I 112th CONGRESS 1st Session H. R. 3680 IN THE HOUSE OF REPRESENTATIVES December 15, 2011 Mrs. McMorris Rodgers (for herself and Ms. DeGette) introduced the following bill; which was referred to the Committee on Energy and Commerce, and in addition to the Committees on Transportation and Infrastructure, Natural Resources, and Science, Space, and Technology, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned A BILL To improve hydropower, and for other purposes.

1.

Short title; table of contents

(a)

Short title

This Act may be cited as the Hydropower Regulatory Efficiency Act of 2011. (b)

Table of contents

The table of contents of this Act is as follows: Sec. 1. Short title; table of contents. Sec. 2. Findings. Sec. 3. Promoting small hydroelectric power projects. Sec. 4. Promoting conduit hydropower projects. Sec. 5. FERC authority to extend preliminary permit terms. Sec. 6. Promoting hydropower development at nonpowered dams and closed loop pumped storage projects. Sec. 7. DOE study of pumped storage and potential hydropower from conduits. Sec. 8. Report on memorandum of understanding on hydropower. Sec. 9. Authorization of appropriations.

2.

Findings

Congress finds that— (1)the hydropower industry currently employs approximately 300,000 workers across the United States; (2)hydropower is the largest source of clean, renewable electricity in the United States; (3)as of the date of enactment of this Act, hydropower resources, including pumped storage facilities, provide— (A)nearly 7 percent of the electricity generated in the United States; and (B)approximately 100,000 megawatts of electric capacity in the United States; (4)only 3 percent of the 80,000 dams in the United States generate electricity, so there is substantial potential for adding hydropower generation to nonpowered dams; and (5)by utilizing currently untapped resources, the United States could add approximately 60,000 megawatts of new hydropower capacity by 2025, which could create 700,000 new direct jobs over the next 14 years.

3.

Promoting small hydroelectric power projects

Subsection (d) of section 405 of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2705) is amended by striking 5,000 and inserting 10,000.

4.

Promoting conduit hydropower projects

(a)

Applicability of, and exemption from, licensing requirements

Section 30 of the Federal Power Act (16 U.S.C. 823a) is amended— (1)by striking subsection (b); (2)by redesignating subsection (a) as subsection (b); (3)by inserting before subsection (b), as redesignated by paragraph (2) of this subsection, the following: (a)(1)A facility described in this paragraph shall not be required to be licensed under this part. A facility described in this paragraph is a facility that— (A)is constructed, operated, or maintained for the generation of electric power and uses for such generation only the hydroelectric potential of a non-federally owned conduit; (B)is located on non-Federal lands or Federal lands; (C)has an installed capacity that does not exceed 5 megawatts; and (D)on or before the date of enactment of the Hydropower Regulatory Efficiency Act of 2011, is not licensed under, or exempted from the license requirements contained in, this part. (2)For purposes of this section, the term conduit means any tunnel, canal, pipeline, aqueduct, flume, ditch, or similar manmade water conveyance that is operated for the distribution of water for agricultural, municipal, or industrial consumption and not primarily for the generation of electricity. ; (4)in subsection (b), as redesignated by paragraph (2) of this subsection— (A)in the matter preceding paragraph (1), by striking (b) or; (B)in paragraph (1), by striking , and and inserting or Federal lands;; (C)in paragraph (2), by striking manmade conduit, which is operated for the distribution of water for agricultural, municipal, or industrial consumption and not primarily for the generation of electricity. and inserting conduit; and; and (D)by adding at the end the following new paragraph: (3)has an installed capacity that does not exceed 40 megawatts. ; (5)in subsection (c), by striking subsection (a) and inserting subsection (b); and (6)in subsection (d), by striking subsection (a) and inserting subsection (b). (b)

Conforming amendment

Subsection (d) of section 405 of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2705), as amended, is further amended by striking subsection (a) of such section 30 and inserting subsection (b) of such section 30.

5.

FERC authority to extend preliminary permit terms

Section 5 of the Federal Power Act (16 U.S.C. 798) is amended— (1)by designating the first, second, and third sentences as subsections (a), (c), and (d), respectively; and (2)by inserting after subsection (a) (as so designated) the following: (b)

Extension

The Commission may extend the term of a preliminary permit once for not more than 2 additional years if the Commission finds that the permittee has carried out activities under the permit in good faith and with reasonable diligence. .

6.

Promoting hydropower development at nonpowered dams and closed loop pumped storage projects

(a)

In general

To improve the regulatory process and reduce delays and costs for hydropower development at nonpowered dams and closed loop pumped storage projects, the Federal Energy Regulatory Commission (referred to in this section as the Commission) shall investigate the feasibility of the issuance of a license for hydropower development at nonpowered dams and closed loop pumped storage projects in a 2-year period (referred to in this section as a 2-year process). Such a 2-year process shall include any prefiling licensing process of the Commission. (b)

Workshops and pilots

The Commission shall— (1)not later than 60 days after the date of enactment of this Act, hold an initial workshop to solicit public comment and recommendations on how to implement a 2-year process; (2)develop criteria for identifying projects featuring hydropower development at nonpowered dams and closed loop pumped storage projects that may be appropriate for licensing within a 2-year process; (3)not later than 180 days after the date of enactment of this Act, develop and implement pilot projects to test a 2-year process, if practicable; and (4)not later than 3 years after the date of implementation of the final pilot project testing a 2-year process, hold a final workshop to solicit public comment on the effectiveness of each tested 2-year process. (c)

Memorandum of understanding

The Commission shall, to the extent practicable, enter into a memorandum of understanding with any applicable Federal or State agency to implement a pilot project described in subsection (b). (d)

Reports

(1)

Pilot projects not implemented

If the Commission determines that no pilot project described in subsection (b) is practicable because no 2-year process is practicable, not later than 240 days after the date of enactment of this Act, the Commission shall submit to the Committee on Energy and Commerce of the House of Representatives and the Committee on Energy and Natural Resources of the Senate a report that— (A)describes the public comments received as part of the initial workshop held under subsection (b)(1); and (B)identifies the process, legal, environmental, economic, and other issues that justify the determination of the Commission that no 2-year process is practicable, with recommendations on how Congress may address or remedy the identified issues. (2)

Pilot projects implemented

If the Commission develops and implements pilot projects involving a 2-year process, not later than 60 days after the date of completion of the final workshop held under subsection (b)(4), the Commission shall submit to the Committee on Energy and Commerce of the House of Representatives and the Committee on Energy and Natural Resources of the Senate a report that— (A)describes the outcomes of the pilot projects; (B)describes the public comments from the final workshop on the effectiveness of each tested 2-year process; and (C)(i)outlines how the Commission will adopt policies under existing law (including regulations) that result in a 2-year process; (ii)outlines how the Commission will issue new regulations to adopt a 2-year process; or (iii)identifies the process, legal, environmental, economic, and other issues that justify a determination of the Commission that no 2-year process is practicable, with recommendations on how Congress may address or remedy the identified issues.

7.

DOE study of pumped storage and potential hydropower from conduits

(a)

In general

The Secretary of Energy shall conduct a study— (1)of the potential megawatts of hydropower that may be obtained from conduits (as defined by the Secretary) in the United States; and (2)of land, including identification of land, that is well-suited for pumped storage sites and is located near existing or potential sites of intermittent renewable energy resource development, such as wind farms. (b)

Report

Not later than 1 year after the date of enactment of this Act, the Secretary of Energy shall submit to the Committee on Energy and Commerce of the House of Representatives and the Committee on Energy and Natural Resources of the Senate a report that describes the results of the study conducted under subsection (a), including any recommendations.

8.

Report on memorandum of understanding on hydropower

Not later than 180 days after the date of enactment of this Act, the President shall submit to the Committee on Energy and Commerce of the House of Representatives and the Committee on Energy and Natural Resources of the Senate a report on actions taken by the Department of Energy and other Federal agencies to carry out the memorandum of understanding on hydropower entered into on March 24, 2010, with particular emphasis on actions taken by the agencies to work together and investigate ways to efficiently and responsibly facilitate the Federal permitting process for Federal and non-Federal hydropower projects at Federal facilities, within existing authority.

9.

Authorization of appropriations

(a)

Authorization of appropriations

There is authorized to be appropriated $5,000,000 to carry out this Act and the amendments made by this Act, of which not more than $1,000,000 shall be appropriated to the Department of Energy. (b)

Offset

Section 422(f) of the Energy Independence and Security Act of 2007 (42 U.S.C. 17082(f)) is amended— (1)by redesignating paragraph (4) as paragraph (5); (2)in paragraph (3), by striking 2012; and and inserting 2012;; (3)by inserting after paragraph (3) the following paragraph: (4)$145,000,000 for fiscal year 2013; and ; and (4)in paragraph (5), as redesignated by paragraph (1) of this subsection, by striking 2013 and inserting 2014.