Notice2023-05758
Notice of Availability of Guidance and Application for Hydroelectric Production Incentives
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
March 22, 2023
Issuing agencies
Energy Department
Abstract
The U.S. Department of Energy (DOE) gives notice of updated guidance for the Energy Policy Act of 2005 Hydroelectric Production Incentives. The guidance describes the hydroelectric production 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 production incentive payments. The hydroelectric production 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 the Infrastructure Investment and Jobs Act, DOE received $125 million to support this hydroelectric production incentive. At this time, DOE is only accepting applications from owners and authorized operators of qualified hydroelectric facilities for hydroelectricity generated and sold in calendar years 2021 and 2022.
Full Text
<html>
<head>
<title>Federal Register, Volume 88 Issue 55 (Wednesday, March 22, 2023)</title>
</head>
<body><pre>
[Federal Register Volume 88, Number 55 (Wednesday, March 22, 2023)]
[Notices]
[Pages 17202-17203]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-05758]
-----------------------------------------------------------------------
DEPARTMENT OF ENERGY
Notice of Availability of Guidance and Application for
Hydroelectric Production Incentives
AGENCY: Hydroelectric Incentives Program, Grid Deployment Office,
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 Hydroelectric Production
Incentives. The guidance describes the hydroelectric production
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 production
incentive payments. The hydroelectric production 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 the Infrastructure Investment and Jobs Act, DOE received $125
million to support this hydroelectric production incentive. At this
time, DOE is only accepting applications from owners and authorized
operators of qualified hydroelectric facilities for hydroelectricity
generated and sold in calendar years 2021 and 2022.
DATES: DOE is currently accepting applications from March 22, 2023
through May 8, 2023. Applications must be submitted to the Clean Energy
Infrastructure Funding Opportunity Exchange, <a href="https://infrastructure-exchange.energy.gov/">https://infrastructure-exchange.energy.gov/</a> by no later than 5 p.m. ET, May 8, 2023, or they
will not be considered timely filed for calendar year 2021 and 2022
incentive payments.
ADDRESSES: Interested parties are to submit applications electronically
to the Clean Energy Infrastructure Funding Opportunity Exchange,
<a href="https://infrastructure-exchange.energy.gov/">https://infrastructure-exchange.energy.gov/</a>. The guidance accompanying
this solicitation is available at: <a href="http://www.energy.gov/gdo/section-242-hydroelectric-production-incentive-program">www.energy.gov/gdo/section-242-hydroelectric-production-incentive-program</a>.
FOR FURTHER INFORMATION CONTACT: Questions may be addressed to Madden
Sciubba, U.S. Department of Energy, 1000 Independence Ave. SW,
Washington, DC 20585, (240) 798-1195 or by email at
<a href="/cdn-cgi/l/email-protection#ff97869b8d909a939a9c8b8d969c96919c9a918b96899a8cbf978ed19b909ad1989089"><span class="__cf_email__" data-cfemail="84ecfde0f6ebe1e8e1e7f0f6ede7edeae7e1eaf0edf2e1f7c4ecf5aae0ebe1aae3ebf2">[email protected]</span></a>. Additional information can be found
in the guidance posted at <a href="http://www.energy.gov/gdo/section-242-hydroelectric-production-incentive-program">www.energy.gov/gdo/section-242-hydroelectric-production-incentive-program</a>. Electronic communications are recommended
for correspondence.
SUPPLEMENTARY INFORMATION: In section 242 of the Energy Policy Act of
2005 (EPAct 2005; Pub. L. 109-58), as amended, 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 Investment and
Jobs Act of 2021 (Pub. L. 117-58) made further amendments to section
242. For this solicitation, DOE is accepting applications for payments
resulting from hydroelectricity generated and sold in calendar years
2021 and 2022.
Section 242 directs the Secretary to provide incentive payments to
the owners or authorized operators of hydroelectric generation
facilities in accordance with specific statutory
[[Page 17203]]
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.\1\ In the
Infrastructure Investment and Jobs Act, Congress provided $125 million
for this purpose.
---------------------------------------------------------------------------
\1\ 42 U.S.C. 15881(a).
---------------------------------------------------------------------------
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.\2\ 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.\3\ Payments made by
the Secretary are 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.\4\ 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.\5\ The Secretary is authorized to carry out the purposes
of this program for each of the fiscal years of 2021 through 2036.\6\
---------------------------------------------------------------------------
\2\ 42 U.S.C. 15881(c).
\3\ 42 U.S.C. 15881(d).
\4\ 42 U.S.C. 15881(e).
\5\ 42 U.S.C. 15881(f).
\6\ 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.'' \7\
---------------------------------------------------------------------------
\7\ 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.\8\ 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)).\9\
---------------------------------------------------------------------------
\8\ 42 U.S.C. 15881(b)(2).
\9\ 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.\10\ Recently, DOE
clarified its guidance for the Energy Policy Act of 2005 section 242
incentive. These updates include clarifying the definition of a
qualified hydroelectric facility and changes to the submission process.
This guidance applies to generation in calendar years 2021 and 2022 and
is available at: <a href="http://www.energy.gov/gdo/section-242-hydroelectric-production-incentive-program">www.energy.gov/gdo/section-242-hydroelectric-production-incentive-program</a>. Each application will be reviewed based
on the contents of the guidance.
---------------------------------------------------------------------------
\10\ 42 U.S.C. 15881(b).
---------------------------------------------------------------------------
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 years 2021 and 2022. 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 incentive,
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 March 16,
2023, by Maria Duaime Robinson, Director, Grid Deployment 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 March 16, 2023.
Treena V. Garrett,
Federal Register Liaison Officer, U.S. Department of Energy.
[FR Doc. 2023-05758 Filed 3-21-23; 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 March 22, 2023.
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.