42 U.S.C. § 15883 — Maintaining and enhancing hydroelectricity incentives

(a) Definition of qualified hydroelectric facility. This section applies to a hydroelectric project that (1)(A) is licensed by the Federal Energy Regulatory Commission, or (B) runs under a permit or valid right-of-way granted before June 10, 1920, or under a license granted under the Federal Power Act; (2) started service before November 15, 2021; and (3)(A) already meets all applicable federal, tribal, and state requirements, or (B) would meet them as a result of capital improvements funded by a payment under this section. (b) Incentive payments. The Secretary must make incentive payments to owners or operators of qualified facilities for capital improvements tied directly to: (1) improving grid resiliency — including adapting faster to changing grid conditions; providing services like black-start capability, voltage support, and spinning reserves; integrating other variable power sources; and managing sediment buildup in reservoirs; (2) improving dam safety so the dam performs well under any load — static, hydrologic, or seismic — including maintaining or upgrading spillways and other structures, improving dam stability (like erosion repair and better seepage control), and upgrading or replacing floodgates, or restoring natural infrastructure to reduce flood risk; or (3) environmental improvements, including adding or improving safe fish passage (new or upgraded turbines, fish ladders, fishways, and related technology), improving the quality of water the facility holds or releases, helping sediment move downstream and maintaining habitat, and improving recreational access — roads, trails, boat access, flows for recreation, and infrastructure that improves river recreation. (c) Limitations. (1) Costs: a payment cannot cover more than 30 percent of the capital improvement's cost. (2) Maximum amount: only one incentive payment can be made for improvements at a single qualified facility in any fiscal year, and it cannot exceed $5,000,000. (d) Authorization of appropriations. Congress authorized $553,600,000 for fiscal year 2022, to remain available until spent.