I 
116TH CONGRESS 
2D SESSION 
H. R. 7410 
To modernize the hydropower licensing process and to promote next 
generation hydropower projects, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 29, 2020 
Mrs. RODGERS
of Washington (for herself, Mr. DUNCAN, and Mr. 
NEWHOUSE) introduced the following bill; which was referred to the Com-
mittee on Energy and Commerce, and in addition to the Committee on 
Oversight and Reform, for a period to be subsequently 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 the hydropower licensing process and to pro-
mote next generation hydropower projects, 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 Clean En-
ergy Future Act’’. 
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SEC. 2. CONFIRMING THAT HYDROPOWER IS AN ESSENTIAL 
RENEWABLE RESOURCE. 
(a) SENSE OF CONGRESS ON THE USE OF HYDRO-
POWER RENEWABLE RESOURCES.—It is the sense of Con-
gress that— 
(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 protect existing 
hydropower resources and increase substantially the 
capacity and generation of clean, renewable hydro-
power resources to address a changing climate and 
improve environmental quality in the United States. 
(b) MODIFYING DEFINITIONS OF RENEWABLE EN-
ERGY TO INCLUDE HYDROPOWER.— 
(1) ENERGY POLICY ACT OF 2005.—Section 203 
of the Energy Policy Act of 2005 (42 U.S.C. 15852) 
is amended— 
(A) in subsection (a), by amending para-
graphs (1) through (3) to read as follows: 
‘‘(1) Not less than 20 percent in fiscal years 
2021 through 2022. 
‘‘(2) Not less than 23 percent in fiscal years 
2023 through 2024. 
‘‘(3) Not less than 25 percent in fiscal year 
2025 and each fiscal year thereafter.’’; and 
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(B) in subsection (b), by striking para-
graph (2) and inserting the following: 
‘‘(2) RENEWABLE ENERGY.—The term ‘renew-
able energy’ means energy produced from solar, 
wind, biomass, landfill gas, ocean (including tidal, 
wave, current, and thermal), geothermal, municipal 
solid waste, or hydropower.’’. 
(2) OTHER FEDERAL REGULATIONS, ORDERS, 
AND POLICIES.—Not later than 180 days after the 
date of enactment of this Act, each Federal depart-
ment and agency shall submit to the Committee on 
Energy and Natural Resources of the Senate and 
the Committee on Energy and Commerce of the 
House of Representatives a report demonstrating 
that the department or agency has amended any ap-
plicable regulation, order, or other policy of the de-
partment or agency related to renewable energy to 
ensure treatment of hydropower by the Federal Gov-
ernment consistent with the amendments made by 
paragraph (1). 
(c) LICENSES FOR CONSTRUCTION.—Section 4(e) of 
the Federal Power Act (16 U.S.C. 797(e)) is amended, 
in the first sentence, by inserting ‘‘to mitigate the effects 
of the applicable project on such reservation, so as to pro-
vide’’ after ‘‘deem necessary’’ in the first proviso. 
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(d) OPERATION OF NAVIGATION FACILITIES.—Sec-
tion 18 of the Federal Power Act (16 U.S.C. 811) is 
amended by adding before the period at the end of the 
first sentence ‘‘to mitigate effects of the applicable 
project’’. 
SEC. 3. PROTECTING AND PROMOTING SMALL AND NEXT- 
GENERATION HYDROPOWER PROJECTS. 
(a) EXEMPTIONS FROM LICENSING REQUIREMENTS 
FOR
CERTAIN
SMALL
HYDROELECTRIC
POWER 
PROJECTS.—Section 405 of the Public Utility Regulatory 
Policies Act of 1978 (16 U.S.C. 2705) is amended by 
striking subsection (d) and inserting the following: 
‘‘(d) EXEMPTIONS FROM LICENSING
IN CERTAIN 
CASES.— 
‘‘(1) IN GENERAL.—Subject to paragraphs (2) 
and (3), the Commission may in its discretion (by 
rule or order), upon application and on a case-by- 
case basis or on the basis of classes or categories of 
projects, grant an exemption in whole or in part 
from the requirements (including the licensing re-
quirements) of part I of the Federal Power Act to 
any small hydroelectric power project— 
‘‘(A) having a proposed installed capacity 
of 10,000 kilowatts or less; or 
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‘‘(B) for which a license was issued under 
part I of the Federal Power Act and the li-
censee applies for an exemption under this sub-
section, if— 
‘‘(i) the license was issued after the 
date of enactment of the Electric Con-
sumers Protection Act of 1986; 
‘‘(ii) 
the 
Commission 
determines, 
based on information available to the Com-
mission, that continued operation of the 
project is not likely to jeopardize the con-
tinued existence of any species listed as a 
threatened species or an endangered spe-
cies under the Endangered Species Act of 
1973; 
‘‘(iii) the Commission determines, 
based on information available to the Com-
mission, that continued operation of the 
project is not likely to result in the de-
struction or adverse modification of an 
area designated as critical habitat for any 
species listed as a threatened species or an 
endangered species under the Endangered 
Species Act of 1973; and 
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‘‘(iv) the project has an installed ca-
pacity of 15 megawatts or less. 
‘‘(2) REQUIREMENTS.—An exemption granted 
under paragraph (1) shall be subject to the same 
limitations (to ensure protection for fish and wildlife 
as well as other environmental concerns) as those 
which are set forth in subsections (c) and (d) of sec-
tion 30 of the Federal Power Act with respect to de-
terminations made and exemptions granted under 
subsection (b) of such section 30 and subsections (c) 
and (d) of such section 30 shall apply with respect 
to actions taken and exemptions granted under this 
subsection. 
‘‘(3) EFFECTS.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), the granting of an exemp-
tion to a project under this subsection shall in 
no case have the effect of waiving or limiting 
the application (to such project) of the second 
sentence of subsection (b) of this section. 
‘‘(B) ENVIRONMENTAL
REVIEW.—An ex-
emption granted under paragraph (1)(B) shall 
be categorically exempt from review under the 
National Environmental Policy Act of 1969. 
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‘‘(4) EXEMPTION PROCESS.—The Commission 
shall make a determination with respect to any ap-
plication for an exemption under paragraph (1)(B) 
not later than 90 days after submission of such ap-
plication, which period shall include notice and op-
portunity for public comment. Any exemption grant-
ed under paragraph (1)(B) shall become effective 
upon the expiration of the applicable existing li-
cense.’’. 
(b) EXPEDITED LICENSING OF NEXT-GENERATION 
HYDROPOWER.—Part I of the Federal Power Act (16 
U.S.C. 792 et seq.) is amended by adding at the end the 
following: 
‘‘SEC. 37. EXPEDITED LICENSING OF NEXT-GENERATION 
HYDROPOWER PROJECTS. 
‘‘(a) IN GENERAL.—The Commission shall issue li-
censes for all next-generation hydropower projects in ac-
cordance with this section. 
‘‘(b) DEFINITIONS.—In this section: 
‘‘(1) EMERGING
HYDROPOWER
TECHNOLOGY 
PROJECT.—The term ‘emerging hydropower tech-
nology project’ means a project that the Commission 
determines— 
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‘‘(A) will produce electricity from a gener-
ator driven by a turbine that converts the po-
tential energy of falling or flowing water; 
‘‘(B) will utilize turbine or generating tech-
nology, an energy storage method, or a measure 
to protect, mitigate, or enhance environmental 
resources, that is not in widespread, utility- 
scale use in the United States as of the date of 
enactment of this section; 
‘‘(C) will not be, based on information 
available to the Commission, likely to jeopardize 
the continued existence of any species listed as 
a threatened species or an endangered species 
under the Endangered Species Act of 1973; and 
‘‘(D) will not be, based on information 
available to the Commission, likely to result in 
the destruction or adverse modification of an 
area designated as critical habitat for any spe-
cies listed as a threatened species or an endan-
gered species under the Endangered Species 
Act of 1973. 
‘‘(2) 
NEXT-GENERATION
HYDROPOWER 
PROJECT.—The term ‘next-generation hydropower 
project’ means a project that— 
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‘‘(A) is required to be licensed under this 
Act; 
‘‘(B) is not— 
‘‘(i) a qualifying conduit hydropower 
facility under section 30; or 
‘‘(ii) exempted from licensing under— 
‘‘(I) section 30; or 
‘‘(II) section 405 of the Public 
Utility Regulatory Policies Act of 
1978; and 
‘‘(C) is— 
‘‘(i) an emerging hydropower tech-
nology project; 
‘‘(ii) a qualifying facility, as defined in 
section 34; 
‘‘(iii) a closed-loop pumped storage 
project under section 35; 
‘‘(iv) a marine or hydrokinetic project, 
including a project that utilizes a wave 
technology, tidal technology, or in-river 
technology; or 
‘‘(v) a hydropower facility within an 
irrigation, water supply, industrial, agricul-
tural, or other open or closed water con-
duit system. 
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‘‘(c) EXPEDITED LICENSING PROCESS.— 
‘‘(1) NOTIFICATION OF INTENT.— 
‘‘(A) FILING OF NOTIFICATION.—An appli-
cant for any next-generation hydropower project 
shall commence the licensing process by filing a 
notification of intent with the Commission. 
‘‘(B) DEADLINE
FOR
FILING.—Notwith-
standing section 15(b)(1), an applicant for a 
next-generation hydropower project shall file a 
notification of intent at least 3 years before the 
expiration of the existing license, if applicable. 
‘‘(2) FILING OF APPLICATION.— 
‘‘(A) GENERAL DEADLINE.—An applicant 
for a next-generation hydropower project shall 
submit to the Commission an application not 
later than 2 years after filing the notification of 
intent under paragraph (1). 
‘‘(B) EXISTING
LICENCEE
DEADLINE.— 
Notwithstanding section 15(c)(1), an applica-
tion for any next-generation hydropower project 
shall be filed with the Commission at least 12 
months before the expiration of the term of the 
existing license, if applicable. 
‘‘(3) DEADLINE FOR ISSUANCE.—The Commis-
sion shall take final action on a license for a next- 
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generation hydropower project under this section not 
later than 3 years after the applicant notifies the 
Commission of its intent to file an application for a 
license, as provided under paragraph (1). 
‘‘(d) REQUIREMENTS.—In issuing a license under 
this section the Commission and all resource agencies with 
regulatory responsibilities in the licensing process shall— 
‘‘(1) maximize reliance on existing studies and 
information and require any person or agency re-
questing a new study or information to demonstrate 
that collection of any new data or preparation of any 
new study will not jeopardize the Commission’s abil-
ity to meet the licensing deadline under subsection 
(c)(3); 
‘‘(2) consider whether obligations under the Na-
tional Environmental Protection Act of 1969 may be 
met through preparation of an environmental assess-
ment or supplementing a previously prepared envi-
ronmental assessment or environmental impact 
statement; 
‘‘(3) eliminate any nonessential meetings, re-
ports, and paperwork, including interim study re-
ports and a draft license application or similar docu-
ment, without compromising effective consultation 
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with, and participation of, Federal and State re-
source agencies, Indian tribe, and the public; and 
‘‘(4) consider existing project works and other 
infrastructure to be included in the environmental 
baseline. 
‘‘(e) RULE.—Not later than 90 days after the date 
of enactment of this section, and after consultation with 
the task force described in subsection (f), which 90 days 
shall include public notice and opportunity for comment, 
the Commission shall issue a rule implementing this sec-
tion. Such rule shall include a process, not to exceed 60 
days, for the Commission to determine on a case-by-case 
basis whether a proposed or existing project qualifies as 
a next-generation hydropower project prior to the initi-
ation of the licensing or relicensing process. 
‘‘(f) TASK FORCE.—The Commission shall convene a 
task force, with appropriate Federal and State agencies, 
Indian tribes, and licensees under this part represented, 
to coordinate the regulatory processes associated with the 
authorizations required to license next-generation hydro-
power projects pursuant to this section. 
‘‘(g) CHOICE
OF PROCESS.—An applicant for a 
licence for a project described in clause (ii) or (iii) of sub-
section (b)(2)(C) may elect to apply under this section or 
under section 34 or 35, as applicable.’’. 
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SEC. 4. IDENTIFYING AND REMOVING MARKET BARRIERS 
TO HYDROPOWER. 
(a) REPORT ON HYDROPOWER BARRIERS.— 
(1) IN
GENERAL.—Not later than 270 days 
after the date of enactment of this Act, the Federal 
Energy Regulatory Commission, in consultation with 
the Secretary of Energy, shall submit to the Com-
mittee on Energy and Natural Resources of the Sen-
ate and the Committee on Energy and Commerce of 
the House of Representatives a report— 
(A) describing any barriers to the develop-
ment and proper compensation of conventional, 
storage, conduit, and emerging hydropower 
technologies caused by— 
(i) rules of Transmission Organiza-
tions (as defined in section 3 of the Fed-
eral Power Act (16 U.S.C. 796)); 
(ii) regulations or policies— 
(I) of the Commission; or 
(II) under the Federal Power Act 
(16 U.S.C. 791a et seq.); or 
(iii) other Federal and State laws and 
policies unique to hydropower development, 
operation, and regulation, as compared to 
other sources of electricity; 
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(B) containing recommendations of the 
Commission for reducing barriers described in 
subparagraph (A) across regulatory and market 
sectors; 
(C) identifying and determining any regu-
latory, market, procurement, or cost recovery 
mechanisms that would— 
(i) encourage development of conven-
tional, storage, conduit, and emerging hy-
dropower technologies; and 
(ii) properly compensate conventional, 
storage, conduit, and emerging hydropower 
technologies for the full range of services 
provided to the electric grid, including— 
(I) balancing electricity supply 
and demand; 
(II) ensuring grid reliability; 
(III) providing ancillary services; 
(IV) contributing to the decar-
bonization of the electric grid; and 
(V) 
integrating 
intermittent 
power sources into the grid in a cost- 
effective manner; and 
(D) identifying ownership and development 
models that could reduce barriers to the 
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development of conventional, storage, conduit, 
and emerging hydropower technologies, includ-
ing— 
(i) 
opportunities 
for 
risk-sharing 
mechanisms and partnerships, including 
co-ownership models; and 
(ii) opportunities to foster lease-sale 
and lease-back arrangements with publicly 
owned electric utilities. 
(2) COMMISSION PROCEEDINGS.—The Commis-
sion shall base the report under paragraph (1) on 
the findings of the Commission in— 
(A) Docket No. AD16–20; 
(B) Docket No. RM16–23; and 
(C) any other relevant proceedings. 
(3) TECHNICAL
CONFERENCE
AND
PUBLIC 
COMMENT.—In preparing the report under para-
graph (1), the Commission shall solicit public input, 
including by convening a technical conference and 
providing an opportunity for public submission of 
written comments on a draft report. 
(b) DEFINITIONS.—In this section: 
(1) ANCILLARY
SERVICES.—The term ‘‘ancil-
lary services’’ means the specialty services and func-
tions provided by the electric grid that facilitate and 
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support the continuous flow of electricity so that 
supply will continually meet demand, including— 
(A) autonomous dynamic voltage support; 
(B) balancing; 
(C) black start capabilities; 
(D) frequency control; 
(E) load following; 
(F) operating, flexibility, contingency, and 
other reserves; 
(G) reactive power; and 
(H) synchronized regulation. 
(2) CONVENTIONAL, STORAGE, CONDUIT, AND 
EMERGING
HYDROPOWER
TECHNOLOGIES.—The 
term ‘‘conventional, storage, conduit, and emerging 
hydropower technologies’’ means hydropower in all 
its forms and modes of operation, including— 
(A) the use of dams or similar infrastruc-
ture to store water in a reservoir or divert flows 
from a waterway, and to release stored or di-
verted water through a turbine to generate elec-
tricity according to any mode of operation, such 
as run-of-river, peaking, reregulating, storage, 
or load following; 
(B) a configuration of two water reservoirs 
at different elevations that can generate power 
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as water moves down through a turbine, and 
pump water back to the upper reservoir when 
the turbine operations are reversed, including 
both closed- and open-loop systems; 
(C) marine and hydrokinetic technologies, 
including wave, tidal, and in-river systems; 
(D) mini- and micro-hydropower facilities 
within irrigation, water supply, industrial, agri-
cultural, or other open or closed water conduit 
systems; and 
(E) other facilities that produce electricity 
from generators driven by turbines that convert 
the potential energy of falling or flowing water. 
SEC. 5. MODERNIZING HYDROPOWER LICENSING. 
Part I of the Federal Power Act (16 U.S.C. 792 et 
seq.) is further amended by adding at the end the fol-
lowing: 
‘‘SEC. 38. LICENSING PROCESS COORDINATION AND IM-
PROVEMENT. 
‘‘(a) DEFINITION OF FEDERAL AUTHORIZATION.—In 
this section, the term ‘Federal authorization’ means any 
authorization required under Federal law (including any 
license, condition of any license by a Secretary under sec-
tion 4(e), prescription submitted by a Secretary under sec-
tion 18, permit, special use authorization, certification, 
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opinion, consultation, determination, or other approval) 
with respect to an application for a license under this part. 
‘‘(b) DESIGNATION AS LEAD AGENCY.— 
‘‘(1) IN GENERAL.—The Commission shall act 
at the lead agency for purposes of all applicable 
Federal authorizations (including for purposes of 
complying with the National Environmental Policy 
Act of 1969), and for purposes of complying with 
any required State or local environmental reviews. 
‘‘(2) OTHER AGENCIES.—Each Federal, State, 
and local government agency considering an aspect 
of an application for a Federal authorization shall 
coordinate with the Commission and comply with the 
deadline established in the schedule developed for 
the license under this part, in accordance with the 
rule issued under subsection (d)(2)(C). 
‘‘(c) USE OF EXISTING STUDIES.— 
‘‘(1) IN
GENERAL.—To the maximum extent 
practicable and in accordance with the best available 
science, the Commission and other Federal and 
State agencies with a responsibility for a Federal au-
thorization shall— 
‘‘(A) use relevant existing studies and 
data; and 
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‘‘(B) avoid duplicating current, existing 
studies that are applicable to the relevant 
project. 
‘‘(2) DEMONSTRATION.—When requiring any 
new study or collection of information, the Commis-
sion or other Federal or State agency with a respon-
sibility for a Federal authorization shall— 
‘‘(A) explain how the new study or other 
information is necessary to support the agency’s 
decision making with respect to the Federal au-
thorization; 
‘‘(B) identify how existing information rea-
sonably available to the agency is inadequate to 
support the agency’s decision making with sub-
stantial evidence; and 
‘‘(C) include an analysis of how the value 
of the required new study or other information 
outweighs the cost of producing it. 
‘‘(d) SCHEDULE.— 
‘‘(1) TIMING FOR ISSUANCE.—It is the sense of 
Congress that, except as otherwise provided in this 
part, all Federal authorizations required for a 
project should be issued within a reasonable time, so 
as to facilitate a final Commission licensing decision 
within 2 years after the date on which the license 
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application for the project under this part is consid-
ered to be complete by the Commission. 
‘‘(2) COMMISSION SCHEDULE.— 
‘‘(A) IN GENERAL.—The Commission, in 
accordance with the rule issued under subpara-
graph (C), shall— 
‘‘(i) establish a schedule for— 
‘‘(I) all filings and issuances nec-
essary and appropriate for its issu-
ance of a license issued under this 
part; and 
‘‘(II) the issuance of all Federal 
authorizations 
for 
the 
applicable 
project; and 
‘‘(ii) issue such schedule when the 
Commission determines that the license ap-
plication for the project is ready for envi-
ronmental analysis. 
‘‘(B) REQUIREMENTS.—In establishing the 
schedule under subparagraph (A), the Commis-
sion shall— 
‘‘(i) consult and cooperate with the 
Federal and State agencies responsible for 
a Federal authorization; 
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‘‘(ii) ensure the expeditious comple-
tion of all proceedings relating to a Fed-
eral authorization; and 
‘‘(iii) comply with applicable schedules 
established by Federal law with respect to 
a Federal authorization. 
‘‘(C) RULEMAKING.— 
‘‘(i) COMMISSION RULEMAKING TO ES-
TABLISH
PROCESS
TO
SET
SCHEDULE.— 
Not later than 180 days after the date of 
enactment of this section, the Commission, 
in consultation with appropriate Federal 
and State agencies and after providing no-
tice and opportunity for public comment, 
shall issue a final rule establishing a proc-
ess for setting a schedule under subpara-
graph (A). 
‘‘(ii) CONSIDERATIONS.—In issuing a 
rule under this subparagraph, the Commis-
sion shall ensure that the schedule for each 
Federal authorization— 
‘‘(I) includes deadlines for ac-
tions by— 
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‘‘(aa) any Federal or State 
agency with responsibilities for a 
Federal authorization; 
‘‘(bb) the applicant; 
‘‘(cc) the Commission; and 
‘‘(dd) other agencies and 
participants in a proceeding; 
‘‘(II) is developed in consultation 
with the applicant and any Federal or 
State agency with responsibility for 
the applicable Federal authorization; 
‘‘(III) provides an opportunity 
for any Federal or State agency with 
responsibility for a Federal authoriza-
tion to identify and resolve issues of 
concern, consistent with subsections 
(e) and (f); 
‘‘(IV) complies with applicable 
schedules established under Federal 
law; 
‘‘(V) ensures expeditious comple-
tion of all proceedings required under 
Federal and State law, to the max-
imum extent practicable; and 
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‘‘(VI) facilitates completion of 
Federal and State agency studies, re-
views, and any other procedures re-
quired prior to, or concurrent with, 
the preparation of the environmental 
document of the Commission required 
under the National Environmental 
Policy Act of 1969, to the maximum 
extent practicable. 
‘‘(3) ADHERENCE TO SCHEDULE.— 
‘‘(A) 
IN
GENERAL.—The 
Commission, 
Federal, and State agencies with responsibility 
for a Federal authorization, the license appli-
cant, and all other agencies and other partici-
pants in proceedings for Federal authorizations 
for the project shall meet the deadlines estab-
lished by the schedule developed under para-
graph (2). 
‘‘(B) EXTENSION
OF
SCHEDULE
DEAD-
LINES.— 
‘‘(i) FEDERAL
AUTHORIZATIONS.—A 
Federal or State agency that is unable to 
complete its disposition of a Federal au-
thorization by the deadline set forth in the 
schedule established by the Commission 
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H7410
kjohnson on DSK79L0C42PROD with BILLS