dian tribes represented, to coordinate the regulatory 
processes associated with the authorizations required 
to construct and operate closed-loop pumped storage 
projects. 
‘‘(4) LENGTH
OF
PROCESS.—The Commission 
shall ensure that the expedited process under this sec-
tion will result in final decision on an application 
for a license by not later than 2 years after receipt 
of a completed application for such license. 
‘‘(b) DAM SAFETY.—Before issuing any license for a 
closed-loop pumped storage project, the Commission shall 
assess the safety of existing dams and other structures re-
lated to the project (including possible consequences associ-
ated with failure of such structures). 
‘‘(c) EXEMPTIONS FROM OTHER REQUIREMENTS.— 
‘‘(1) IN GENERAL.—In issuing or amending a li-
cense or preliminary permit pursuant to the expe-
dited process established under this section, the Com-
mission may grant an exemption from any other re-
quirement of this part with respect to any part of the 
closed-loop pumped storage project (not including any 
dam or other impoundment). 
‘‘(2) CONSULTATION.—In granting an exemption 
under paragraph (1), the Commission shall consult 
with the United States Fish and Wildlife Service and 
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the State agency exercising administration over the 
fish and wildlife resources of the State in which the 
closed-loop pumped storage project is or will be lo-
cated, in the manner provided by the Fish and Wild-
life Coordination Act (16 U.S.C. 661 et seq.). 
‘‘(3) TERMS AND CONDITIONS.—In granting an 
exemption under paragraph (1), the Commission shall 
include in any such exemption— 
‘‘(A) such terms and conditions as the Fish 
and Wildlife Service, National Marine Fisheries 
Service, and the State agency described in para-
graph (2) each determine are appropriate to pre-
vent loss of, or damage to, fish and wildlife re-
sources and to otherwise carry out the purposes 
of the Fish and Wildlife Coordination Act; and 
‘‘(B) such terms and conditions as the Com-
mission deems appropriate to ensure that such 
closed-loop pumped storage project continues to 
comply with the provisions of this section and 
terms and conditions included in any such ex-
emption. 
‘‘(4) FEES.—The Commission, in addition to the 
requirements of section 10(e), shall establish fees 
which shall be paid by an applicant for a license for 
a closed-loop pumped storage project that is required 
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to meet terms and conditions set by fish and wildlife 
agencies under paragraph (3). Such fees shall be ade-
quate to reimburse the fish and wildlife agencies re-
ferred to in paragraph (3) for any reasonable costs 
incurred in connection with any studies or other re-
views carried out by such agencies for purposes of 
compliance with this section. The fees shall, subject to 
annual appropriations Acts, be transferred to such 
agencies by the Commission for use solely for purposes 
of carrying out such studies and shall remain avail-
able until expended. 
‘‘(d) TRANSFERS.—Notwithstanding section 5, and re-
gardless of whether the holder of a preliminary permit for 
a closed-loop pumped storage project claimed municipal 
preference under section 7(a) when obtaining the permit, 
the Commission may, to facilitate development of a closed- 
loop pumped storage project— 
‘‘(1) add entities as joint permittees following 
issuance of a preliminary permit; and 
‘‘(2) transfer a license in part to one or more 
nonmunicipal entities as co-licensees with a munici-
pality, if the municipality retains majority owner-
ship of the project for which the license was issued. 
‘‘(e) INTERAGENCY
COMMUNICATIONS.—Interagency 
cooperation in the preparation of environmental documents 
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under the National Environmental Policy Act of 1969 (42 
U.S.C. 4321 et seq.) with respect to an application for a 
license for a closed-loop pumped storage project submitted 
pursuant to this section, and interagency communications 
relating to licensing process coordination pursuant to this 
section, shall not— 
‘‘(1) be considered to be ex parte communications 
under Commission rules; or 
‘‘(2) preclude an agency from participating in a 
licensing proceeding under this part. 
‘‘(f) DEVELOPING ABANDONED MINES FOR PUMPED 
STORAGE.— 
‘‘(1) WORKSHOP.—Not later than 6 months after 
the date of enactment of this section, the Commission 
shall hold a workshop to explore potential opportuni-
ties for development of closed-loop pumped storage 
projects at abandoned mine sites. 
‘‘(2) GUIDANCE.—Not later than 1 year after the 
date of enactment of this section, the Commission 
shall issue guidance to assist applicants for licenses 
or preliminary permits for closed-loop pumped stor-
age projects at abandoned mine sites. 
‘‘(g) 
QUALIFYING
CRITERIA
FOR
CLOSED-LOOP 
PUMPED STORAGE PROJECTS.— 
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‘‘(1) IN GENERAL.—The Commission shall estab-
lish criteria that a pumped storage project shall meet 
in order to qualify as a closed-loop pumped storage 
project eligible for the expedited process established 
under this section. 
‘‘(2) INCLUSIONS.—In establishing the criteria 
under paragraph (1), the Commission shall include 
criteria requiring that the pumped storage project— 
‘‘(A) cause little to no change to existing 
surface and groundwater flows and uses; and 
‘‘(B) is unlikely to adversely affect species 
listed as a threatened species or endangered spe-
cies under the Endangered Species Act of 1973.’’. 
SEC. 3. OBLIGATION FOR PAYMENT OF ANNUAL CHARGES. 
Section 10(e) of the Federal Power Act (16 U.S.C. 
803(e)) is amended by adding at the end the following: 
‘‘(5) Any obligation of a licensee for payment of an-
nual charges under this subsection shall commence when the 
construction of the applicable facility commences.’’. 
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Union Calendar No. 340 
115TH CONGRESS 
1ST SESSION 
H. R. 2880 
[Report No. 115–458] 
A BILL 
To amend the Federal Power Act to promote 
closed-loop pumped storage hydropower, and for 
other purposes. 
DECEMBER 11, 2017 
Reported with an amendment, committed to the Com-
mittee of the Whole House on the State of the Union, 
and ordered to be printed 
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