((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 , or a license granted pursuant to the Federal Power Act ( et seq.);

((2)) is placed into service before ; 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.