On May 7, 2020, the U.S. Department of Energy (DOE) began accepting applications for the latest round of Hydroelectric Production Program funding under section 242 of the Energy Policy Act of 2005 (EPAct), and issued a notice updating its guidance.
Under EPAct section 242, the Secretary of Energy is directed to provide incentive payments to the owner or authorized operator of qualified hydroelectric facilities for energy generated and sold by the facility for a specified 10-year period (see 42 U.S.C. § 15881). Facilities eligible for funding must have begun operating between October 1, 2005 and September 30, 2015. DOE allocated $7 million in the latest round of funding, and qualified facilities will be selected based on the number of kilowatt hours (kWh) generated in calendar year 2019 (CY19). Hydroelectric facilities may receive up to 2.3 cents per kWh for hydropower generated during the CY19 incentive period, with a limit of $750,000 or less depending on the total kWh of eligible power generation. The DOE’s Water Power Technologies Office is accepting applications until July 13, 2020.
More information on the Hydroelectric Production Program and the application process is available here.