Should the Feds Offer Longer Extensions for Hydropower Construction Permits? (H.R. 2274)

What is H.R. 2274?

(Updated October 5, 2018)

This bill — known as the HYPE Act — would look to reduce regulatory burdens in the hydropower construction process by letting the Federal Energy Regulatory Commission (FERC) issue preliminary permits for four years instead of three. FERC would also be allowed to extend a preliminary permit once for up to four years plus an additional four year extension if extraordinary circumstances warrant the additional extension. Additionally, FERC would be able to extend the time a licensee has to start construction on a project for up to eight years, rather than two years as current law allows.

The bill’s full title is the HYdropower Permit Extension Act.

Argument in favor

Hydropower is one of the few carbon-free energy sources that provides reliable electricity, and development of this clean energy is hampered by burdensome regulation that would be alleviated by this bipartisan bill.

Argument opposed

There shouldn’t be a need to lengthen the existing extensions available to builders in the hydropower construction permitting process.

Impact

Hydroelectric construction projects; and FERC.

Cost of H.R. 2274

A CBO cost estimate is unavailable.

Additional Info

In-Depth: Sponsoring Rep. Scott Peters (D-CA) introduced this bill to cut red tape in the construction permitting process for hydropower projects:

“For projects that are delayed and unable to break ground under their first permit, this bill will give them the certainty that they will not need to rely on Congress to get an extension. Making them start from scratch because of a delay doesn’t help the communities that want the clean power or the firms that have already made an investment to secure the permit in the first place. This commonsense fix will improve flexibility to incentivize greater investment in hydropower as we move towards a clean energy future.”

This legislation was passed by the House Energy and Commerce Committee by unanimous consent.

Of Note: In 2015, hydropower produced approximately 6.5 percent of all U.S. electricity, which accounted for 35 percent of all renewable electricity.

Media:

• Sponsoring Rep. Scott Peters (D-CA) Press Release