Energy (Hydroelectric)

This bill allows hydropower project license holders to request up to 6 additional years to begin construction on projects that received licenses before March 13, 2020. The Federal Energy Regulatory Commission (FERC) may grant extensions in two-year increments, but the total extension cannot exceed six years. For licenses expiring after December 31, 2023, FERC can reinstate them to immediately apply the extension.

Maintaining and Enhancing Hydroelectricity and River Restoration Act of 2025 This bill establishes a new investment tax credit in the amount of 30% of the basis of any hydropower improvement property. The bill defines hydropower improvement property as property that adds or improves fish passage at a qualified dam; maintains or improves the quality of the water retained or released by a qualified dam; promotes downstream sediment transport and habitat maintenance; upgrades, repairs, or reconstructs a qualified dam to meet safety and security standards; improves public uses of, and access to, public waterways impacted by a qualified dam; removes an obsolete river obstruction; or places into service an approved remote dam. Further, written approval for hydropower improvement property must be obtained from the Federal Energy Regulatory Commission or state or local officials prior to January 1, 2035. The bill also allows an election to claim the investment tax credit for qualified progress expenses for some types of hydropower improvement property in advance of such property being placed into service. Any investment tax credit amount claimed for qualified progress expenses reduces the amount of the investment tax credit that may be claimed once the hydropower improvement property is placed into service.  The bill authorizes certain entities, including tax-exempt and governmental entities, to treat the investment tax credit for hydropower improvement property as a payment of tax and receive a refund of any overpayment (also known as elective pay).  Finally, the investment tax credit for hydropower improvement property may be transferred (i.e., sold).

The Southwestern Power Administration Fund Establishment Act creates a new fund within the U.S. Treasury to consolidate the Southwestern Power Administration's (SPA) existing receipts, unspent balances from prior appropriations, and future funding. This fund will directly support the SPA - a federal agency managing hydroelectric power marketing - by covering operational costs for power transmission systems, electricity marketing, infrastructure construction, and related administrative expenses. The bill transfers unspent balances from three specific past funds into this new account and updates budget laws to redirect future SPA funding to it. The fund remains available until spent, with excess amounts annually returned to the U.S. Treasury.

HR 2072 allows hydropower project licensees to request extended construction timelines from the Federal Energy Regulatory Commission (FERC). It specifically applies to projects licensed before March 13, 2020, with original construction deadlines expiring after December 31, 2023. FERC may extend the construction period by up to 6 additional years (in 2-year increments) if a licensee demonstrates good cause, and will automatically reinstate expired licenses for affected projects upon the bill's enactment. This bill directly affects hydropower developers whose licenses were nearing expiration due to delays, providing administrative flexibility without changing core licensing requirements.

HR 7487, the Rural Jobs and Hydropower Expansion Act, expands hydropower development opportunities on Bureau of Reclamation water projects. It removes restrictions that previously limited hydropower to "small conduit" systems or pumped storage, now allowing all types of hydropower projects using Bureau facilities. The bill clarifies definitions for "transferred works facilities" (operated by non-federal entities) and "reserved works facilities," and updates rules for Federal Energy Regulatory Commission (FERC) authorizations to remain active until expired or renewed. This directly affects developers seeking to build hydropower projects on federal water infrastructure managed by the Bureau of Reclamation.

This bill requires federal agencies managing the Federal Columbia River Power System (FCRPS) to operate it according to the 2020 environmental review's "reasonable and prudent alternative." It allows limited changes to that review only for public safety, grid reliability, or if specific requirements are no longer needed, while prohibiting any new restrictions on hydroelectric power generation or Snake River navigation in Washington, Oregon, or Idaho without new federal law. The bill preserves routine operations and maintenance but mandates that structural changes or studies affecting power generation or navigation must be explicitly authorized by future legislation. It directly affects how federal agencies manage dams and river access across the Pacific Northwest.

This bill reauthorizes federal funding for water power research and development (including hydropower and marine energy) through 2030, increasing annual funding to $300 million - $200 million for marine energy and $100 million for hydropower - up from prior levels. It adds new requirements such as advancing U.S. manufacturing of marine energy components through university-industry partnerships, improving hydropower licensing by compiling environmental data, and integrating cybersecurity into research. The bill also mandates workforce development programs to train future professionals and requires annual congressional briefings on program progress. These changes directly affect the Department of Energy, research institutions, and industries working on water power technologies.

S 887, the Basin Fund Preservation Act, requires the Interior and Energy Secretaries to create a memorandum of understanding (MOU) with the Glen Canyon Dam Work Group. This MOU must address how a 2024 decision about Glen Canyon Dam operations affects the Upper Colorado River Basin Fund, including impacts on infrastructure maintenance, hydropower production costs, and endangered species protections. The bill mandates the MOU include specific plans to manage these effects using existing hydropower contract data. It directly affects federal agencies managing the Fund and Glen Canyon Dam operations, without altering current laws or creating new obligations.

HR 626, the Northwest Energy Security Act, requires federal agencies managing the Federal Columbia River Power System (FCRPS) to operate dams according to the 2020 environmental review (Supplemental Opinion). It allows limited amendments to this operating plan only if agencies determine changes are needed for public safety, grid reliability, or if outdated requirements are no longer valid. The bill explicitly prohibits any new restrictions on hydroelectric generation or navigation on the Snake River without specific new federal law. This directly affects the Secretaries of the Interior, Energy, and Army (through their agencies) in managing FCRPS operations.

The FLOWS Act (S 3518) streamlines processes for hydropower operations and creates a new licensing path for small-scale micro hydrokinetic projects. It allows hydropower licensees to make non-substantial alterations and routine maintenance without prior Federal Energy Regulatory Commission (FERC) approval, while requiring notice and maintaining FERC's safety oversight authority. For micro hydrokinetic projects (max 5 megawatts, no water impoundment), it establishes an expedited 1-year licensing process with specific deadlines for notifications and applications, and requires FERC to create regulations within 180 days. FERC must also report on environmental, economic, and energy impacts after five years or once 50 projects are operational.