I 
118TH CONGRESS 
1ST SESSION H. R. 4045 
To modernize the hydropower licensing process and to promote next- 
generation hydropower projects, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 12, 2023 
Mrs. RODGERS of Washington introduced the following bill; which was referred 
to the Committee on Energy and Commerce, and in addition to the Com-
mittee on Oversight and Accountability, for a period to be subsequently 
determined by the Speaker, in each case for consideration of such provi-
sions 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’’. 
VerDate Sep 11 2014 
23:49 Jul 12, 2023
Jkt 039200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H4045.IH
H4045
pbinns on DSKJLVW7X2PROD with $$_JOB
SEC. 2. CONFIRMING THAT HYDROPOWER IS AN ESSENTIAL 
RENEWABLE RESOURCE. 
(a) SENSE OF CONGRESS ON THE USE OF HYDRO-
POWER RENEWABLE RESOURCES.—It is the sense of Con-
gress that— 
(1) hydropower is a renewable resource for pur-
poses of all Federal programs and is an essential 
source of energy in the United States; and 
(2) the United States should protect existing 
hydropower resources and increase substantially the 
capacity and generation of clean, renewable hydro-
power resources to address a changing climate and 
improve environmental quality in the United States. 
(b) MODIFYING DEFINITIONS OF RENEWABLE EN-
ERGY TO INCLUDE HYDROPOWER.— 
(1) ENERGY POLICY ACT OF 2005.—Section 203 
of the Energy Policy Act of 2005 (42 U.S.C. 15852) 
is amended— 
(A) in subsection (a), by amending para-
graphs (1) through (3) to read as follows: 
‘‘(1) Not less than 20 percent in fiscal years 
2024 through 2025. 
‘‘(2) Not less than 23 percent in fiscal years 
2026 through 2027. 
‘‘(3) Not less than 25 percent in fiscal year 
2028 and each fiscal year thereafter.’’; and 
VerDate Sep 11 2014 
23:49 Jul 12, 2023
Jkt 039200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H4045.IH
H4045
pbinns on DSKJLVW7X2PROD with $$_JOB
(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. 
VerDate Sep 11 2014 
23:49 Jul 12, 2023
Jkt 039200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H4045.IH
H4045
pbinns on DSKJLVW7X2PROD with $$_JOB
(d) OPERATION OF NAVIGATION FACILITIES.—Sec-
tion 18 of the Federal Power Act (16 U.S.C. 811) is 
amended by adding before the period at the end of the 
first sentence ‘‘to mitigate effects of the applicable 
project’’. 
SEC. 3. PROTECTING AND PROMOTING SMALL AND NEXT- 
GENERATION HYDROPOWER PROJECTS. 
(a) EXEMPTIONS FROM LICENSING REQUIREMENTS 
FOR
CERTAIN
SMALL
HYDROELECTRIC
POWER 
PROJECTS.—Section 405 of the Public Utility Regulatory 
Policies Act of 1978 (16 U.S.C. 2705) is amended by 
striking subsection (d) and inserting the following: 
‘‘(d) EXEMPTIONS FROM LICENSING
IN CERTAIN 
CASES.— 
‘‘(1) IN GENERAL.—Subject to paragraphs (2) 
and (3), the Commission may in its discretion (by 
rule or order), upon application and on a case-by- 
case basis or on the basis of classes or categories of 
projects, grant an exemption in whole or in part 
from the requirements (including the licensing re-
quirements) of part I of the Federal Power Act to 
any small hydroelectric power project— 
‘‘(A) having a proposed installed capacity 
of 40 megawatts or less; or 
VerDate Sep 11 2014 
23:49 Jul 12, 2023
Jkt 039200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H4045.IH
H4045
pbinns on DSKJLVW7X2PROD with $$_JOB
‘‘(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 
VerDate Sep 11 2014 
23:49 Jul 12, 2023
Jkt 039200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H4045.IH
H4045
pbinns on DSKJLVW7X2PROD with $$_JOB
‘‘(iv) the project has an installed ca-
pacity of 40 megawatts or less. 
‘‘(2) REQUIREMENTS.—An exemption granted 
under paragraph (1) shall be subject to the same 
limitations (to ensure protection for fish and wildlife 
as well as other environmental concerns) as those 
which are set forth in subsections (c) and (d) of sec-
tion 30 of the Federal Power Act with respect to de-
terminations made and exemptions granted under 
subsection (b) of such section 30 and subsections (c) 
and (d) of such section 30 shall apply with respect 
to actions taken and exemptions granted under this 
subsection. 
‘‘(3) EFFECTS.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), the granting of an exemp-
tion to a project under this subsection shall in 
no case have the effect of waiving or limiting 
the application (to such project) of the second 
sentence of subsection (b) of this section. 
‘‘(B) 
ENVIRONMENTAL
REVIEW.—The 
Commission granting an exemption under para-
graph (1) may not be considered a major Fed-
eral action under section 102(2)(C) of the Na-
tional Environmental Policy Act of 1969. 
VerDate Sep 11 2014 
23:49 Jul 12, 2023
Jkt 039200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H4045.IH
H4045
pbinns on DSKJLVW7X2PROD with $$_JOB
‘‘(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— 
VerDate Sep 11 2014 
23:49 Jul 12, 2023
Jkt 039200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H4045.IH
H4045
pbinns on DSKJLVW7X2PROD with $$_JOB
‘‘(A) will produce electricity from a gener-
ator driven by a turbine that converts the po-
tential energy of falling or flowing water; 
‘‘(B) will utilize turbine or generating tech-
nology, an energy storage method, or a measure 
to protect, mitigate, or enhance environmental 
resources, that is not in widespread, utility- 
scale use in the United States as of the date of 
enactment of this section; 
‘‘(C) will not be, based on information 
available to the Commission, likely to jeopardize 
the continued existence of any species listed as 
a threatened species or an endangered species 
under the Endangered Species Act of 1973; and 
‘‘(D) will not be, based on information 
available to the Commission, likely to result in 
the destruction or adverse modification of an 
area designated as critical habitat for any spe-
cies listed as a threatened species or an endan-
gered species under the Endangered Species 
Act of 1973. 
‘‘(2) 
NEXT-GENERATION
HYDROPOWER 
PROJECT.—The term ‘next-generation hydropower 
project’ means a project that— 
‘‘(A) may be licensed under this Act; 
VerDate Sep 11 2014 
23:49 Jul 12, 2023
Jkt 039200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H4045.IH
H4045
pbinns on DSKJLVW7X2PROD with $$_JOB
‘‘(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 qualifying closed-loop pumped 
storage project, as defined in 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. 
‘‘(c) EXPEDITED LICENSING PROCESS.— 
‘‘(1) NOTIFICATION OF INTENT.— 
VerDate Sep 11 2014 
23:49 Jul 12, 2023
Jkt 039200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H4045.IH
H4045
pbinns on DSKJLVW7X2PROD with $$_JOB
Commission of its intent to file an application for a 
license, as provided under paragraph (1). 
‘‘(d) REQUIREMENTS.—In issuing a license under 
this section the Commission and all resource agencies with 
regulatory responsibilities in the licensing process shall— 
‘‘(1) maximize reliance on existing studies and 
information and require any person or agency re-
questing a new study or information to demonstrate 
that collection of any new data or preparation of any 
new study will not jeopardize the Commission’s abil-
ity to meet the licensing deadline under subsection 
(c)(3); 
‘‘(2) consider whether obligations under the Na-
tional Environmental Protection Act of 1969 may be 
met through preparation of an environmental assess-
ment or supplementing a previously prepared envi-
ronmental assessment or environmental impact 
statement; 
‘‘(3) eliminate any nonessential meetings, re-
ports, and paperwork, including interim study re-
ports and a draft license application or similar docu-
ment, without compromising effective consultation 
with, and participation of, Federal and State re-
source agencies, Indian tribe, and the public; and 
VerDate Sep 11 2014 
23:49 Jul 12, 2023
Jkt 039200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6201
E:\BILLS\H4045.IH
H4045
pbinns on DSKJLVW7X2PROD with $$_JOB
‘‘(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.’’. 
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 
VerDate Sep 11 2014 
23:49 Jul 12, 2023
Jkt 039200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6201
E:\BILLS\H4045.IH
H4045
pbinns on DSKJLVW7X2PROD with $$_JOB
the Secretary of Energy, shall submit to the Com-
mittee on Energy and Natural Resources of the Sen-
ate and the Committee on Energy and Commerce of 
the House of Representatives a report— 
(A) describing any barriers to the develop-
ment and proper compensation of conventional, 
storage, conduit, and emerging hydropower 
technologies caused by— 
(i) rules of Transmission Organiza-
tions (as defined in section 3 of the Fed-
eral Power Act (16 U.S.C. 796)); 
(ii) regulations or policies— 
(I) of the Commission; or 
(II) under the Federal Power Act 
(16 U.S.C. 791a et seq.); or 
(iii) other Federal and State laws and 
policies unique to hydropower development, 
operation, and regulation, as compared to 
other sources of electricity; 
(B) containing recommendations of the 
Commission for reducing barriers described in 
subparagraph (A) across regulatory and market 
sectors; 
VerDate Sep 11 2014 
23:49 Jul 12, 2023
Jkt 039200
PO 00000
Frm 00013
Fmt 6652
Sfmt 6201
E:\BILLS\H4045.IH
H4045
pbinns on DSKJLVW7X2PROD with $$_JOB
(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 
decarbonization 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 devel-
opment of conventional, storage, conduit, and 
emerging hydropower technologies, including— 
VerDate Sep 11 2014 
23:49 Jul 12, 2023
Jkt 039200
PO 00000
Frm 00014
Fmt 6652
Sfmt 6201
E:\BILLS\H4045.IH
H4045
pbinns on DSKJLVW7X2PROD with $$_JOB
(i) 
opportunities 
for 
risk-sharing 
mechanisms and partnerships, including 
co-ownership models; and 
(ii) opportunities to foster lease-sale 
and lease-back arrangements with publicly 
owned electric utilities. 
(2) COMMISSION PROCEEDINGS.—The Commis-
sion shall base the report under paragraph (1) on 
the findings of the Commission in— 
(A) Docket No. AD16–20; 
(B) Docket No. RM16–23; and 
(C) any other relevant proceedings. 
(3) TECHNICAL
CONFERENCE
AND
PUBLIC 
COMMENT.—In preparing the report under para-
graph (1), the Commission shall solicit public input, 
including by convening a technical conference and 
providing an opportunity for public submission of 
written comments on a draft report. 
(b) DEFINITIONS.—In this section: 
(1) ANCILLARY
SERVICES.—The term ‘‘ancil-
lary services’’ means the specialty services and func-
tions provided by the electric grid that facilitate and 
support the continuous flow of electricity so that 
supply will continually meet demand, including— 
(A) autonomous dynamic voltage support; 
VerDate Sep 11 2014 
23:49 Jul 12, 2023
Jkt 039200
PO 00000
Frm 00015
Fmt 6652
Sfmt 6201
E:\BILLS\H4045.IH
H4045
pbinns on DSKJLVW7X2PROD with $$_JOB
(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 
as water moves down through a turbine, and 
pump water back to the upper reservoir when 
VerDate Sep 11 2014 
23:49 Jul 12, 2023
Jkt 039200
PO 00000
Frm 00016
Fmt 6652
Sfmt 6201
E:\BILLS\H4045.IH
H4045
pbinns on DSKJLVW7X2PROD with $$_JOB
the turbine operations are reversed, including 
both closed- and open-loop systems; 
(C) marine and hydrokinetic technologies, 
including wave, tidal, and in-river systems; 
(D) mini- and micro-hydropower facilities 
within irrigation, water supply, industrial, agri-
cultural, or other open or closed water conduit 
systems; and 
(E) other facilities that produce electricity 
from generators driven by turbines that convert 
the potential energy of falling or flowing water. 
SEC. 5. MODERNIZING HYDROPOWER LICENSING. 
Part I of the Federal Power Act (16 U.S.C. 792 et 
seq.) is further amended by adding at the end the fol-
lowing: 
‘‘SEC. 38. LICENSING PROCESS COORDINATION AND IM-
PROVEMENT. 
‘‘(a) DEFINITION OF FEDERAL AUTHORIZATION.—In 
this section, the term ‘Federal authorization’ means any 
authorization required under Federal law (including any 
license, condition of any license by a Secretary under sec-
tion 4(e), prescription submitted by a Secretary under sec-
tion 18, permit, special use authorization, certification, 
opinion, consultation, determination, or other approval) 
with respect to an application for a license under this part. 
VerDate Sep 11 2014 
23:49 Jul 12, 2023
Jkt 039200
PO 00000
Frm 00017
Fmt 6652
Sfmt 6201
E:\BILLS\H4045.IH
H4045
pbinns on DSKJLVW7X2PROD with $$_JOB
‘‘(b) DESIGNATION AS LEAD AGENCY.— 
‘‘(1) IN GENERAL.—The Commission shall act 
as 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 
‘‘(B) avoid duplicating current, existing 
studies that are applicable to the relevant 
project. 
VerDate Sep 11 2014 
23:49 Jul 12, 2023
Jkt 039200
PO 00000
Frm 00018
Fmt 6652
Sfmt 6201
E:\BILLS\H4045.IH
H4045
pbinns on DSKJLVW7X2PROD with $$_JOB
‘‘(2) DEMONSTRATION.—When requiring any 
new study or collection of information, the Commis-
sion or other Federal or State agency with a respon-
sibility for a Federal authorization shall— 
‘‘(A) explain how the new study or other 
information is necessary to support the agency’s 
decisionmaking with respect to the Federal au-
thorization; 
‘‘(B) identify how existing information rea-
sonably available to the agency is inadequate to 
support the agency’s decisionmaking with sub-
stantial evidence; and 
‘‘(C) include an analysis of how the value 
of the required new study or other information 
outweighs the cost of producing it. 
‘‘(d) SCHEDULE.— 
‘‘(1) TIMING FOR ISSUANCE.—It is the sense of 
Congress that, except as otherwise provided in this 
part, all Federal authorizations required for a 
project should be issued within a reasonable time, so 
as to facilitate a final Commission licensing decision 
within 2 years after the date on which the license 
application for the project under this part is consid-
ered to be complete by the Commission. 
‘‘(2) COMMISSION SCHEDULE.— 
VerDate Sep 11 2014 
01:30 Jul 13, 2023
Jkt 039200
PO 00000
Frm 00019
Fmt 6652
Sfmt 6201
E:\BILLS\H4045.IH
H4045
pbinns on DSKJLVW7X2PROD with $$_JOB
‘‘(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 
issuance 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; 
‘‘(ii) ensure the expeditious comple-
tion of all proceedings relating to a Fed-
eral authorization; and 
VerDate Sep 11 2014 
23:49 Jul 12, 2023
Jkt 039200
PO 00000
Frm 00020
Fmt 6652
Sfmt 6201
E:\BILLS\H4045.IH
H4045
pbinns on DSKJLVW7X2PROD with $$_JOB
‘‘(iii) comply with applicable schedules 
established by Federal law with respect to 
a Federal authorization. 
‘‘(C) RULEMAKING.— 
‘‘(i) COMMISSION RULEMAKING TO ES-
TABLISH
PROCESS
TO
SET
SCHEDULE.— 
Not later than 180 days after the date of 
enactment of this section, the Commission, 
in consultation with appropriate Federal 
and State agencies and after providing no-
tice and opportunity for public comment, 
shall issue a final rule establishing a proc-
ess for setting a schedule under subpara-
graph (A). 
‘‘(ii) CONSIDERATIONS.—In issuing a 
rule under this subparagraph, the Commis-
sion shall ensure that the schedule for each 
Federal authorization— 
‘‘(I) includes deadlines for ac-
tions by— 
‘‘(aa) any Federal or State 
agency with responsibilities for a 
Federal authorization; 
‘‘(bb) the applicant; 
‘‘(cc) the Commission; and 
VerDate Sep 11 2014 
23:49 Jul 12, 2023
Jkt 039200
PO 00000
Frm 00021
Fmt 6652
Sfmt 6201
E:\BILLS\H4045.IH
H4045
pbinns on DSKJLVW7X2PROD with $$_JOB
‘‘(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 
‘‘(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 
VerDate Sep 11 2014 
23:49 Jul 12, 2023
Jkt 039200
PO 00000
Frm 00022
Fmt 6652
Sfmt 6201
E:\BILLS\H4045.IH
H4045
pbinns on DSKJLVW7X2PROD with $$_JOB
under the National Environmental 
Policy Act of 1969, to the maximum 
extent practicable. 
‘‘(3) ADHERENCE TO SCHEDULE.— 
‘‘(A) 
IN
GENERAL.—The 
Commission, 
Federal, and State agencies with responsibility 
for a Federal authorization, the license appli-
cant, and all other agencies and other partici-
pants in proceedings for Federal authorizations 
for the project shall meet the deadlines estab-
lished by the schedule developed under para-
graph (2). 
‘‘(B) EXTENSION
OF
SCHEDULE
DEAD-
LINES.— 
‘‘(i) FEDERAL
AUTHORIZATIONS.—A 
Federal or State agency that is unable to 
complete its disposition of a Federal au-
thorization by the deadline set forth in the 
schedule established by the Commission 
under paragraph (2) shall, not later than 
30 days prior to such deadline, file for an 
extension with the Commission. The Com-
mission shall issue a one-time extension of 
up to 90 days to any such Federal or State 
VerDate Sep 11 2014 
23:49 Jul 12, 2023
Jkt 039200
PO 00000
Frm 00023
Fmt 6652
Sfmt 6201
E:\BILLS\H4045.IH
H4045
pbinns on DSKJLVW7X2PROD with $$_JOB
agency upon a demonstration of good 
cause. 
‘‘(ii) OTHER EXTENSIONS.—The Com-
mission may grant extensions requested by 
the license applicant or other licensing par-
ticipants to facilitate settlement, address 
unforeseen circumstances, or accommodate 
other showings of good cause if the Com-
mission determines that any such extension 
would reduce the overall time period for 
decisionmaking on required Federal au-
thorizations for the project, increase the 
administrative efficiency of the processes 
for Federal authorizations, or improve the 
quality of information available to Federal 
and State agencies with a responsibility for 
a Federal authorization. 
‘‘(iii) REISSUANCE OF SCHEDULE.—If 
the Commission grants an extension under 
this paragraph, the Commission shall re-
issue the schedule and applicable deadlines 
to reflect the extension of time granted. 
‘‘(C) LIMITATION.—Notwithstanding the 
Commission’s authority to extend the schedule 
as provided in subparagraph (B), the Commis-
VerDate Sep 11 2014 
01:30 Jul 13, 2023
Jkt 039200
PO 00000
Frm 00024
Fmt 6652
Sfmt 6201
E:\BILLS\H4045.IH
H4045
pbinns on DSKJLVW7X2PROD with $$_JOB
sion shall not grant any extension that would 
increase by 1 year or longer the time period in 
the original schedule issued under paragraph 
(2) for obtaining all Federal authorizations for 
the applicable project. 
‘‘(4) FAILURE
TO
MEET
SCHEDULE
DEAD-
LINES.— 
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (C), if a Federal or State agency fails to 
complete its disposition of a Federal authoriza-
tion in accordance with the schedule deadline 
established under paragraph (2) (as may be ex-
tended under paragraph (3))— 
‘‘(i) in the case of a Federal agency, 
$5,000 of unobligated funds shall be re-
scinded; or 
‘‘(ii) in the case of a State agency, 
$5,000 of unobligated funds shall be re-
scinded from Federal fish and wildlife or 
water resources funding programs to the 
State. 
‘‘(B) SUBSEQUENT
RESCISSION.—Subject 
to subparagraph (C), for each additional week 
after any deadline established by the Commis-
sion under paragraph (2) (as may be extended 
VerDate Sep 11 2014 
23:49 Jul 12, 2023
Jkt 039200
PO 00000
Frm 00025
Fmt 6652
Sfmt 6201
E:\BILLS\H4045.IH
H4045
pbinns on DSKJLVW7X2PROD with $$_JOB
under paragraph (3)) remains uncompleted by a 
Federal or State agency with a responsibility 
for a Federal authorization, an additional re-
scission of $5,000 shall occur as provided in 
subparagraph (A). 
‘‘(C) MAXIMUM ANNUAL RESCISSION.—For 
each individual Federal authorization for a 
project, the total amounts rescinded under sub-
paragraphs (A) and (B) shall not exceed, in any 
fiscal year, $100,000. 
‘‘(D) LIMITATION.—No head of a Federal 
or State department or agency shall reprogram 
funds from another Federal account or program 
for the loss of the funds under this paragraph. 
No head of a Federal or State agency shall re-
port or include any rescinded funds as an ad-
ministrative cost for purposes of annual charges 
under section 10(e). 
‘‘(e) INCONSISTENT
OR
CONFLICTING
LICENSE 
TERMS.— 
‘‘(1) CONSULTATION TO RESOLVE INCONSIST-
ENCY OR CONFLICT.— 
‘‘(A) IN GENERAL.—If a term or condition 
of a Federal authorization submitted for inclu-
sion in a license under this part conflicts or is 
VerDate Sep 11 2014 
23:49 Jul 12, 2023
Jkt 039200
PO 00000
Frm 00026
Fmt 6652
Sfmt 6201
E:\BILLS\H4045.IH
H4045
pbinns on DSKJLVW7X2PROD with $$_JOB
otherwise inconsistent with another such term 
or condition, the Commission shall initiate and 
facilitate consultation between the Federal or 
State resource agencies submitting conflicting 
or inconsistent terms or conditions, to attempt 
to resolve the inconsistency or conflict, includ-
ing with any such conditions recommended for 
inclusion in the license by the Commission. 
‘‘(B) MEETINGS.—The consultation period 
under this subsection shall extend up to 90 
days and shall include at least one technical 
conference or similar meeting. The Commission 
shall issue notice of any such conference or 
other consultation meeting, which shall be open 
to participation by the license applicant, other 
agencies, and other licensing participants. 
‘‘(C) AMENDMENT
AND
REISSUANCE.—If 
the agencies submitting the terms or conditions 
resolve the inconsistency or conflict, the Com-
mission and other consulting agencies shall set 
a reasonable schedule and deadline, that is not 
later than 90 days after the conclusion of the 
consultation, for the agencies to amend and re-
issue their Federal authorizations to reflect the 
resolution, as appropriate. 
VerDate Sep 11 2014 
23:49 Jul 12, 2023
Jkt 039200
PO 00000
Frm 00027
Fmt 6652
Sfmt 6201
E:\BILLS\H4045.IH
H4045
pbinns on DSKJLVW7X2PROD with $$_JOB
‘‘(2) RESOLUTION OF INCONSISTENCY OR CON-
FLICT.— 
‘‘(A) STATEMENTS.—If agencies are un-
able to resolve an inconsistency or conflict 
under paragraph (1), not later than 30 days 
after the conclusion of the consultation process 
under such paragraph, the agencies shall sub-
mit to the public record maintained by the 
Commission a statement that identifies the in-
consistency or conflict, explains the position 
taken by each agency causing the inconsistency 
or conflict, and provides an analysis, supported 
by information in the public record, of the fac-
tual basis for the inconsistent or conflicting po-
sition taken by each agency. 
‘‘(B) REFERRAL.—Following such submis-
sion, the Commission shall refer the matter for 
resolution as provided in subsection (f). 
‘‘(f) RESOLUTION OF INTERAGENCY DISPUTES.— 
‘‘(1) REFERRAL
TO
OMB.—For any dispute 
under subsection (c), (d), or (e) among Federal and 
State agencies with responsibility for a Federal au-
thorization, as well as any dispute between any such 
agency and the license applicant, the Commission 
may, upon its own motion or the request of the head 
VerDate Sep 11 2014 
01:30 Jul 13, 2023
Jkt 039200
PO 00000
Frm 00028
Fmt 6652
Sfmt 6201
E:\BILLS\H4045.IH
H4045
pbinns on DSKJLVW7X2PROD with $$_JOB
of any such agency or the license applicant, refer the 
matter to the Director of the Office of Management 
and Budget. 
‘‘(2) ACTION BY OMB.—With respect to any dis-
pute referred to the Director under paragraph (1), 
the Director, in consultation with the Chair of the 
Council on Environmental Quality, shall act as ap-
propriate— 
‘‘(A) to ensure a timely participation; 
‘‘(B) to ensure a timely decision; 
‘‘(C) to mediate the dispute; or 
‘‘(D) to refer the matter to the President. 
‘‘(3) PARTICIPATION.—The license applicant 
and other interested participants shall be provided 
the opportunity to participate in the resolution of 
any issues under this subsection.’’. 
SEC. 6. HYDROPOWER DEVELOPMENT AT EXISTING NON-
POWERED DAMS AND CLOSED-LOOP PUMPED 
STORAGE. 
(a) PROMOTING HYDROPOWER DEVELOPMENT
AT 
EXISTING NONPOWERED DAMS.—Section 34 of the Fed-
eral Power Act (16 U.S.C. 823e) is amended— 
(1) by amending subsection (a) to read as fol-
lows: 
VerDate Sep 11 2014 
23:49 Jul 12, 2023
Jkt 039200
PO 00000
Frm 00029
Fmt 6652
Sfmt 6201
E:\BILLS\H4045.IH
H4045
pbinns on DSKJLVW7X2PROD with $$_JOB
‘‘(a) IN GENERAL.—The Commission may issue a li-
cense under section 37 for any facility the Commission de-
termines is a qualifying facility.’’; 
(2) by striking subsections (b) and (c); and 
(3) by redesignating subsections (d), (e), and 
(f) as subsections (b), (c), and (d), respectively. 
(b) CLOSED-LOOP PUMPED STORAGE PROJECTS.— 
Section 35 of the Federal Power Act (16 U.S.C. 823f) 
is amended— 
(1) by amending subsection (a) to read as fol-
lows: 
‘‘(a) IN GENERAL.—The Commission may issue a li-
cense under section 37 for any project the Commission 
determines is a qualifying closed-loop pumped storage 
project.’’; 
(2) by striking subsections (b), (c), (e), (g), and 
(h); 
(3) by redesignating subsections (d) and (f) as 
subsections (b) and (c), respectively; and 
(4) by adding at the end the following: 
‘‘(d) 
NO
LICENSE
REQUIRED
FOR
CERTAIN 
PROJECTS.—Notwithstanding section 23(b), a closed-loop 
pumped storage project shall not be required to be licensed 
under this part if the closed-loop pumped storage 
project— 
VerDate Sep 11 2014 
23:49 Jul 12, 2023
Jkt 039200
PO 00000
Frm 00030
Fmt 6652
Sfmt 6201
E:\BILLS\H4045.IH
H4045
pbinns on DSKJLVW7X2PROD with $$_JOB
‘‘(1) is not located upon any part of the public 
lands or reservations of the United States; and 
‘‘(2) does not use a federally owned dam or res-
ervoir. 
‘‘(e) DEFINITIONS.—For purposes of this section: 
‘‘(1) 
CLOSED-LOOP
PUMPED
STORAGE 
PROJECT.—The term ‘closed-loop pumped storage 
project’ means a project for the generation of elec-
tric power— 
‘‘(A) that— 
‘‘(i) is configured to use 2 or more 
natural or artificial reservoirs or other 
water bodies at different elevations; and 
‘‘(ii) can generate electric power as 
water moves down through a turbine and 
recharge by pumping water to the upper 
reservoir; 
‘‘(B) that will be constructed, operated, 
and maintained for the generation of electric 
power in a manner that ensures that the upper 
and lower reservoirs or other water bodies do 
not impound any stream channel of any surface 
body of water over which Congress has jurisdic-
tion under its authority to regulate commerce 
VerDate Sep 11 2014 
23:49 Jul 12, 2023
Jkt 039200
PO 00000
Frm 00031
Fmt 6652
Sfmt 6201
E:\BILLS\H4045.IH
H4045
pbinns on DSKJLVW7X2PROD with $$_JOB
with foreign nations and among the several 
States; and 
‘‘(C) in which any infrastructure con-
necting a project reservoir and a natural sur-
face waterway is used for the sole purpose of 
the initial fill and periodic recharge of res-
ervoirs needed for project operation. 
‘‘(2) QUALIFYING CLOSED-LOOP PUMPED STOR-
AGE
PROJECT.—The term ‘qualifying closed-loop 
pumped storage project’ means a closed-loop 
pumped storage project that, as of the date of enact-
ment of the Hydropower Clean Energy Future Act, 
is not licensed under, or exempted from the license 
requirements contained in, this part. 
‘‘(f) SAVINGS CLAUSES.—Nothing in this section af-
fects— 
‘‘(1) any requirement of the Endangered Spe-
cies Act of 1973 (16 U.S.C. 1531 et seq.), the Fed-
eral Water Pollution Control Act (33 U.S.C. 1251 et 
seq.), or the National Environmental Policy Act of 
1969 (42 U.S.C. 4231 et seq.) that may apply to the 
construction, operation, or maintenance of a closed- 
loop pumped storage project; or 
VerDate Sep 11 2014 
23:49 Jul 12, 2023
Jkt 039200
PO 00000
Frm 00032
Fmt 6652
Sfmt 6201
E:\BILLS\H4045.IH
H4045
pbinns on DSKJLVW7X2PROD with $$_JOB
‘‘(2) except as provided in subsection (d), any 
authority of the Commission to license a closed-loop 
pumped storage project under this part.’’. 
SEC. 7. EXTENSION OF TIME TO COMMENCE CONSTRUC-
TION OF CERTAIN HYDROPOWER PROJECTS. 
(a) DEFINITION OF COVERED PROJECT.—In this sec-
tion, the term ‘‘covered project’’ means a hydropower 
project with respect to which— 
(1) the Federal Energy Regulatory Commission 
issued a license under the Federal Power Act before 
March 13, 2020; and 
(2) construction has not commenced on the 
date of enactment of this Act. 
(b) AUTHORIZATION
OF
EXTENSION.—Notwith-
standing section 13 of the Federal Power Act (16 U.S.C. 
806), on the request of a licensee of a covered project, 
the Federal Energy Regulatory Commission may, after 
reasonable notice and for good cause shown, extend in ac-
cordance with subsection (c) of this section the period dur-
ing which the licensee is required to commence construc-
tion of the covered project for an additional 4 years be-
yond the 8 years authorized by such section 13. 
(c) PERIOD OF EXTENSION.—An extension of time 
to commence construction of a covered project under sub-
section (b) shall— 
VerDate Sep 11 2014 
23:49 Jul 12, 2023
Jkt 039200
PO 00000
Frm 00033
Fmt 6652
Sfmt 6201
E:\BILLS\H4045.IH
H4045
pbinns on DSKJLVW7X2PROD with $$_JOB
(1) begin on the date on which the final exten-
sion of the period for commencement of construction 
granted to the licensee under section 13 of the Fed-
eral Power Act (16 U.S.C. 806) expires; and 
(2) end on the date that is 4 years after the lat-
est date to which the Federal Energy Regulatory 
Commission is authorized to extend the period for 
commencement of construction under such section 
13. 
Æ 
VerDate Sep 11 2014 
23:49 Jul 12, 2023
Jkt 039200
PO 00000
Frm 00034
Fmt 6652
Sfmt 6301
E:\BILLS\H4045.IH
H4045
pbinns on DSKJLVW7X2PROD with $$_JOB