article: SECTION 1. SHORT TITLE. This Act may be cited as the ``Hydroelectric Licensing Process Improvement Act of 1998''. SEC. 2. FINDINGS. Congress finds that-- (1) hydroelectric power is an irreplaceable source of clean, economic, renewable energy with the unique capability of supporting reliable electric service while maintaining environmental quality; (2) hydroelectric power is the leading renewable energy resource of the United States; (3) hydroelectric power projects provide multiple benefits to the United States, including recreation, irrigation, flood control, water supply, and fish and wildlife benefits; (4) in the next 15 years, the bulk of all non-Federal hydroelectric power capacity in the United States is due to be relicensed by the Federal Energy Regulatory Commission; and (5) the process of licensing hydroelectric projects by the Commission-- (A) has become inefficient, because Federal agencies that participate in the process are not required to submit their mandatory and recommended conditions to the license by a time certain; and (B) does not produce optimal decisions, because the agencies are not required to consider a broad range of factors in determining those conditions. SEC. 3. PURPOSE. The purpose of this Act is to improve the hydroelectric licensing process by-- (1) authorizing the Federal Energy Regulatory Commission to impose deadlines by which Federal agencies must submit proposed mandatory and recommended conditions to a license; (2) requiring the agencies to consider a broad range of factors in determining those conditions and to document the consideration of those factors; and (3) making other improvements to the licensing process. SEC. 4. PROCESS FOR CONSIDERATION BY FEDERAL AGENCIES OF CONDITIONS TO LICENSES. (a) In General.--Part I of the Federal Power Act (16 U.S.C. 791a et seq.) is amended by adding at the end the following: ``SEC. 32. PROCESS FOR CONSIDERATION BY FEDERAL AGENCIES OF CONDITIONS TO LICENSES. ``(a) Definitions.--In this section: ``(1) Condition.--The term `condition' means-- ``(A) a condition to a license for a project on a Federal reservation determined by a consulting agency for the purpose of the first proviso of section 4(e); and ``(B) a prescription relating to the construction, maintenance, or operation of a fishway determined by a consulting agency for the purpose of the first sentence of section 18. ``(2) Consulting agency.--The term `consulting agency' means-- ``(A) in relation to a condition described in paragraph (1)(A), the Federal agency with administrative jurisdiction over the reservation; and ``(B) in relation to a condition described in paragraph (1)(B), the Secretary of the Interior or the Secretary of Commerce, as appropriate. ``(b) Factors To Be Considered.-- ``(1) In general.--In determining a condition, a consulting agency shall take into consideration-- ``(A) the impacts of the condition on-- ``(i) economic and power values; ``(ii) electric generation capacity and system reliability; ``(iii) air quality; and ``(iv) drinking, flood control, irrigation, navigation, or recreation water supply; and ``(B) compatibility with other conditions to be included in the license, including mandatory conditions of other agencies, when available. ``(2) Documentation.-- ``(A) In general.--In the course of the consideration of factors under paragraph (1) and before any review under subsection (e), a consulting agency shall create written documentation detailing, among other pertinent matters, all proposals made, comments received, facts considered, and analyses made regarding each of those factors sufficient to demonstrate that each of the factors was given full consideration in determining the condition to be submitted to the Commission. ``(B) Submission to the commission.--A consulting agency shall include the documentation under subparagraph (A) in its submission of a condition to the Commission. ``(c) Scientific Review.-- ``(1) In general.--Each condition determined by a consulting agency shall be subjected to appropriately substantiated scientific review. ``(2) Data.--For the purpose of paragraph (1), a condition shall be considered to have been subjected to appropriately substantiated scientific review if the review-- ``(A) was based on current empirical data or field- tested data; and ``(B) was subjected to peer review. ``(d) Relationship to Impacts on Federal Reservation.--In the case of a condition for the purpose of the first proviso of section 4(e), each condition determined by a consulting agency shall be directly and reasonably related to the impacts of the project within the Federal reservation. ``(e) Administrative Review.-- ``(1) Opportunity for review.--Before submitting to the Commission a proposed condition, and before a license applicant files a license application with the Commission, a consulting agency shall provide a license applicant an opportunity to obtain expedited review before an administrative law judge or other independent reviewing body of-- ``(A) the reasonableness of the condition in light of the effect that implementation of the condition will have on the energy and economic values of a project; and ``(B) compliance by the consulting agency with the requirements of this section, including the requirement to consider the factors described in subsection (b)(1). ``(2) Completion of review.-- ``(A) In general.--A review under paragraph (1) shall be completed not more than 180 days after the license applicant notifies the consulting agency of the request for review. ``(B) Failure to make timely completion of review.--If a consulting agency does not provide a license applicant a timely opportunity to review a proposed condition, the Commission may treat a condition submitted by the consulting agency as a recommendation is treated under section 10(j). ``(3) Remand.--If the administrative law judge or reviewing body finds that a proposed condition is unreasonable or that the consulting agency failed to comply with any of the requirements of this section, the administrative law judge or reviewing body shall-- ``(A) render a decision that-- ``(i) explains the reasons for a finding that the condition is unreasonable and may make recommendations that the administrative law judge or reviewing body may have for the formulation of a condition that would not be found unreasonable; or ``(ii) explains the reasons for a finding that a requirement was not met and may describe any action that the consulting agency should take to meet the requirement; and ``(B) remand the matter to the consulting agency for further action. ``(4) Submission to the commission.--Following administrative review under this subsection, a consulting agency shall-- ``(A) take such action as the consulting agency determines to be appropriate to formulate a condition that is not unreasonable or to comply with the requirements of this section; and ``(B) include with its submission to the Commission of a proposed condition-- ``(i) the record on administrative review; and ``(ii) documentation of any action taken following administrative review. ``(f) Deadline for Submission of Conditions.-- ``(1) In general.--After an applicant files with the Commission an application for a license, the Commission may set a date by which a consulting agency shall file with the Commission a recommended or established condition. ``(2) Limitation.--Except as provided in paragraph (3), the date for submission shall be not greater than 1 year after the date on which the Commission gives the consulting agency notice that a license application is ready for environmental review. ``(3) Default.--If a consulting agency does not file a recommended or established condition to a license by the date set under paragraph (1)-- ``(A) the consulting agency shall not thereafter have authority to recommend or establish a condition to the license; and ``(B) the Commission may, but shall not be required to, recommend or establish an appropriate condition to the license that-- ``(i) furthers the interest sought to be protected by the provision of law that authorizes the consulting agency to propose or establish a condition to the license; and ``(ii) conforms to the requirements of this Act. ``(4) Extension.--The Commission may make 1 extension, of not more than 30 days, of a deadline set under paragraph (1). ``(g) Economic Analysis By the Commission.--The Commission shall conduct an economic analysis of each condition submitted by a consulting agency to determine whether the condition would render the project uneconomic. ``(h) Commission Determination on Effect of Conditions.--When requested by a license applicant in a request for rehearing, the Commission shall make a written determination on whether a condition submitted by a consulting agency is-- ``(1) in the public interest, as measured by the impact of the condition on the factors described in subsection (b)(1); ``(2) reasonable; ``(3) supported by substantial evidence; and ``(4) consistent with this Act and other terms and conditions to be included in the license.''. (b) Conforming and Technical Amendments.-- (1) Section 4.--Section 4(e) of the Federal Power Act (16 U.S.C. 797(e)) is amended in the first proviso of the first sentence by inserting after ``conditions'' the following: ``, determined in accordance with section 32,''. (2) Section 18.--Section 18 of the Federal Power Act (16 U.S.C. 811) is amended in the first sentence by striking ``prescribed by the Secretary of Commerce'' and inserting ``prescribed, in accordance with section 32, by the Secretary of the Interior or the Secretary of Commerce, as appropriate''. SEC. 5. COORDINATED ENVIRONMENTAL REVIEW PROCESS. Part I of the Federal Power Act (16 U.S.C. 791a et seq.) (as amended by section 3) is amended by adding at the end the following: ``SEC. 33. COORDINATED ENVIRONMENTAL REVIEW PROCESS. ``(a) Lead Agency Responsibility.--The Commission, as the lead agency for environmental reviews under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) for projects licensed under this part, shall conduct a single consolidated environmental review for each such project. ``(b) Deadlines.-- ``(1) In general.--The Commission shall set a deadline for the submission of comments by Federal, State, and local government agencies in connection with the preparation of any environmental impact statement or environmental assessment required for a project. ``(2) Considerations.--In setting a deadline under paragraph (1), the Commission shall take into consideration-- ``(A) the need of the license applicant for a prompt and reasonable decision; ``(B) the resources of interested Federal, State, and local government agencies; and ``(C) applicable statutory requirements.''. SEC. 6. STUDY OF SMALL HYDROELECTRIC PROJECTS. (a) In General.--Not later than 18 months after the date of enactment of this Act, the Federal Energy Regulatory Commission shall submit to the Committee on Energy and Natural Resources of the Senate and the Committee on Commerce of the House of Representatives a study of the feasibility of establishing a separate licensing procedure for small hydroelectric projects. (b) Definition of Small Hydroelectric Project.--The Commission may by regulation define the term ``small hydroelectric project'' for the purpose of subsection (a), except that the term shall include at a minimum a hydroelectric project that has a generating capacity of 5 megawatts or less.
summary: Hydroelectric Licensing Process Improvement Act of 1998 - Amends the Federal Power Act to prescribe factors which Federal agency participants in Federal Energy Regulatory Commission (FERC) hydroelectric license renewal process (consulting agencies) must consider and document when setting forth conditions for such renewals, including the economic impact of such conditions as well as air quality, flood control, irrigation, navigation, and recreation and drinking water supply. Requires that each condition be subjected to appropriately substantiated scientific peer review based on current empirical data or field-tested data. Requires such consulting agency to provide a license applicant opportunity to obtain expedited administrative review of its proposed conditions before filing a FERC application. Empowers the reviewing body to remand the matter to such agency if the reviewer finds the agency's proposed conditions do not comply with this Act. Sets a one-year deadline by which a consulting agency must file its proposed licensing conditions with FERC. Directs FERC to: (1) conduct an economic analysis of each condition submitted by a consulting agency to determine whether it would render the project uneconomic; (2) conduct a single consolidated environmental review for each licensed project pursuant to its status as lead agency for environmental reviews; and (3) set a deadline for the submission of comments by Federal, State, and local government agencies regarding any environmental impact or assessment required for a project. Instructs FERC to consider the need of license applicants for a prompt decision when setting such deadlines. Directs FERC to study and report to certain congressional committees on the feasibility of establishing a separate licensing procedure for small hydroelectric projects with a generating capacity of five megawatts or less.