1. Exemptions from licensing requirements for certain small hydroelectric power projects Section 405 of the Public Utility Regulatory Policies Act of 1978 ( 16 U.S.C. 2705 ) is amended by striking subsection (d) and inserting the following: (d) Exemptions from licensing requirements in certain cases (1) In general Subject to paragraphs (2) and (3), the Commission may in its discretion (by rule or order), on a case-by-case basis or on the basis of classes or categories of projects, grant an exemption in whole or in part from the requirements (including the licensing requirements) of part I of the Federal Power Act to any small hydroelectric power projects— (A) having a proposed installed capacity of 10,000 kilowatts or less; or (B) for which a license was issued under part I of the Federal Power Act ( 16 U.S.C. 792 et seq.) and that files for an exemption under this subsection, if— (i) the original or new license was issued after June 19, 1991; (ii) the project is in an area that has not been determined to be critical to a species listed as threatened or endangered under section 4 of the Endangered Species Act of 1973 ( 16 U.S.C. 1533 ) as of the date of the filing for an exemption under this subsection; (iii) the project has an installed capacity of 15 megawatts or less; and (iv) an exemption issued by the Commission under this subsection does not take effect until the expiration of the existing license. (2) Requirements The exemptions granted under subparagraphs (A) and (B) of paragraph (1) shall be subject to the same limitations (to ensure protection for fish and wildlife as well as other environmental concerns) as those which are set forth in subsections (c) and (d) of section 30 of the Federal Power Act with respect to determinations made and exemptions granted under subsection (b) of such section 30