On May 11, 2026, the President signed into law S. 1020, sponsored by Senators Steve Daines (R-Mont.) and John Fetterman (D-Pa.), which modifies the timelines under which certain federally licensed hydropower projects must begin construction. The law focuses on a defined set of “covered projects” and provides the Federal Energy Regulatory Commission (FERC) with additional authority to extend construction‑start deadlines beyond what is currently permitted under the Federal Power Act.

S. 1020 applies to “covered projects,” defined as hydropower projects for which FERC issued a license before March 13, 2020. The statute does not change FERC’s licensing standards or create new licensing authority; instead, it adjusts the time limits governing when already licensed projects must commence construction.

Section 13 of the Federal Power Act requires licensees to begin construction within two years of license issuance but allows FERC to extend that period for up to eight additional years. S. 1020 authorizes FERC, notwithstanding section 13, to extend the construction‑start period for a covered project, upon the licensee’s request, after reasonable notice and for good cause shown, by up to an additional six years beyond the ten years authorized under existing law. The authority is discretionary and must be exercised in accordance with conditions specified in the statute.

The law requires that any additional extension for a covered project consist of no more than three consecutive two‑year periods. Those periods must begin on the date the final extension granted under section 13 expires, and they must end no later than six years after the latest date to which FERC could otherwise extend the commencement deadline under section 13. In combination, these provisions allow FERC to provide up to six additional years in two‑year increments, within a fixed outer limit measured from the Federal Power Act’s existing extension framework.

S. 1020 also addresses licenses whose construction‑start periods have recently expired. For a covered project whose commencement period under section 13 expired after December 31, 2023, and before the date of enactment, the law authorizes FERC to reinstate the license effective as of the date it expired. For any reinstated license, the new extension authority takes effect as of that expiration date.

Industry groups have stated that additional schedule flexibility is important for projects that have experienced post‑pandemic cost escalation, supply chain constraints, and other development risks, and have characterized S. 1020 as a tool to keep certain pre‑2020 licensed projects in the development pipeline.

A copy of S. 1020 is available here.