This bill amends the Federal Power Act to streamline the regulatory process for existing hydropower projects and establish a new framework for micro hydrokinetic energy projects. For hydropower, it clarifies that the Federal Energy Regulatory Commission (FERC) will only require prior approval for "substantial alterations or additions" to project works or operations, which are significant modifications not conforming to approved plans. Routine maintenance, repair, or replacement, and temporary variances due to unforeseen circumstances like extreme weather, will no longer require prior FERC approval or a license amendment, aiming to reduce regulatory burdens while maintaining safety oversight. The legislation mandates FERC to issue a final rule within 180 days of a proposed rule to define these terms and establish a formal process for determining which alterations require approval. This rule will provide clear standards for what constitutes a substantial versus a nonsubstantial alteration or routine maintenance. Additionally, the bill introduces a new section to the Federal Power Act to facilitate the licensing of micro hydrokinetic energy projects . These are defined as non-impounding projects with an installed capacity of up to 5 megawatts, converting energy from waves, tides, currents, or free-flowing water. An expedited licensing process is established, requiring FERC to take final action on applications within one year and to promulgate regulations within 180 days to implement this process. These regulations must include provisions for categorical exclusions under the National Environmental Policy Act (NEPA) for low-disturbance activities, thereby accelerating the deployment of these small-scale renewable energy technologies while ensuring safe operation and environmental compliance. FERC is also required to report to Congress on the impacts of these projects.