Section 247: Maintaining and Enhancing Hydroelectricity Incentives

The Infrastructure Investment and Jobs Act (IIJA) invests $553.6 million to maintain and enhance existing hydroelectric facilities to ensure generators continue to provide electricity, while integrating renewable energy resources such as wind and solar, improving dam safety, and reducing environmental impacts.

One of three programs administered by the U.S. Department of Energy's Grid Deployment Office, the Maintaining and Enhancing Hydroelectricity Incentives (Provision 40333 and EPAct section 247), invests in capital improvements directly related to improving grid resiliency, improving dam safety, and environmental improvements.

DOE anticipates announcing a second round under this program in the 2025 calendar year.

Eligibility Requirements

For purposes of the Maintaining and Enhancing Hydroelectricity Incentives, a qualified hydroelectric facility must be:

• Licensed by the Federal Energy Regulatory Commission, or 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.);
• Placed into service before November 15, 2021;
• In compliance with all applicable Federal, Tribal, and State requirements, or would be brought into compliance with these requirements as a result of the capital improvements carried out using an incentive payment under this section.

Qualified pumped storage hydropower facilities are also eligible to apply under Section 247.