Directs the Secretary of Energy to make incentive payments during a specified incentive period to the owner or operator of: (1) a turbine or other generating device owned or solely operated by a non-Federal entity which generates hydroelectric energy for sale and which is added to an existing dam or conduit (a qualified hydroelectric facility); and (2) hydroelectric facilities at existing dams for capital improvements that are directly related to improving their efficiency by at least three percent.
Describes payment limitations.
[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1530 Introduced in House (IH)]
109th CONGRESS
1st Session
H. R. 1530
To encourage the development of hydroelectric projects, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 6, 2005
Mr. Shadegg introduced the following bill; which was referred to the
Committee on Energy and Commerce
_______________________________________________________________________
A BILL
To encourage the development of hydroelectric projects, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. FINDINGS.
The Congress finds that:
(1) The United States must increase its supply of energy to
ensure a continuing prosperous economy and high standard of
life.
(2) We currently rely heavily on imports of energy supplies
from foreign nations and utilize large quantities of carbon
fuels for electricity generation.
(3) Hydropower is a domestic energy source which currently
produces 92,000 megawatts of electricity per year, a figure
representing 10 percent of the generation capacity in the
United States.
(4) The Energy Information Agency estimates that, of the
75,000 dams in the United States, only 2,400 or three percent
of these dams currently produce electricity.
(5) The Energy Information Agency further estimates that
there are approximately 21,300 megawatts of undeveloped
capacity at existing dams.
(6) New technology allows this energy to be utilized with
little or no environmental effect by adding new turbines to
existing dams and improving the efficiency of existing
turbines.
(7) Hydropower produces electricity without producing
hazardous waste or air pollutants.
(8) The 92,000 megawatts of electricity currently generated
by hydropower avoid the annual emission of 4.75 million tons of
sulfur dioxide and 2 million tons of nitrous oxide by
eliminating the need to burn 345 million tons of coal.
(9) Hydropower is a renewable energy source which, because
of the natural hydrologic cycle, will continue to be available
in perpetuity.
SEC. 2. CONSTITUTIONAL AUTHORITY.
The Constitutional authority on which this Act rests is the power
of Congress to make all laws which shall be necessary and proper as
enumerated in article I, section 8 of the United States Constitution.
SEC. 3. HYDROELECTRIC PRODUCTION INCENTIVES.
(a) Incentive Payments.--For electric energy generated and sold by
a qualified hydroelectric facility during the incentive period, the
Secretary of Energy (referred to in this section as the ``Secretary'')
shall make, subject to the availability of appropriations, incentive
payments to the owner or operator of such facility. The amount of such
payment made to any such owner or operator shall be as determined under
subsection (e) of this section. Payments under this section may only be
made upon receipt by the Secretary of an incentive payment application
which establishes that the applicant is eligible to receive such
payment and which satisfies such other requirements as the Secretary
deems necessary. Such application shall be in such form, and shall be
submitted at such time, as the Secretary shall establish.
(b) Definitions.--For purposes of this section:
(1) Qualified hydroelectric facility.--The term ``qualified
hydroelectric facility'' means a turbine or other generating
device owned or solely operated by a non-Federal entity which
generates hydroelectric energy for sale and which is added to
an existing dam or conduit.
(2) Existing dam or conduit.--The term ``existing dam or
conduit'' means any dam or conduit the construction of which
was completed before the date of the enactment of this section
and which 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.
(3) Conduit.--The term ``conduit'' has the same meaning as
when used in section 30(a)(2) of the Federal Power Act.
The terms defined in this subsection shall apply without regard to the
hydroelectric kilowatt capacity of the facility concerned, 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 of the enactment of this section.
(c) Eligibility Window.--Payments may be made under this section
only for electric energy generated from a qualified hydroelectric
facility which begins operation during the period of 10 fiscal years
beginning with the first full fiscal year occurring after the date of
enactment of this Act.
(d) Incentive Period.--A qualified hydroelectric facility may
receive payments under this section for a period of 10 fiscal years
(referred to in this section as the ``incentive period''). Such period
shall begin with the fiscal year in which electric energy generated
from the facility is first eligible for such payments.
(e) Amount of Payment.--
(1) In general.--Payments made by the Secretary under this
section to the owner or operator of a qualified hydroelectric
facility shall be based on the number of kilowatt hours of
hydroelectric energy generated by the facility during the
incentive period. For any such facility, the amount of such
payment shall be 1.5 cents per kilowatt hour (adjusted as
provided in paragraph (2)), subject to the availability of
appropriations under subsection (g), except that no facility
may receive more than $1,000,000 in one calendar year.
(2) Adjustments.--The amount of the payment made to any
person under this section as provided in paragraph (1) shall be
adjusted for inflation for each fiscal year beginning after
calendar year 2005 in the same manner as provided in the
provisions of section 29(d)(2)(B) of the Internal Revenue Code
of 1986, except that in applying such provisions the calendar
year 2005 shall be substituted for calendar year 1979.
(f) Sunset.--No payment may be made under this section to any
qualified hydroelectric facility after the expiration of the period of
20 fiscal years beginning with the first full fiscal year occurring
after the date of enactment of this Act, 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.
(g) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary to carry out the purposes of this section
$50,000,000 for each of the fiscal years 2006 through 2015.
SEC. 4. HYDROELECTRIC EFFICIENCY IMPROVEMENT.
(a) Incentive Payments.--The Secretary of Energy shall make
incentive payments to the owners or operators of hydroelectric
facilities at existing dams to be used to make capital improvements in
the facilities that are directly related to improving the efficiency of
such facilities by at least 3 percent.
(b) Limitations.--Incentive payments under this section shall not
exceed 10 percent of the costs of the capital improvement concerned and
not more than one payment may be made with respect to improvements at a
single facility. No payment in excess of $1,000,000 may be made with
respect to improvements at a single facility.
(c) Authorization.--There is authorized to be appropriated to carry
out this section not more than $50,000,000 in each fiscal year after
the fiscal year 2005.
SEC. 5. SMALL HYDROELECTRIC POWER PROJECTS.
Section 408(a)(6) of the Public Utility Regulatory Policies Act of
1978 is amended by striking ``April 20, 1977'' and inserting ``March 4,
2005''.
SEC. 6. INCREASED HYDROELECTRIC GENERATION AT EXISTING FEDERAL
FACILITIES.
(a) In General.--The Secretary of Energy, in consultation with the
Secretary of the Interior and Secretary of the Army, shall conduct
studies of the cost-effective opportunities to increase hydropower
generation at existing federally-owned or operated water regulation,
storage, and conveyance facilities. Such studies shall be completed
within two years after the date of enactment of this Act and
transmitted to the Committee on Commerce of the House of
Representatives and the Committee on Energy and Natural Resources of
the Senate. An individual study shall be prepared for each of the
Nation's principal river basins. Each such study shall identify and
describe with specificity the following matters:
(1) Opportunities to improve the efficiency of hydropower
generation at such facilities through, but not limited to,
mechanical, structural, or operational changes.
(2) Opportunities to improve the efficiency of the use of
water supplied or regulated by Federal projects where such
improvement could, in the absence of legal or administrative
constraints, make additional water supplies available for
hydropower generation or reduce project energy use.
(3) Opportunities to create additional hydropower
generating capacity at existing facilities through, but not
limited to, the construction of additional generating
facilities, the uprating of generators and turbines, and the
construction of pumped storage facilities.
(4) Preliminary assessment of the costs and the economic
and environmental consequences of such measures.
(b) Previous Studies.--If studies of the type required by
subsection (a) have been prepared by any agency of the United States
and published within the five years prior to the date of enactment of
this Act, the Secretary of Energy may choose not to perform new studies
and incorporate the information in such studies into the studies
required by subsection (a).
(c) Authorization.--There is authorized to be appropriated such
sums as may be necessary to carry out the purposes of this section.
SEC. 7. RENEWABLE ENERGY PRODUCTION INCENTIVES PROGRAM.
Section 1212 of the Energy Policy Act of 1992 is amended in
subsection (b) by inserting after ``and which'' the following ``is a
small hydroelectric power project (as defined in section 408(a)(1) of
the Public Utility Regulatory Policies Act of 1978) or which''.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Energy and Commerce.
Referred to the Subcommittee on Energy and Air Quality.
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