Notice2021-27915
Notice of Availability of Guidance and Application for Hydroelectric Incentive Program
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
December 27, 2021
Issuing agencies
Energy Department
Abstract
The U.S. Department of Energy (DOE) gives notice of updated guidance for the Energy Policy Act of 2005 program. The guidance describes the hydroelectric incentive payment requirements and explains the type of information that owners or authorized operators of qualified hydroelectric facilities must provide DOE when applying for hydroelectric incentive payments. The hydroelectric incentive payments are a benefit available for electric energy generated and sold for a specified 10-year period as authorized under the Energy Policy Act of 2005. In Congressional appropriations for Federal fiscal year 2021, DOE received funds to support this hydroelectric incentive program. At this time, DOE is only accepting applications from owners and authorized operators of qualified hydroelectric facilities for hydroelectricity generated and sold in calendar year 2020.
Full Text
<html>
<head>
<title>Federal Register, Volume 86 Issue 245 (Monday, December 27, 2021)</title>
</head>
<body><pre>
[Federal Register Volume 86, Number 245 (Monday, December 27, 2021)]
[Notices]
[Pages 73268-73269]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-27915]
-----------------------------------------------------------------------
DEPARTMENT OF ENERGY
Notice of Availability of Guidance and Application for
Hydroelectric Incentive Program
AGENCY: Water Power Technologies Office, Office of Energy Efficiency
and Renewable Energy, Department of Energy.
ACTION: Notice of availability of guidance and open application period.
-----------------------------------------------------------------------
SUMMARY: The U.S. Department of Energy (DOE) gives notice of updated
guidance for the Energy Policy Act of 2005 program. The guidance
describes the hydroelectric incentive payment requirements and explains
the type of information that owners or authorized operators of
qualified hydroelectric facilities must provide DOE when applying for
hydroelectric incentive payments. The hydroelectric incentive payments
are a benefit available for electric energy generated and sold for a
specified 10-year period as authorized under the Energy Policy Act of
2005. In Congressional appropriations for Federal fiscal year 2021, DOE
received funds to support this hydroelectric incentive program. At this
time, DOE is only accepting applications from owners and authorized
operators of qualified hydroelectric facilities for hydroelectricity
generated and sold in calendar year 2020.
DATES: DOE is currently accepting applications from December 27, 2021
through February 10, 2022. Applications must be sent to
<a href="/cdn-cgi/l/email-protection#4921302d3b2620272a2c273d203f2c092c2c672d262c672e263f"><span class="__cf_email__" data-cfemail="dfb7a6bbadb0b6b1bcbab1abb6a9ba9fbabaf1bbb0baf1b8b0a9">[email protected]</span></a> by midnight EDT, February 10, 2022, or they
will not be considered timely filed for calendar year 2020 incentive
payments.
ADDRESSES: Interested parties are to submit applications electronically
to <a href="/cdn-cgi/l/email-protection#bed6c7daccd1d7d0dddbd0cad7c8dbfedbdb90dad1db90d9d1c8"><span class="__cf_email__" data-cfemail="6800110c1a0701060b0d061c011e0d280d0d460c070d460f071e">[email protected]</span></a>. DOE's December 2021 Guidance is available
at: <a href="https://www.energy.gov/eere/water/water-power-funding-opportunities">https://www.energy.gov/eere/water/water-power-funding-opportunities</a>.
FOR FURTHER INFORMATION CONTACT: Questions may be addressed to Mr.
Corey Vezina, U.S. Department of Energy, Golden Field Office, 15013
Denver West Parkway, Golden, CO 80401, (240) 562-1382 or by email at
<a href="/cdn-cgi/l/email-protection#3b53425f49545255585e554f524d5e7b5e5e155f545e155c544d"><span class="__cf_email__" data-cfemail="1a72637e68757374797f746e736c7f5a7f7f347e757f347d756c">[email protected]</span></a>. Further instruction can be found in the
December 2021 Guidance posted at <a href="https://www.energy.gov/eere/water/water-power-funding-opportunities">https://www.energy.gov/eere/water/water-power-funding-opportunities</a>. Electronic communications are
recommended for correspondence and required for submission of
application information.
SUPPLEMENTARY INFORMATION: In section 242 of the Energy Policy Act of
2005 (EPAct 2005; Pub. L. 109-58), as amended by section 3005(a) of the
Energy Act of 2020 (Energy Act 2020; Pub. L. 116-260), Congress
established a program to support the expansion of hydropower energy
development at existing dams and impoundments through an incentive
payment procedure for eligible facilities (section 242), codified at 42
U.S.C. 15881. Congress amended section 242 in the Energy Act of 2020
(Pub. L. 116-260) by expanding the eligibility window and amending the
definition of a qualified hydroelectric facility. The Infrastructure
[[Page 73269]]
Investment and Jobs Act of 2021 (Pub. L. 117-58) made further
amendments to section 242.
Section 242 directs the Secretary to provide incentive payments to
the owners or authorized operators of hydroelectric generation
facilities in accordance with specific statutory instructions. The
Secretary is directed to issue incentive payments, subject to the
availability of appropriations, for hydroelectric energy generated and
sold by a qualified hydroelectric facility during the incentive period.
Incentive payments may only be made upon receipt by the Secretary of an
incentive payment application that demonstrates that the applicant is
eligible to receive such payment and satisfies other requirements as
the Secretary deems necessary (42 U.S.C. 15881(a)) In FY 2021, Congress
appropriated to DOE $7,000,000 for this purpose.
The Secretary may only issue payments for the electric energy
generated and sold by a qualified hydroelectric facility that began
operations during the period of 22 fiscal years beginning after the
first fiscal year occurring after the program's enactment, August 8,
2005 (42 U.S.C. 15881(c)). A qualified hydroelectric facility may
receive payments for a period of 10 consecutive fiscal years, known as
the incentive period, which begins with the fiscal year that electric
energy generated from the facility is first eligible for such payments
(42 U.S.C. 15881(d)). Payments made by the Secretary are to be based on
the number of kilowatt hours of hydroelectric energy generated by the
facility during the incentive period. The amount of such payment shall
be 1.8 cents per kilowatt hour (as adjusted by the Internal Revenue
Code of 1986), subject to the availability of appropriations, except
that no facility may receive more than $1,000,000 in one calendar year
(42 U.S.C. 15881(e)). No payments will be made after the expiration of
the period of 32 fiscal years beginning with the first full fiscal year
occurring after August 8, 2005, and no payment may be made under this
section to any such facility after a payment has been made with respect
to such facility for a period of 10 fiscal years (42 U.S.C. 15881(f)).
The Secretary is authorized to carry out the purposes of this program
for each of the fiscal years of 2021 through 2036 (42 U.S.C. 15881(g)).
In section 242, Congress defines a qualified hydroelectric facility
to mean ``a turbine or other generating device owned or solely operated
by a non-Federal entity--(A) that generates hydroelectric energy for
sale; and (B)(i) that is added to an existing dam or conduit; or
(ii)(I) that has generating capacity of not more than 20 megawatts;
(II) for which the non-Federal entity has received a construction
authorization from the Federal Energy Regulatory Commission, if
applicable; and (III) that is constructed in an area in which there is
inadequate electric service, as determined by the Secretary, including
by taking into consideration--(aa) access to the electric grid; (bb)
the frequency of electric outages; or (cc) the affordability of
electricity'' (42 U.S.C. 15881(b)(1)).
Additionally, Congress defined an existing dam or conduit to mean
any dam or conduit constructed and completed before August 8, 2005 and
does not require any construction or enlargement of impoundment or
diversion structures, other than repair or reconstruction, in
connection with the installation of a turbine or other generating
device (42 U.S.C. 15881(b)(2)). The term conduit maintains the same
meaning here as when used in section 30(a)(2) of the Federal Power Act
(16 U.S.C. 823a(a)(3)(A)) (42 U.S.C. 15881(b)(3)).
Further, these defined terms apply without regard to the
hydroelectric kilowatt capacity of the facility, without regard to
whether the facility uses a dam owned by a governmental or
nongovernmental entity, and without regard to whether the facility
begins operation on or after the date August 8, 2005 (42 U.S.C.
15881(b)).
Recently DOE made updates to clarify its Guidance for the Energy
Policy Act of 2005 section 242 program. The December 2021 Guidance is
available at: <a href="https://www.energy.gov/eere/water/water-power-funding-opportunities">https://www.energy.gov/eere/water/water-power-funding-opportunities</a>. Each application will be reviewed based on the Guidance.
The updates made to the Guidance involve edits to clarify the
definition of existing and new terms, eligibility window and incentive
period, incentive payment calculations, application content
requirements, and the duration of payments available to generation
facilities.
DOE notes that applicants that received incentive payments for
prior calendar years must submit a new and complete application
addressing all eligibility requirements for hydroelectricity generated
and sold in calendar year 2020. DOE will not consider previously
submitted application materials. Applications that refer to previous
application materials or statements in lieu of submitting current
information will not be considered. As authorized under section 242 of
EPAct 2005, and as explained in the Guidance, DOE also notes that it
will only accept applications from qualified hydroelectric facilities
that began operations at an existing dam or conduit between October 1,
2005, and September 30, 2027.
When submitting information to DOE for the section 242 program, it
is recommended that applicants carefully read and review the completed
content of the Guidance for this process. When reviewing applications,
DOE may corroborate the information provided with information that DOE
finds through FERC e-filings, contact with power off-taker, and other
due diligence measure carried out by reviewing officials. DOE may
require the applicant to conduct and submit an independent audit at its
own expense, or DOE may conduct an audit to verify the number of
kilowatt-hours claimed to have been generated and sold by the qualified
hydroelectric facility and for which an incentive payment has been
requested or made.
Signing Authority
This document of the Department of Energy was signed on December
15, 2021, by Jennifer Garson, Acting Director, Water Power Technologies
Office, pursuant to delegated authority from the Secretary of Energy.
That document with the original signature and date is maintained by
DOE. For administrative purposes only, and in compliance with
requirements of the Office of the Federal Register, the undersigned DOE
Federal Register Liaison Officer has been authorized to sign and submit
the document in electronic format for publication, as an official
document of the Department of Energy. This administrative process in no
way alters the legal effect of this document upon publication in the
Federal Register.
Signed in Washington, DC, on December 20, 2021.
Treena V. Garrett,
Federal Register Liaison Officer, U.S. Department of Energy.
[FR Doc. 2021-27915 Filed 12-23-21; 8:45 am]
BILLING CODE 6450-01-P
</pre><script data-cfasync="false" src="/cdn-cgi/scripts/5c5dd728/cloudflare-static/email-decode.min.js"></script></body>
</html>Indexed from Federal Register on December 27, 2021.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.