[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1832 Introduced in House (IH)]
107th CONGRESS
1st Session
H. R. 1832
To improve the Federal licensing process for hydroelectric projects.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 15, 2001
Mr. Towns (for himself, Mr. Shadegg, Mr. Wynn, Mr. Graham, Mr. Hall of
Texas, Mr. DeMint, Mr. Clyburn, Mr. Hastings of Washington, Mr. Spratt,
Mr. Nethercutt, Ms. Dunn of Washington, Mr. Radanovich, Mr. Burr of
North Carolina, and Mr. Brown of South Carolina) introduced the
following bill; which was referred to the Committee on Energy and
Commerce
_______________________________________________________________________
A BILL
To improve the Federal licensing process for hydroelectric projects.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Hydroelectric Licensing and
Incentives Act of 2001''.
SEC. 2. IMPROVEMENTS TO HYDROPOWER RELICENSING PROCESS.
(a) In General.--Part I of the Federal Power Act (16 U.S.C. 791a
and following) is amended by adding at the end the following:
``SEC. 32. PROCESS FOR CONSIDERATION BY FEDERAL AGENCIES OF CONDITIONS
TO LICENSES.
``(a) Definitions.--In this section:
``(1) Condition.--The term `condition' means--
``(A) a condition to a license for a project on a
Federal reservation determined by a consulting agency
for the purpose of the first proviso of section 4(e);
or
``(B) a prescription relating to the construction,
maintenance, or operation of a fishway determined by a
consulting agency for the purpose of the first sentence
of section 18.
``(2) Consulting agency.--The term `consulting agency'
means--
``(A) in relation to a condition described in
paragraph (1)(A), the Federal agency with
responsibility for supervising the reservation; and
``(B) in relation to a condition described in
paragraph (1)(B), the Secretary of the Interior or the
Secretary of Commerce, as appropriate.
``(b) Factors To Be Considered.--In determining a condition, a
consulting agency shall--
``(1) consider the economic effects (including power cost
impacts) of the condition;
``(2) consider the effect on other beneficial public uses
(including irrigation, flood control, water supply, and
recreation) of the condition;
``(3) consider compatibility with other conditions to be
included in the license, including mandatory conditions of
other agencies, when available;
``(4) consider compatibility with conditions existing at
the project site, including, where applicable, joint operation
of a facility by two or more sovereign nations, operation of a
facility on a waterway that is an international boundary, and
conditions mandated by international treaty;
``(5) prescribe a condition only when necessary to address
direct project-related effects; and
``(6) in selecting among conditions that are equally
effective for purposes of the first proviso of section 4(e) and
the first sentence of section 18, prescribe the least costly
alternative.
``(c) Documentation.--
``(1) In general.--A consulting agency shall assemble a
record detailing, among other pertinent matters, all proposals
made, comments received from public notice of draft conditions,
facts considered, and analyses made sufficient to demonstrate
compliance with subsection (b).
``(2) Submission to the commission.--A consulting agency
shall include the documentation under paragraph (1) in it,
submission of a condition to the Commission.
``(d) Public Comment.--Before submitting to the Commission a
condition, and at least 90 days before a license applicant is required
to file a license application with the Commission, a consulting agency
shall provide notice of draft conditions and an opportunity for a
hearing on the record. The consulting agency shall take into
consideration all comments received and include in the documentation
submitted to the Commission evidence thereof.
``(e) Submission of Final Condition.--
``(1) In general.--After an applicant files with the
Commission an application for a license, the Commission shall
set a date by which a consulting agency shall submit to the
Commission a final condition.
``(2) Limitation.--Except as provided in paragraph (4), the
date for submission of a final condition shall be not later
than one year after the date on which the Commission gives the
consulting agency notice that a license application is ready for
environmental review.
``(3) Default.--If a consulting agency does not submit a
final condition to a license by the date set under paragraph
(1)--
``(A) the consulting agency shall not thereafter
have authority to recommend or establish a condition to
the license; and
``(B) the Commission may, but shall not be required
to, recommend or establish an appropriate condition to
the license that--
``(i) furthers the interest sought to be
protected by the provision of law that
authorizes the consulting agency to propose or
establish a condition to the license; and
``(ii) conforms to the requirements of this
Act.
``(4) Extension.--The Commission may extend for good cause
a deadline set under paragraph (2).''.
(b) Conforming and Technical Amendments.--(1) Section 3(17)(E)(ii)
of the Federal Power Act (16 U.S.C. 796(17)(E)(ii)) is amended by
striking the period at the end thereof and inserting a semicolon.
(2) The first proviso of the first sentence of section 4(e) of such
Act (16 U.S.C. 797(e)) is amended by inserting after ``conditions'' the
following: ``, determined in accordance with section 32,'' and by
striking the period at the end of the proviso and inserting a colon.
(3) Section 14(b) of such Act (16 U.S.C. 807(b)) is amended by
striking ``its'' and inserting ``it'' in the second sentence.
(4) Section 18 of such Act (16 U.S.C. 811) is amended in the first
sentence by striking ``prescribed by the Secretary of Commerce'' and
inserting ``prescribed, in accordance with section 32, by the Secretary
of the Interior or the Secretary of Commerce, as appropriate''.
(5) Section 21 of such Act (16 U.S.C. 814) is amended by inserting
a colon after ``$3,000''.
(6) Section 30(c)(1) of such Act (16 U.S.C. 823a(c)(1)) is amended
by inserting a comma after ``Service'' each place it appears.
SEC. 3. HYDROELECTRIC PRODUCTION INCENTIVES.
(a) Incentive Payments.--For electric energy generated and sold by
a qualified hydroelectric facility during the incentive period, the
Secretary of Energy (referred to in this section as the ``Secretary'')
shall make, subject to the availability of appropriations, incentive
payments to the owner or operator of such facility. The amount of such
payment made to any such owner or operator shall be as determined under
subsection (e) of this section. Payments under this section may only be
made upon receipt by the Secretary of an incentive payment application
which establishes that the applicant is eligible to receive such
payment and which satisfies such other requirements as the Secretary
deems necessary. Such application shall be in such form, and shall be
submitted at such time, as the Secretary shall establish.
(b) Definitions.--For purposes of this section:
(1) Qualified hydroelectric facility.--The term ``qualified
hydroelectric facility'' means a turbine or other generating
device owned or solely operated by a non-Federal entity which
generates hydroelectric energy for sale and which is added to
an existing dam or conduit.
(2) Existing dam or conduit.--The term ``existing dam or
conduit'' means any dam or conduit the construction of which
was completed before the date of the enactment of this section
and which does not require any construction or enlargement of
impoundment or diversion structures (other than repair or
reconstruction) in connection with the installation of a
turbine or other generating device.
(3) Conduit.--The term ``conduit'' has the same meaning as
when used in section 30(a)(2) of the Federal Power Act.
The terms defined in this subsection shall apply without regard to the
hydroelectric kilowatt capacity of the facility concerned, without
regard to whether the facility uses a dam owned by a governmental or
nongovernmental entity, and without regard to whether the facility
begins operation on or after the date of the enactment of this section.
(c) Eligibility Window.--Payments may be made under this section
only for electric energy generated from a qualified hydroelectric
facility which begins operation during the period of 10 fiscal years
beginning with the first full fiscal year occurring after the date of
enactment of this Act.
(d) Incentive Period.--A qualified hydroelectric facility may
receive payments under this section for a period of 10 fiscal years
(referred to in this section as the ``incentive period''). Such period
shall begin with the fiscal year in which electric energy generated
from the facility is first eligible for such payments.
(e) Amount of Payment.--
(1) In general.--Payments made by the Secretary under this
section to the owner or operator of a qualified hydroelectric
facility shall be based on the number of kilowatt hours of
hydroelectric energy generated by the facility during the incentive
period. For any such facility, the amount of such payment shall be 1.5
cents per kilowatt hour (adjusted as provided in paragraph (2)),
subject to the availability of appropriations under subsection (g),
except that no facility may receive more than $1,000,000 in one
calendar year.
(2) Adjustments.--The amount of the payment made to any
person under this section as provided in paragraph (1) shall be
adjusted for inflation for each fiscal year beginning after
calendar year 2001 in the same manner as provided in the
provisions of section 29(d)(2)(B) of the Internal Revenue Code
of 1986, except that in applying such provisions the calendar
year 2001 shall be substituted for calendar year 1979.
(f) Sunset.--No payment may be made under this section to any
qualified hydroelectric facility after the expiration of the period of
20 fiscal years beginning with the first full fiscal year occurring
after the date of enactment of this Act, and no payment may be made
under this section to any such facility after a payment has been made
with respect to such facility for a period of 10 fiscal years.
(g) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary to carry out the purposes of this section
$50,000,000 for each of the fiscal years 2002 through 2011.
SEC. 4. HYDROELECTRIC EFFICIENCY IMPROVEMENT.
(a) Incentive Payments.--The Secretary of Energy shall make
incentive payments to the owners or operators of hydroelectric
facilities at existing dams to be used to make capital improvements in
the facilities that are directly related to improving the efficiency of
such facilities by at least 3 percent.
(b) Limitations.--Incentive payments under this section shall not
exceed 10 percent of the costs of the capital improvement concerned and
not more than one payment may be made with respect to improvements at a
single facility. No payment in excess of $1,000,000 may be made with
respect to improvements at a single facility.
(c) Authorization.--There is authorized to be appropriated to carry
out this section not more than $50,000,000 in each fiscal year after
the fiscal year 2001.
SEC. 5. SMALL HYDROELECTRIC POWER PROJECTS.
Section 408(a)(6) of the Public Utility Regulatory Policies Act of
1978 is amended by striking ``April 20, 1977'' and inserting ``May 16,
2001''.
SEC. 6. INCREASED HYDROELECTRIC GENERATION AT EXISTING FEDERAL
FACILITIES.
(a) In General.--The Secretary of Energy, in consultation with the
Secretary of the Interior and Secretary of the Army, shall conduct
studies of the cost-effective opportunities to increase hydropower
generation at existing federally-owned or operated water regulation,
storage, and conveyance facilities. Such studies shall be completed
within two years after the date of enactment of this Act and
transmitted to the Committee on Commerce of the House of
Representatives and the Committee on Energy and Natural Resources of
the Senate. An individual study shall be prepared for each of the
Nation's principal river basins. Each such study shall identify and
describe with specificity the following matters:
(1) Opportunities to improve the efficiency of hydropower
generation at such facilities through, but not limited to,
mechanical, structural, or operational changes.
(2) Opportunities to improve the efficiency of the use of
water supplied or regulated by Federal projects where such
improvement could, in the absence of legal or administrative
constraints, make additional water supplies available for
hydropower generation or reduce project energy use.
(3) Opportunities to create additional hydropower
generating capacity at existing facilities through, but not
limited to, the construction of additional generating
facilities, the uprating of generators and turbines, and the
construction of pumped storage facilities.
(4) Preliminary assessment of the costs and the economic
and environmental consequences of such measures.
(b) Previous Studies.--If studies of the type required by
subsection (a) have been prepared by any agency of the United States
and published within the five years prior to the date of enactment of
this Act, the Secretary of Energy may choose not to perform new studies
and incorporate the information in such studies into the studies
required by subsection (a).
(c) Authorization.--There is authorized to be appropriated such
sums as may be necessary to carry out the purposes of this section.
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