Hydropower Clean Energy Future Act

This bill modernizes the hydropower licensing process and promotes next-generation hydropower projects. It confirms hydropower as a renewable resource, modifies renewable energy definitions to include hydropower, and amends the Federal Power Act to require mitigation measures for projects affecting federal reservations or navigation facilities.

Sec. 2, Confirming that hydropower is an essential renewable resource: This section expresses Congress's view that hydropower is a renewable resource and should be protected and expanded. It amends the Energy Policy Act of 2005 to set increasing renewable energy percentage requirements for federal agencies, including hydropower in the definition of renewable energy. It also requires federal departments to amend their renewable energy policies to include hydropower within 180 days and amends the Federal Power Act to require mitigation measures for projects affecting federal reservations or navigation facilities.

Sec. 3, Protecting and promoting small and next-generation hydropower projects: This section expands exemptions from licensing for small hydroelectric projects up to 40 megawatts, including for existing licensed projects under certain conditions. It also creates a new expedited licensing process for next-generation hydropower projects, which include emerging hydropower technology projects, qualifying facilities, closed-loop pumped storage, marine and hydrokinetic projects, and hydropower within water conduit systems.

Sec. 4, Identifying and removing market barriers to hydropower: This section requires the Federal Energy Regulatory Commission, in consultation with the Secretary of Energy, to submit a report within 270 days identifying barriers to hydropower development and compensation, recommending reductions, and identifying mechanisms to encourage development and properly compensate hydropower for grid services. It also defines ancillary services and conventional, storage, conduit, and emerging hydropower technologies.

Sec. 5, Modernizing hydropower licensing: This section amends the Federal Power Act to designate the Commission as the lead agency for all federal authorizations for hydropower licenses. It requires use of existing studies to avoid duplication, establishes a schedule for license issuance with a goal of 2 years, and sets deadlines for federal and state agencies. It also requires a rulemaking to establish the scheduling process.

Sec. 6, Hydropower development at existing nonpowered dams and closed-loop pumped storage: This section amends the Federal Power Act to allow licensing of qualifying facilities at existing nonpowered dams and qualifying closed-loop pumped storage projects under the new expedited licensing section. It also exempts certain closed-loop pumped storage projects from licensing if not on federal lands or using federal dams, while preserving other environmental requirements.

Sec. 7, Extension of time to commence construction of certain hydropower projects: This section allows the Federal Energy Regulatory Commission to extend the construction commencement period for hydropower projects licensed before March 13, 2020, that have not yet started construction, by an additional 4 years beyond the standard 8-year period, for good cause shown.