IIB 
115TH CONGRESS 
1ST SESSION H. R. 2880 
IN THE SENATE OF THE UNITED STATES 
DECEMBER 13, 2017 
Received; read twice and referred to the Committee on Energy and Natural 
Resources 
AN ACT 
To amend the Federal Power Act to promote closed-loop 
pumped storage hydropower, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Promoting Closed- 
Loop Pumped Storage Hydropower Act’’. 
SEC. 2. CLOSED-LOOP PUMPED STORAGE PROJECTS. 
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. CLOSED-LOOP PUMPED STORAGE PROJECTS. 
‘‘(a) EXPEDITED LICENSING PROCESS FOR CLOSED- 
LOOP PUMPED STORAGE PROJECTS.— 
‘‘(1) IN GENERAL.—As provided in this section, 
the Commission may issue and amend licenses and 
preliminary permits, as appropriate, for closed-loop 
pumped storage projects. 
‘‘(2) RULE.—Not later than 180 days after the 
date of enactment of this section, the Commission 
shall issue a rule establishing an expedited process 
for issuing and amending licenses and preliminary 
permits for closed-loop pumped storage projects 
under this section. 
‘‘(3) INTERAGENCY
TASK
FORCE.—In estab-
lishing the expedited process under this section, the 
Commission shall convene an interagency task force, 
with appropriate Federal and State agencies and In-
dian tribes represented, to coordinate the regulatory 
processes associated with the authorizations required 
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to construct and operate closed-loop pumped storage 
projects. 
‘‘(4) LENGTH OF PROCESS.—The Commission 
shall ensure that the expedited process under this 
section 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 struc-
tures related to the project (including possible con-
sequences associated with failure of such structures). 
‘‘(c) EXEMPTIONS FROM OTHER REQUIREMENTS.— 
‘‘(1) IN GENERAL.—In issuing or amending a 
license or preliminary permit pursuant to the expe-
dited process established under this section, the 
Commission may grant an exemption from any other 
requirement of this part with respect to any part of 
the closed-loop pumped storage project (not includ-
ing any dam or other impoundment). 
‘‘(2) CONSULTATION.—In granting an exemp-
tion under paragraph (1), the Commission shall con-
sult with the United States Fish and Wildlife Serv-
ice and the State agency exercising administration 
over the fish and wildlife resources of the State in 
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which the closed-loop pumped storage project is or 
will be located, in the manner provided by the Fish 
and Wildlife 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 de-
scribed in paragraph (2) each determine are ap-
propriate to prevent loss of, or damage to, fish 
and wildlife resources and to otherwise carry 
out the purposes of the Fish and Wildlife Co-
ordination Act; and 
‘‘(B) such terms and conditions as the 
Commission deems appropriate to ensure that 
such closed-loop pumped storage project con-
tinues to comply with the provisions of this sec-
tion and terms and conditions included in any 
such exemption. 
‘‘(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 re-
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quired to meet terms and conditions set by fish and 
wildlife agencies under paragraph (3). Such fees 
shall be adequate to reimburse the fish and wildlife 
agencies referred to in paragraph (3) for any reason-
able costs incurred in connection with any studies or 
other reviews carried out by such agencies for pur-
poses 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 available until expended. 
‘‘(d) TRANSFERS.—Notwithstanding section 5, and 
regardless of whether the holder of a preliminary permit 
for a closed-loop pumped storage project claimed munic-
ipal preference under section 7(a) when obtaining the per-
mit, 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 ownership 
of the project for which the license was issued. 
‘‘(e) INTERAGENCY COMMUNICATIONS.—Interagency 
cooperation in the preparation of environmental docu-
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ments under the National Environmental Policy Act of 
1969 (42 U.S.C. 4321 et seq.) with respect to an applica-
tion for a license for a closed-loop pumped storage project 
submitted pursuant to this section, and interagency com-
munications relating to licensing process coordination pur-
suant to this section, shall not— 
‘‘(1) be considered to be ex parte communica-
tions 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 Com-
mission shall hold a workshop to explore potential 
opportunities 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 Commis-
sion shall issue guidance to assist applicants for li-
censes or preliminary permits for closed-loop 
pumped storage projects at abandoned mine sites. 
‘‘(g) QUALIFYING
CRITERIA
FOR
CLOSED-LOOP 
PUMPED STORAGE PROJECTS.— 
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‘‘(1) IN GENERAL.—The Commission shall es-
tablish criteria that a pumped storage project shall 
meet in order to qualify as a closed-loop pumped 
storage project eligible for the expedited process es-
tablished 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 
species 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.’’. 
Passed the House of Representatives December 12, 
2017. 
Attest: 
KAREN L. HAAS, 
Clerk. 
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