en.Wedoany.com Reported - A U.S. bill aimed at extending the construction start deadlines for federally licensed hydropower projects has been signed into law by the president. Signed by President Donald Trump on May 11, the bill applies to projects that received licenses from the Federal Energy Regulatory Commission (FERC) before March 13, 2020, which are defined as "covered projects."
According to data from the National Hydropower Association, 37 FERC-licensed but unstarted hydropower projects across 15 U.S. states are facing delays due to the COVID-19 pandemic, supply chain shortages, and other challenges. The new law stipulates that, upon the licensee's request, FERC may grant an additional six-year extension beyond the current eight-year extension allowed under the Federal Power Act, which is implemented through up to three consecutive two-year extensions, and must be approved "upon reasonable notice and upon a showing of good cause."
The law also authorizes FERC to reinstate expired licenses for covered projects whose construction start deadlines fall after December 31, 2023, but before the law's enactment, with reinstatement effective from the date of license expiration. According to the sponsors, eight projects in Pennsylvania will benefit from this extension arrangement, including Allegheny Lock and Dam 2, Emsworth Back Channel Dam, Emsworth Locks and Dam, Grays Landing Lock and Dam, Point Marion, Monongahela Locks and Dam 4 (Charleroi), Montgomery Locks and Dam, and Point Marion Lock and Dam.
The bill is based on the "Build More Hydropower" Act, co-sponsored last year by Senators Steve Daines (R-MT) and John Fetterman (D-PA), which passed the Senate by unanimous consent in July of last year. A companion bill introduced in the House by Representative Dan Newhouse (R-WA) passed last month with a vote of 394-14. Newhouse stated that securing more time for hydropower dam project construction starts would ultimately add over 2.5 gigawatts of baseload power.
Industry groups have expressed support. Malcolm Woolf, President and CEO of the National Hydropower Association, called the law a "breakthrough development" in a statement, noting it would unlock $6.5 billion in private investment, crucial for powering American homes, businesses, and industries. The association wrote to House Energy and Commerce Committee leaders last November urging passage of the bill, pointing out that hydropower project development and financing require significant time and resources, with licensing processes typically taking five to eight years and potentially costing millions of dollars. In the letter, the association explained that after obtaining a license, developers must still complete additional steps such as final engineering design, EPC agreements, offtake contracts, interconnection, and financing before construction can begin, and many projects, due to delays beyond developers' control, are on the verge of missing statutory construction start deadlines.
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