[Congressional Record Volume 163, Number 202 (Tuesday, December 12, 2017)]
[House]
[Pages H9812-H9814]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
PROMOTING CLOSED-LOOP PUMPED STORAGE HYDROPOWER ACT
Mr. UPTON. Mr. Speaker, I move to suspend the rules and pass the bill
(H.R. 2880) to amend the Federal Power Act to promote closed-loop
pumped storage hydropower, and for other purposes, as amended.
The Clerk read the title of the bill.
The text of the bill is as follows:
H.R. 2880
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 ``Promoting Closed-Loop Pumped
Storage Hydropower Act''.
SEC. 2. CLOSED-LOOP PUMPED STORAGE PROJECTS.
Part I of the Federal Power Act (16 U.S.C. 792 et seq.) is
amended by adding at the end the following:
``SEC. 34. CLOSED-LOOP PUMPED STORAGE PROJECTS.
``(a) Expedited Licensing Process for Closed-loop Pumped
Storage Projects.--
``(1) In general.--As provided in this section, the
Commission may issue and amend licenses and preliminary
permits, as appropriate, for closed-loop pumped storage
projects.
``(2) Rule.--Not later than 180 days after the date of
enactment of this section, the Commission shall issue a rule
establishing an expedited process for issuing and amending
licenses and preliminary permits for closed-loop pumped
storage projects under this section.
``(3) Interagency task force.--In establishing the
expedited process under this section, the Commission shall
convene an interagency task force, with appropriate Federal
and State agencies and Indian tribes represented, to
coordinate the regulatory processes associated with the
authorizations required to construct and operate closed-loop
pumped storage projects.
``(4) Length of process.--The Commission shall ensure that
the expedited process under this section will result in final
decision on an application for a license by not later than 2
years after receipt of a completed application for such
license.
``(b) Dam Safety.--Before issuing any license for a closed-
loop pumped storage project, the Commission shall assess the
safety of existing dams and other structures related to the
project (including possible consequences associated with
failure of such structures).
``(c) Exemptions From Other Requirements.--
``(1) In general.--In issuing or amending a license or
preliminary permit pursuant to the expedited process
established under this section, the Commission may grant an
exemption from any other requirement of this part with
respect to any part of the closed-loop pumped storage project
(not including any dam or other impoundment).
``(2) Consultation.--In granting an exemption under
paragraph (1), the Commission shall consult with the United
States Fish and Wildlife Service and the State agency
exercising administration over the fish and wildlife
resources of the State in which the closed-loop pumped
storage project is or will be located, in the manner provided
by the Fish and Wildlife Coordination Act (16 U.S.C. 661 et
seq.).
``(3) Terms and conditions.--In granting an exemption under
paragraph (1), the Commission shall include in any such
exemption--
``(A) such terms and conditions as the Fish and Wildlife
Service, National Marine Fisheries Service, and the State
agency described in paragraph (2) each determine are
appropriate to prevent loss of, or damage to, fish and
wildlife resources and to otherwise carry out the purposes of
the Fish and Wildlife Coordination Act; and
``(B) such terms and conditions as the Commission deems
appropriate to ensure that such closed-loop pumped storage
project continues to comply with the provisions of this
section and terms and conditions included in any such
exemption.
``(4) Fees.--The Commission, in addition to the
requirements of section 10(e), shall establish fees which
shall be paid by an applicant for a license for a closed-loop
pumped storage project that is required to meet terms and
conditions set by fish and wildlife agencies under paragraph
(3). Such fees shall be adequate to reimburse the fish and
wildlife agencies referred to in paragraph (3) for any
reasonable costs incurred in connection with any studies or
other reviews carried out by such agencies for purposes of
compliance with this section. The fees shall, subject to
annual appropriations Acts, be transferred to such agencies
by the Commission for use solely for purposes of carrying out
such studies and shall remain available until expended.
``(d) Transfers.--Notwithstanding section 5, and regardless
of whether the holder of a preliminary permit for a closed-
loop pumped storage project claimed municipal preference
under section 7(a) when obtaining the permit, the Commission
may, to facilitate development of a closed-loop pumped
storage project--
``(1) add entities as joint permittees following issuance
of a preliminary permit; and
``(2) transfer a license in part to one or more
nonmunicipal entities as co-licensees with a municipality, if
the municipality retains majority ownership of the project
for which the license was issued.
``(e) Interagency Communications.--Interagency cooperation
in the preparation of environmental documents under the
National Environmental Policy Act of 1969 (42 U.S.C. 4321 et
seq.) with respect to an application for a license for a
closed-loop pumped storage project submitted pursuant to this
section, and interagency communications relating to licensing
process coordination pursuant to this section, shall not--
``(1) be considered to be ex parte communications under
Commission rules; or
``(2) preclude an agency from participating in a licensing
proceeding under this part.
``(f) Developing Abandoned Mines for Pumped Storage.--
``(1) Workshop.--Not later than 6 months after the date of
enactment of this section, the Commission shall hold a
workshop to explore potential opportunities for development
of closed-loop pumped storage projects at abandoned mine
sites.
``(2) Guidance.--Not later than 1 year after the date of
enactment of this section, the Commission shall issue
guidance to assist applicants for licenses or preliminary
permits for closed-loop pumped storage projects at abandoned
mine sites.
``(g) Qualifying Criteria for Closed-loop Pumped Storage
Projects.--
``(1) In general.--The Commission shall establish criteria
that a pumped storage project shall meet in order to qualify
as a closed-loop pumped storage project eligible for the
expedited process established under this section.
``(2) Inclusions.--In establishing the criteria under
paragraph (1), the Commission shall include criteria
requiring that the pumped storage project--
``(A) cause little to no change to existing surface and
groundwater flows and uses; and
``(B) is unlikely to adversely affect species listed as a
threatened species or endangered species under the Endangered
Species Act of 1973.''.
SEC. 3. OBLIGATION FOR PAYMENT OF ANNUAL CHARGES.
Section 10(e) of the Federal Power Act (16 U.S.C. 803(e))
is amended by adding at the end the following:
``(5) Any obligation of a licensee for payment of annual
charges under this subsection shall commence when the
construction of the applicable facility commences.''.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Michigan (Mr. Upton) and the gentleman from Illinois (Mr. Rush) each
will control 20 minutes.
The Chair recognizes the gentleman from Michigan.
General Leave
Mr. UPTON. Mr. Speaker, I ask unanimous consent that all Members may
have 5 legislative days in which to revise and extend their remarks and
insert extraneous material in the Record on the bill.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Michigan?
There was no objection.
Mr. UPTON. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, this bill, H.R. 2880, was introduced by Energy and
Commerce Committee member Morgan Griffith in June of this year. The
legislation went through regular order, and it was reported by the full
committee with a bipartisan amendment by a voice vote.
The bill promotes closed-loop pumped storage hydropower projects by
establishing an expedited licensing process that is going to result in
a final decision on an application in 2 years or less.
We know that hydropower is a clean, renewable, and reliable source of
energy that provides low-cost electricity to millions of Americans
across the country. Closed-loop pumped storage is different than
conventional hydro. These types of projects move water between two
reservoirs located at different elevations in order to store energy and
then generate that electricity.
[[Page H9813]]
As we have learned through hearings at the Energy and Commerce
Committee, the complete regulatory process places new pumped storage
hydropower projects at a significant disadvantage.
Pumped storage hydro has been around for almost 100 years, but with
more intermittent renewables coming online, the need for grid-scale
storage is more important than ever. The current process to license
pumped storage takes way too long and creates too much uncertainty,
burdening consumers with additional unnecessary costs and preventing
jobs and economic opportunities.
This bill makes important changes to the process to enable FERC to
issue a decision in 2 years or less. The legislation also requires FERC
to hold a workshop to explore potential opportunities for development
of closed-loop pumped storage projects at abandoned mine sites.
This bill is a good, bipartisan bill. I thank Mr. Griffith for his
hard work on this important issue and for working with our colleagues
across the aisle to bring this bill to the floor.
Mr. Speaker, I urge all of my colleagues to support this legislation,
and I reserve the balance of my time.
Mr. RUSH. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I rise in strong support of H.R. 2880, the Promoting
Closed-Loop Pumped Storage Hydropower Act.
Mr. Speaker, as I have stated many times before, I am a strong
supporter of hydropower, which provides clean, renewable, carbon-free,
reliable energy for millions of American businesses and households.
Therefore, Mr. Speaker, I must commend my Energy and Commerce Committee
colleague Mr. Griffin from Virginia for sponsoring this important,
bipartisan piece of legislation. I must also applaud the work of the
committee staff from both sides of the aisle for their tireless work in
negotiating a bill that I believe all Members can fully support.
Mr. Speaker, closed-loop pump hydroelectric storage facilities
operate in a capacity similar to batteries in that when there is a
surplus of energy, water is pumped to an upper reservoir, and when more
energy is needed, that water can then be released to produce
electricity through the use of turbines.
Mr. Speaker, H.R. 2880 would require FERC to create an expedited
licensing process for closed-loop pumped storage projects within 2
years of receiving a completed application. FERC would also be required
to issue a rule establishing the new process within 180 days of this
bill's enactment.
Mr. Speaker, in order to ensure local stakeholder input and
collaboration, FERC will establish an interagency task force
representing Federal and State agencies, as well as Native American
Tribes, that would coordinate the authorizations needed to license the
facility.
H.R. 2880, Mr. Speaker, would also direct FERC to evaluate the safety
of any dam or other existing structure that would be associated with a
project and specify that potential projects could not cause significant
changes to surface and groundwater uses or adversely impact threatened
or endangered species.
Mr. Speaker, H.R. 2880 would, for the first time, allow additional
entities, including private partners, to join as co-licensees with
municipalities in order to take advantage of the municipal preference.
That preference would continue for such a private-public partnership
even at the point that the municipality does not retain a majority
interest in the project.
H.R. 2880, Mr. Speaker, also mandates FERC to hold a workshop and
issue guidance within 6 months of enactment to assist license
applicants for closed-loop pumped storage projects at abandoned mine
sites. Mr. Speaker, this provision would allow for these abandoned
mines, many of which may already have the infrastructure in place to
accommodate these projects, to be repurposed, potentially putting
unemployed mining communities back to work.
So, Mr. Speaker, H.R. 2880 is a much-needed, bipartisan, critical
piece of legislation that would help to increase the number of low-
carbon hydropower projects, while also taking into account the needs
and interests of impacted local stakeholders. I strongly support this
bill, Mr. Speaker, and I urge all of my colleagues to do the same.
Mr. Speaker, I reserve the balance of my time.
{time} 1415
Mr. UPTON. Mr. Speaker, I yield 5 minutes to the gentleman from
Virginia (Mr. Griffith), the author of the bill.
Mr. GRIFFITH. Mr. Speaker, I want to thank Chairman Walden and
Chairman Upton for their cooperation and input. The teams on both sides
of the aisle, the chairman of the full committee, and the chairman of
the subcommittee have worked really hard to advance this important
bill, and I thank them.
Hydropower is an essential component of an all-of-the-above energy
strategy. We have a tremendous opportunity to expand renewable
hydropower production. However, without some much-needed licensing
improvements, we risk losing investment opportunities in new hydropower
infrastructure.
In particular, closed-loop pumped storage hydro projects offer the
opportunity to store energy for use when it is needed. In essence, it
is a giant natural battery. H.R. 2880, the Promoting Closed-Loop Pumped
Storage Hydropower Act, establishes an expedited licensing process for
these projects.
This bill cuts unnecessary red tape that currently accompanies
approval of these projects, hindering energy security and job creation.
I am excited about the possibility that some are exploring to build
these facilities in abandoned mines and/or the coal fields of central
Appalachia. As a part of this, H.R. 2880 also requires FERC to hold a
workshop to explore the potential opportunities for development of
closed-loop projects in abandoned mine sites.
I am hopeful this will be a real benefit to our coal field regions in
the form of jobs, economic development, and energy security; and I am
proud of what we are doing here in an effort to make this happen.
If we can repurpose some of these mines or bring jobs in to central
Appalachia that don't currently exist, it is an energy region and it is
a region that understands the energy issues, and as people want to get
rid of coal--I support keeping coal--but all of the above requires we
also do hydropower.
I urge my colleagues to help us create new jobs in these regions by
supporting this bipartisan, commonsense legislation promoting closed-
loop hydropower development.
Mr. RUSH. Mr. Speaker, I yield as much time as he may consume to the
gentleman from California (Mr. Peters), another notable outstanding
member of the subcommittee.
Mr. PETERS. Mr. Speaker, I thank the gentleman for yielding.
I also thank Mr. Griffith for introducing the Promoting Closed-Loop
Pumped Storage Hydropower Act. He did valuable work to make this the
bipartisan version we see today.
More electricity from hydropower is key to meeting our clean energy
goals, to reducing harmful emissions that pollute our air and water and
contribute to climate change.
Hydropower is one of the few carbon-free energy sources that provides
a steady baseload of electricity. This bill will give closed-loop
hydropower projects an expedited process for approval from FERC. It
will consider interagency input through a new task force and provide
appropriate protection for wildlife and endangered species while
helping us grow emissions-free energy.
These closed-loop projects often integrate other forms of renewable
energy, like solar, to develop a power generation cycle that is clean,
secure, and reliable.
In San Diego, where large rivers and typical hydropower generation
are less common, closed-loop pumped storage hydropower offers an
innovative solution and can have other benefits to the region's energy
and reservoir systems.
In my district, the Lake Hodges Pumped Storage Project has provided
clean energy since 2012, and a new project at the San Vicente Reservoir
is being considered now.
We must consider to have productive bipartisan conversations like
these that produce the ultimate goal of streamlining the regulatory
process so that hydropower projects can be approved more quickly while
still meeting high environmental standards.
[[Page H9814]]
I would also like to thank Energy and Commerce Committee leadership
and staff for helping advance this bill to the floor, and I urge my
colleagues to support this bill.
Mr. RUSH. Mr. Speaker, I have no further speakers on this side, and I
yield back the balance of my time.
Mr. UPTON. Mr. Speaker, I have no further speakers either.
Again, I want to commend my colleagues for pushing this legislation,
for working with both sides of the aisle. Again, my congrats to my
counterpart, my ranking member on the Energy Subcommittee, and all my
colleagues.
Mr. Speaker, I would urge my colleagues to vote ``yes,'' and I yield
back the balance of my time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from Michigan (Mr. Upton) that the House suspend the rules
and pass the bill, H.R. 2880, as amended.
The question was taken; and (two-thirds being in the affirmative) the
rules were suspended and the bill, as amended, was passed.
A motion to reconsider was laid on the table.
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