[Federal Register Volume 88, Number 55 (Wednesday, March 22, 2023)]
[Notices]
[Pages 17202-17203]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-05758]


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DEPARTMENT OF ENERGY


Notice of Availability of Guidance and Application for 
Hydroelectric Production Incentives

AGENCY: Hydroelectric Incentives Program, Grid Deployment Office, 
Department of Energy.

ACTION: Notice of availability of guidance and open application period.

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SUMMARY: The U.S. Department of Energy (DOE) gives notice of updated 
guidance for the Energy Policy Act of 2005 Hydroelectric Production 
Incentives. The guidance describes the hydroelectric production 
incentive payment requirements and explains the type of information 
that owners or authorized operators of qualified hydroelectric 
facilities must provide DOE when applying for hydroelectric production 
incentive payments. The hydroelectric production incentive payments are 
a benefit available for electric energy generated and sold for a 
specified 10-year period as authorized under the Energy Policy Act of 
2005. In the Infrastructure Investment and Jobs Act, DOE received $125 
million to support this hydroelectric production incentive. At this 
time, DOE is only accepting applications from owners and authorized 
operators of qualified hydroelectric facilities for hydroelectricity 
generated and sold in calendar years 2021 and 2022.

DATES: DOE is currently accepting applications from March 22, 2023 
through May 8, 2023. Applications must be submitted to the Clean Energy 
Infrastructure Funding Opportunity Exchange, https://infrastructure-exchange.energy.gov/ by no later than 5 p.m. ET, May 8, 2023, or they 
will not be considered timely filed for calendar year 2021 and 2022 
incentive payments.

ADDRESSES: Interested parties are to submit applications electronically 
to the Clean Energy Infrastructure Funding Opportunity Exchange, 
https://infrastructure-exchange.energy.gov/. The guidance accompanying 
this solicitation is available at: www.energy.gov/gdo/section-242-hydroelectric-production-incentive-program.

FOR FURTHER INFORMATION CONTACT: Questions may be addressed to Madden 
Sciubba, U.S. Department of Energy, 1000 Independence Ave. SW, 
Washington, DC 20585, (240) 798-1195 or by email at 
[email protected]. Additional information can be found 
in the guidance posted at www.energy.gov/gdo/section-242-hydroelectric-production-incentive-program. Electronic communications are recommended 
for correspondence.

SUPPLEMENTARY INFORMATION: In section 242 of the Energy Policy Act of 
2005 (EPAct 2005; Pub. L. 109-58), as amended, Congress established a 
program to support the expansion of hydropower energy development at 
existing dams and impoundments through an incentive payment procedure 
for eligible facilities (section 242), codified at 42 U.S.C. 15881. 
Congress amended section 242 in the Energy Act of 2020 (Pub. L. 116-
260) by expanding the eligibility window and amending the definition of 
a qualified hydroelectric facility. The Infrastructure Investment and 
Jobs Act of 2021 (Pub. L. 117-58) made further amendments to section 
242. For this solicitation, DOE is accepting applications for payments 
resulting from hydroelectricity generated and sold in calendar years 
2021 and 2022.
    Section 242 directs the Secretary to provide incentive payments to 
the owners or authorized operators of hydroelectric generation 
facilities in accordance with specific statutory

[[Page 17203]]

instructions. The Secretary is directed to issue incentive payments, 
subject to the availability of appropriations, for hydroelectric energy 
generated and sold by a qualified hydroelectric facility during the 
incentive period. Incentive payments may only be made upon receipt by 
the Secretary of an incentive payment application that demonstrates 
that the applicant is eligible to receive such payment and satisfies 
other requirements as the Secretary deems necessary.\1\ In the 
Infrastructure Investment and Jobs Act, Congress provided $125 million 
for this purpose.
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    \1\ 42 U.S.C. 15881(a).
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    The Secretary may only issue payments for the electric energy 
generated and sold by a qualified hydroelectric facility that began 
operations during the period of 22 fiscal years beginning after the 
first fiscal year occurring after the program's enactment, August 8, 
2005.\2\ A qualified hydroelectric facility may receive payments for a 
period of 10 consecutive fiscal years, known as the incentive period, 
which begins with the fiscal year that electric energy generated from 
the facility is first eligible for such payments.\3\ Payments made by 
the Secretary are based on the number of kilowatt hours of 
hydroelectric energy generated by the facility during the incentive 
period. The amount of such payment shall be 1.8 cents per kilowatt hour 
(as adjusted by the Internal Revenue Code of 1986), subject to the 
availability of appropriations, except that no facility may receive 
more than $1,000,000 in one calendar year.\4\ No payments will be made 
after the expiration of the period of 32 fiscal years beginning with 
the first full fiscal year occurring after August 8, 2005, and no 
payment may be made under this section to any such facility after a 
payment has been made with respect to such facility for a period of 10 
fiscal years.\5\ The Secretary is authorized to carry out the purposes 
of this program for each of the fiscal years of 2021 through 2036.\6\
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    \2\ 42 U.S.C. 15881(c).
    \3\ 42 U.S.C. 15881(d).
    \4\ 42 U.S.C. 15881(e).
    \5\ 42 U.S.C. 15881(f).
    \6\ 42 U.S.C. 15881(g).
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    In section 242, Congress defines a qualified hydroelectric facility 
to mean ``a turbine or other generating device owned or solely operated 
by a non-Federal entity--(A) that generates hydroelectric energy for 
sale; and (B)(i) that is added to an existing dam or conduit; or 
(ii)(I) that has generating capacity of not more than 20 megawatts; 
(II) for which the non-Federal entity has received a construction 
authorization from the Federal Energy Regulatory Commission, if 
applicable; and (III) that is constructed in an area in which there is 
inadequate electric service, as determined by the Secretary, including 
by taking into consideration--(aa) access to the electric grid; (bb) 
the frequency of electric outages; or (cc) the affordability of 
electricity.'' \7\
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    \7\ 42 U.S.C. 15881(b)(1).
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    Additionally, Congress defined an existing dam or conduit to mean 
any dam or conduit constructed and completed before August 8, 2005 and 
does not require any construction or enlargement of impoundment or 
diversion structures, other than repair or reconstruction, in 
connection with the installation of a turbine or other generating 
device.\8\ The term conduit maintains the same meaning here as when 
used in section 30(a)(2) of the Federal Power Act (16 U.S.C. 
823a(a)(3)(A)).\9\
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    \8\ 42 U.S.C. 15881(b)(2).
    \9\ 42 U.S.C. 15881(b)(3).
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    Further, these defined terms apply without regard to the 
hydroelectric kilowatt capacity of the facility, without regard to 
whether the facility uses a dam owned by a governmental or 
nongovernmental entity, and without regard to whether the facility 
begins operation on or after the date August 8, 2005.\10\ Recently, DOE 
clarified its guidance for the Energy Policy Act of 2005 section 242 
incentive. These updates include clarifying the definition of a 
qualified hydroelectric facility and changes to the submission process. 
This guidance applies to generation in calendar years 2021 and 2022 and 
is available at: www.energy.gov/gdo/section-242-hydroelectric-production-incentive-program. Each application will be reviewed based 
on the contents of the guidance.
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    \10\ 42 U.S.C. 15881(b).
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    DOE notes that applicants that received incentive payments for 
prior calendar years must submit a new and complete application 
addressing all eligibility requirements for hydroelectricity generated 
and sold in calendar years 2021 and 2022. DOE will not consider 
previously submitted application materials. Applications that refer to 
previous application materials or statements in lieu of submitting 
current information will not be considered. As authorized under section 
242 of EPAct 2005, and as explained in the guidance, DOE also notes 
that it will only accept applications from qualified hydroelectric 
facilities that began operations at an existing dam or conduit between 
October 1, 2005, and September 30, 2027.
    When submitting information to DOE for the section 242 incentive, 
it is recommended that applicants carefully read and review the 
completed content of the guidance for this process. When reviewing 
applications, DOE may corroborate the information provided with 
information that DOE finds through FERC e-filings, contact with power 
off-taker, and other due diligence measure carried out by reviewing 
officials. DOE may require the applicant to conduct and submit an 
independent audit at its own expense, or DOE may conduct an audit to 
verify the number of kilowatt-hours claimed to have been generated and 
sold by the qualified hydroelectric facility and for which an incentive 
payment has been requested or made.

Signing Authority

    This document of the Department of Energy was signed on March 16, 
2023, by Maria Duaime Robinson, Director, Grid Deployment Office, 
pursuant to delegated authority from the Secretary of Energy. That 
document with the original signature and date is maintained by DOE. For 
administrative purposes only, and in compliance with requirements of 
the Office of the Federal Register, the undersigned DOE Federal 
Register Liaison Officer has been authorized to sign and submit the 
document in electronic format for publication, as an official document 
of the Department of Energy. This administrative process in no way 
alters the legal effect of this document upon publication in the 
Federal Register.

    Signed in Washington, DC, on March 16, 2023.
Treena V. Garrett,
Federal Register Liaison Officer, U.S. Department of Energy.
[FR Doc. 2023-05758 Filed 3-21-23; 8:45 am]
BILLING CODE 6450-01-P