; and (ii) can— (I) generate power as water moves down through a turbine; and (II) recharge by pumping water to the upper reservoir; (B) 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— (i) 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 (ii) not more than 1 project reservoir is located on, or directly connected to, a natural surface watercourse, subject to the conditions that the reservoir— (I) is in existence on the date of enactment of the Community and Hydropwer Improvement Act ; (II) receives the vast majority of water from— (aa) surfacewater of a different natural watershed via an existing pipeline, aqueduct, or other conveyance infrastructure; or (bb) groundwater; and (III) 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 (C) 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. (2) Qualifying criteria 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— (A) 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