; and (B) in subsection (b), by striking paragraph (2) and inserting the following: (2) Renewable energy The term renewable energy means energy produced from solar, wind, biomass, landfill gas, ocean (including tidal, wave, current, and thermal), geothermal, municipal solid waste, or hydropower. . (2) Other Federal regulations, orders, and policies Not later than 180 days after the date of enactment of this Act, each Federal department and agency 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 demonstrating that the department or agency has amended any applicable regulation, order, or other policy of the department or agency related to renewable energy to ensure treatment of hydropower by the Federal Government consistent with the amendments made by paragraph (1). (c) Licenses for construction Section 4(e) of the Federal Power Act ( 16 U.S.C. 797(e) ) is amended, in the first sentence, by inserting to mitigate the effects of the applicable project on such reservation, so as to provide after deem necessary in the first proviso. (d) Operation of navigation facilities Section 18 of the Federal Power Act ( 16 U.S.C. 811 ) is amended by adding before the period at the end of the first sentence to mitigate effects of the applicable project . 3. Protecting and promoting small and next-generation hydropower projects (a) 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 in certain cases (1) In general Subject to paragraphs (2) and (3), the Commission may in its discretion (by rule or order), upon application and 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