H. R. 6—83
other factual information available to the Secretary and relevant 
to the Secretary’s decision. 
‘‘(5) If the Commission finds that the Secretary’s final condition 
would be inconsistent with the purposes of this part, or other 
applicable law, the Commission may refer the dispute to the 
Commission’s Dispute Resolution Service. The Dispute Resolution 
Service shall consult with the Secretary and the Commission and 
issue a non-binding advisory within 90 days. The Secretary may 
accept the Dispute Resolution Service advisory unless the Secretary 
finds that the recommendation will not adequately protect the res-
ervation. The Secretary shall submit the advisory and the Sec-
retary’s final written determination into the record of the Commis-
sion’s proceeding. 
‘‘(b) ALTERNATIVE PRESCRIPTIONS.—(1) Whenever the Secretary 
of the Interior or the Secretary of Commerce prescribes a fishway 
under section 18, the license applicant or any other party to the 
license proceeding may propose an alternative to such prescription 
to construct, maintain, or operate a fishway. 
‘‘(2) Notwithstanding section 18, the Secretary of the Interior 
or the Secretary of Commerce, as appropriate, shall accept and 
prescribe, and the Commission shall require, the proposed alter-
native referred to in paragraph (1), if the Secretary of the appro-
priate department determines, based on substantial evidence pro-
vided by the license applicant, any other party to the proceeding, 
or otherwise available to the Secretary, that such alternative— 
‘‘(A) will be no less protective than the fishway initially 
prescribed by the Secretary; and 
‘‘(B) will either, as compared to the fishway initially pre-
scribed by the Secretary— 
‘‘(i) cost significantly less to implement; or 
‘‘(ii) result in improved operation of the project works 
for electricity production. 
‘‘(3) In making a determination under paragraph (2), the Sec-
retary shall consider evidence provided for the record by any party 
to a licensing proceeding, or otherwise available to the Secretary, 
including any evidence provided by the Commission, on the 
implementation costs or operational impacts for electricity produc-
tion of a proposed alternative. 
‘‘(4) The Secretary concerned shall submit into the public record 
of the Commission proceeding with any prescription under section 
18 or alternative prescription it accepts under this section, a written 
statement explaining the basis for such prescription, and reason 
for not accepting any alternative prescription under this section. 
The written statement must demonstrate that the Secretary gave 
equal consideration to the effects of the prescription adopted and 
alternatives not accepted on energy supply, distribution, cost, and 
use; flood control; navigation; water supply; and air quality (in 
addition to the preservation of other aspects of environmental 
quality); based on such information as may be available to the 
Secretary, including information voluntarily provided in a timely 
manner by the applicant and others. The Secretary shall also 
submit, together with the aforementioned written statement, all 
studies, data, and other factual information available to the Sec-
retary and relevant to the Secretary’s decision. 
‘‘(5) If the Commission finds that the Secretary’s final prescrip-
tion would be inconsistent with the purposes of this part, or other 
applicable law, the Commission may refer the dispute to the
H. R. 6—84
Commission’s Dispute Resolution Service. The Dispute Resolution 
Service shall consult with the Secretary and the Commission and 
issue a non-binding advisory within 90 days. The Secretary may 
accept the Dispute Resolution Service advisory unless the Secretary 
finds that the recommendation will not adequately protect the fish 
resources. The Secretary shall submit the advisory and the Sec-
retary’s final written determination into the record of the Commis-
sion’s proceeding.’’. 
SEC. 242. HYDROELECTRIC PRODUCTION INCENTIVES. 
(a) INCENTIVE PAYMENTS.—For electric energy generated and 
sold by a qualified hydroelectric facility during the incentive period, 
the Secretary shall make, subject to the availability of appropria-
tions, incentive payments to the owner or operator of such facility. 
The amount of such payment made to any such owner or operator 
shall be as determined under subsection (e) of this section. Pay-
ments under this section may only be made upon receipt by the 
Secretary of an incentive payment application which establishes 
that the applicant is eligible to receive such payment and which 
satisfies such other requirements as the Secretary deems necessary. 
Such application shall be in such form, and shall be submitted 
at such time, as the Secretary shall establish. 
(b) DEFINITIONS.—For purposes of this section: 
(1) QUALIFIED HYDROELECTRIC FACILITY.—The term ‘‘quali-
fied hydroelectric facility’’ means a turbine or other generating 
device owned or solely operated by a non-Federal entity which 
generates hydroelectric energy for sale and which is added 
to an existing dam or conduit. 
(2) EXISTING DAM OR CONDUIT.—The term ‘‘existing dam 
or conduit’’ means any dam or conduit the construction of 
which was completed before the date of the enactment of this 
section and which does not require any construction or enlarge-
ment of impoundment or diversion structures (other than repair 
or reconstruction) in connection with the installation of a tur-
bine or other generating device. 
(3) CONDUIT.—The term ‘‘conduit’’ has the same meaning 
as when used in section 30(a)(2) of the Federal Power Act 
(16 U.S.C. 823a(a)(2)). 
The terms defined in this subsection shall apply without regard 
to the hydroelectric kilowatt capacity of the facility concerned, with-
out regard to whether the facility uses a dam owned by a govern-
mental or nongovernmental entity, and without regard to whether 
the facility begins operation on or after the date of the enactment 
of this section. 
(c) ELIGIBILITY WINDOW.—Payments may be made under this 
section only for electric energy generated from a qualified hydro-
electric facility which begins operation during the period of 10 
fiscal years beginning with the first full fiscal year occurring after 
the date of enactment of this subtitle. 
(d) INCENTIVE PERIOD.—A qualified hydroelectric facility may 
receive payments under this section for a period of 10 fiscal years 
(referred to in this section as the ‘‘incentive period’’). Such period 
shall begin with the fiscal year in which electric energy generated 
from the facility is first eligible for such payments. 
(e) AMOUNT OF PAYMENT.— 
(1) IN GENERAL.—Payments made by the Secretary under 
this section to the owner or operator of a qualified hydroelectric
H. R. 6—85
facility shall be based on the number of kilowatt hours of 
hydroelectric energy generated by the facility during the incen-
tive period. For any such facility, the amount of such payment 
shall be 1.8 cents per kilowatt hour (adjusted as provided 
in paragraph (2)), subject to the availability of appropriations 
under subsection (g), except that no facility may receive more 
than $750,000 in 1 calendar year. 
(2) ADJUSTMENTS.—The amount of the payment made to 
any person under this section as provided in paragraph (1) 
shall be adjusted for inflation for each fiscal year beginning 
after calendar year 2005 in the same manner as provided 
in the provisions of section 29(d)(2)(B) of the Internal Revenue 
Code of 1986, except that in applying such provisions the cal-
endar year 2005 shall be substituted for calendar year 1979. 
(f) SUNSET.—No payment may be made under this section to 
any qualified hydroelectric facility after the expiration of the period 
of 20 fiscal years beginning with the first full fiscal year occurring 
after the date of enactment of this subtitle, and no payment may 
be made under this section to any such facility after a payment 
has been made with respect to such facility for a period of 10 
fiscal years. 
(g) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated to the Secretary to carry out the purposes 
of this section $10,000,000 for each of the fiscal years 2006 through 
2015. 
SEC. 243. HYDROELECTRIC EFFICIENCY IMPROVEMENT. 
(a) INCENTIVE PAYMENTS.—The Secretary shall make incentive 
payments to the owners or operators of hydroelectric facilities at 
existing dams to be used to make capital improvements in the 
facilities that are directly related to improving the efficiency of 
such facilities by at least 3 percent. 
(b) LIMITATIONS.—Incentive payments under this section shall 
not exceed 10 percent of the costs of the capital improvement 
concerned and not more than 1 payment may be made with respect 
to improvements at a single facility. No payment in excess of 
$750,000 may be made with respect to improvements at a single 
facility. 
(c) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated to carry out this section not more than 
$10,000,000 for each of the fiscal years 2006 through 2015. 
SEC. 244. ALASKA STATE JURISDICTION OVER SMALL HYDROELECTRIC 
PROJECTS. 
Section 32 of the Federal Power Act (16 U.S.C. 823c) is 
amended— 
(1) in subsection (a)(3)(C), by inserting ‘‘except as provided 
in subsection (j),’’ before ‘‘conditions’’; and 
(2) by adding at the end the following: 
‘‘(j) FISH AND WILDLIFE.—If the State of Alaska determines 
that a recommendation under subsection (a)(3)(C) is inconsistent 
with paragraphs (1) and (2) of subsection (a), the State of Alaska 
may decline to adopt all or part of the recommendations in accord-
ance with the procedures established under section 10(j)(2).’’. 
SEC. 245. FLINT CREEK HYDROELECTRIC PROJECT. 
(a) EXTENSION
OF TIME.—Notwithstanding the time period 
specified in section 5 of the Federal Power Act (16 U.S.C. 798)