Maintaining & Enhancing Hydroelectricity Incentives

The Maintaining & Enhancing Hydroelectricity Incentives (Section 247 of EPact 2005) provide incentive payments to the owner or authorized operator of a qualified hydroelectric facility for capital improvements directly related to improving grid resilience (including the addition of energy storage such as reservoir capacity, pumped storage hydropower, and batteries), improving dam safety, and related to environmental improvements.

Overview

Office:

Grid Deployment Office

New Program:

No

Funding amount:

$553,600,000

Funding Mechanism:

Incentive Payment

Recipients:

A qualified hydroelectric facility is a hydroelectric project that—
(1)(A) is licensed by the Federal Energy Regulatory Commission; or (B) is a hydroelectric project constructed, operated, or maintained pursuant to a permit or valid existing right-of-way granted prior to June 10, 1920, or a license granted pursuant to the Federal Power Act (16 U.S.C. 791a et seq.);
(2) is placed into service before the date of enactment of this section (November 15, 2021); and
(3)(A) is in compliance with all applicable Federal, Tribal, and State requirements; or (B) would be brought into compliance with the requirements described in subparagraph (A) as a result of the capital improvements carried out using an incentive payment under this section.

Period of Availability:

Available until expended

More Information

For capital improvements directly related to:
1. Improving Grid Resiliency, including—
  Adapting more quickly to changing grid conditions
  Providing ancillary services (including black start capabilities, voltage support, and spinning reserves)
  Integrating other variable sources of electricity generation
  Managing accumulated reservoir sediments
2. Improving Dam Safety to ensure acceptable performance under all loading conditions (including static, hydrologic, and seismic conditions), including—
  Maintenance or upgrade of spillways or other appurtenant structures
  Dam stability improvements, including erosion repair and enhanced seepage controls
  Upgrades or replacements of floodgates or natural infrastructure restoration or protection to improve flood risk reduction
3. Environmental Improvements
  Adding or improving safe and effective fish passage, including new or upgraded turbine technology, fish ladders, fishways, and all other associated technology, equipment, or other fish passage technology to a qualified hydroelectric facility
  Improving the quality of the water retained or released by a qualified hydroelectric facility
  Promoting downstream sediment transport processes and habitat maintenance
  Improving recreational access to the project vicinity, including roads, trails, boat ingress and egress, flows to improve recreation, and infrastructure that improves river recreation opportunity
Additional eligibility information is provided in the final guidance.
The Department of Energy anticipates announcing a second round under this program in the 2025 calendar year.

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