[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.

                          ____________________