Sec. 4. Identifying and removing market barriers to hydropower
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Not later than 270 days after the date of enactment of this Act, the Federal Energy Regulatory Commission, in consultation with the Secretary of Energy, 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— describing any barriers to the development and proper compensation of conventional, storage, conduit, and emerging hydropower technologies caused by— rules of Transmission Organizations (as defined in section 3 of the Federal Power Act ( 16 U.S.C. 796 )); regulations or policies— of the Commission; or under the Federal Power Act ( 16 U.S.C. 791a et seq.); or other Federal and State laws and policies unique to hydropower development, operation, and regulation, as compared to other sources of electricity; containing recommendations of the Commission for reducing barriers described in subparagraph
(A)across regulatory and market sectors; identifying and determining any regulatory, market, procurement, or cost recovery mechanisms that would— encourage development of conventional, storage, conduit, and emerging hydropower technologies; and properly compensate conventional, storage, conduit, and emerging hydropower technologies for the full range of services provided to the electric grid, including— balancing electricity supply and demand; ensuring grid reliability; providing ancillary services; contributing to the decarbonization of the electric grid; and integrating intermittent power sources into the grid in a cost-effective manner; and identifying ownership and development models that could reduce barriers to the development of conventional, storage, conduit, and emerging hydropower technologies, including— opportunities for risk-sharing mechanisms and partnerships, including co-ownership models; and opportunities to foster lease-sale and lease-back arrangements with publicly owned electric utilities. The Commission shall base the report under paragraph
(1)on the findings of the Commission in— Docket No. AD16–20; Docket No. RM16–23; and any other relevant proceedings. In preparing the report under paragraph (1), the Commission shall solicit public input, including by convening a technical conference and providing an opportunity for public submission of written comments on a draft report. In this section: The term ancillary services means the specialty services and functions provided by the electric grid that facilitate and support the continuous flow of electricity so that supply will continually meet demand, including— autonomous dynamic voltage support; balancing; black start capabilities; frequency control; load following; operating, flexibility, contingency, and other reserves; reactive power; and synchronized regulation. The term conventional, storage, conduit, and emerging hydropower technologies means hydropower in all its forms and modes of operation, including— the use of dams or similar infrastructure to store water in a reservoir or divert flows from a waterway, and to release stored or diverted water through a turbine to generate electricity according to any mode of operation, such as run-of-river, peaking, reregulating, storage, or load following; a configuration of two water reservoirs at different elevations that can generate power as water moves down through a turbine, and pump water back to the upper reservoir when the turbine operations are reversed, including both closed- and open-loop systems; marine and hydrokinetic technologies, including wave, tidal, and in-river systems; mini- and micro-hydropower facilities within irrigation, water supply, industrial, agricultural, or other open or closed water conduit systems; and other facilities that produce electricity from generators driven by turbines that convert the potential energy of falling or flowing water.
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