---
kind: "section"
citation: "16 U.S.C. § 823f"
title: "16"
title_heading: "Conservation"
number: "823f"
heading: "Closed-loop pumped storage projects"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/16/823f"
units:
  - "Chapter 12 — Federal Regulation and Development of Power"
  - "Subchapter I — Regulation of the Development of Water Power and Resources"
---

# §823f. Closed-loop pumped storage projects

- (a) **Expedited licensing process for closed-loop pumped storage projects—**
  - (1) **In general—** As provided in this section, the [Commission](/usc/16/544.md?p=c) may issue and amend licenses, as appropriate, for closed-loop pumped storage [projects](/usc/16/796.md?p=11).
  - (2) **Rule—** Not later than 180 days after October 23, 2018, the [Commission](/usc/16/544.md?p=c) shall issue a rule establishing an expedited process for issuing and amending licenses for closed-loop pumped storage [projects](/usc/16/796.md?p=11) under this section.
  - (3) **Interagency task force—** In establishing the expedited process under this section, the [Commission](/usc/16/544.md?p=c) shall convene an interagency task force, with appropriate Federal and [State](/usc/16/796.md?p=6) agencies and [Indian tribes](/usc/16/544.md?p=g) represented, to coordinate the regulatory processes associated with the authorizations required to construct and operate closed-loop pumped storage [projects](/usc/16/796.md?p=11).
  - (4) **Length of process—** The [Commission](/usc/16/544.md?p=c) shall seek to ensure that the expedited process under this section will result in final decision on an application for a license by not later than 2 years after receipt of a completed application for such license.
- (b) **Dam safety—** Before issuing any license for a closed-loop pumped storage [project](/usc/16/796.md?p=11), the [Commission](/usc/16/544.md?p=c) shall assess the safety of existing dams and other structures related to the [project](/usc/16/796.md?p=11) (including possible consequences associated with failure of such structures).
- (c) **Exceptions from other requirements—**
  - (1) **In general—** In issuing or amending a license for a closed-loop pumped storage [project](/usc/16/796.md?p=11) pursuant to the expedited process established under this section, the [Commission](/usc/16/544.md?p=c) may grant an exception from any other requirement of this subchapter with respect to any part of the closed-loop pumped storage [project](/usc/16/796.md?p=11) (not including any dam or other impoundment).
  - (2) **Consultation—** In granting an exception under [paragraph (1)](#c-1), the [Commission](/usc/16/544.md?p=c) shall consult with the United States [Fish and Wildlife](/usc/16/3102.md?p=17) Service, the National Marine Fisheries Service, and the [State](/usc/16/796.md?p=6) agency exercising administration over the [fish and wildlife](/usc/16/3102.md?p=17) resources of the [State](/usc/16/796.md?p=6) in which the closed-loop pumped storage [project](/usc/16/796.md?p=11) is or will be located, in the manner provided by the [Fish and Wildlife](/usc/16/3102.md?p=17) Coordination Act ([16 U.S.C. 661](/usc/16/661.md) et seq.).
  - (3) **Terms and conditions—** In granting an exception under [paragraph (1)](#c-1), the [Commission](/usc/16/544.md?p=c) shall include in any such exception—
    - (A) such terms and conditions as the United States [Fish and Wildlife](/usc/16/3102.md?p=17) Service, the National Marine Fisheries Service, and the [State](/usc/16/796.md?p=6) agency described in [paragraph (2)](#c-2) each determine are appropriate to prevent loss of, or damage to, [fish and wildlife](/usc/16/3102.md?p=17) resources and to otherwise carry out the purposes of the [Fish and Wildlife](/usc/16/3102.md?p=17) Coordination Act; and
    - (B) such terms and conditions as the [Commission](/usc/16/544.md?p=c) deems appropriate to ensure that such closed-loop pumped storage [project](/usc/16/796.md?p=11) continues to comply with the provisions of this section and terms and conditions included in any such exception.
  - (4) **Fees—** The [Commission](/usc/16/544.md?p=c), in [addition](/usc/16/410r–5.md?p=c-2) to the requirements of [section 803(e) of this title](/usc/16/803.md?p=e), shall establish fees which shall be paid by an applicant for a license for a closed-loop pumped storage [project](/usc/16/796.md?p=11) that is required to meet terms and conditions set by [fish and wildlife](/usc/16/3102.md?p=17) agencies under [paragraph (3)](#c-3). Such fees shall be adequate to reimburse the [fish and wildlife](/usc/16/3102.md?p=17) agencies referred to in [paragraph (3)](#c-3) for any reasonable costs incurred in connection with any studies or other reviews carried out by such agencies for purposes of compliance with this section. The fees shall, subject to annual appropriations Acts, be transferred to such agencies by the [Commission](/usc/16/544.md?p=c) for use solely for purposes of carrying out such studies and shall remain available until expended.
- (d) **Transfers—** Notwithstanding [section 798 of this title](/usc/16/798.md), and regardless of whether the holder of a preliminary permit for a closed-loop pumped storage [project](/usc/16/796.md?p=11) claimed municipal preference under [section 800(a) of this title](/usc/16/800.md?p=a) when obtaining the permit, on request by a [municipality](/usc/16/796.md?p=7), the [Commission](/usc/16/544.md?p=c) may, to facilitate development of a closed-loop pumped storage [project](/usc/16/796.md?p=11)—
  - (1) add entities as joint permittees following issuance of a preliminary permit; and
  - (2) transfer a license in part to one or more nonmunicipal entities as co-[licensees](/usc/16/796.md?p=5) with a [municipality](/usc/16/796.md?p=7), if the [municipality](/usc/16/796.md?p=7) retains majority ownership of the [project](/usc/16/796.md?p=11) for which the license was issued.
- (e) **Interagency communications—** Interagency cooperation in the preparation of environmental documents under the National Environmental Policy Act of 1969 ([42 U.S.C. 4321](/usc/42/4321.md) et seq.) with respect to an application for a license for a closed-loop pumped storage [project](/usc/16/796.md?p=11) submitted pursuant to this section, and interagency communications relating to licensing process coordination pursuant to this section, shall not—
  - (1) be considered to be ex parte communications under [Commission](/usc/16/544.md?p=c) rules; or
  - (2) preclude an agency from participating in a licensing proceeding under this subchapter, providing that any agency participating as a party in a licensing proceeding under this subchapter shall, to the extent practicable, demonstrate a separation of staff cooperating with the [Commission](/usc/16/544.md?p=c) under the National Environmental Policy Act[^1] ([42 U.S.C. 4321](/usc/42/4321.md) et seq.) and staff participating in the applicable proceeding under this subchapter.
- (f) **Developing abandoned mines for pumped storage—**
  - (1) **Workshop—** Not later than 6 months after October 23, 2018, the [Commission](/usc/16/544.md?p=c) shall hold a workshop to explore potential opportunities for development of closed-loop pumped storage [projects](/usc/16/796.md?p=11) at abandoned mine sites.
  - (2) **Guidance—** Not later than 1 year after October 23, 2018, the [Commission](/usc/16/544.md?p=c) shall issue guidance to assist applicants for licenses or preliminary permits for closed-loop pumped storage [projects](/usc/16/796.md?p=11) at abandoned mine sites.
- (g) **Qualifying criteria for closed-loop pumped storage projects—**
  - (1) **In general—** The [Commission](/usc/16/544.md?p=c) shall establish criteria that a pumped storage [project](/usc/16/796.md?p=11) shall meet in order to qualify as a closed-loop pumped storage [project](/usc/16/796.md?p=11) eligible for the expedited process established under this section.
  - (2) **Inclusions—** In establishing the criteria under [paragraph (1)](#g-1), the [Commission](/usc/16/544.md?p=c) shall include criteria requiring that the pumped storage [project](/usc/16/796.md?p=11)—
    - (A) cause little to no change to existing surface and ground water flows and uses; and
    - (B) is unlikely to adversely affect species listed as a threatened species or endangered species under the Endangered Species Act of 1973 [[16 U.S.C. 1531](/usc/16/1531.md) et seq.].
- (h) **Savings clause—** Nothing in this section affects any authority of the [Commission](/usc/16/544.md?p=c) to license a closed-loop pumped storage [project](/usc/16/796.md?p=11) under this subchapter.

## Footnotes

[^1]: So in original. Probably should be followed by “of 1969”.

## Source credit

(June 10, 1920, ch. 285, pt. I, § 35, as added Pub. L. 115–270, title III, § 3004, Oct. 23, 2018, 132 Stat. 3865.)

## Notes

### Editorial Notes

### References in Text

The Fish and Wildlife Coordination Act, referred to in subsec. (c)(2), (3)(A), is act Mar. 10, 1934, ch. 55, 48 Stat. 401, which is classified generally to sections 661 to 666c–1 of this title. For complete classification of this Act to the Code, see section 661(a) of this title, Short Title note set out under section 661 of this title, and Tables.

The National Environmental Policy Act of 1969, referred to in subsec. (e), is Pub. L. 91–190, Jan. 1, 1970, 83 Stat. 852, which is classified generally to chapter 55 (§ 4321 et seq.) of Title 42, The Public Health and Welfare. For complete classification of this Act to the Code, see Short Title note set out under section 4321 of Title 42 and Tables.

The Endangered Species Act of 1973, referred to in subsec. (g)(2)(B), is Pub. L. 93–205, Dec. 28, 1973, 87 Stat. 884, which is classified principally to chapter 35 (§ 1531 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set out under section 1531 of this title and Tables.