FLOWS Act Streamlines Hydropower Maintenance and Fast-Tracks Small-Scale Water Energy Projects

The Fair Licensing for Operations of Water Structures Act, or FLOWS Act, is really about cutting red tape for two very different types of water-based energy projects. If you’re dealing with existing hydroelectric dams, this bill speeds up maintenance. If you’re trying to build tiny, non-dam-related hydro-power generators, it gives you a fast-pass.

Maintenance Mode: Less Red Tape for Existing Dams

Currently, if you run a hydropower facility, you often need the Federal Energy Regulatory Commission (FERC) to sign off on even minor changes. Section 2 of the FLOWS Act changes that by letting licensees skip prior FERC approval for two key areas. First, they can make any “nonsubstantial alteration or addition” to the project works without asking FERC first. Second, they can handle routine maintenance and make temporary operational adjustments (like managing water flow during an unexpected drought) without prior approval, provided the circumstances are “beyond the licensee’s reasonable control.”

This is great news for facility operators, who can now fix a broken pipe or upgrade a pump without waiting months for a federal OK. For the average person, this means potentially less downtime for facilities generating power. However, the catch is the vagueness of “nonsubstantial alteration.” Who decides what’s substantial? The licensee does, at least initially. While FERC retains its critical authority to enforce safety rules and require changes to protect dam safety before work begins, the shift means the burden of proof for the change's impact moves from pre-approval to post-review. It’s like switching from requiring a building permit for every repair to relying on building inspectors to catch problems after the fact. Safety is still paramount, but the initial checkpoint is gone.

The Fast Lane for Micro-Energy

Section 3 creates a brand-new, expedited licensing process for “micro hydrokinetic energy projects.” Think small-scale, non-dam energy generation from waves, tides, currents, or free-flowing water. To qualify, a project must have an installed capacity of 5 megawatts or less and, crucially, must not involve damming or impounding water. This is aimed squarely at boosting small, environmentally friendly power generation.

FERC is required to issue licenses for these micro projects in a hurry. The bill sets a hard deadline: FERC must make a final decision on a complete application within just one year of receiving it. To hit this aggressive timeline, FERC and other federal agencies must coordinate their permitting schedules. This fast-tracking is a major win for developers of these small projects, potentially slashing years off their deployment time. For communities looking for local, clean energy sources, this could mean faster access to power.

The Environmental Trade-Off

That speed comes with a trade-off that environmental advocates will flag immediately. To meet the 1-year deadline, FERC is required to issue regulations that allow for the use of “categorical exclusions” under the National Environmental Policy Act (NEPA). NEPA requires federal agencies to assess the environmental impact of their actions. Categorical exclusions are essentially exemptions for activities deemed to have minimal environmental disturbance.

While micro projects are inherently low-impact compared to massive dams, relying on these exclusions means less deep environmental review before construction begins. For example, a small turbine placed in a river might be considered low-disturbance, but if 50 of them are placed in a critical fish migration route, the cumulative impact could be significant. The bill tries to balance this by making the new expedited process optional—developers can still choose the existing, more rigorous licensing path if they want—but the incentive to take the fast lane is strong.