[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 629 Introduced in Senate (IS)]

112th CONGRESS
  1st Session
                                 S. 629

             To improve hydropower, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 17, 2011

Ms. Murkowski (for herself, Mr. Begich, Mr. Bingaman, Ms. Cantwell, Mr. 
     Crapo, Mrs. Murray, Mr. Risch, Mr. Whitehouse, and Mr. Wyden) 
introduced the following bill; which was read twice and referred to the 
               Committee on Energy and Natural Resources

_______________________________________________________________________

                                 A BILL


 
             To improve hydropower, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Hydropower 
Improvement 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. Definitions.
Sec. 4. Sense of the Senate on the use of hydropower renewable 
                            resources.
Sec. 5. Competitive grants for improvements for increased hydropower 
                            production.
Sec. 6. Plan for research, development, and demonstration to increase 
                            hydropower capacity.
Sec. 7. Promoting hydropower development at nonpowered dams and closed 
                            loop pumped storage projects.
Sec. 8. Promoting conduit hydropower projects and small hydroelectric 
                            power projects.
Sec. 9. FERC authority to extend preliminary permit terms.
Sec. 10. Study of non-Federal hydropower development at Bureau of 
                            Reclamation projects.
Sec. 11. Study of potential hydropower from conduits.
Sec. 12. Study of pumped storage.
Sec. 13. Report on memorandum of understanding on hydropower.
Sec. 14. Nonapplication to Federal Power Marketing Administrations.
Sec. 15. Budgetary effects.

SEC. 2. FINDINGS.

    Congress finds that--
            (1) hydropower is the largest source of clean, renewable 
        electricity in the United States;
            (2) 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, avoiding approximately 
                200,000,000 metric tons of carbon emissions each year; 
                and
                    (B) approximately 100,000 megawatts of electric 
                capacity in the United States;
            (3) only 3 percent of the 80,000 dams in the United States 
        generate electricity so there is substantial potential for 
        adding hydropower generation to nonpower dams;
            (4) in every State, a tremendous untapped growth potential 
        exists in hydropower resources, including--
                    (A) efficiency improvements and capacity additions;
                    (B) adding generation to nonpower dams;
                    (C) conduit hydropower;
                    (D) conventional hydropower;
                    (E) pumped storage facilities; and
                    (F) new marine and hydrokinetic resources; and
            (5) improvements in increased hydropower production in the 
        United States have the potential--
                    (A) to increase the clean energy generation of the 
                United States;
                    (B) to improve project performance and result in 
                better environmental outcomes; and
                    (C) to provide ancillary benefits that include grid 
                reliability, energy storage, and integration services 
                for variable renewable resources.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Conduit.--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.
            (2) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.
            (3) Small hydroelectric power project.--The term ``small 
        hydroelectric power project'' has the meaning given the term in 
        section 4.30 of title 18, Code of Federal Regulations.

SEC. 4. SENSE OF THE SENATE ON THE USE OF HYDROPOWER RENEWABLE 
              RESOURCES.

    It is the sense of the Senate that the United States should 
increase substantially the capacity and generation of clean, renewable 
hydropower which will improve the environmental quality of resources in 
the United States and support local job creation and economic 
investment across the United States.

SEC. 5. COMPETITIVE GRANTS FOR IMPROVEMENTS FOR INCREASED HYDROPOWER 
              PRODUCTION.

    (a) In General.--As soon as practicable after the date of enactment 
of this Act, the Secretary shall establish in the Department of Energy 
a program under which the Secretary shall make competitive grants to 
eligible entities (including States and political subdivisions) that--
            (1) in the case of a hydroelectric power generating 
        facility in existence on the date of enactment of this Act--
                    (A) make efficiency improvements or capacity 
                additions at the facility; or
                    (B) address aging infrastructure at the facility;
            (2) add hydropower generation to a nonpower dam in 
        existence as of the date of enactment of this Act;
            (3) develop hydroelectric generation within existing 
        conduits;
            (4) develop and perform studies to meet applicable 
        environmental requirements for increased hydropower production; 
        or
            (5) carry out necessary environmental mitigation measures.
    (b) Administration.--
            (1) In general.--The Secretary shall establish terms and 
        conditions, including eligibility, for the receipt of grants 
        under this section.
            (2) Inclusions.--In carrying out this section, the 
        Secretary shall ensure that powerhouses and projects that 
        require new infrastructure are included among the eligible 
        entities that may receive grants under this section.
    (c) Cost Sharing.--The Secretary shall carry out the program under 
this section in compliance with sections 988 and 989 of the Energy 
Policy Act of 2005 (42 U.S.C. 16352, 16353).
    (d) Funding.--From amounts made available under section 625(e) of 
the Energy Independence and Security Act of 2007 (42 U.S.C. 17204(e)), 
the Secretary may use to carry out this section $50,000,000 for each of 
fiscal years 2012 through 2016, of which not more than 20 percent of 
the amount made available for a fiscal year may be used to carry out an 
individual project.

SEC. 6. PLAN FOR RESEARCH, DEVELOPMENT, AND DEMONSTRATION TO INCREASE 
              HYDROPOWER CAPACITY.

    (a) In General.--Not later than 270 days after the date of 
enactment of this Act, the Secretary shall establish and implement a 
plan--
            (1) to facilitate through research, development, and 
        demonstration the increased use and generation of renewable 
        hydropower; and
            (2) to coordinate research and development on innovative 
        technological advancements in hydropower equipment, efficiency, 
        and operations that can substantially improve environmental 
        quality.
    (b) Administration.--The Secretary shall--
            (1) review and update the plan on an annual basis; and
            (2) report on progress made pursuant to the plan on an 
        annual basis to the Committee of Energy and Natural Resources 
        of the Senate and the Committee on Energy and Commerce of the 
        House of Representatives.
    (c) Technical Assistance.--
            (1) In general.--As part of the plan established under this 
        section, the Secretary shall provide technical assistance to 
        applicants and licensees covered by part I of the Federal Power 
        Act (16 U.S.C. 792 et seq.) to develop and perform 
        environmental studies, or comply with applicable environmental 
        requirements, to obtain or renew licenses for hydropower 
        projects.
            (2) Consultation.--The Secretary shall carry out this 
        subsection in consultation with (as appropriate)--
                    (A) the Secretary of the Interior;
                    (B) the Secretary of Commerce;
                    (C) the Secretary of Agriculture; and
                    (D) the Administrator of the Environmental 
                Protection Agency.
    (d) Coordination.--The Secretary shall coordinate, to the maximum 
extent practicable, activities under this section with other programs 
of the Department of Energy and other Federal research programs.
    (e) Funding.--From amounts made available under section 812(g) of 
the Energy Policy Act of 2005 (42 U.S.C. 16161(g)), the Secretary may 
use to carry out this section $50,000,000 for each of fiscal years 2012 
through 2016.

SEC. 7. 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 certain 
hydropower development during the 2-year period beginning on the date 
of commencement of the prefiling licensing process of the Commission 
(referred to in this section as a ``2-year process'').
    (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 any pilot project to test a 2-year process, hold a final 
        workshop to solicit public comment on the effectiveness of the 
        pilot project.
    (c) Memorandum of Understanding.--The Commission shall, to the 
maximum 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 the pilot projects described in subsection (b) 
        are not practicable, not later than 240 days after the date of 
        enactment of this Act, the Commission shall submit to the 
        Committee on Energy and Natural Resources of the Senate and the 
        Committee on Energy and Commerce of the House of 
        Representatives 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 a 2-year process 
                is not 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 
        described in subsection (b), not later than 60 days after the 
        date of completion of any final workshop held under subsection 
        (b)(3), the Commission shall submit to the Committee on Energy 
        and Natural Resources of the Senate and the Committee on Energy 
        and Commerce of the House of Representatives a report that--
                    (A) describes the outcomes of the pilot projects;
                    (B) describes the public comments from the final 
                workshop on the effectiveness of the pilot projects; 
                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 proceed with 
                a rulemaking to adopt a 2-year process in the 
                regulations of the Commission; or
                    (iii) identifies the process, legal, environmental, 
                economic, and other issues that justify the 
                determination of the Commission that a 2-year process 
                is not practicable, with recommendations on how 
                Congress may address or remedy the identified issues.

SEC. 8. PROMOTING CONDUIT HYDROPOWER PROJECTS AND SMALL HYDROELECTRIC 
              POWER PROJECTS.

    (a) Conduit Hydropower Projects.--
            (1) In general.--Section 30 of the Federal Power Act (16 
        U.S.C. 823a) is amended--
                    (A) in subsection (a), by striking paragraphs (1) 
                and (2) and inserting the following:
            ``(1) is located on non-Federal lands or Federal lands; and
            ``(2) uses for the generation only the hydroelectric 
        potential of a conduit.'';
                    (B) in subsection (c)--
                            (i) in the matter preceding paragraph (1), 
                        by striking ``the United States'' and all that 
                        follows through ``and the State agency'' and 
                        inserting ``the Secretary of the department 
                        that supervises the land on which the facility 
                        is or will be located, the United States Fish 
                        and Wildlife Service, the National Marine 
                        Fisheries Service, and the State agency''; and
                            (ii) in paragraph (1), by striking ``the 
                        Fish and Wildlife Service National Marine 
                        Fisheries Service'' and inserting ``the 
                        Secretary of the department that supervises the 
                        land on which the facility is or will be 
                        located, the United States Fish and Wildlife 
                        Service, the National Marine Fisheries 
                        Service,''; and
                    (C) by adding at the end the following:
    ``(f) Savings Clause.--Nothing in this section alters or affects 
the authority of the Secretary of the Interior under the reclamation 
laws--
            ``(1) to authorize private hydropower development under a 
        lease of power privilege; or
            ``(2) to develop other hydropower generation at facilities 
        of the Bureau of Reclamation.
    ``(g) Definition of Conduit.--In 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.''.
            (2) Memorandum of understanding on conduit hydropower 
        projects.--Not later than 180 days after the date of enactment 
        of this Act, the Federal Energy Regulatory Commission shall 
        enter into a memorandum of understanding with relevant Federal 
        agencies that have conditioning authority under section 
        30(c)(1) of the Federal Power Act (16 U.S.C.823a(c)(1))--
                    (A) to establish a coordinated and more efficient 
                approach to any environmental impact statement or 
                similar analysis required under the National 
                Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
                seq.) relating to the consideration of conduit 
                hydropower projects;
                    (B) to develop and carry out an expedited approval 
                process for conduit hydropower projects, including 
                using existing authority--
                            (i) to aggregate appropriate conduit 
                        projects for consideration in a consolidated 
                        license or exemption; and
                            (ii) to remove a conduit project from the 
                        aggregated projects if the removal is necessary 
                        to facilitate approval of the consolidated 
                        license or exemption.
            (3) Public workshops and pilot projects on conduit 
        hydropower projects.--
                    (A) In general.--As soon as practicable after the 
                date of enactment of this Act, the Commissioner of 
                Reclamation and the Federal Energy Regulatory 
                Commission shall conduct 3 regional public workshops 
                with relevant stakeholders, including water users and 
                the environmental community, to identify ways in which 
                the conduit approval process may be modified--
                            (i) to reduce barriers to conduit 
                        hydropower projects, including barriers created 
                        by project costs or the timeframe to approve 
                        and maintain adequate environmental, health, 
                        and safety protections;
                            (ii) to develop pilot projects in 
                        conjunction with voluntary participants to 
                        demonstrate flexible and innovative ways to 
                        reduce barriers to conduit hydropower while 
                        maintaining adequate environmental, health, and 
                        safety protections; and
                            (iii) to develop a category of 
                        microhydropower conduit projects, such as 
                        projects involving municipal pressure reduction 
                        valves and the pressurization of existing 
                        irrigation conveyances, that may be approved 
                        through a simple application process while 
                        maintaining adequate environmental, health, and 
                        safety protections.
                    (B) Report.--Not later than 180 days after the date 
                of completion of the regional workshops under 
                subparagraph (A), the Commissioner of Reclamation and 
                the Federal Energy Regulatory Commission shall submit 
                to the appropriate committees of Congress a report that 
                describes any recommendations for the conduit approval 
                process developed in the workshops and pilot projects 
                described in subparagraph (A).
                    (C) Funding.--From amounts made available under 
                section 812(g) of the Energy Policy Act of 2005 (42 
                U.S.C. 16161(g)), the Commissioner of Reclamation and 
                the Federal Energy Regulatory Commission may use to 
                carry out pilot projects described in subparagraph 
                (A)(ii) $5,000,000 for the period of fiscal years 2012 
                through 2016, to remain available until expended.
    (b) Small Hydroelectric Power Projects.--
            (1) In general.--As soon as practicable after the date of 
        enactment of this Act, the Federal Energy Regulatory Commission 
        shall conduct 3 regional public workshops with relevant 
        stakeholders, including States and the environmental 
        community--
                    (A) to reduce barriers for small hydroelectric 
                power projects, including barriers created by project 
                costs or the timeframe to approve and maintain adequate 
                environmental, health, and safety protections;
                    (B) to develop pilot projects in conjunction with 
                voluntary participants to demonstrate flexible and 
                innovative ways to reduce barriers for small 
                hydroelectric power projects while maintaining adequate 
                environmental, health, and safety protections;
                    (C) to use existing authority--
                            (i) to aggregate appropriate small 
                        hydroelectric power projects for consideration 
                        in a consolidated license or exemption; and
                            (ii) to remove a small hydroelectric power 
                        project from the aggregated projects if the 
                        removal is necessary to facilitate approval of 
                        the consolidated license or exemption; and
                    (D) to determine whether the rated capacity for 
                small hydroelectric power projects established by the 
                Commission should be increased from 5 electrical 
                megawatts.
            (2) Report.--Not later than 180 days after the date of 
        completion of the workshops under paragraph (1), the Federal 
        Energy Regulatory Commission shall submit to the appropriate 
        committees of Congress a report that describes any 
        recommendations developed in the workshops and pilot projects 
        described in paragraph (1).
            (3) Funding.--From amounts made available under section 
        812(g) of the Energy Policy Act of 2005 (42 U.S.C. 16161(g)), 
        the Federal Energy Regulatory Commission may use to carry out 
        pilot projects described in paragraph (1)(B) $5,000,000 for the 
        period of fiscal years 2012 through 2016, to remain available 
        until expended.

SEC. 9. 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.''.

SEC. 10. STUDY OF NON-FEDERAL HYDROPOWER DEVELOPMENT AT BUREAU OF 
              RECLAMATION PROJECTS.

    (a) Study of Non-Federal Hydropower Development at Bureau of 
Reclamation Projects.--Not later than 180 days after the date of 
enactment of this section, the Commissioner of Reclamation (in 
consultation with the Federal Energy Regulatory Commission, preference 
power customers, water users, and other interested stakeholders) 
shall--
            (1) conduct a study of barriers to non-Federal hydropower 
        development at Bureau of Reclamation projects; and
            (2) report to Congress the results of the study.
    (b) Memorandum of Understanding.--
            (1) In general.--Not later than 180 days after the date of 
        enactment of this section, the Commissioner of Reclamation and 
        the Federal Energy Regulatory Commission shall develop and 
        issue an interagency memorandum of understanding to improve the 
        coordination and timeliness of the non-Federal development of 
        hydropower resources at Bureau of Reclamation projects.
            (2) Content.--The memorandum of understanding described in 
        paragraph (1) shall identify--
                    (A) which agency has responsibility for permitting 
                and licensing non-Federal development of hydropower at 
                each Bureau of Reclamation project; and
                    (B) the process or procedure to be followed for 
                non-Federal hydropower development, including conduit 
                hydroelectric power, at each Bureau of Reclamation 
                project.
    (c) Administration.--Nothing in this section alters or affects the 
authority of the Secretary of the Interior under the reclamation laws--
            (1) to authorize private hydropower development under a 
        lease of power privilege; or
            (2) to develop other hydropower generation at facilities of 
        the Bureau of Reclamation.

SEC. 11. STUDY OF POTENTIAL HYDROPOWER FROM CONDUITS.

    (a) In General.--The Secretary shall conduct a study of the 
potential quantity of hydropower that may be obtained from conduits in 
the United States.
    (b) Report.--Not later than 1 year after the date of enactment of 
this Act, the Secretary shall submit to the Committee on Energy and 
Natural Resources of the Senate and the Committee on Energy and 
Commerce of the House of Representatives a report that describes the 
results of the study conducted under subsection (a), including any 
recommendations.

SEC. 12. STUDY OF PUMPED STORAGE.

    (a) In General.--The Secretary, in coordination with the Director 
of the United States Geological Survey, shall conduct a study 
(including identification) of Federal and non-Federal land that is 
well-suited for pumped storage sites and is located near existing or 
potential sites of intermittent renewable resource development, such as 
wind farms.
    (b) Report.--Not later than 1 year after the date of enactment of 
this Act, the Secretary shall submit to the Committee on Energy and 
Natural Resources of the Senate and the Committee on Energy and 
Commerce of the House of Representatives a report that describes the 
results of the study conducted under subsection (a), including any 
recommendations. 

SEC. 13. 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 Natural 
Resources of the Senate and the Committee on Energy and Commerce of the 
House of Representatives a report on actions taken by the Department of 
Energy, the Department of the Interior, and the Corps of Engineers 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.

SEC. 14. NONAPPLICATION TO FEDERAL POWER MARKETING ADMINISTRATIONS.

    (a) In General.--This Act and the amendments made by this Act shall 
not limit the authority of the Bureau of Reclamation to develop new 
hydropower at existing Federal projects in a manner that is consistent 
with Federal law, power and nonpower operating requirements of the 
Federal projects, and laws governing Federal Power Marketing 
Administrations.
    (b) Modifications.--Nothing in this Act limits the authority under 
existing law of a Federal Power Marketing Administrator in the event 
that operations at Federal projects with hydropower facilities are 
modified.

SEC. 15. BUDGETARY EFFECTS.

    The budgetary effects of this Act, for the purpose of complying 
with the Statutory Pay-As-You-Go Act of 2010, shall be determined by 
reference to the latest statement titled ``Budgetary Effects of PAYGO 
Legislation'' for this Act, submitted for printing in the Congressional 
Record by the Chairman of the Senate Budget Committee, provided that 
such statement has been submitted prior to the vote on passage.
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