[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4045 Introduced in House (IH)]

<DOC>






118th CONGRESS
  1st Session
                                H. R. 4045

   To modernize the hydropower licensing process and to promote next-
        generation hydropower projects, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 12, 2023

  Mrs. Rodgers of Washington introduced the following bill; which was 
 referred to the Committee on Energy and Commerce, and in addition to 
   the Committee on Oversight and Accountability, 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 modernize the hydropower licensing process and to promote next-
        generation hydropower projects, 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.

    This Act may be cited as the ``Hydropower Clean Energy Future 
Act''.

SEC. 2. CONFIRMING THAT HYDROPOWER IS AN ESSENTIAL RENEWABLE RESOURCE.

    (a) Sense of Congress on the Use of Hydropower Renewable 
Resources.--It is the sense of Congress that--
            (1) hydropower is a renewable resource for purposes of all 
        Federal programs and is an essential source of energy in the 
        United States; and
            (2) the United States should protect existing hydropower 
        resources and increase substantially the capacity and 
        generation of clean, renewable hydropower resources to address 
        a changing climate and improve environmental quality in the 
        United States.
    (b) Modifying Definitions of Renewable Energy To Include 
Hydropower.--
            (1) Energy policy act of 2005.--Section 203 of the Energy 
        Policy Act of 2005 (42 U.S.C. 15852) is amended--
                    (A) in subsection (a), by amending paragraphs (1) 
                through (3) to read as follows:
            ``(1) Not less than 20 percent in fiscal years 2024 through 
        2025.
            ``(2) Not less than 23 percent in fiscal years 2026 through 
        2027.
            ``(3) Not less than 25 percent in fiscal year 2028 and each 
        fiscal year thereafter.''; and
                    (B) in subsection (b), by striking paragraph (2) 
                and inserting the following:
            ``(2) Renewable energy.--The term `renewable energy' means 
        energy produced from solar, wind, biomass, landfill gas, ocean 
        (including tidal, wave, current, and thermal), geothermal, 
        municipal solid waste, or hydropower.''.
            (2) Other federal regulations, orders, and policies.--Not 
        later than 180 days after the date of enactment of this Act, 
        each Federal department and agency 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 demonstrating that the department or 
        agency has amended any applicable regulation, order, or other 
        policy of the department or agency related to renewable energy 
        to ensure treatment of hydropower by the Federal Government 
        consistent with the amendments made by paragraph (1).
    (c) Licenses for Construction.--Section 4(e) of the Federal Power 
Act (16 U.S.C. 797(e)) is amended, in the first sentence, by inserting 
``to mitigate the effects of the applicable project on such 
reservation, so as to provide'' after ``deem necessary'' in the first 
proviso.
    (d) Operation of Navigation Facilities.--Section 18 of the Federal 
Power Act (16 U.S.C. 811) is amended by adding before the period at the 
end of the first sentence ``to mitigate effects of the applicable 
project''.

SEC. 3. PROTECTING AND PROMOTING SMALL AND NEXT-GENERATION HYDROPOWER 
              PROJECTS.

    (a) Exemptions From Licensing Requirements for Certain Small 
Hydroelectric Power Projects.--Section 405 of the Public Utility 
Regulatory Policies Act of 1978 (16 U.S.C. 2705) is amended by striking 
subsection (d) and inserting the following:
    ``(d) Exemptions From Licensing in Certain Cases.--
            ``(1) In general.--Subject to paragraphs (2) and (3), the 
        Commission may in its discretion (by rule or order), upon 
        application and on a case-by-case basis or on the basis of 
        classes or categories of projects, grant an exemption in whole 
        or in part from the requirements (including the licensing 
        requirements) of part I of the Federal Power Act to any small 
        hydroelectric power project--
                    ``(A) having a proposed installed capacity of 40 
                megawatts or less; or
                    ``(B) for which a license was issued under part I 
                of the Federal Power Act and the licensee applies for 
                an exemption under this subsection, if--
                            ``(i) the license was issued after the date 
                        of enactment of the Electric Consumers 
                        Protection Act of 1986;
                            ``(ii) the Commission determines, based on 
                        information available to the Commission, that 
                        continued operation of the project is not 
                        likely to jeopardize the continued existence of 
                        any species listed as a threatened species or 
                        an endangered species under the Endangered 
                        Species Act of 1973;
                            ``(iii) the Commission determines, based on 
                        information available to the Commission, that 
                        continued operation of the project is not 
                        likely to result in the destruction or adverse 
                        modification of an area designated as critical 
                        habitat for any species listed as a threatened 
                        species or an endangered species under the 
                        Endangered Species Act of 1973; and
                            ``(iv) the project has an installed 
                        capacity of 40 megawatts or less.
            ``(2) Requirements.--An exemption granted under paragraph 
        (1) shall be subject to the same limitations (to ensure 
        protection for fish and wildlife as well as other environmental 
        concerns) as those which are set forth in subsections (c) and 
        (d) of section 30 of the Federal Power Act with respect to 
        determinations made and exemptions granted under subsection (b) 
        of such section 30 and subsections (c) and (d) of such section 
        30 shall apply with respect to actions taken and exemptions 
        granted under this subsection.
            ``(3) Effects.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the granting of an exemption to a 
                project under this subsection shall in no case have the 
                effect of waiving or limiting the application (to such 
                project) of the second sentence of subsection (b) of 
                this section.
                    ``(B) Environmental review.--The Commission 
                granting an exemption under paragraph (1) may not be 
                considered a major Federal action under section 
                102(2)(C) of the National Environmental Policy Act of 
                1969.
            ``(4) Exemption process.--The Commission shall make a 
        determination with respect to any application for an exemption 
        under paragraph (1)(B) not later than 90 days after submission 
        of such application, which period shall include notice and 
        opportunity for public comment. Any exemption granted under 
        paragraph (1)(B) shall become effective upon the expiration of 
        the applicable existing license.''.
    (b) Expedited Licensing of Next-Generation Hydropower.--Part I of 
the Federal Power Act (16 U.S.C. 792 et seq.) is amended by adding at 
the end the following:

``SEC. 37. EXPEDITED LICENSING OF NEXT-GENERATION HYDROPOWER PROJECTS.

    ``(a) In General.--The Commission shall issue licenses for all 
next-generation hydropower projects in accordance with this section.
    ``(b) Definitions.--In this section:
            ``(1) Emerging hydropower technology project.--The term 
        `emerging hydropower technology project' means a project that 
        the Commission determines--
                    ``(A) will produce electricity from a generator 
                driven by a turbine that converts the potential energy 
                of falling or flowing water;
                    ``(B) will utilize turbine or generating 
                technology, an energy storage method, or a measure to 
                protect, mitigate, or enhance environmental resources, 
                that is not in widespread, utility-scale use in the 
                United States as of the date of enactment of this 
                section;
                    ``(C) will not be, based on information available 
                to the Commission, likely to jeopardize the continued 
                existence of any species listed as a threatened species 
                or an endangered species under the Endangered Species 
                Act of 1973; and
                    ``(D) will not be, based on information available 
                to the Commission, likely to result in the destruction 
                or adverse modification of an area designated as 
                critical habitat for any species listed as a threatened 
                species or an endangered species under the Endangered 
                Species Act of 1973.
            ``(2) Next-generation hydropower project.--The term `next-
        generation hydropower project' means a project that--
                    ``(A) may be licensed under this Act;
                    ``(B) is not--
                            ``(i) a qualifying conduit hydropower 
                        facility under section 30; or
                            ``(ii) exempted from licensing under--
                                    ``(I) section 30; or
                                    ``(II) section 405 of the Public 
                                Utility Regulatory Policies Act of 
                                1978; and
                    ``(C) is--
                            ``(i) an emerging hydropower technology 
                        project;
                            ``(ii) a qualifying facility, as defined in 
                        section 34;
                            ``(iii) a qualifying closed-loop pumped 
                        storage project, as defined in section 35;
                            ``(iv) a marine or hydrokinetic project, 
                        including a project that utilizes a wave 
                        technology, tidal technology, or in-river 
                        technology; or
                            ``(v) a hydropower facility within an 
                        irrigation, water supply, industrial, 
                        agricultural, or other open or closed water 
                        conduit system.
    ``(c) Expedited Licensing Process.--
            ``(1) Notification of intent.--
                    ``(A) Filing of notification.--An applicant for any 
                next-generation hydropower project shall commence the 
                licensing process by filing a notification of intent 
                with the Commission.
                    ``(B) Deadline for filing.--Notwithstanding section 
                15(b)(1), an applicant for a next-generation hydropower 
                project shall file a notification of intent at least 2 
                years before the expiration of the existing license, if 
                applicable.
            ``(2) Filing of application.--
                    ``(A) General deadline.--An applicant for a next-
                generation hydropower project shall submit to the 
                Commission an application not later than 1 year after 
                filing the notification of intent under paragraph (1).
                    ``(B) Existing licencee deadline.--Notwithstanding 
                section 15(c)(1), an application for any next-
                generation hydropower project shall be filed with the 
                Commission at least 1 year before the expiration of the 
                term of the existing license, if applicable.
            ``(3) Deadline for issuance.--The Commission shall take 
        final action on a license for a next-generation hydropower 
        project under this section not later than 2 years after the 
        applicant notifies the Commission of its intent to file an 
        application for a license, as provided under paragraph (1).
    ``(d) Requirements.--In issuing a license under this section the 
Commission and all resource agencies with regulatory responsibilities 
in the licensing process shall--
            ``(1) maximize reliance on existing studies and information 
        and require any person or agency requesting a new study or 
        information to demonstrate that collection of any new data or 
        preparation of any new study will not jeopardize the 
        Commission's ability to meet the licensing deadline under 
        subsection (c)(3);
            ``(2) consider whether obligations under the National 
        Environmental Protection Act of 1969 may be met through 
        preparation of an environmental assessment or supplementing a 
        previously prepared environmental assessment or environmental 
        impact statement;
            ``(3) eliminate any nonessential meetings, reports, and 
        paperwork, including interim study reports and a draft license 
        application or similar document, without compromising effective 
        consultation with, and participation of, Federal and State 
        resource agencies, Indian tribe, and the public; and
            ``(4) consider existing project works and other 
        infrastructure to be included in the environmental baseline.
    ``(e) Rule.--Not later than 90 days after the date of enactment of 
this section, and after consultation with the task force described in 
subsection (f), which 90 days shall include public notice and 
opportunity for comment, the Commission shall issue a rule implementing 
this section. Such rule shall include a process, not to exceed 60 days, 
for the Commission to determine on a case-by-case basis whether a 
proposed or existing project qualifies as a next-generation hydropower 
project prior to the initiation of the licensing or relicensing 
process.
    ``(f) Task Force.--The Commission shall convene a task force, with 
appropriate Federal and State agencies, Indian tribes, and licensees 
under this part represented, to coordinate the regulatory processes 
associated with the authorizations required to license next-generation 
hydropower projects pursuant to this section.''.

SEC. 4. IDENTIFYING AND REMOVING MARKET BARRIERS TO HYDROPOWER.

    (a) Report on Hydropower Barriers.--
            (1) In general.--Not later than 270 days after the date of 
        enactment of this Act, the Federal Energy Regulatory 
        Commission, in consultation with the Secretary of Energy, 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--
                    (A) describing any barriers to the development and 
                proper compensation of conventional, storage, conduit, 
                and emerging hydropower technologies caused by--
                            (i) rules of Transmission Organizations (as 
                        defined in section 3 of the Federal Power Act 
                        (16 U.S.C. 796));
                            (ii) regulations or policies--
                                    (I) of the Commission; or
                                    (II) under the Federal Power Act 
                                (16 U.S.C. 791a et seq.); or
                            (iii) other Federal and State laws and 
                        policies unique to hydropower development, 
                        operation, and regulation, as compared to other 
                        sources of electricity;
                    (B) containing recommendations of the Commission 
                for reducing barriers described in subparagraph (A) 
                across regulatory and market sectors;
                    (C) identifying and determining any regulatory, 
                market, procurement, or cost recovery mechanisms that 
                would--
                            (i) encourage development of conventional, 
                        storage, conduit, and emerging hydropower 
                        technologies; and
                            (ii) properly compensate conventional, 
                        storage, conduit, and emerging hydropower 
                        technologies for the full range of services 
                        provided to the electric grid, including--
                                    (I) balancing electricity supply 
                                and demand;
                                    (II) ensuring grid reliability;
                                    (III) providing ancillary services;
                                    (IV) contributing to the 
                                decarbonization of the electric grid; 
                                and
                                    (V) integrating intermittent power 
                                sources into the grid in a cost-
                                effective manner; and
                    (D) identifying ownership and development models 
                that could reduce barriers to the development of 
                conventional, storage, conduit, and emerging hydropower 
                technologies, including--
                            (i) opportunities for risk-sharing 
                        mechanisms and partnerships, including co-
                        ownership models; and
                            (ii) opportunities to foster lease-sale and 
                        lease-back arrangements with publicly owned 
                        electric utilities.
            (2) Commission proceedings.--The Commission shall base the 
        report under paragraph (1) on the findings of the Commission 
        in--
                    (A) Docket No. AD16-20;
                    (B) Docket No. RM16-23; and
                    (C) any other relevant proceedings.
            (3) Technical conference and public comment.--In preparing 
        the report under paragraph (1), the Commission shall solicit 
        public input, including by convening a technical conference and 
        providing an opportunity for public submission of written 
        comments on a draft report.
    (b) Definitions.--In this section:
            (1) Ancillary services.--The term ``ancillary services'' 
        means the specialty services and functions provided by the 
        electric grid that facilitate and support the continuous flow 
        of electricity so that supply will continually meet demand, 
        including--
                    (A) autonomous dynamic voltage support;
                    (B) balancing;
                    (C) black start capabilities;
                    (D) frequency control;
                    (E) load following;
                    (F) operating, flexibility, contingency, and other 
                reserves;
                    (G) reactive power; and
                    (H) synchronized regulation.
            (2) Conventional, storage, conduit, and emerging hydropower 
        technologies.--The term ``conventional, storage, conduit, and 
        emerging hydropower technologies'' means hydropower in all its 
        forms and modes of operation, including--
                    (A) the use of dams or similar infrastructure to 
                store water in a reservoir or divert flows from a 
                waterway, and to release stored or diverted water 
                through a turbine to generate electricity according to 
                any mode of operation, such as run-of-river, peaking, 
                reregulating, storage, or load following;
                    (B) a configuration of two water reservoirs at 
                different elevations that can generate power as water 
                moves down through a turbine, and pump water back to 
                the upper reservoir when the turbine operations are 
                reversed, including both closed- and open-loop systems;
                    (C) marine and hydrokinetic technologies, including 
                wave, tidal, and in-river systems;
                    (D) mini- and micro-hydropower facilities within 
                irrigation, water supply, industrial, agricultural, or 
                other open or closed water conduit systems; and
                    (E) other facilities that produce electricity from 
                generators driven by turbines that convert the 
                potential energy of falling or flowing water.

SEC. 5. MODERNIZING HYDROPOWER LICENSING.

    Part I of the Federal Power Act (16 U.S.C. 792 et seq.) is further 
amended by adding at the end the following:

``SEC. 38. LICENSING PROCESS COORDINATION AND IMPROVEMENT.

    ``(a) Definition of Federal Authorization.--In this section, the 
term `Federal authorization' means any authorization required under 
Federal law (including any license, condition of any license by a 
Secretary under section 4(e), prescription submitted by a Secretary 
under section 18, permit, special use authorization, certification, 
opinion, consultation, determination, or other approval) with respect 
to an application for a license under this part.
    ``(b) Designation as Lead Agency.--
            ``(1) In general.--The Commission shall act as the lead 
        agency for purposes of all applicable Federal authorizations 
        (including for purposes of complying with the National 
        Environmental Policy Act of 1969), and for purposes of 
        complying with any required State or local environmental 
        reviews.
            ``(2) Other agencies.--Each Federal, State, and local 
        government agency considering an aspect of an application for a 
        Federal authorization shall coordinate with the Commission and 
        comply with the deadline established in the schedule developed 
        for the license under this part, in accordance with the rule 
        issued under subsection (d)(2)(C).
    ``(c) Use of Existing Studies.--
            ``(1) In general.--To the maximum extent practicable and in 
        accordance with the best available science, the Commission and 
        other Federal and State agencies with a responsibility for a 
        Federal authorization shall--
                    ``(A) use relevant existing studies and data; and
                    ``(B) avoid duplicating current, existing studies 
                that are applicable to the relevant project.
            ``(2) Demonstration.--When requiring any new study or 
        collection of information, the Commission or other Federal or 
        State agency with a responsibility for a Federal authorization 
        shall--
                    ``(A) explain how the new study or other 
                information is necessary to support the agency's 
                decisionmaking with respect to the Federal 
                authorization;
                    ``(B) identify how existing information reasonably 
                available to the agency is inadequate to support the 
                agency's decisionmaking with substantial evidence; and
                    ``(C) include an analysis of how the value of the 
                required new study or other information outweighs the 
                cost of producing it.
    ``(d) Schedule.--
            ``(1) Timing for issuance.--It is the sense of Congress 
        that, except as otherwise provided in this part, all Federal 
        authorizations required for a project should be issued within a 
        reasonable time, so as to facilitate a final Commission 
        licensing decision within 2 years after the date on which the 
        license application for the project under this part is 
        considered to be complete by the Commission.
            ``(2) Commission schedule.--
                    ``(A) In general.--The Commission, in accordance 
                with the rule issued under subparagraph (C), shall--
                            ``(i) establish a schedule for--
                                    ``(I) all filings and issuances 
                                necessary and appropriate for its 
                                issuance of a license issued under this 
                                part; and
                                    ``(II) the issuance of all Federal 
                                authorizations for the applicable 
                                project; and
                            ``(ii) issue such schedule when the 
                        Commission determines that the license 
                        application for the project is ready for 
                        environmental analysis.
                    ``(B) Requirements.--In establishing the schedule 
                under subparagraph (A), the Commission shall--
                            ``(i) consult and cooperate with the 
                        Federal and State agencies responsible for a 
                        Federal authorization;
                            ``(ii) ensure the expeditious completion of 
                        all proceedings relating to a Federal 
                        authorization; and
                            ``(iii) comply with applicable schedules 
                        established by Federal law with respect to a 
                        Federal authorization.
                    ``(C) Rulemaking.--
                            ``(i) Commission rulemaking to establish 
                        process to set schedule.--Not later than 180 
                        days after the date of enactment of this 
                        section, the Commission, in consultation with 
                        appropriate Federal and State agencies and 
                        after providing notice and opportunity for 
                        public comment, shall issue a final rule 
                        establishing a process for setting a schedule 
                        under subparagraph (A).
                            ``(ii) Considerations.--In issuing a rule 
                        under this subparagraph, the Commission shall 
                        ensure that the schedule for each Federal 
                        authorization--
                                    ``(I) includes deadlines for 
                                actions by--
                                            ``(aa) any Federal or State 
                                        agency with responsibilities 
                                        for a Federal authorization;
                                            ``(bb) the applicant;
                                            ``(cc) the Commission; and
                                            ``(dd) other agencies and 
                                        participants in a proceeding;
                                    ``(II) is developed in consultation 
                                with the applicant and any Federal or 
                                State agency with responsibility for 
                                the applicable Federal authorization;
                                    ``(III) provides an opportunity for 
                                any Federal or State agency with 
                                responsibility for a Federal 
                                authorization to identify and resolve 
                                issues of concern, consistent with 
                                subsections (e) and (f);
                                    ``(IV) complies with applicable 
                                schedules established under Federal 
                                law;
                                    ``(V) ensures expeditious 
                                completion of all proceedings required 
                                under Federal and State law, to the 
                                maximum extent practicable; and
                                    ``(VI) facilitates completion of 
                                Federal and State agency studies, 
                                reviews, and any other procedures 
                                required prior to, or concurrent with, 
                                the preparation of the environmental 
                                document of the Commission required 
                                under the National Environmental Policy 
                                Act of 1969, to the maximum extent 
                                practicable.
            ``(3) Adherence to schedule.--
                    ``(A) In general.--The Commission, Federal, and 
                State agencies with responsibility for a Federal 
                authorization, the license applicant, and all other 
                agencies and other participants in proceedings for 
                Federal authorizations for the project shall meet the 
                deadlines established by the schedule developed under 
                paragraph (2).
                    ``(B) Extension of schedule deadlines.--
                            ``(i) Federal authorizations.--A Federal or 
                        State agency that is unable to complete its 
                        disposition of a Federal authorization by the 
                        deadline set forth in the schedule established 
                        by the Commission under paragraph (2) shall, 
                        not later than 30 days prior to such deadline, 
                        file for an extension with the Commission. The 
                        Commission shall issue a one-time extension of 
                        up to 90 days to any such Federal or State 
                        agency upon a demonstration of good cause.
                            ``(ii) Other extensions.--The Commission 
                        may grant extensions requested by the license 
                        applicant or other licensing participants to 
                        facilitate settlement, address unforeseen 
                        circumstances, or accommodate other showings of 
                        good cause if the Commission determines that 
                        any such extension would reduce the overall 
                        time period for decisionmaking on required 
                        Federal authorizations for the project, 
                        increase the administrative efficiency of the 
                        processes for Federal authorizations, or 
                        improve the quality of information available to 
                        Federal and State agencies with a 
                        responsibility for a Federal authorization.
                            ``(iii) Reissuance of schedule.--If the 
                        Commission grants an extension under this 
                        paragraph, the Commission shall reissue the 
                        schedule and applicable deadlines to reflect 
                        the extension of time granted.
                    ``(C) Limitation.--Notwithstanding the Commission's 
                authority to extend the schedule as provided in 
                subparagraph (B), the Commission shall not grant any 
                extension that would increase by 1 year or longer the 
                time period in the original schedule issued under 
                paragraph (2) for obtaining all Federal authorizations 
                for the applicable project.
            ``(4) Failure to meet schedule deadlines.--
                    ``(A) In general.--Subject to subparagraph (C), if 
                a Federal or State agency fails to complete its 
                disposition of a Federal authorization in accordance 
                with the schedule deadline established under paragraph 
                (2) (as may be extended under paragraph (3))--
                            ``(i) in the case of a Federal agency, 
                        $5,000 of unobligated funds shall be rescinded; 
                        or
                            ``(ii) in the case of a State agency, 
                        $5,000 of unobligated funds shall be rescinded 
                        from Federal fish and wildlife or water 
                        resources funding programs to the State.
                    ``(B) Subsequent rescission.--Subject to 
                subparagraph (C), for each additional week after any 
                deadline established by the Commission under paragraph 
                (2) (as may be extended under paragraph (3)) remains 
                uncompleted by a Federal or State agency with a 
                responsibility for a Federal authorization, an 
                additional rescission of $5,000 shall occur as provided 
                in subparagraph (A).
                    ``(C) Maximum annual rescission.--For each 
                individual Federal authorization for a project, the 
                total amounts rescinded under subparagraphs (A) and (B) 
                shall not exceed, in any fiscal year, $100,000.
                    ``(D) Limitation.--No head of a Federal or State 
                department or agency shall reprogram funds from another 
                Federal account or program for the loss of the funds 
                under this paragraph. No head of a Federal or State 
                agency shall report or include any rescinded funds as 
                an administrative cost for purposes of annual charges 
                under section 10(e).
    ``(e) Inconsistent or Conflicting License Terms.--
            ``(1) Consultation to resolve inconsistency or conflict.--
                    ``(A) In general.--If a term or condition of a 
                Federal authorization submitted for inclusion in a 
                license under this part conflicts or is otherwise 
                inconsistent with another such term or condition, the 
                Commission shall initiate and facilitate consultation 
                between the Federal or State resource agencies 
                submitting conflicting or inconsistent terms or 
                conditions, to attempt to resolve the inconsistency or 
                conflict, including with any such conditions 
                recommended for inclusion in the license by the 
                Commission.
                    ``(B) Meetings.--The consultation period under this 
                subsection shall extend up to 90 days and shall include 
                at least one technical conference or similar meeting. 
                The Commission shall issue notice of any such 
                conference or other consultation meeting, which shall 
                be open to participation by the license applicant, 
                other agencies, and other licensing participants.
                    ``(C) Amendment and reissuance.--If the agencies 
                submitting the terms or conditions resolve the 
                inconsistency or conflict, the Commission and other 
                consulting agencies shall set a reasonable schedule and 
                deadline, that is not later than 90 days after the 
                conclusion of the consultation, for the agencies to 
                amend and reissue their Federal authorizations to 
                reflect the resolution, as appropriate.
            ``(2) Resolution of inconsistency or conflict.--
                    ``(A) Statements.--If agencies are unable to 
                resolve an inconsistency or conflict under paragraph 
                (1), not later than 30 days after the conclusion of the 
                consultation process under such paragraph, the agencies 
                shall submit to the public record maintained by the 
                Commission a statement that identifies the 
                inconsistency or conflict, explains the position taken 
                by each agency causing the inconsistency or conflict, 
                and provides an analysis, supported by information in 
                the public record, of the factual basis for the 
                inconsistent or conflicting position taken by each 
                agency.
                    ``(B) Referral.--Following such submission, the 
                Commission shall refer the matter for resolution as 
                provided in subsection (f).
    ``(f) Resolution of Interagency Disputes.--
            ``(1) Referral to omb.--For any dispute under subsection 
        (c), (d), or (e) among Federal and State agencies with 
        responsibility for a Federal authorization, as well as any 
        dispute between any such agency and the license applicant, the 
        Commission may, upon its own motion or the request of the head 
        of any such agency or the license applicant, refer the matter 
        to the Director of the Office of Management and Budget.
            ``(2) Action by omb.--With respect to any dispute referred 
        to the Director under paragraph (1), the Director, in 
        consultation with the Chair of the Council on Environmental 
        Quality, shall act as appropriate--
                    ``(A) to ensure a timely participation;
                    ``(B) to ensure a timely decision;
                    ``(C) to mediate the dispute; or
                    ``(D) to refer the matter to the President.
            ``(3) Participation.--The license applicant and other 
        interested participants shall be provided the opportunity to 
        participate in the resolution of any issues under this 
        subsection.''.

SEC. 6. HYDROPOWER DEVELOPMENT AT EXISTING NONPOWERED DAMS AND CLOSED-
              LOOP PUMPED STORAGE.

    (a) Promoting Hydropower Development at Existing Nonpowered Dams.--
Section 34 of the Federal Power Act (16 U.S.C. 823e) is amended--
            (1) by amending subsection (a) to read as follows:
    ``(a) In General.--The Commission may issue a license under section 
37 for any facility the Commission determines is a qualifying 
facility.'';
            (2) by striking subsections (b) and (c); and
            (3) by redesignating subsections (d), (e), and (f) as 
        subsections (b), (c), and (d), respectively.
    (b) Closed-Loop Pumped Storage Projects.--Section 35 of the Federal 
Power Act (16 U.S.C. 823f) is amended--
            (1) by amending subsection (a) to read as follows:
    ``(a) In General.--The Commission may issue a license under section 
37 for any project the Commission determines is a qualifying closed-
loop pumped storage project.'';
            (2) by striking subsections (b), (c), (e), (g), and (h);
            (3) by redesignating subsections (d) and (f) as subsections 
        (b) and (c), respectively; and
            (4) by adding at the end the following:
    ``(d) No License Required for Certain Projects.--Notwithstanding 
section 23(b), a closed-loop pumped storage project shall not be 
required to be licensed under this part if the closed-loop pumped 
storage project--
            ``(1) is not located upon any part of the public lands or 
        reservations of the United States; and
            ``(2) does not use a federally owned dam or reservoir.
    ``(e) Definitions.--For purposes of this section:
            ``(1) Closed-loop pumped storage project.--The term 
        `closed-loop pumped storage project' means a project for the 
        generation of electric power--
                    ``(A) that--
                            ``(i) is configured to use 2 or more 
                        natural or artificial reservoirs or other water 
                        bodies at different elevations; and
                            ``(ii) can generate electric power as water 
                        moves down through a turbine and recharge by 
                        pumping water to the upper reservoir;
                    ``(B) that will be constructed, operated, and 
                maintained for the generation of electric power in a 
                manner that ensures that the upper and lower reservoirs 
                or other water bodies do not impound any stream channel 
                of any surface body of water over which Congress has 
                jurisdiction under its authority to regulate commerce 
                with foreign nations and among the several States; and
                    ``(C) in which any infrastructure connecting a 
                project reservoir and a natural surface waterway is 
                used for the sole purpose of the initial fill and 
                periodic recharge of reservoirs needed for project 
                operation.
            ``(2) Qualifying closed-loop pumped storage project.--The 
        term `qualifying closed-loop pumped storage project' means a 
        closed-loop pumped storage project that, as of the date of 
        enactment of the Hydropower Clean Energy Future Act, is not 
        licensed under, or exempted from the license requirements 
        contained in, this part.
    ``(f) Savings Clauses.--Nothing in this section affects--
            ``(1) any requirement of the Endangered Species Act of 1973 
        (16 U.S.C. 1531 et seq.), the Federal Water Pollution Control 
        Act (33 U.S.C. 1251 et seq.), or the National Environmental 
        Policy Act of 1969 (42 U.S.C. 4231 et seq.) that may apply to 
        the construction, operation, or maintenance of a closed-loop 
        pumped storage project; or
            ``(2) except as provided in subsection (d), any authority 
        of the Commission to license a closed-loop pumped storage 
        project under this part.''.

SEC. 7. EXTENSION OF TIME TO COMMENCE CONSTRUCTION OF CERTAIN 
              HYDROPOWER PROJECTS.

    (a) Definition of Covered Project.--In this section, the term 
``covered project'' means a hydropower project with respect to which--
            (1) the Federal Energy Regulatory Commission issued a 
        license under the Federal Power Act before March 13, 2020; and
            (2) construction has not commenced on the date of enactment 
        of this Act.
    (b) Authorization of Extension.--Notwithstanding section 13 of the 
Federal Power Act (16 U.S.C. 806), on the request of a licensee of a 
covered project, the Federal Energy Regulatory Commission may, after 
reasonable notice and for good cause shown, extend in accordance with 
subsection (c) of this section the period during which the licensee is 
required to commence construction of the covered project for an 
additional 4 years beyond the 8 years authorized by such section 13.
    (c) Period of Extension.--An extension of time to commence 
construction of a covered project under subsection (b) shall--
            (1) begin on the date on which the final extension of the 
        period for commencement of construction granted to the licensee 
        under section 13 of the Federal Power Act (16 U.S.C. 806) 
        expires; and
            (2) end on the date that is 4 years after the latest date 
        to which the Federal Energy Regulatory Commission is authorized 
        to extend the period for commencement of construction under 
        such section 13.
                                 <all>