Sec. 12. Closed-loop and off-stream pumped storage projects
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Section 35 of the Federal Power Act ( 16 U.S.C. 823f ) is amended to read as follows: In this section: The term closed-loop or off-stream pumped storage project means a project— that— is configured to use 2 or more natural or artificial reservoirs or other water bodies at different elevations; and can— generate power as water moves down through a turbine; and recharge by pumping water to the upper reservoir; that is designed for construction and operation in a manner that ensures that the upper and lower reservoirs or other water bodies do not impound any stream channel of a natural surface waterway, unless— 1 or more project reservoirs are located on, or connected to, a stream channel of a natural waterway that has flowing water only during, and for a short duration after, precipitation events during a typical year; or not more than 1 project reservoir is located on, or directly connected to, a natural surface watercourse, subject to the conditions that the reservoir— is in existence on the date of enactment of the Community and Hydropwer Improvement Act ; receives the vast majority of water from— surfacewater of a different natural watershed via an existing pipeline, aqueduct, or other conveyance infrastructure; or groundwater; and obtains not more than 10 percent of the volume of the average annual inflow of surfacewater from the natural watershed in which the reservoir is located; and any project reservoir (except for a reservoir described in subparagraph (B)(ii)) of which, if the reservoir is connected to a natural surface waterway, is connected for the sole purpose of the initial fill and periodic recharge of reservoirs needed for project operation.
The term qualifying criteria , with respect to a closed-loop or off-stream pumped storage project, means that the closed-loop or off-stream pumped storage project— is unlikely to involve any fish or wildlife species listed as a threatened or endangered species, or any habitat designated as a critical habitat of such a species, under the Endangered Species Act of 1973 ( 16 U.S.C. 1531 et seq. ), unless the applicable notification of intent identifies proposed measures to protect or mitigate damages to the applicable species or habitat; is unlikely to involve resource issues that are unusual or complex in the licensing process and associated environmental review; is supported by sufficient information and proposed environmental study plans submitted with the notification of intent to support expedited environmental review and consideration of the application; proposes construction, development, and operation the environmental effects of which are likely capable of protection, mitigation, and enhancement through the licensing provisions contained in this part; and is not located within any land or interest in land the legal title to which is held by the United States in trust for the benefit of an Indian Tribe, unless the affected Indian Tribe— is a project proponent; or consents, in writing, to the location.
The Commission may issue licenses, as appropriate, for any closed-loop or off-stream pumped storage project that meets the qualifying criteria, as determined by the Commission, in accordance with this section. Not later than 180 days after the date of enactment of the Community and Hydropwer Improvement Act , after consultation with the interagency task force under paragraph
(3)and providing notice and an opportunity for public comment, the Commission shall update regulations of the Commission for issuing licenses for closed-loop or off-stream pumped storage projects that meet the qualifying criteria. In updating regulations under this section, the Commission shall convene an interagency task force, with appropriate Federal and State agencies, Indian Tribes, and the public represented, to coordinate the regulatory processes associated with the authorizations required to construct and operate closed-loop or off-stream pumped storage projects that meet the qualifying criteria. Before issuing a proposed rule for public comment under paragraph (2), the Commission shall convene workshops and other meetings with the interagency task force under this paragraph to develop procedures that allow the Commission and appropriate Federal and State agencies and Indian Tribes to exercise authority in accordance with— this section; and the applicable requirements of this part. The Commission shall issue a final decision regarding an application for a license for a proposed closed-loop or off-stream pumped storage project submitted under subsection (d)(3) not later than 3 years after the date on which the Commission determines under subsection (d)(2) that the closed-loop or off-stream pumped storage project meets the qualifying criteria. Before issuing any license for a closed-loop or off-stream pumped storage project that meets the qualifying criteria, the Commission shall assess the safety of relevant existing dams and other project works. The applicant for a closed-loop or off-stream pumped storage project shall commence the licensing process under this section by submitting to the Commission a notification of intent to file an application for a license, together with supporting information, which shall inform the determination of the Commission under paragraph (2). Not later than 90 days after the date on which an applicant submits to the Commission a notification of intent under paragraph (1), the Commission, after providing notice and an opportunity for public comment, shall— determine whether the closed-loop or off-stream pumped storage project described in the notification meets the qualifying criteria; and include in a determination under clause
(i)information, including analyses supported by information in the public record, relating to the factual basis for the determination. In making a determination under subparagraph
(A)with respect to a closed-loop or off-stream pumped storage project, the Commission shall consult with Federal and State agencies and Indian Tribes with authority over the closed-loop or off-stream pumped storage project regarding any qualifying criteria that may disqualify the closed-loop or off-stream pumped storage project from the expedited process under this section. If the Commission determines under subparagraph
(B)that any qualifying criteria potentially disqualify a closed-loop or off-stream pumped storage project from the expedited process under this section, the Commission shall— seek to resolve any issues in advance of issuing a determination regarding whether the closed-loop or off-stream pumped storage project meets the qualifying criteria under this paragraph; and include in a determination under clause
(i)information relevant to efforts to resolve such issues. Not later than 1 year after the date on which the Commission determines under paragraph
(2)that a closed-loop or off-stream pumped storage project meets the qualifying criteria, an applicant for the closed-loop or off-stream pumped storage project shall submit to the Commission an application for a license under this section. An application under subparagraph
(A)shall include a description of each protection, mitigation, and enhancement measure proposed to be carried out in order for the applicable closed-loop or off-stream pumped storage project to receive a license from the Commission, in accordance with subsection (e). In determining whether to approve an application submitted for a closed-loop or off-stream pumped storage project under subsection (d)(3), in accordance with the deadline described in subsection (b)(4), the Commission, in consultation with applicable Federal and State resource agencies and Indian Tribes with regulatory responsibility for the closed-loop or off-stream pumped storage project, shall— use relevant existing studies, monitoring information, and data that are applicable to the relevant project, in accordance with section 10( l ); avoid duplicating current, existing studies; and design any new studies and information requirements to be consistent with the ability of the Commission to meet the licensing deadline under subsection (b)(4); consider whether obligations under the National Environmental Policy Act of 1969 ( 42 U.S.C. 4321 et seq. ) may be met through— preparing an environmental assessment; or supplementing a previously prepared environmental assessment or environmental impact statement; develop a licensing process that reduces administrative burdens on resource agencies, Indian Tribes, the applicant, and the public by avoiding unnecessary paperwork, meetings, and other process obligations, subject to the condition that nothing in this paragraph eliminates any applicable consultation requirement under Federal or State law (including regulations); and consider a set of standard license terms and conditions that generally would apply to all closed-loop or off-stream pumped storage projects licensed under this section, based on common technical considerations and environmental effects, subject to the condition that the development of standard license terms and conditions shall not limit the imposition of project-specific conditions for any particular closed-loop or off-stream pumped storage project. Notwithstanding section 5, regardless of whether the holder of a preliminary permit for a closed-loop or off-stream pumped storage project claims a municipal preference under section 7(a) in obtaining a permit, on request by a municipality, the Commission may, to facilitate development of a closed-loop or off-stream pumped storage project— add 1 or more entities as joint permittees following the issuance of a preliminary permit; and transfer a license in part to 1 or more nonmunicipal entities as co-licensees with a municipality, if the municipality retains majority ownership of the closed-loop or off-stream pumped storage project for which the license was issued. Not later than 180 days after the date of enactment of this Act, the Commission shall hold a workshop to explore potential opportunities for development of closed-loop pumped storage projects at abandoned mine sites. Not later than 1 year after the date of enactment of this Act, the Commission shall issue guidance to assist applicants for licenses or preliminary permits for closed-loop pumped storage projects at abandoned mine sites. Nothing in this section affects any authority of the Commission to license a closed-loop or off-stream pumped storage project under any other provision of this part. .
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