Hydroelectric Production Incentive Program

Supports the expansion of hydropower energy development at existing dams through an incentive payment procedure. Authorized in Section 242 of EPAct 2005, the first appropriations for the program occurred in 2013 for FY14 and subsequently for FY15. In 2014 and 2015, Congress appropriated funds for Hydroelectric Production Incentives under Section 242 of the Energy Policy Act of 2005. Qualified hydroelectric facilities–existing powered or non-powered dams and conduits that added a new turbine or other hydroelectric generating device–may receive up to 1.8 cents per kilowatt hour, indexed for inflation (approximately 2.3 cents per kilowatt hour today) with maximum payments of $750,000 per year for hydroelectric energy generated by the facility during the incentive period.

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