upgrade. 
‘‘(3) NOTICE AND INITIAL DETERMINATION ON 
QUALIFICATION.—Not later than 15 days after re-
ceipt of an application under paragraph (2), the 
Commission shall publish in the Federal Register a 
notice containing— 
‘‘(A) notice of the application filed under 
paragraph (2); 
‘‘(B) an initial determination as to whether 
the proposed change to the project described in 
the application for a license amendment is a 
qualifying project upgrade; and 
‘‘(C) a request for public comment on the 
application and the initial determination. 
‘‘(4) PUBLIC COMMENT AND CONSULTATION.— 
The Commission shall, for a period of 45 days be-
ginning on the date of publication of a notice under 
paragraph (3)— 
‘‘(A) accept public comment regarding the 
application and whether the proposed license 
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that the proposed license amendment is for a quali-
fying project upgrade. 
‘‘(7) COMMISSION ACTION.—Not later than 150 
days after the date on which the Commission pub-
lishes a final determination under paragraph (5) 
that a proposed license amendment is for a quali-
fying project upgrade, the Commission shall take 
final action on the license amendment application. 
‘‘(8) LICENSE AMENDMENT CONDITIONS.—Any 
condition or prescription included in or applicable to 
a license amendment for a qualifying project up-
grade approved under this subsection, including any 
condition, prescription, or other requirement of a 
Federal authorization, shall be limited to those that 
are— 
‘‘(A) necessary to protect public safety; or 
‘‘(B) reasonable, economically feasible, and 
essential to prevent loss of or damage to, or to 
mitigate adverse effects on, fish and wildlife re-
sources, water supply, and water quality that 
are directly caused by the construction and op-
eration of the qualifying project upgrade, as 
compared to the environmental baseline existing 
at the time the Commission approves the appli-
cation for the license amendment. 
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‘‘(9) RULEMAKING.—Not later than 180 days 
after the date of enactment of this section, the Com-
mission shall, after notice and opportunity for public 
comment, issue a rule to implement this subsection. 
‘‘(10) DEFINITIONS.—For purposes of this sub-
section: 
‘‘(A) QUALIFYING
PROJECT
UPGRADE.— 
The term ‘qualifying project upgrade’ means a 
change to a project licensed under this part 
that meets the qualifying criteria, as deter-
mined by the Commission. 
‘‘(B) QUALIFYING
CRITERIA.—The term 
‘qualifying criteria’ means, with respect to a 
project licensed under this part, a change to the 
project that— 
‘‘(i) if carried out, would be unlikely 
to adversely affect any species listed as 
threatened or endangered under the En-
dangered Species Act of 1973 or result in 
the destruction or adverse modification of 
critical habitat, as determined in consulta-
tion with the Secretary of the Interior or 
Secretary of Commerce, as appropriate, in 
accordance with section 7 of the Endan-
gered Species Act of 1973; 
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‘‘(ii) is consistent with any applicable 
comprehensive plan under section 10(a)(2); 
‘‘(iii) includes only changes to project 
lands, waters, or operations that, in the 
judgment of the Commission, would result 
in only insignificant or minimal cumulative 
adverse environmental effects; 
‘‘(iv) would be unlikely to adversely 
affect water quality or water supply; and 
‘‘(v) proposes to implement— 
‘‘(I) capacity increases, efficiency 
improvements, or other enhancements 
to hydropower generation at the li-
censed project; 
‘‘(II) environmental protection, 
mitigation, or enhancement measures 
to benefit fish and wildlife resources 
or other natural and cultural re-
sources; or 
‘‘(III) improvements to public 
recreation at the licensed project. 
‘‘(b) AMENDMENT APPROVAL PROCESSES.— 
‘‘(1) RULE.—Not later than 1 year after the 
date of enactment of this section, the Commission 
shall, after notice and opportunity for public com-
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ment, issue a rule establishing new standards and 
procedures for license amendment applications under 
this part. In issuing such rule, the Commission shall 
seek to develop the most efficient and expedient 
process, consultation, and review requirements, com-
mensurate with the scope of different categories of 
proposed license amendments. Such rule shall ac-
count for differences in environmental effects across 
a wide range of categories of license amendment ap-
plications. 
‘‘(2) CAPACITY.—In issuing a rule under this 
subsection, the Commission shall take into consider-
ation that a change in generating or hydraulic ca-
pacity may indicate the potential environmental ef-
fects of a proposed license amendment but is not de-
terminative of such effects. 
‘‘(3) PROCESS
OPTIONS.—In issuing a rule 
under this subsection, the Commission shall take 
into consideration the range of process options avail-
able under the Commission’s regulations for license 
applications and adapt such options to amendment 
applications, where appropriate.’’. 
SEC. 4. TECHNICAL AND CONFORMING AMENDMENTS. 
(a) LICENSES.—Section 4(e) of the Federal Power 
Act (16 U.S.C. 797(e)) is amended— 
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(1) by striking ‘‘adequate protection and utili-
zation of such reservation’’ and all that follows 
through ‘‘That no license affecting the navigable ca-
pacity’’ and inserting ‘‘adequate protection and utili-
zation of such reservation: Provided further, That no 
license affecting the navigable capacity’’; and 
(2) by striking ‘‘deem’’ and inserting ‘‘deter-
mine’’. 
(b) OPERATION OF NAVIGATION FACILITIES.—Sec-
tion 18 of the Federal Power Act (16 U.S.C. 811) is 
amended by striking the second, third, and fourth sen-
tences. 
Æ 
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