To reinstate and transfer a hydroelectric license under the Federal Power Act to permit the immediate redevelopment of a hydroelectric project located in the State of New York, and for other purposes.

Directs the Federal Energy Regulatory Commission to: (1) reinstate the hydroelectric license for Project No. 2696 and to transfer it without delay or the institution of any proceedings, to the Town of Stuyvesant, New York, within 30 days of enactment of this Act; and (2) extend the expiration of the term of such license to August 31, 2025, if the Project's generating capability reaches a specified minimum level on a reliable basis within two years of enactment of this Act.

States that the Project is entitled to the full benefit of any legislation passed by Congress that promotes hydroelectric development within two years either before or after the effective date of this Act.

Instructs the Commission to permit the Town to add a co-licensee to the reinstated license at any time, notwithstanding the issuance of a preliminary permit to the Town, and any consideration of municipal preference.

States that the Town shall be entitled, to the extent that funds are available, to receive certain loans for the reimbursement of feasibility studies and development costs incurred since January 1, 2001, through and including December 31, 2006.

Deems all power produced by the Project incremental hydropower for purposes of qualifying for any energy credit or similar benefits.