IIB 
115TH CONGRESS 
1ST SESSION H. R. 3043 
IN THE SENATE OF THE UNITED STATES 
NOVEMBER 9, 2017 
Received; read twice and referred to the Committee on Energy and Natural 
Resources 
AN ACT 
To modernize hydropower policy, 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 ‘‘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 
ENERGY TO INCLUDE HYDROPOWER.—Section 203 of the 
Energy Policy Act of 2005 (42 U.S.C. 15852) is amend-
ed— 
(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 
(2) in subsection (b), by striking paragraph (2) 
and inserting the following: 
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‘‘(2) RENEWABLE ENERGY.—The term ‘renew-
able energy’ means electric energy generated from 
solar, wind, biomass, landfill gas, ocean (including 
tidal, wave, current, and thermal), geothermal, or 
municipal solid waste, or from a hydropower 
project.’’. 
(c) PRELIMINARY PERMITS.—Section 5 of the Fed-
eral Power Act (16 U.S.C. 798) is amended— 
(1) in subsection (a), by striking ‘‘three’’ and 
inserting ‘‘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 Com-
mission finds that the permittee has carried out ac-
tivities 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 
additional 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 Commis-
sion shall consider, among other things, project-re-
lated investments to be made by the licensee under 
a new license issued under this section, as well as 
project-related investments made by a licencee over 
the term of the existing license (including any terms 
under annual licenses). In considering such invest-
ments, the Commission shall give the same weight 
to— 
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‘‘(A) investments to be made by the li-
censee to implement a new license issued under 
this section, including— 
‘‘(i) investments in redevelopment, 
new construction, new capacity, efficiency, 
modernization, rehabilitation, and safety 
improvements; and 
‘‘(ii) investments in environmental, 
recreation, and other protection, mitiga-
tion, or enhancement measures that will be 
required 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 con-
struction, new capacity, efficiency, 
modernization, rehabilitation, or safe-
ty improvements; 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 
Commission.’’. 
(f) ALTERNATIVE
CONDITIONS
AND
PRESCRIP-
TIONS.—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 
preceding 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 im-
posed pursuant to section 4(e), 6, or 18.’’. 
SEC. 3. HYDROPOWER LICENSING AND PROCESS IMPROVE-
MENTS. 
(a) HYDROPOWER LICENSING
AND PROCESS IM-
PROVEMENTS.—Part I of the Federal Power Act (16 
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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 author-
izations, certifications, opinions, or other approvals 
as may be required under Federal law to approve or 
implement 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 
purposes of complying with the National Environ-
mental 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-
eral authorization shall coordinate with the 
Commission and comply with the deadline es-
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tablished in the schedule developed for the li-
cense 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.— 
Federal, State, and local government agen-
cies and Indian tribes that may consider 
an aspect of an application for Federal au-
thorization shall identify, as early as pos-
sible, and share with the Commission and 
the applicant, any issues of concern identi-
fied during the pendency of the Commis-
sion’s action under this part relating to 
any Federal authorization that may delay 
or prevent the granting of such authoriza-
tion, including 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 
(including, in the case of an issue of con-
cern identified by a State or local govern-
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ment agency or Indian tribe, the Federal 
agency overseeing the delegated authority, 
or the Secretary of the Interior with re-
gard to an issue of concern identified by 
an Indian tribe, as applicable) for resolu-
tion. If the Commission forwards an issue 
of concern to the head of a relevant agen-
cy, the Commission and the relevant agen-
cy shall enter into a memorandum of un-
derstanding to facilitate interagency co-
ordination and resolution of such issues of 
concern, as appropriate. 
‘‘(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 proc-
ess for setting a schedule following the filing of an 
application under this part for a license for the re-
view and disposition of each Federal authorization. 
‘‘(2) ELEMENTS
OF
SCHEDULING
RULE.—In 
issuing a rule under this subsection, the Commission 
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shall ensure that the schedule for each Federal au-
thorization— 
‘‘(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 In-
dian tribe that may consider an aspect of an 
application for the applicable Federal authoriza-
tion to identify and resolve issues of concern, as 
provided in subsection (b)(2)(D); 
‘‘(D) complies with applicable schedules es-
tablished under Federal and State law; 
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‘‘(E) ensures expeditious completion of all 
proceedings required under Federal and State 
law, to the extent practicable; and 
‘‘(F) facilitates completion of Federal and 
State agency studies, reviews, and any other 
procedures required prior to, or concurrent 
with, the preparation of the Commission’s envi-
ronmental document required under the Na-
tional Environmental 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 estab-
lish a schedule in accordance with the rule issued by 
the Commission under subsection (c). The Commis-
sion shall publicly notice and transmit the final 
schedule to the applicant and each agency and In-
dian tribe identified under subsection (b)(2)(B). 
‘‘(2) RESPONSE.—Each agency and Indian 
tribe receiving a schedule under this subsection shall 
acknowledge 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 Fed-
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eral authorization shall meet the deadlines set forth in the 
schedule established pursuant to subsection (d)(1). 
‘‘(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 
funding 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 section 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.— 
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‘‘(1) APPLICATION.—A Federal, State, or local 
government agency or Indian tribe that is unable to 
complete its disposition of a Federal authorization 
by 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 
Commission. 
‘‘(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 
complying with the schedule established under sub-
section (d)(1) would prevent the agency or tribe 
from complying with applicable Federal or State law. 
If the Commission grants the extension, the Com-
mission 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 dis-
position of the Federal authorization. 
‘‘(i) CONSOLIDATED
RECORD.—The Commission 
shall, with the cooperation of Federal, State, and local 
government agencies and Indian tribes, maintain a com-
plete consolidated record of all decisions made or actions 
taken by the Commission or by a Federal administrative 
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agency or officer (or State or local government agency or 
officer or Indian tribe acting under delegated Federal au-
thority) with respect to any Federal authorization. Such 
record shall constitute 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 recommenda-
tions; 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 respect to a covered measure (as defined in sec-
tion 35(a)), the head of the Federal agency shall 
submit to the Commission for inclusion in the con-
solidated record, in addition to the information re-
quired under paragraph (1), a written statement 
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demonstrating that the Federal agency gave equal 
consideration to the effects of the covered measure 
on— 
‘‘(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 
information produced or made available by other 
agencies with relevant expertise in the factors de-
scribed in subparagraphs (A) through (E) of that 
paragraph. 
‘‘(k) DELEGATION.—A Secretary may delegate the 
authority to determine a condition to be necessary under 
section 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 
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‘‘(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 Wild-
life Coordination Act, the Endangered Species Act of 
1973, section 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 His-
toric Preservation Act, with respect to an application for 
a license under this part. 
‘‘SEC. 35. TRIAL-TYPE HEARINGS. 
‘‘(a) DEFINITION OF COVERED MEASURE.—In this 
section, 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 
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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 
applicant for a license under section 15) and any party 
to a license proceeding shall be entitled to a determination 
on the record, after opportunity for a trial-type hearing 
of not more than 120 days, on any disputed issues of ma-
terial 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 
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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- 
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 Regula-
tions (or successor regulations), and within the time-
frame established by the Commission for each li-
cense proceeding (including a proceeding for a li-
cense 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 appli-
cable. 
‘‘(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 
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negotiations relating to resolving the disputed issues of 
material 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— 
‘‘(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 mate-
riality and the admissibility of evidence; and 
‘‘(C) reasons for the findings and conclu-
sions. 
‘‘(2) LIMITATION.—The decision of the Admin-
istrative 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 Administra-
tive Law Judge under this section with respect to a 
disputed issue of material fact shall not be subject 
to further administrative review. 
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‘‘(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.— 
‘‘(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 accordance with any applicable schedule estab-
lished by the Commission under section 34(d), the 
Secretary proposing a covered measure shall file 
with the Commission 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 Com-
mission 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 in-
cluded in the consolidated record maintained under 
section 34(i). 
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‘‘(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 co-
ordination and resolve the matter. 
‘‘(j) JUDICIAL REVIEW.—The decision of the Admin-
istrative Law Judge and the record of determination of 
the Secretary shall be included in the record of the appli-
cable 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 
public— 
‘‘(1) compile current and accepted best prac-
tices in performing studies required in such license 
proceedings, including methodologies and the design 
of studies to assess the full range of environmental 
impacts of a project that reflect the most recent 
peer-reviewed science; 
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‘‘(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 
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 gov-
ernment agencies and Indian tribes considering an aspect 
of an application for Federal authorization (as defined in 
section 34) shall use studies and data based on current, 
accepted science in support of their actions. Any partici-
pant in a proceeding with respect to such a Federal au-
thorization shall demonstrate that a study requested by 
the participant is not duplicative of current, existing stud-
ies that are applicable 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 
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Federal 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 request, the Commission, in consultation with the 
applicants, such Federal agencies, and affected States, 
local governments, and Indian tribes, may conduct or com-
mission watershed-wide environmental studies, with the 
participation 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 appli-
cation 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 application information sufficient to dem-
onstrate that the proposed change to the project de-
scribed in the application is a qualifying project up-
grade. 
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‘‘(3) NOTICE AND INITIAL DETERMINATION ON 
QUALIFICATION.—Not later than 30 days after re-
ceipt of an application under paragraph (2), the 
Commission, 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); 
‘‘(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 be-
ginning 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-
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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 
proposed license amendment is for a qualifying 
project upgrade. 
‘‘(6) FEDERAL
AUTHORIZATIONS.—In estab-
lishing the schedule for a proposed license amend-
ment for a qualifying project upgrade, the Commis-
sion shall require final disposition of all authoriza-
tions required under Federal law with respect to an 
application for such license amendment, other than 
final action 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 quali-
fying project upgrade. 
‘‘(7) COMMISSION ACTION.—Not later than 150 
days after the date on which the Commission pub-
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lishes a final determination under paragraph (5) 
that a proposed license amendment is for a quali-
fying project upgrade, the Commission shall take 
final action 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 up-
grade approved under this subsection, including any 
condition, prescription, or other requirement of a 
Federal authorization, shall be limited to those that 
are— 
‘‘(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 op-
eration of the qualifying project upgrade, as 
compared to the environmental baseline existing 
at the time the Commission approves the appli-
cation 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. 
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‘‘(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 deter-
mined 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— 
‘‘(i) if carried out, would be unlikely 
to adversely affect any species listed as 
threatened or endangered under the En-
dangered Species Act of 1973 or result in 
the destruction or adverse modification of 
critical habitat, as determined in consulta-
tion with the Secretary of the Interior or 
Secretary of Commerce, as appropriate, in 
accordance with section 7 of the Endan-
gered 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 
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judgment of the Commission, would result 
in only insignificant or minimal cumulative 
adverse environmental effects; 
‘‘(iv) would be unlikely to adversely 
affect 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; 
‘‘(II) environmental protection, 
mitigation, or enhancement measures 
to benefit fish and wildlife resources 
or other natural and cultural re-
sources; 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 com-
ment, issue a rule establishing new standards and 
procedures for license amendment applications under 
this part. In issuing such rule, the Commission shall 
seek to develop the most efficient and expedient 
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process, consultation, and review requirements, com-
mensurate with the scope of different categories of 
proposed license amendments. Such rule shall ac-
count for differences in environmental effects across 
a wide range of categories of license amendment ap-
plications. 
‘‘(2) CAPACITY.—In issuing a rule under this 
subsection, the Commission shall take into consider-
ation that a change in generating or hydraulic ca-
pacity may indicate the potential environmental ef-
fects of a proposed license amendment but is not de-
terminative of such effects. 
‘‘(3) PROCESS
OPTIONS.—In issuing a rule 
under this subsection, the Commission shall take 
into consideration the range of process options avail-
able under the Commission’s regulations for license 
applications and adapt such options to amendment 
applications, 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 utili-
zation of such reservation’’ and all that follows 
through ‘‘That no license affecting the navigable ca-
pacity’’ and inserting ‘‘adequate protection and utili-
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zation of such reservation: Provided further, That no 
license affecting the navigable capacity’’; and 
(2) by striking ‘‘deem’’ and inserting ‘‘deter-
mine’’. 
(b) OPERATION OF NAVIGATION FACILITIES.—Sec-
tion 18 of the Federal Power Act (16 U.S.C. 811) is 
amended by striking the second, third, and fourth sen-
tences. 
SEC. 5. CONSIDERATION OF INVASIVE SPECIES. 
Section 18 of the Federal Power Act (16 U.S.C. 811) 
is amended by inserting after ‘‘the Secretary of Com-
merce.’’ the following: ‘‘In prescribing a fishway, the Sec-
retary of Commerce or the Secretary of the Interior, as 
appropriate, shall consider the threat of invasive species.’’. 
SEC. 6. EXAMINATION OF LICENSES FOR PROJECTS LO-
CATED IN DISASTER AREAS. 
Not later than one year after the date of enactment 
of this Act, the Federal Energy Regulatory Commission 
may examine the license issued by the Commission under 
part I of the Federal Power Act for any project that is 
located in an area that was declared by the President to 
be a disaster area in 2017. 
SEC. 7. STUDIES FOR NON-FEDERAL HYDROPOWER. 
Notwithstanding any other provision of law, if the 
Federal Energy Regulatory Commission has in place a 
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memorandum of understanding with another Federal 
agency for non-federal hydropower with respect to a 
project licensed under part I of the Federal Power Act 
(regardless of explicit Congressional authorization for 
such non-federal hydropower), the other Federal agency 
may fully study and review the potential expansion of such 
non-federal hydropower at the project, including a review 
of seasonal pool levels and slowing flood releases. 
Passed the House of Representatives November 8, 
2017. 
Attest: 
KAREN L. HAAS, 
Clerk. 
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