	Introduction

Conventional hydropower accounted for more than 6% (258,749 gigawatt hours) of total net U.S. electricity generation in 2014. 113-24 (Bureau of Reclamation Small Conduit Hydropower Development and Rural Jobs Act), and P.L. However, others note that conventional large hydropower has relatively high initial capital costs, can be detrimental to surrounding ecosystems (e.g., fish and wildlife), may not be reliable during low water years and seasons, and may disrupt recreational or scenic values. Large federal hydropower projects are managed primarily by the U.S. Department of the Interior's Bureau of Reclamation (Reclamation) and the U.S. Army Corps of Engineers (Corps). When considered a renewable power source, hydropower was the largest contributor to renewable electric power generation in 2014, followed by wind and by wood and wood-derived fuels. Some interests oppose removal of hydroelectric dams, arguing that hydropower is a clean, renewable energy source. In addition to the general advantages and disadvantages of hydropower discussed earlier in this report, nonfederal projects have unique benefits. Federal Energy Regulatory Commission

FERC licenses the construction and operation of nonfederal hydropower projects. For nonfederal investment, this could require Congress to consider whether to modify tax incentives or provide other subsidies and to further examine the role of FERC. Legislative Questions

		Federal Hydropower

			What Are Some of the Options to Address Aging Hydropower Infrastructure at Existing Federal Hydropower Projects? Use alternative funding mechanisms to finance hydropower upgrades . Privatize federally owned dams through divestiture of assets. Hydropower is one of the few remaining energy sources where the federal government owns a significant portion of the projects that generate the bulk of the electricity. 113-23 ), which grants small hydropower projects with a capacity of 10 megawatts or less an exemption from licensing requirements, promotes conduit hydropower projects, and requires FERC to examine the feasibility of a two-year licensing process to promote hydropower development at nonpowered dams and closed-loop pumped storage projects, among other things. Some could argue that hydropower does not need assistance in the form of tax credits because it is an established source and tax credits should be issued to ease the entry of new renewable energy sources to the market, or all types of generation should have to compete without federal support. Hydropower Legislation in the 114th Congress

Several bills related to the expansion of hydropower development and modifying the regulatory process have been introduced in the 114 th Congress. The bill would designate FERC as the lead agency for coordinating all federal authorization of hydropower projects, as which it would establish and comply with a schedule for granting licenses and permits, collect all required information from federal and state agencies, and make determinations on projects. 113-23 (Hydropower Regulatory Efficiency Act of 2013) and P.L. Enacted Legislation in the 113th Congress

P.L. P.L. P.L. 113-24 , the Bureau of Reclamation Small Conduit Hydropower Development and Rural Jobs Act, made changes to the process by which Reclamation permits nonfederal hydropower development at its projects (see " Nonfederal Development at Reclamation Facilities ," above). P.L. P.L. 113-121 , the Water Resources Reform and Development Act of 2014, states that the approval and construction of nonfederal hydropower at Corps facilities should be expedited. It required the Secretary of the Army to submit a biennial report describing the initiatives to encourage nonfederal hydropower development at Corps facilities as well as the status, costs, and environmental impact of nonfederal hydropower projects associated with the Corps. 113-76 , the Consolidated Appropriations Act, appropriated funds to DOE to carry out a hydropower development program under Section 242 of the Energy Policy Act of 2005. Many of the hydropower issues Congress is likely to address in the near term are the same issues it has addressed for some time: operation of federal projects, the permitting process for nonfederal projects, and environmental impacts.
Congress continues to look at various fuel contributions to the electricity market and federal involvement with these fuel sources. Hydropower, the use of flowing water to produce electricity, is one such contribution. Conventional hydropower accounted for approximately 6% of total U.S. net electricity generation in 2014.
Hydropower has advantages and disadvantages as an energy source. Its advantages include its ability to be a continuous, or baseload, power source that releases minimal air pollutants during power generation relative to fossil fuels. Some of its disadvantages, depending on the type of hydropower plant, include high initial capital costs, ecosystem disruption, and reduced generation during low water years and seasons.
Hydropower project ownership can be categorized as federal or nonfederal. The bulk of federal projects are owned and managed by the Bureau of Reclamation and the U.S. Army Corps of Engineers. These projects are typically authorized and funded by Congress. Nonfederal projects are licensed and overseen by the Federal Energy Regulatory Commission (FERC).
Considered by many to be an established and renewable energy source, hydropower is not always discussed alongside clean or other renewable energy sources in the ongoing energy debate due to its potential environmental impacts. However, hydropower proponents argue that hydropower is cleaner than some conventional energy sources, and point to recent findings that additional hydropower capacity could help the United States reach proposed energy, economic, and environmental goals. Others argue that the expansion of hydropower in the form of numerous small hydropower projects could have environmental impacts and regulatory issues similar to those of existing large projects.
The 114th Congress may face several issues as it considers how hydropower fits into a changing energy and economic landscape. For example, existing large hydropower infrastructure is aging; many of the nation's hydropower generators and dams are more than 30 years old. Proposed options to address these concerns include increasing federal funding, utilizing alternative financing and/or customer investments, and privatizing federally owned dams, among other options. Additionally, whether to significantly expand hydropower (either through new or more efficient federal hydropower generation or through federal incentives to encourage expansion or efficiency gains of nonfederal hydropower) may require congressional input due to the role of the federal government in hydropower development and permitting. Another issue receiving attention is the rate at which FERC issues licenses for nonfederal projects, which some find slower than ideal. Others defend the licensing process due to the environmental and other statutes with which agencies must comply.
Legislation related to hydropower development was enacted in the 113th Congress, including P.L. 113-23 and P.L. 113-24. P.L. 113-23, the Hydropower Regulatory Efficiency Act of 2013, grants small hydropower projects with a capacity of 10 megawatts or less an exemption from FERC licensing requirements, promotes conduit hydropower projects, and requires FERC to examine the feasibility of a two-year licensing process to promote hydropower development at nonpowered dams and closed-loop pumped storage projects, among other things. P.L. 113-24, the Bureau of Reclamation Small Conduit Hydropower Development and Rural Jobs Act, authorizes nonfederal hydropower development at all Reclamation projects, provides for the preference of existing project sponsors in developing this power, and makes Reclamation the lead agency in implementing this authority. Other legislation related to hydropower enacted in the 113th Congress included the Water Resources Reform and Development Act of 2014 (P.L. 113-121), part of which expedites the approval and development of nonfederal Corps hydropower projects and orders a report on the status and funding of nonfederal hydropower projects as well as a study on the implications of issuing federally tax-exempt bonds from the Inland Waterways Trust Fund to hydropower facilities. Additionally, P.L. 113-76, the Consolidated Appropriations Act of 2014, provided new funding to the Department of Energy (DOE) for the expansion of hydropower development at existing dams, as authorized under the Energy Policy Act of 2005 (P.L. 109-58).