S. 3518 — FLOWS Act

This section amends section 10(b) of the Federal Power Act to exempt hydropower licensees from obtaining Federal Energy Regulatory Commission (FERC) approval for nonsubstantial alterations or additions to project works approved under section 9(a)(1). It further amends section 10(c) to exempt licensees from FERC approval for routine maintenance, repair, or replacement of project works or for seasonal or temporary adjustments to project operations due to circumstances beyond the licensee's reasonable control. (As background, section 10 generally requires FERC approval to ensure hydropower projects remain safe and conform to licensed plans.) A savings clause preserves FERC's authority to require notice, enforce safety requirements for dams and appurtenant works, and conduct informal safety consultations.

This section establishes a new FERC licensing process under the Federal Power Act for micro hydrokinetic energy projects, defined as projects with installed capacity of not more than 5 megawatts that generate electricity from waves, tides, currents in oceans, estuaries, or tidal areas, or from free-flowing water in rivers, lakes, streams, or man-made channels, without impounding water. (As background, FERC licenses non-federal hydropower projects, and hydrokinetic projects harness kinetic energy from moving water without dams.) The section authorizes FERC to issue licenses for such projects for terms of 10 to 20 years and directs FERC to (1) complete an expedited process by requiring a notification of intent upon commencement (no later than 2 years before an existing license expires), an application no later than 1 year after the notification (or 1 year before an existing license expires), and final action no later than 1 year after the application is filed; (2) promulgate implementing regulations within 180 days of enactment, including National Environmental Policy Act categorical exclusions for low-disturbance activities; (3) submit to Congress a report on environmental, economic, and electricity reliability/affordability impacts within 5 years of enactment or upon the first 50 licensed projects operating for at least 1 year, whichever is earlier; and (4) retain existing licensing authorities at an applicant's election.