Notice2024-05096
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 14, 2024
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 year 2023.
Full Text
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<title>Federal Register, Volume 89 Issue 51 (Thursday, March 14, 2024)</title>
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[Federal Register Volume 89, Number 51 (Thursday, March 14, 2024)]
[Notices]
[Pages 18625-18626]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-05096]
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DEPARTMENT OF ENERGY
Notice of Availability of Guidance and Application for
Hydroelectric Production Incentives
AGENCY: Grid Deployment Office, Department of Energy.
ACTION: Notice of availability of guidance and open application period.
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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 year 2023.
DATES: DOE is currently accepting applications from March 14, 2024,
through April 23, 2024. 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, April
23, 2024, or they will not be considered timely filed for calendar year
2023 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#1c7465786e737970797f686e757f75727f797268756a796f5c746d32787379327b736a"><span class="__cf_email__" data-cfemail="1971607d6b767c757c7a6d6b707a70777a7c776d706f7c6a597168377d767c377e766f">[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 year
2023.
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.\1\ In the Infrastructure Investment and
Jobs Act, Congress provided $125 million, to remain available until
expended, for this purpose.
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\1\ 42 U.S.C. 15881(a).
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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,
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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\
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\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).
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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 [(FERC)],
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\
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\7\ 42 U.S.C. 15881(b)(1).
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Additionally, Congress defined an existing dam or conduit to mean
any dam or conduit constructed and completed before November 15, 2021,
and ``which 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\
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\8\ 42 U.S.C. 15881(b)(2).
\9\ 42 U.S.C. 15881(b)(3).
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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\
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\10\ 42 U.S.C. 15881(b).
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This guidance applies to generation in calendar year 2023 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.
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 2023. 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 February
28, 2024, by Maria D. 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 6, 2024.
Treena V. Garrett,
Federal Register Liaison Officer, U.S. Department of Energy.
[FR Doc. 2024-05096 Filed 3-13-24; 8:45 am]
BILLING CODE 6450-01-P
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