# § 15883. Maintaining and enhancing hydroelectricity incentives
**(a)** **Definition of qualified hydroelectric facility** In this section, the term “qualified hydroelectric facility” means 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 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.
**(b)** **Incentive payments** The Secretary shall make incentive payments to the owners or operators of qualified hydroelectric facilities for capital improvements directly related to—
**(1)** improving grid resiliency, including—
**(A)** adapting more quickly to changing grid conditions;
**(B)** providing ancillary services (including black start capabilities, voltage support, and spinning reserves);
**(C)** integrating other variable sources of electricity generation; and
**(D)** managing accumulated reservoir sediments;
**(2)** improving dam safety to ensure acceptable performance under all loading conditions (including static, hydrologic, and seismic conditions), including—
**(A)** the maintenance or upgrade of spillways or other appurtenant structures;
**(B)** dam stability improvements, including erosion repair and enhanced seepage controls; and
**(C)** upgrades or replacements of floodgates or natural infrastructure restoration or protection to improve flood risk reduction; or
**(3)** environmental improvements, including—
**(A)** 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;
**(B)** improving the quality of the water retained or released by a qualified hydroelectric facility;
**(C)** promoting downstream sediment transport processes and habitat maintenance; and
**(D)** 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.
**(c)** **Limitations**
**(1)** **Costs** Incentive payments under this section shall not exceed 30 percent of the costs of the applicable capital improvement.
**(2)** **Maximum amount** Not more than 1 incentive payment may be made under this section with respect to capital improvements at a single qualified hydroelectric facility in any 1 fiscal year, the amount of which shall not exceed $5,000,000.
**(d)** **Authorization of appropriations** There is authorized to be appropriated to the Secretary to carry out this section $553,600,000 for fiscal year 2022, to remain available until expended.
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**Source Credit**: (Pub. L. 109–58, title II, § 247, as added Pub. L. 117–58, div. D, title III, § 40333(a), Nov. 15, 2021, 135 Stat. 1023.)
## Editorial Notes
### References in Text
The Federal Power Act, referred to in subsec. (a)(1)(B), is , , which is classified generally to chapter 12 (§ 791a et seq.) of Title 16, Conservation. For complete classification of this Act to the Code, see and Tables.
## Statutory Notes and Related Subsidiaries
### Wage Rate Requirements
For provisions relating to rates of wages to be paid to laborers and mechanics on projects for construction, alteration, or repair work funded under div. D or an amendment by div. D of , including authority of Secretary of Labor, see .