IB 
Union Calendar No. 277 
115TH CONGRESS 
1ST SESSION H. R. 3043 
[Report No. 115–377, Part I] 
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 
OCTOBER 31, 2017 
Reported from the Committee on Energy and Commerce with an amendment 
[Strike out all after the enacting clause and insert the part printed in italic] 
OCTOBER 31, 2017 
The Committee on Oversight and Government Reform discharged; committed 
to the Committee of the Whole House on the State of the Union and or-
dered to be printed 
[For text of introduced bill, see copy of bill as introduced on June 23, 2017] 
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A BILL 
To modernize hydropower policy, and for other purposes. 
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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— 
(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 EN-
ERGY TO INCLUDE HYDROPOWER.—Section 203 of the En-
ergy Policy Act of 2005 (42 U.S.C. 15852) is amended— 
(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 
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(2) in subsection (b), by striking paragraph (2) 
and inserting the following: 
‘‘(2) RENEWABLE ENERGY.—The term ‘renewable 
energy’ means electric energy generated from solar, 
wind, biomass, landfill gas, ocean (including tidal, 
wave, current, and thermal), geothermal, or munic-
ipal solid waste, or from a hydropower project.’’. 
(c) PRELIMINARY PERMITS.—Section 5 of the Federal 
Power Act (16 U.S.C. 798) is amended— 
(1) in subsection (a), by striking ‘‘three’’ and in-
serting ‘‘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 Commission 
finds that the permittee has carried out activities 
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 addi-
tional years beyond the extension period granted 
under paragraph (1), if the Commission determines 
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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,’’. 
(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 Commission 
shall consider, among other things, project-related in-
vestments to be made by the licensee under a new li-
cense issued under this section, as well as project-re-
lated investments made by a licencee over the term of 
the existing license (including any terms under an-
nual licenses). In considering such investments, the 
Commission shall give the same weight to— 
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‘‘(A) investments to be made by the licensee 
to implement a new license issued under this sec-
tion, including— 
‘‘(i) investments in redevelopment, new 
construction, new capacity, efficiency, mod-
ernization, rehabilitation, and safety im-
provements; and 
‘‘(ii) investments in environmental, 
recreation, and other protection, mitigation, 
or enhancement measures that will be re-
quired 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 construc-
tion, new capacity, efficiency, mod-
ernization, rehabilitation, or safety im-
provements; or 
‘‘(II) environmental, recreation, 
or other protection, mitigation, or en-
hancement measures; and 
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‘‘(ii) did not result in the extension of 
the term of the existing license by the Com-
mission.’’. 
(f) ALTERNATIVE CONDITIONS AND PRESCRIPTIONS.— 
Section 33 of the Federal Power Act (16 U.S.C. 823d) is 
amended— 
(1) in subsection (a)— 
(A) in paragraph (1), by striking ‘‘deems’’ 
and inserting ‘‘determines’’; 
(B) in paragraph (2)(B), in the matter pre-
ceding 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 imposed 
pursuant to section 4(e), 6, or 18.’’. 
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SEC. 3. HYDROPOWER LICENSING AND PROCESS IMPROVE-
MENTS. 
(a) HYDROPOWER LICENSING AND PROCESS IMPROVE-
MENTS.—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’— 
‘‘(1) means any authorization required under 
Federal law with respect to an application for a li-
cense under this part; and 
‘‘(2) includes any permits, special use authoriza-
tions, certifications, opinions, or other approvals as 
may be required under Federal law to approve or im-
plement the license 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 pur-
poses of complying with the National Environmental 
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-
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eral authorization shall coordinate with the 
Commission and comply with the deadline estab-
lished in the schedule developed for the license 
under this part in accordance with the rule 
issued by the Commission under subsection (c). 
‘‘(B) IDENTIFICATION.—The Commission 
shall identify, as early as practicable after it is 
notified by the applicant for a license under this 
part, any Federal or State agency, local govern-
ment, or Indian tribe that may consider an as-
pect of an application for a Federal authoriza-
tion. 
‘‘(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. 
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‘‘(D) ISSUE IDENTIFICATION AND RESOLU-
TION.— 
‘‘(i) IDENTIFICATION OF ISSUES.—Fed-
eral, State, and local government agencies 
and Indian tribes that may consider an as-
pect of an application for Federal author-
ization shall identify, as early as possible, 
and share with the Commission and the ap-
plicant, any issues of concern identified 
during the pendency of the Commission’s 
action under this part relating to any Fed-
eral authorization that may delay or pre-
vent the granting of such authorization, in-
cluding any issues that may prevent the 
agency or Indian tribe from meeting the 
schedule established for the license 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 (in-
cluding, in the case of an issue of concern 
identified by a State or local government 
agency or Indian tribe, the Federal agency 
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overseeing the delegated authority, or the 
Secretary of the Interior with regard to an 
issue of concern identified by an Indian 
tribe, as applicable) for resolution. If the 
Commission forwards an issue of concern to 
the head of a relevant agency, the Commis-
sion and the relevant agency shall enter 
into a memorandum of understanding to fa-
cilitate interagency coordination and reso-
lution of such issues of concern, as appro-
priate. 
‘‘(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 process 
for setting a schedule following the filing of an appli-
cation under this part for a license for the review and 
disposition 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 author-
ization— 
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‘‘(A) includes deadlines for actions by— 
‘‘(i) any Federal or State agency, local 
government, or Indian tribe that may con-
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 Indian 
tribe that may consider an aspect of an applica-
tion for the applicable Federal authorization to 
identify and resolve issues of concern, as pro-
vided 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 
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‘‘(F) facilitates completion of Federal and 
State agency studies, reviews, and any other pro-
cedures required prior to, or concurrent with, the 
preparation of the Commission’s environmental 
document required under the National Environ-
mental 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 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 applicant 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 ac-
knowledge 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 Federal au-
thorization shall meet the deadlines set forth in the schedule 
established pursuant to subsection (d)(1). 
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‘‘(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 
agency or tribe to assist in reviewing the application. All 
costs of an agency or tribe incurred pursuant to direct fund-
ing 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 sec-
tion 10(e). 
‘‘(g) COMMISSION RECOMMENDATION ON SCOPE OF 
ENVIRONMENTAL REVIEW.—For the purposes of coordi-
nating Federal authorizations for each license under this 
part, the Commission shall consult with and make a rec-
ommendation to agencies and Indian tribes receiving a 
schedule under subsection (d) on the scope of the environ-
mental review for all Federal authorizations for such li-
cense. Each Federal and State agency and Indian tribe 
shall give due consideration and may give deference to the 
Commission’s recommendations, to the extent 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 
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the deadline set forth in the schedule established under 
subsection (d)(1) shall, not later than 30 days prior 
to such deadline, file for an extension with the Com-
mission. 
‘‘(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 com-
plying with the schedule established under subsection 
(d)(1) would prevent the agency or tribe from com-
plying with applicable Federal or State law. If the 
Commission grants the extension, the Commission 
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 disposition of the 
Federal authorization. 
‘‘(i) CONSOLIDATED RECORD.—The Commission shall, 
with the cooperation of Federal, State, and local govern-
ment agencies and Indian tribes, maintain a complete con-
solidated 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 authority) with 
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respect to any Federal authorization. Such record shall con-
stitute the record for judicial review under section 313(b). 
‘‘(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 recommendations; 
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 re-
spect to a covered measure (as defined in section 
35(a)), the head of the Federal agency shall submit to 
the Commission for inclusion in the consolidated 
record, in addition to the information required under 
paragraph (1), a written statement demonstrating 
that the Federal agency gave equal consideration to 
the effects of the covered measure on— 
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‘‘(A) energy supply, distribution, cost, and 
use; 
‘‘(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 infor-
mation produced or made available by other agencies 
with relevant expertise in the factors described in sub-
paragraphs (A) through (E) of that paragraph. 
‘‘(k) DELEGATION.—A Secretary may delegate the au-
thority to determine a condition to be necessary under sec-
tion 4(e), or to prescribe a fishway under section 18, to an 
officer of the applicable department based, in part, on the 
ability of the officer to evaluate the broad effects of such 
condition or prescription on— 
‘‘(1) the applicable project; and 
‘‘(2) the factors described in subparagraphs (A) 
through (E) of subsection (j)(2). 
‘‘(l) NO EFFECT ON OTHER LAWS.—Nothing in this 
section shall be construed to affect any requirement of the 
Federal Water Pollution Control Act, the Fish and Wildlife 
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Coordination Act, the Endangered Species Act of 1973, sec-
tion 14 of the Act of March 3, 1899 (commonly known as 
the Rivers and Harbors Appropriation Act of 1899), and 
those provisions in subtitle III of title 54, United States 
Code commonly known as the National Historic Preserva-
tion Act, with respect to an application for a license under 
this part. 
‘‘SEC. 35. TRIAL-TYPE HEARINGS. 
‘‘(a) DEFINITION OF COVERED MEASURE.—In this sec-
tion, the term ‘covered measure’ means— 
‘‘(1) a condition determined to be necessary 
under section 4(e), including an alternative condition 
proposed under section 33(a); 
‘‘(2) fishways prescribed under section 18, in-
cluding an alternative prescription proposed under 
section 33(b); or 
‘‘(3) any action by the Secretary to exercise re-
served authority under the license to prescribe, sub-
mit, or revise any condition to a license under the 
first proviso of section 4(e) or fishway prescribed 
under section 18. 
‘‘(b) AUTHORIZATION OF TRIAL-TYPE HEARING.—An 
applicant for a license under this part (including an appli-
cant for a license under section 15) and any party to a 
license proceeding shall be entitled to a determination on 
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the record, after opportunity for a trial-type hearing of not 
more than 120 days, on any disputed issues of material 
fact with respect to an applicable covered measure. 
‘‘(c) DEADLINE FOR REQUEST.—A request for a trial- 
type hearing under this section shall be submitted not later 
than 60 days after the date on which, as applicable— 
‘‘(1) the Secretary determines the condition to be 
necessary under section 4(e) or prescribes the fishway 
under section 18; or 
‘‘(2) 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- 
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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 Regulations (or 
successor regulations), and within the timeframe es-
tablished by the Commission for each license pro-
ceeding (including a proceeding for a license 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, as applica-
ble. 
‘‘(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 ma-
terial 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— 
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‘‘(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 materi-
ality and the admissibility of evidence; and 
‘‘(C) reasons for the findings and conclu-
sions. 
‘‘(2) LIMITATION.—The decision of the Adminis-
trative Law Judge shall not contain conclusions as to 
whether— 
‘‘(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 Administrative 
Law Judge under this section with respect to a dis-
puted issue of material fact shall not be subject to fur-
ther 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.— 
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‘‘(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 ac-
cordance with any applicable schedule established by 
the Commission under section 34(d), the Secretary 
proposing 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. 
‘‘(2) RECORD
OF
DETERMINATION.—The final 
determination of the Secretary filed with the Commis-
sion 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 included 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 coordi-
nation and resolve the matter. 
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‘‘(j) JUDICIAL REVIEW.—The decision of the Adminis-
trative Law Judge and the record of determination of the 
Secretary shall be included in the record of the applicable 
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-
eral and State agencies and interested members of the pub-
lic— 
‘‘(1) compile current and accepted best practices 
in performing studies required in such license pro-
ceedings, including methodologies and the design of 
studies to assess the full range of environmental im-
pacts of a project that reflect the most recent peer-re-
viewed 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 
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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 government 
agencies and Indian tribes considering an aspect of an ap-
plication for Federal authorization (as defined in section 
34) shall use studies and data based on current, accepted 
science in support of their actions. Any participant in a 
proceeding with respect to such a Federal authorization 
shall demonstrate that a study requested by the participant 
is not duplicative of current, existing studies that are appli-
cable to the project. 
‘‘(c) INTRA-WATERSHED REVIEW.—The Commission 
shall establish a program to develop comprehensive plans, 
at the request of project applicants, on a watershed-wide 
scale, in consultation with the applicants, appropriate Fed-
eral agencies, and affected States, local governments, and 
Indian tribes, in watersheds with respect to which there are 
more than one application for a project. Upon such a re-
quest, the Commission, in consultation with the applicants, 
such Federal agencies, and affected States, local govern-
ments, and Indian tribes, may conduct or commission wa-
tershed-wide environmental studies, with the participation 
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of at least 2 applicants. Any study conducted under this 
subsection 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. 
‘‘(2) APPLICATION.—A licensee filing an applica-
tion for an amendment to a project license, for which 
the licensee is seeking approval as a qualified project 
upgrade under this section, shall include in such ap-
plication information sufficient to demonstrate that 
the proposed change to the project described in the ap-
plication is a qualifying project upgrade. 
‘‘(3) NOTICE AND INITIAL DETERMINATION ON 
QUALIFICATION.—Not later than 30 days after receipt 
of an application under paragraph (2), the Commis-
sion, in consultation with other Federal agencies, 
States, and Indian tribes the Commission determines 
appropriate, shall publish in the Federal Register a 
notice containing— 
‘‘(A) notice of the application filed under 
paragraph (2); 
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‘‘(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 begin-
ning on the date of publication of a notice under 
paragraph (3)— 
‘‘(A) accept public comment regarding the 
application and whether the proposed license 
amendment is for a qualifying project upgrade; 
and 
‘‘(B) consult with each Federal, State, and 
local government agency and Indian tribe con-
sidering an aspect of an application for any au-
thorization required under Federal law with re-
spect to the proposed license amendment, as well 
as other interested agencies and Indian tribes. 
‘‘(5) FINAL
DETERMINATION
ON
QUALIFICA-
TION.—Not later than 15 days after the end of the 
public comment and consultation period under para-
graph (4), the Commission shall publish in the Fed-
eral Register a final determination as to whether the 
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proposed license amendment is for a qualifying 
project upgrade. 
‘‘(6) FEDERAL
AUTHORIZATIONS.—In estab-
lishing the schedule for a proposed license amendment 
for a qualifying project upgrade, the Commission 
shall require final disposition of all authorizations re-
quired under Federal law with respect to an applica-
tion for such license amendment, other than final ac-
tion by the Commission, by not later than 120 days 
after the date on which the Commission publishes a 
final determination under paragraph (5) that the 
proposed license amendment is for a qualifying 
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 qualifying 
project upgrade, the Commission shall take final ac-
tion 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 upgrade 
approved under this subsection, including any condi-
tion, prescription, or other requirement of a Federal 
authorization, shall be limited to those that are— 
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‘‘(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 oper-
ation of the qualifying project upgrade, as com-
pared to the environmental baseline existing at 
the time the Commission approves the applica-
tion for the license amendment. 
‘‘(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 determined 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— 
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‘‘(i) if carried out, would be unlikely to 
adversely affect any species listed as threat-
ened or endangered under the Endangered 
Species Act of 1973 or result in the destruc-
tion or adverse modification of critical 
habitat, as determined in consultation with 
the Secretary of the Interior or Secretary of 
Commerce, as appropriate, in accordance 
with section 7 of the Endangered Species 
Act of 1973; 
‘‘(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 cumu-
lative adverse environmental effects; 
‘‘(iv) would be unlikely to adversely af-
fect 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; 
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‘‘(II) environmental protection, 
mitigation, or enhancement measures 
to benefit fish and wildlife resources or 
other natural and cultural resources; 
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 comment, 
issue a rule establishing new standards and proce-
dures 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, commensurate 
with the scope of different categories of proposed li-
cense amendments. Such rule shall account for dif-
ferences in environmental effects across a wide range 
of categories of license amendment applications. 
‘‘(2) CAPACITY.—In issuing a rule under this 
subsection, the Commission shall take into consider-
ation that a change in generating or hydraulic capac-
ity may indicate the potential environmental effects 
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of a proposed license amendment but is not deter-
minative of such effects. 
‘‘(3) PROCESS
OPTIONS.—In issuing a rule 
under this subsection, the Commission shall take into 
consideration the range of process options available 
under the Commission’s regulations for license appli-
cations and adapt such options to amendment appli-
cations, 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— 
(1) by striking ‘‘adequate protection and utiliza-
tion of such reservation’’ and all that follows through 
‘‘That no license affecting the navigable capacity’’ 
and inserting ‘‘adequate protection and utilization of 
such reservation: Provided further, That no license af-
fecting the navigable capacity’’; and 
(2) by striking ‘‘deem’’ and inserting ‘‘deter-
mine’’. 
(b) OPERATION OF NAVIGATION FACILITIES.—Section 
18 of the Federal Power Act (16 U.S.C. 811) is amended 
by striking the second, third, and fourth sentences. 
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Union Calendar No. 277 
115TH CONGRESS 
1ST SESSION 
H. R. 3043 
[Report No. 115–377, Part I] 
A BILL 
To modernize hydropower policy, and for other 
purposes. 
OCTOBER 31, 2017 
Reported from the Committee on Energy and Commerce 
with an amendment 
OCTOBER 31, 2017 
The Committee on Oversight and Government Reform 
discharged; committed to the Committee of the Whole 
House on the State of the Union and ordered to be 
printed 
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