The United States currently gets 6.3% of its electricity—and 31.5% of its renewable electricity generation—from hydropower facilities, which provide a reliable and flexible source of power. Hydropower also provides critical energy storage, and pumped storage hydropower accounts for 93% of all utility-scale energy storage in the United States. Hydropower is key to building a 100% clean energy future. But as today’s facilities age and become more expensive to maintain, the United States risks losing a major source of clean energy and well-paying jobs.
Leveraging operational flexibility and energy storage capabilities, hydropower supports energy resource adequacy to ensure the availability of clean, reliable generation capacity allowing all Americans access to clean, resilient, and affordable electricity. The President’s Bipartisan Infrastructure Law (BIL) invests in maintaining and enhancing existing hydroelectric facilities to ensure generators continue to provide clean electricity, while improving dam safety and reducing environmental impacts.
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The BIL authorizes three hydroelectric incentive programs:
- Hydroelectric Production Incentives (BIL provision 40331 and EPAct 242) will provide $125 million in incentive payments to qualified hydroelectric facilities for electricity generated and sold Hydroelectric Efficiency Improvement Incentives (BIL provision 40332 and EPAct 243) invests $75 million to enable implementation of capital improvements to improve efficiency
- Maintaining and Enhancing Hydroelectricity Incentives (BIL provision 40333 and EPAct 247) invests $554 million to enhance existing hydropower facilities for capital improvements directly related to grid resiliency, dam safety, and environmental improvements.
- The Hydroelectric Production Incentives (BIL provision 40331 and EPAct 242) and the Hydroelectric Efficiency Improvement Incentives (BIL provision 40332 and EPAct 243) were authorized by Congress through the Energy Policy Act of 2005. Since 2014, Congress has directed funding annually through the appropriations process for the Section 242 program. The BIL directed funding to the Section 243 program for the first time and also amended the Energy Policy Act of 2005 to create and fund the Maintaining and Enhancing Hydroelectricity Incentives (BIL provision 40333 and EPAct 247)
On June 30, 2022 DOE requested feedback on the structure of the Hydroelectric Efficiency Improvement Incentives (BIL provision 40332 and EPAct section 243) and the Maintaining and Enhancing Hydroelectricity Incentives (BIL provision 40333 and EPAct section 247). A public listening session was held on August 9, 2022. Comments closed on September 6, 2022.
Visit Bipartisan Infrastructure Law | Department of Energy for more information about BIL-funded activities at GDO.
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