Hydropower Bill Grants Developers Up to Six More Years to Start Construction on Pre-2020 Projects

This legislation gives certain hydropower developers a significant extension on their deadlines to start building. Specifically, it allows the Federal Energy Regulatory Commission (FERC) to grant up to six additional years for construction to begin on any hydropower project licensed before March 13, 2020. This extension isn't automatic; developers have to apply and show “good cause” to get the extra time, which is then broken down into three possible two-year periods. Crucially, the bill also gives FERC the power to revive licenses that technically expired after December 31, 2023, bringing them back online as if they never lapsed.

The Clock Gets Reset

Normally, when a developer gets a FERC license, they have eight years to break ground under Section 13 of the Federal Power Act. If they don't, the license expires. This bill is essentially hitting the snooze button for up to six more years for these older projects. Think of it like a contractor who got all the permits for a big project back in 2018 but then got hit by supply chain issues and financing delays. Instead of losing the license and having to start the whole application process over—which is a massive undertaking—they can now ask FERC for more time. This flexibility is a huge win for those developers, potentially saving long-dormant infrastructure projects that could eventually generate power.

What’s the Catch? The ‘Good Cause’ Loophole

The biggest sticking point here is the requirement for developers to show “good cause” for the extension. While this sounds reasonable, the bill doesn't define what “good cause” actually means. This gives FERC a lot of discretion, which is where things can get murky. For regular people, this matters because it means the decision to grant a six-year extension could be inconsistent or influenced by factors outside of objective criteria. If you’re a local community waiting for a project to either move forward or finally be declared dead so the land or water rights can be used for something else—like local recreation or conservation—this vagueness creates uncertainty.

Bringing Back the Dead: The Reinstatement Clause

Perhaps the most impactful provision is the ability for FERC to reinstate licenses that expired after the end of 2023. If a project was licensed years ago, its original environmental and economic assessments might be seriously out of date. By reinstating these licenses, the bill bypasses the standard process where a developer would have to reapply and meet current regulatory standards. For environmental groups or local communities, this is a concern because it keeps potentially outdated projects on the books. It prevents the site from being reviewed under today's standards, which might favor newer, more efficient, or less environmentally disruptive energy solutions. In short, this bill prioritizes keeping older projects alive over ensuring that every project meets the most current standards for environmental protection and economic viability.