The bill recognizes hydropower as renewable and aims to increase its capacity to address climate change and environmental quality. It amends regulations to include hydropower in renewable energy, expediting the licensing process for small and next-generation hydropower projects. It establishes a task force to coordinate regulatory processes for licensing next-generation hydropower projects. Additionally, the bill requires identifying barriers to hydropower development and compensation, proposing measures to reduce barriers, and modernizing the licensing process. It amends the Federal Power Act to promote hydropower development at existing nonpowered dams and closed-loop pumped storage projects, allowing for issuing licenses for qualifying facilities and projects, and providing for construction commencement extensions.