Amends the Federal Power Act to direct the Federal Energy Regulatory Commission (FERC) to discontinue its licensing and regulatory authority over certain new, small (power production capacity of 5,000 kilowatts or less) qualifying hydroelectric project works in Alaska, effective upon FERC certification that Alaska has a regulatory program in place for water-power development meeting specified criteria. Prescribes such criteria as: (1) protection of certain public and environmental interests to the same extent provided by FERC and specified Federal law; (2) equal consideration given to energy conservation, fish and wildlife protection, recreational opportunities, environmental quality, the interests of Alaska Natives, and beneficial public uses; and (3) licensing requirements for construction, operation and maintenance of lights, signals, and fishways by a licensee at its own expense, operation of navigation facilities subject to Secretary of the Army regulations, and fish and wildlife protection and enhancement based upon Federal and State agency recommendations.

Authorizes the licensee of a project works licensed before enactment of this Act to elect to subject such works to licensing and regulation by Alaska in accordance with this Act.

Declares that, with respect to project works on an Indian reservation, a conservation system unit, or Federal public lands, a State license or exemption from license shall be subject to the approval of the Secretary having jurisdiction over such lands, and such conditions as the Secretary may prescribe.

Requires FERC to consult with the Secretaries of the Interior, of Agriculture, and of Commerce before certifying Alaska's regulatory program.

Requires the State of Alaska to notify FERC within 30 days after making any significant modification to its regulatory program. Requires FERC to reassert its regulatory and licensing authority if Alaska has not complied with one or more requirements of this Act. Prescribes FERC compliance review procedures.

(Sec. 2) Excludes from FERC voluntary licensing jurisdiction any hydroelectric projects upon fresh waters in Hawaii, unless a license would be required because: (1) the waters are navigable; or (2) the projects affect interstate commerce, are located on Federal lands, or use water from a government dam.

(Sec. 3) Exempts from FERC licensing requirements certain transmission line facilities associated with the El Vado Hydroelectric Project in New Mexico.

(Sec. 4) Extends the deadline for commencement of construction of hydroelectric projects from two years to ten years from date of license issuance.

(Sec. 5) Restores the provision that licenses may be revoked only in accordance with the Federal Power Act, and may be altered or surrendered upon mutual agreement between the licensee and FERC after public notice.

Amends the Federal Power Act to direct the Federal Energy Regulatory Commission (FERC) to discontinue its licensing and regulatory authority over certain new, small (power production capacity of 5,000 kilowatts or less) qualifying hydroelectric project works in Alaska, effective upon FERC certification that Alaska has a regulatory program in place for water-power development meeting specified criteria. Prescribes such criteria as: (1) protection of certain public and environmental interests to the same extent provided by FERC and specified Federal law; (2) equal consideration given to energy conservation, fish and wildlife protection, recreational opportunities, environmental quality, the interests of Alaska Natives, and beneficial public uses; and (3) licensing requirements for construction, operation and maintenance of lights, signals, and fishways by a licensee at its own expense, operation of navigation facilities subject to Secretary of the Army regulations, and fish and wildlife protection and enhancement based upon Federal and State agency recommendations.

Authorizes the licensee of a project works licensed before enactment of this Act to elect to subject such works to licensing and regulation by Alaska in accordance with this Act.

Declares that, with respect to project works on an Indian reservation, a conservation system unit, or Federal public lands, a State license or exemption from license shall be subject to the approval of the Secretary having jurisdiction over such lands, and such conditions as the Secretary may prescribe.

Requires FERC to consult with the Secretaries of the Interior, of Agriculture, and of Commerce before certifying Alaska's regulatory program.

Requires the State of Alaska to notify FERC within 30 days after making any significant modification to its regulatory program. Requires FERC to reassert its regulatory and licensing authority if Alaska has not complied with one or more requirements of this Act. Prescribes FERC compliance review procedures.

(Sec. 2) Excludes from FERC voluntary licensing jurisdiction any hydroelectric projects upon fresh waters in Hawaii, unless a license would be required because: (1) the waters are navigable; or (2) the projects affect interstate commerce, are located on Federal lands, or use water from a government dam.

(Sec. 3) Exempts from FERC licensing requirements certain transmission line facilities associated with the El Vado Hydroelectric Project in New Mexico.

(Sec. 4) Extends the deadline for commencement of construction of hydroelectric projects from two years to ten years from date of license issuance.

(Sec. 5) Restores the provision that licenses may be revoked only in accordance with the Federal Power Act, and may be altered or surrendered upon mutual agreement between the licensee and FERC after public notice.

Amends the Federal Power Act to prescribe circumstances under which certain hydroelectric projects in Alaska having a power production capacity of 5,000 kilowatts or less shall be subject to the exclusive licensing authority of the State in lieu of the Federal Energy Regulatory Commission (FERC). Grants the licensee of a currently FERC-licensed project the discretion to subject such project to the State's authorizing authority.

Subjects any State authorization for a project located on Federal lands to the approval of the Secretary with jurisdiction over such lands, and to such terms and conditions as that Secretary may prescribe.

Declares that nothing shall preempt the application of Federal environment, natural, or cultural resources protection laws according to their terms.

Excludes from FERC voluntary licensing jurisdiction any hydroelectric projects upon fresh waters in Hawaii, unless a license would be required because: (1) the waters are navigable; or (2) the projects affect interstate commerce, are located on Federal lands, or use water from a government dam.

Exempts from FERC licensing requirements certain transmission line facilities associated with the El Vado Hydroelectric Project in New Mexico.

Extends from two years to ten years from date of license issuance the deadline for commencement of construction of hydroelectric projects.