[Congressional Record (Bound Edition), Volume 156 (2010), Part 9]
[Senate]
[Pages 12833-12838]
[From the U.S. Government Publishing Office, www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Ms. MURKOWSKI (for herself, Mrs. Murray, Ms. Cantwell, and Mr. 
        Crapo):
  S. 3570. A bill to improve hydropower, and for other purposes; to the 
Committee on Energy and Natural Resources.
  Ms. MURKOWSKI. Mr. President, I rise today to introduce two pieces of 
legislation aimed at increasing the production of our hardest working 
renewable resource, one that often gets overlooked in the clean energy 
debate--hydropower. The first bill I would like to introduce today is 
the Hydropower Improvement Act of 2010, co-sponsored by my colleagues 
Senators Murray, Cantwell, and Crapo, true hydropower advocates. The 
Hydropower Improvement Act of 2010 seeks to substantially increase the 
capacity and generation of our clean, renewable hydropower resources 
that will improve environmental quality and support hundreds of 
thousands of green energy jobs.
  There is no question that hydropower is, and must continue to be, 
part of our energy solution. It is the largest source of renewable 
electricity in the United States. The 96,000 megawatts of hydroelectric 
capacity we now have today provide about 7 percent of the Nation's 
electricity needs. Hydroelectric generation is carbon-free baseload 
power that allows us to avoid 225 million metric tons of carbon 
emissions each year. Hydropower is clean efficient, and inexpensive. 
Yet, despite its tremendous benefits, I am constantly amazed at how 
some undervalue this important resource.
  Perhaps it is because conventional wisdom dismisses our Nation's 
hydropower capacity as tapped out. That is simply not the case. If 
anything, hydropower is really an under-developed resource--something 
we certainly understand in my home state of Alaska where hydro already 
supplies 24 percent of the state's electricity needs and over 200 
promising sites for further hydropower development have been 
identified. There is great potential for additional hydropower 
development in every State, not just Alaska.
  According to the Obama administration, conventional hydropower 
facilities have the capacity to generate an additional 75,000 megawatts 
of power--a staggering amount of clean, inexpensive power. Now that 
doesn't seem possible until you realize that only 3 percent of the 
country's 80,000 existing dams are even electrified. Significant 
amounts of new capacity--anywhere between 20,000 and 60,000 megawatts--
can be derived from simple efficiency improvements or capacity 
additions at existing facilities.
  Additional hydropower can be captured in existing man-made conduits 
and hydroelectric pumped storage projects can help reliably integrate 
other renewable resources that are intermittent, such as wind, onto our 
grid.
  The Hydropower Improvement Act of 2010 seeks to increase 
substantially our nation's hydropower capacity in an effort to expand 
renewable power generation and create much needed American jobs. The 
legislation establishes a competitive grants program to support further 
hydropower development and directs the Energy Department to produce and 
implement a plan for the research, development and demonstration of 
increased hydropower capacity. The bill provides the Federal Energy 
Regulatory Commission with additional authority to extend preliminary 
permit terms; to work with Federal resource agencies to streamline the 
review process for conduit hydropower projects; and to conduct a Notice 
of Inquiry into a possible two-year licensing process for certain 
minimal impact projects. The Act also calls for studies on pumped 
storage sites and the potential for nonfederal development at Bureau of 
Reclamation facilities, and authorizes training for hydroelectric power 
technology at community colleges.
  It is my hope that as the Senate turns to energy legislation, we can 
finally recognize the important contribution the renewable resource of 
hydropower makes, and will continue to make, to our clean energy goals. 
This legislation is supported by the National Hydropower Association, 
the American Public Power Association, the Family Farm Alliance, the 
National Rural Electric Cooperative Association, the Edison Electric 
Institute, and the National Water Resources Association. I ask my 
colleagues to join me in supporting the Hydropower Improvement Act of 
2010 to promote the further development of our most cost-effective, 
clean energy option while creating hundreds of thousands of new green 
jobs.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 3570

       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 2010''.
       (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 Congress on the use of hydropower renewable resources.
Sec. 5. Grants for improvements for increased hydropower production.
Sec. 6. Plan for research, development, and demonstration to increase 
              hydropower capacity.
Sec. 7. Notice of inquiry for minimal impact hydropower projects.
Sec. 8. FERC authority to extend preliminary permit terms.
Sec. 9. Streamlining review process for conduit hydropower projects.
Sec. 10. Non-Federal hydropower development at Bureau of Reclamation 
              projects.
Sec. 11. Pumped storage study.
Sec. 12. National Renewable Energy Deployment Program.
Sec. 13. Hydroelectric power worker training.
Sec. 14. Report on memorandum of understanding on hydropower.
Sec. 15. Nonapplication to Federal Power Marketing Administrations.
Sec. 16. 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) 7 percent of the electricity generated in the United 
     States, avoiding 225,000,000 metric tons of carbon emissions 
     each year; and
       (B) approximately 96,000 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 create hundreds of thousands of new green jobs 
     during the next 15 years;
       (B) to increase the clean energy generation of the United 
     States; 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,

[[Page 12834]]

     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.

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

       It is the sense of Congress that the United States should 
     increase substantially the capacity and generation of clean, 
     renewable hydropower resources which will improve 
     environmental quality in the United States and support 
     hundreds of thousands of green energy jobs.

     SEC. 5. 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 that--
       (1) make efficiency improvements or capacity additions at 
     an existing hydroelectric power generating facility;
       (2) add hydropower generation to a nonpower dam;
       (3) develop pumped storage facilities;
       (4) address aging infrastructure at existing hydroelectric 
     power generating facilities; and
       (5) develop hydroelectric generation within existing 
     conduits.
       (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 dam 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 2011 through 
     2015, 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 
     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 plan--
       (1) to facilitate through technology research, development, 
     and demonstration the increased use of hydropower renewable 
     resources in accordance with section 4; and
       (2) to coordinate research and development on advanced 
     hydropower technologies.
       (b) Administration.--The Secretary shall--
       (1) implement the plan established under this section as 
     soon as practicable after the date of enactment of this Act; 
     and
       (2) review and update the plan on an annual basis.
       (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) 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 
     401(a) of the American Clean Energy Leadership Act of 2009, 
     the Secretary may use to carry out this section $50,000,000 
     for each of fiscal years 2011 through 2015.

     SEC. 7. NOTICE OF INQUIRY FOR MINIMAL IMPACT HYDROPOWER 
                   PROJECTS.

       (a) Definitions.--In this section:
       (1) Commission.--The term ``Commission'' means the Federal 
     Energy Regulatory Commission.
       (2) Minimal impact hydropower project.--The term ``minimal 
     impact hydropower project'' means--
       (A) the addition of hydropower generation to an existing 
     nonpower dam if the addition of the project will not cause 
     any significant environmental impact; or
       (B) closed-loop hydropower storage that does not require 
     any change in an existing diversion or impoundment of a 
     river, and otherwise will not cause any significant 
     environmental impacts under applicable law.
       (b) Notice of Inquiry.--Not later than 180 days after the 
     date of enactment of this section, the Commission shall issue 
     a notice of inquiry for the licensing of proposed minimal 
     impact hydropower projects that take not more than 2 years 
     from the beginning of the prefiling licensing process to the 
     issuance of a license by the Commission.
       (c) Report.--Not later than 180 days after the completion 
     of the notice of inquiry under subsection (b), 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 describes the results 
     of the notice of inquiry.

     SEC. 8. 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. 9. STREAMLINING REVIEW PROCESS FOR CONDUIT HYDROPOWER 
                   PROJECTS.

       (a) In General.--Section 30 of the Federal Power Act (16 
     U.S.C. 823a) is amended--
       (1) 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.''; and
       (2) by adding at the end the following:
       ``(f) Savings Clause.--This section shall not apply to any 
     reclamation projects under which hydroelectric power 
     development has been reserved--
       ``(1) under Federal law or by regulation or order, 
     exclusively for development under Federal reclamation law; or
       ``(2) for non-Federal development under reclamation law.
       ``(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.''.
       (b) 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))--
       (1) to establish a coordinated and streamlined 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; and
       (2) to develop and carry out an expedited approval process 
     for conduit hydropower projects.
       (c) Public Workshops and Pilot Projects on Conduit 
     Hydropower Projects.--
       (1) 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 
     public workshops with relevant stakeholders, including water 
     users and the environmental community, to identify ways in 
     which the conduit approval process may be modified--
       (A) to reduce barriers to conduit hydropower projects, 
     including barriers created by project costs or the timeframe 
     for approval and maintain adequate environmental, health, and 
     safety protections; and
       (B) 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.
       (2) Report.--Not later than 180 days after the date of the 
     completion of the workshops under paragraph (1), 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 paragraph (1).
       (3) Funding.--From amounts made available under section 
     9503(f) of the Omnibus Public Land Management Act of 2009 (42 
     U.S.C. 10363(f)), the Secretary may use to carry out pilot 
     projects described in paragraph (1)(B) $5,000,000 for the 
     period of fiscal years 2011 through 2015, to remain available 
     until expended.

     SEC. 10. 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.

[[Page 12835]]

       (b) Memorandum of Understanding.--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 a revised interagency memorandum of 
     understanding to improve the coordination and timeliness of 
     the non-Federal development of hydropower resources at Bureau 
     of Reclamation projects.

     SEC. 11. PUMPED STORAGE STUDY.

       (a) In General.--The Secretary, in coordination with the 
     Director of the United States Geological Survey, shall 
     conduct a study (including identification) of 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. 12. NATIONAL RENEWABLE ENERGY DEPLOYMENT PROGRAM.

       (a) In General.--Section 803 of the Energy Independence and 
     Security Act of 2007 (42 U.S.C. 17282) is amended by striking 
     the section heading and inserting ``NATIONAL RENEWABLE ENERGY 
     DEPLOYMENT PROGRAM''.
       (b) Definitions.--Section 803(a) of the Energy Independence 
     and Security Act of 2007 (42 U.S.C. 17282(a)) is amended--
       (1) by striking paragraph (1);
       (2) by redesignating paragraphs (2) through (4) as 
     paragraphs (1) through (3), respectively; and
       (3) in paragraph (3)(B)(iv) (as so redesignated), by 
     striking ``Alaska small''.
       (c) Renewable Energy Construction Grants.--Section 803(b) 
     of the Energy Independence and Security Act of 2007 (42 
     U.S.C. 17282(b)) is amended--
       (1) in paragraph (1), by inserting ``establish a national 
     renewable energy construction grants program under which the 
     Secretary shall'' after ``shall''; and
       (2) by adding at the end the following:
       ``(5) Priority.--In making grants to eligible applicants to 
     carry out renewable energy projects under this section, the 
     Secretary shall give priority to applicants that--
       ``(A) have power costs that are 125 percent or more of 
     average national retail costs; or
       ``(B) will use the grant to construct renewable electricity 
     projects to replace fossil fuel projects.''.

     SEC. 13. HYDROELECTRIC POWER WORKER TRAINING.

       Section 439(b) of the American Clean Energy Leadership Act 
     of 2009 is amended in the second sentence--
       (1) in paragraph (6), by striking ``and'' after the 
     semicolon at the end;
       (2) in paragraph (7), by striking the period at the end and 
     inserting ``; and''; and
       (3) by adding at the end the following:
       ``(8) hydroelectric power technology.''.

     SEC. 14. REPORT ON MEMORANDUM OF UNDERSTANDING ON HYDROPOWER.

       Not later than 18 months 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. 15. NONAPPLICATION TO FEDERAL POWER MARKETING 
                   ADMINISTRATIONS.

       (a) In General.--This Act and the amendments made by this 
     Act shall not--
       (1) apply to a hydroelectric project that provides power 
     marketed by a Federal Power Marketing Administration; or
       (2) impact any additions, improvements, or replacements of 
     hydroelectric generation at Federal projects carried out by a 
     Federal Power Marketing Administration.
       (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. 16. 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.
                                 ______
                                 
      By Ms. MURKOWSKI:
  S. 3571. A bill to extend certain Federal benefits and income tax 
provisions to energy generated by hydropower resources; to the 
Committee on Finance.
  Ms. MURKOWSKI. Mr. President, today I introduce the Hydropower 
Renewable Energy Development Act of 2010. This is legislation to extend 
certain benefits and income tax provisions to energy generated by 
hydropower resources.
  We have an incredible amount of hydropower potential in my home State 
of Alaska. To date, we have almost 50 hydropower projects--in a range 
of sizes from the 126-megawatt Bradley Lake project to the 7-kilowatt 
Walsh Creek project--that produce about 24 percent of the State's 
electricity needs. Alaska is proof that the hydropower resource is not 
tapped out--not even close. Currently, there are 32 additional 
hydropower projects, just in Southeast, that are either under 
construction or on the drawing boards. Statewide there are another 200 
areas that have been identified as promising sites for lake taps, run 
of river, pumped storage and even new hydroelectric reservoirs. With 
the proper financing, we could keep a dozen hydro construction 
companies fully employed in the State for a decade or even longer. That 
is just in Alaska. There are tremendous opportunities in each and every 
State to further develop this clean energy alternative.
  Hydropower, by definition, is a renewable resource. It produces no 
carbon emissions and through rainfall and melting snowpacks it is able 
to be replenished. Yet there are some who would deny this important 
classification to the hydropower resource. The Hydropower Renewable 
Energy Development Act of 2010 directs that the generation of 
hydroelectric power be treated as a ``renewable'' resource for purposes 
of any Federal program or standard. This reclassification of 
hydroelectric generation should help to incent the further production 
of this important and often undervalued resource.
  Next, the bill provides parity treatment for hydropower resources in 
the Production Tax Credit, PTC. Currently, companies that generate 
wind, solar, geothermal, and ``closed-loop'' biomass systems are 
eligible for the PTC which provides a 2.1 cent per kilowatt-hour, kWh, 
benefit for the first 10 years of a renewable energy facility's 
operation. Other technologies, such as incremental hydropower, certain 
generation at non-power facilities, and wave and tidal receive a lesser 
value tax credit of 1.0 cent per kWh. The Hydropower Renewable Energy 
Development Act of 2010 eliminates the distinction between the two 
categories so that all qualified hydropower resources receive the full 
PTC credit. The bill further expands upon the types of hydropower 
resources that can qualify for the PTC, allowing new hydro generation, 
small hydropower under 50 megawatts, lake taps, and pumped storage to 
qualify as well.
  The Hydropower Renewable Energy Development Act of 2010 also carries 
this expanded qualification of hydropower to the Clean Renewable Energy 
Bonds, CREBS, program. Because non-profits like rural electric 
cooperatives and public power providers are not eligible for the PTC 
due to their tax-exempt status, CREBS was created to encourage these 
entities to undertake renewable energy development as well. This 
program has been wildly popular and has been oversubscribed since its 
inception. There are endless possibilities for increased hydropower 
production by electric cooperatives and public power providers and they 
should be given the proper financial incentive to do so.
  I ask my colleagues to support this hydropower tax legislation. The 
further development of this untapped renewable resource will help us 
meet our clean energy goals through the generation of carbon-free, 
baseload power. At a time of record unemployment, the addition of 
hydropower capacity throughout the Nation will lead to hundreds of 
thousands of good paying, domestic jobs.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

[[Page 12836]]



                                S. 3571

       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 Renewable Energy 
     Development Act of 2010''.

     SEC. 2. HYDROELECTRIC ENERGY TREATED AS RENEWABLE ENERGY.

       Notwithstanding any other provision of law or regulation, 
     for purposes of any Federal program or standard, the term 
     ``renewable energy'' shall include hydroelectric energy 
     generated in the United States by a hydroelectric facility, 
     including electric power produced by efficiency improvements 
     and capacity additions, generation added to nonpower dams, 
     conduits, pumped storage facilities, marine and hydrokinetic 
     resources, and conventional hydropower.

     SEC. 3. PRODUCTION TAX CREDIT FOR HYDROPOWER RESOURCES.

       (a) In General.--Subparagraph (A) of section 45(c)(8) of 
     the Internal Revenue Code of 1986 is amended--
       (1) by striking ``and'' at the end of clause (i),
       (2) by striking the period at the end of clause (ii) and 
     inserting ``, and'', and
       (3) by adding at the end the following new clause:
       ``(iii) in the case of any hydropower facility described in 
     subparagraph (D), the hydropower production from the facility 
     for the taxable year.''.
       (b) Production.--Paragraph (8) of section 45(c) of the 
     Internal Revenue Code of 1986 is amended by adding at the end 
     the following new subparagraph:
       ``(D) Other hydropower production facilities.--For purposes 
     of subparagraph (A), a facility is described in this 
     subparagraph if such facility--
       ``(i) is a hydroelectric dam or nonhydroelectric dam--

       ``(I) which is placed in service after the date of the 
     enactment of the Hydropower Renewable Energy Development Act 
     of 2010, and
       ``(II) which would be described in subparagraph (A)(i) or 
     (C) but for the placed in service date,

       ``(ii) is a hydroelectric facility not described in clause 
     (i) which has a nameplate capacity rating of less than 50 
     megawatts, or
       ``(iii) is not described in clause (i) or (ii) and 
     generates energy through the use of a lake tap or pumped 
     storage.''.
       (c) Qualified Facilities.--Paragraph (9) of section 45(d) 
     of the Internal Revenue Code of 1986 is amended to read as 
     follows:
       ``(9) Qualified hydropower facility.--
       ``(A) Incremental hydropower production.--In the case of a 
     facility described in subsection (c)(8), without regard to 
     subparagraph (C) or (D) thereof, which produces incremental 
     hydropower production, the term `qualified facility' means 
     such facility but only to the extent of such incremental 
     hydropower production attributable to efficiency improvements 
     or additions to capacity described in subsection (c)(8)(B) 
     placed in service after August 8, 2005, and before January 1, 
     2014.
       ``(B) Production from certain nonhydroelectric dams.--In 
     the case of a facility described in subsection (c)(8)(C) 
     which produces qualified hydropower production, the term 
     `qualified facility' means any such facility placed in 
     service after August 8, 2005, and before January 1, 2014.
       ``(C) Production from other hydropower facilities.--In the 
     case of qualified hydropower production at a facility after 
     the date of the enactment of the Hydropower Renewable Energy 
     Development Act of 2010, the term `qualified facility' 
     includes any such facility which is described in subsection 
     (c)(8)(D).
       ``(D) Credit period.--In the case of a qualified facility 
     described in subparagraph (A), the 10-year period referred to 
     in subsection (a) shall be treated as beginning on the date 
     the efficiency improvements or additions to capacity are 
     placed in service.''.
       (d) Increase in Credit Rate.--Subparagraph (A) of section 
     45(b)(4) of the Internal Revenue Code of 1986 is amended by 
     striking ``(9),''.
       (e) Effective Date.--The amendments made by this section 
     shall apply to electricity produced after the date of the 
     enactment of this Act.
                                 ______
                                 
      By Mr. DURBIN (for himself, Mr. Sessions, Mr. Dodd, Mr. Brown of 
        Ohio, Mr. Vitter, and Mr. Alexander):
  S. 3575. A bill to amend and reauthorize the controlled substance 
monitoring program under section 3990 of the Public Health Service Act 
and to authorize the Secretary of Veterans Affairs to share information 
about the use of controlled substances by veterans with State 
prescription monitoring programs to prevent misuse and diversion of 
prescription medicines; to the Committee on Health, Education, Labor, 
and Pensions.
  Mr. DURBIN. Mr. President, the nonmedical use and abuse of 
prescription drugs is a serious and growing public health problem in 
this country. The 2008 National Survey on Drug Use and Health showed 
that more than 15 million Americans had used prescription 
psychotherapeutic drugs non-medically in the past year. That is more 
than 6 percent of the U.S. population. More than 20 percent of 
Americans had abused these drugs during their lifetime. The Substance 
Abuse and Mental Health Services Agency, SAMHSA, estimates that half a 
million residents in my home State of Illinois are using prescription 
drugs illegally and in ways that can lead to dependence and even death.
  Since 1999, abuse, misuse, and overdose of prescription drugs has 
increased, and the health consequences are significant. Each year, more 
than 20,000 people in the United States die from drug overdose. 
Illinois hospitals report an increase in patients visiting Emergency 
Departments because of prescription drug misuse. From 2003 to 2007, 
Chicago area hospitals saw the number of visits for pain medication 
misuse more than double and visits for sedative misuse quadruple.
  The trends among teens are especially worrisome. Prescription pain 
relievers are the second most common drugs used as gateway drugs among 
teens. Over the past decade, there has been a 300 percent increase in 
the number of teens seeking treatment for addiction to prescription 
painkillers.
  To address this threat to public health, my colleague Senator 
Sessions and I worked together to enact Public Law 109-60, the National 
All Schedules Prescription Electronic Reporting Act of 2005, NASPER. 
This program provides grants through the Department of Health and Human 
Services to establish or improve State-based prescription drug 
monitoring programs, PDMPs. The first grants were awarded through 
NASPER beginning in fiscal year 09, and currently over 40 States are 
operating PDMPs or have enacted legislation to establish them.
  While each State's program is unique, in general they require that 
pharmacies, physicians or both submit information to a central office 
within the State on prescriptions dispensed for certain controlled 
substances--narcotics, stimulants, sedatives, depressants, etc. By 
creating these systems, States can ensure that health care providers, 
law enforcement officials and other regulatory and licensing bodies 
have access to accurate, timely prescription history information as 
permitted by law.
  The data in these systems can be used for many purposes: to assist in 
the early identification of patients at risk for addiction, prevent 
patients from doctor shopping, and help with investigations of drug 
diversion and errant prescribing or dispensing practices by pharmacists 
or medical providers.
  In my home State of Illinois, the State PDMP is called Prescription 
Information Library, PIL. The State was awarded a NASPER grant in 
fiscal year 09, which allowed it to expand and improve its program. In 
the month of June 2010 alone, the PIL website was used by over 3,600 
doctors, pharmacists and other registered users who made over 24,000 
visits to the site. In addition, the number of law enforcement requests 
for information from PIL increased from 16 in 2007 to 321 in 2009. Use 
of the program continues to grow--in the first 6 months of 2010, law 
enforcement officials have already made 271 requests for information 
from the database. The growth of the Illinois program demonstrates that 
it is valuable tool for protecting public health and safety by 
identifying people at risk for prescription drug abuse and doctors who 
betray the high ethical standards of their profession by over or 
incorrectly prescribing prescription drugs.
  Today, along with Senator Sessions and several other colleagues, I am 
introducing the National All Schedules Prescription Electronic Reposing 
Reauthorization Act of 2010. This bill reauthorizes and extends this 
vital program for 5 more years at $15 million for fiscal year 2011 and 
$10 million each year thereafter. It also makes small changes to 
improve and strengthen the program, including allowing grants to be 
made available to States to plan or

[[Page 12837]]

maintain a PDMP in addition to establishing or improving a program; 
requiring States to help educate medical providers about the benefits 
of the systems and facilitate their use of them; requiring, States to 
report aggregate data to the Secretary to allow for evaluation of the 
success of the program; allowing participation by the territories; and 
permitting the Department of Veterans Affairs to share information 
about the use of controlled substance by veterans with State PDMPs.
  Reauthorizing the NASPER program for another 5 years with these 
changes to improve its operation will assist States in combating abuse 
and misuse of prescription drugs. This common-sense legislation has 
bipartisan support, and I look forward to working with my colleagues to 
enact it into law.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 3575

       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 ``National All Schedules 
     Prescription Electronic Reporting Reauthorization Act of 
     2010''.

     SEC. 2. AMENDMENT TO PURPOSE.

       Paragraph (1) of section 2 of the National All Schedules 
     Prescription Electronic Reporting Act of 2005 (Public Law 
     109-60) is amended to read as follows:
       ``(1) foster the establishment of State-administered 
     controlled substance monitoring systems in order to ensure 
     that--
       ``(A) health care providers have access to the accurate, 
     timely prescription history information that they may use as 
     a tool for the early identification of patients at risk for 
     addiction in order to initiate appropriate medical 
     interventions and avert the tragic personal, family, and 
     community consequences of untreated addiction; and
       ``(B) appropriate law enforcement, regulatory, and State 
     professional licensing authorities have access to 
     prescription history information for the purposes of 
     investigating drug diversion and prescribing and dispensing 
     practices of errant prescribers or pharmacists; and''.

     SEC. 3. AMENDMENTS TO CONTROLLED SUBSTANCE MONITORING 
                   PROGRAM.

       Section 399O of the Public Health Service Act (42 U.S.C. 
     280g-3) is amended--
       (1) in subsection (a)(1)--
       (A) in subparagraph (A), by striking ``or'';
       (B) in subparagraph (B), by striking the period at the end 
     and inserting ``; or''; and
       (C) by adding at the end the following:
       ``(C) to maintain and operate an existing State controlled 
     substance monitoring program.'';
       (2) by amending subsection (b) to read as follows:
       ``(b) Minimum Requirements.--The Secretary shall maintain 
     and, as appropriate, supplement or revise (after publishing 
     proposed additions and revisions in the Federal Register and 
     receiving public comments thereon) minimum requirements for 
     criteria to be used by States for purposes of clauses (ii), 
     (v), (vi), and (vii) of subsection (c)(1)(A).'';
       (3) in subsection (c)--
       (A) in paragraph (1)(B)--
       (i) in the matter preceding clause (i), by striking 
     ``(a)(1)(B)'' and inserting ``(a)(1)(B) or (a)(1)(C)'';
       (ii) in clause (i), by striking ``program to be improved'' 
     and inserting ``program to be improved or maintained''; and
       (iii) in clause (iv), by striking ``public health'' and 
     inserting ``public health or public safety'';
       (B) in paragraph (3)--
       (i) by striking ``If a State that submits'' and inserting 
     the following:
       ``(A) In general.--If a State that submits'';
       (ii) by inserting before the period at the end ``and 
     include timelines for full implementation of such 
     interoperability''; and
       (iii) by adding at the end the following:
       ``(B) Monitoring of efforts.--The Secretary shall monitor 
     State efforts to achieve interoperability, as described in 
     subparagraph (A).'';
       (C) in paragraph (5)--
       (i) by striking ``implement or improve'' and inserting 
     ``establish, improve, or maintain''; and
       (ii) by adding at the end the following: ``The Secretary 
     shall redistribute any funds that are so returned among the 
     remaining grantees under this section in accordance with the 
     formula described in subsection (a)(2)(B).'';
       (4) in the matter preceding paragraph (1) in subsection 
     (d), by striking ``In implementing or improving'' all that 
     follows through ``with the following:'' and inserting ``In 
     establishing, improving, or maintaining a controlled 
     substance monitoring program under this section, a State 
     shall comply, or with respect to a State that applies for a 
     grant under subsection (a)(1)(B) or (C) submit to the 
     Secretary for approval a statement of why such compliance is 
     not feasible and a plan for bringing the State into 
     compliance, with the following:'';
       (5) in subsections (e), (f)(1), and (g), by striking 
     ``implementing or improving'' each place it appears and 
     inserting ``establishing, improving, or maintaining'';
       (6) in subsection (f)--
       (A) in paragraph (1)(B) by striking ``misuse of a schedule 
     II, III, or IV substance'' and inserting ``misuse of a 
     controlled substance included in schedule II, III, or IV of 
     section 202(c) of the Controlled Substance Act''; and
       (B) add at the end the following:
       ``(3) Evaluation and reporting.--Subject to subsection (g), 
     a State receiving a grant under subsection (a) shall provide 
     the Secretary with aggregate data and other information 
     determined by the Secretary to be necessary to enable the 
     Secretary--
       ``(A) to evaluate the success of the State's program in 
     achieving its purposes; or
       ``(B) to prepare and submit the report to Congress required 
     by subsection (k)(2).
       ``(4) Research by other entities.--A department, program, 
     or administration receiving nonidentifiable information under 
     paragraph (1)(D) may make such information available to other 
     entities for research purposes.'';
       (7) by redesignating subsections (h) through (n) as 
     subsections (i) through (o), respectively;
       (8) in subsections (c)(1)(A)(iv) and (d)(4), by striking 
     ``subsection (h)'' each place it appears and inserting 
     ``subsection (i)'';
       (9) by inserting after subsection (g) the following:
       ``(h) Education and Access to the Monitoring System.--A 
     State receiving a grant under subsection (a) shall take steps 
     to--
       ``(1) facilitate prescriber use of the State's controlled 
     substance monitoring system; and
       ``(2) educate prescribers on the benefits of the system 
     both to them and society.'';
       (10) in subsection (m)(1), as redesignated, by striking 
     ``establishment, implementation, or improvement'' and 
     inserting ``establishment, improvement, or maintenance'';
       (11) in subsection (n)(8), as redesignated, by striking 
     ``and the District of Columbia'' and inserting ``, the 
     District of Columbia, and any commonwealth or territory of 
     the United States''; and
       (12) by amending subsection (o), as redesignated, to read 
     as follows:
       ``(o) Authorization of Appropriation.--To carry out this 
     section, there are authorized to be appropriated $15,000,000 
     for fiscal year 2011 and $10,000,000 for each of fiscal years 
     2012 through 2015.''.

     SEC. 4. AMENDMENTS TO TITLE 38.

       (a) Exception With Respect to Confidential Nature of 
     Claims.--Section 5701 of title 38, United States Code, is 
     amended by adding at the end the following new subsection:
       ``(l) Under regulations the Secretary shall prescribe, the 
     Secretary may disclose information about a veteran or the 
     dependant of a veteran to a State controlled substance 
     monitoring program, including a program approved by the 
     Secretary of Health and Human Services under section 399O of 
     the Public Health Service Act (42 U.S.C. 280g-3), to the 
     extent necessary to prevent misuse and diversion of 
     prescription medicines.''.
       (b) Exception With Respect to Confidentiality of Certain 
     Medical Records.--Section 7332(b)(2) of such title is amended 
     by adding at the end the following new subparagraph:
       ``(G) To a State controlled substance monitoring program, 
     including a program approved by the Secretary of Health and 
     Human Services under section 399O of the Public Health 
     Service Act (42 U.S.C. 280g-3), to the extent necessary to 
     prevent misuse and diversion of prescription medicines.''.
       (c) Report.--
       (1) In general.--Not later than one year after the date of 
     the enactment of this Act, the Secretary of Veterans Affairs 
     shall submit to Congress a report on the participation of the 
     Department of Veterans Affairs in State controlled substance 
     monitoring programs, including programs approved by the 
     Secretary of Health and Human Services under section 399O of 
     the Public Health Service Act (42 U.S.C. 280g-3).
       (2) Elements.--The report required by paragraph (1) shall 
     include the following:
       (A) A summary of the activities of the Department of 
     Veterans Affairs relating to programs described in paragraph 
     (1).
       (B) A list of the programs described in paragraph (1) in 
     which the Department is participating.
       (C) A description of how the Secretary determines which 
     programs described in paragraph (1) in which to participate.
       (D) The status of the regulations, if any, prescribed by 
     the Secretary under section 5701(l) of title 38, United 
     States Code, as added by subsection (a) of this section.

  Mr. DODD. Mr. President, I rise today in support of reauthorization 
of the National All Schedules Prescription Electronic Drug Reporting 
Act, NASPER, program critical to combating the abuse of prescription 
drugs

[[Page 12838]]

in our Nation. I am proud to once again join my colleagues Senators 
Dick Durbin, Jeff Sessions, and Sherrod Brown on this important 
legislation which would reauthorize the NASPER program.
  In 2008, over 15 million Americans abused prescription drugs and 
nearly 2 million of those Americans were between the ages of 12 and 17. 
Further, the National Institute on Drug Abuse at the National 
Institutes of Health found that last year more than 1 in 10 high school 
seniors used a narcotic for nonmedical purposes. These statistics are 
simply unacceptable. We must do more to address the issue of 
prescription drug abuse in this country.
  When used under the supervision of a medical professional 
prescription drugs can be life saving but when they are abused they can 
become life-threatening. NASPER will help prevent unnecessary deaths by 
allowing credentialed professionals access to key information regarding 
prescriptions for many controlled substances. This access will help 
prevent doctor shopping and will help health professionals to more 
closely monitor the prescriptions being issued to their patients.
  NASPER is a valuable tool available to states to help detect and 
prevent abuse of prescription drugs. Reauthorization of this program 
will allow states to establish, maintain, and grow their own electronic 
prescription drug monitoring programs. Beyond this it will help states 
establish linkages to surrounding states so that information can be 
more easily shared, making doctor shopping across state lines more 
difficult.
  I am proud of the work that is going on in my own state of 
Connecticut around this issue. Our Drug Control Division within the 
Department of Consumer Protection has worked tirelessly to build a 
successful prescription drug monitoring program. This program has 
helped to not only prevent abuse of prescription drugs but it has 
helped to detect and prevent abuse of critical programs such as 
Medicare and Medicaid. In one case, an investigation of a pharmacist 
fraudulently billing Medicaid and Medicare resulted in a settlement 
with the government for $340,000.
  As you can see NASPER is an important tool we cannot afford to lose 
and I urge my colleagues to join me in supporting this important 
legislation.

                          ____________________