[Senate Hearing 112-26]
[From the U.S. Government Publishing Office]
S. Hrg. 112-26
HYDROPOWER
=======================================================================
HEARING
before the
COMMITTEE ON
ENERGY AND NATURAL RESOURCES
UNITED STATES SENATE
ONE HUNDRED TWELFTH CONGRESS
FIRST SESSION
TO
RECEIVE TESTIMONY ON: S. 629, TO IMPROVE HYDROPOWER, AND FOR OTHER
PURPOSES; S. 630, TO PROMOTE MARINE AND HYDROKINETIC RENEWABLE ENERGY
RESEARCH AND DEVELOPMENT, AND FOR OTHER PURPOSES; AND TITLE I, SUBTITLE
D OF THE AMERICAN CLEAN ENERGY LEADERSHIP ACT OF 2009 (S. 1462 FROM
111TH CONGRESS)
__________
MARCH 31, 2011
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COMMITTEE ON ENERGY AND NATURAL RESOURCES
JEFF BINGAMAN, New Mexico, Chairman
RON WYDEN, Oregon LISA MURKOWSKI, Alaska
TIM JOHNSON, South Dakota RICHARD BURR, North Carolina
MARY L. LANDRIEU, Louisiana JOHN BARRASSO, Wyoming
MARIA CANTWELL, Washington JAMES E. RISCH, Idaho
BERNARD SANDERS, Vermont MIKE LEE, Utah
DEBBIE STABENOW, Michigan RAND PAUL, Kentucky
MARK UDALL, Colorado DANIEL COATS, Indiana
JEANNE SHAHEEN, New Hampshire ROB PORTMAN, Ohio
AL FRANKEN, Minnesota JOHN HOEVEN, North Dakota
JOE MANCHIN, III, West Virginia BOB CORKER, Tennessee
CHRISTOPHER A. COONS, Delaware
Robert M. Simon, Staff Director
Sam E. Fowler, Chief Counsel
McKie Campbell, Republican Staff Director
Karen K. Billups, Republican Chief Counsel
C O N T E N T S
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STATEMENTS
Page
Bingaman, Hon. Jeff, U.S. Senator From New Mexico................ 1
Chalk, Steven G., Chief Operating Officer and Acting Deputy
Assistant Secretary for Renewable Energy, Office of Energy
Efficiency and Renewable Energy, Department of Energy.......... 3
Connor, Michael L., Commissioner, Bureau of Reclamation,
Department of Interior......................................... 16
Munro, Andrew, President, National Hydropower Association........ 41
Murkowski, Hon. Lisa, U.S. Senator From Alaska................... 2
Sean O'Neill, President, Ocean Renewable Energy Coalition,
Darnestown, MD................................................. 47
Seebach, John, Director, Hydropower Reform Initiative, American
Rivers......................................................... 33
Webber, Michael E., Ph.D., Assistant Professor, Department of
Mechanical Engineering, Associate Director, Center for
International Energy and Environmental Policy, Co-Director,
Clean Energy Incubator, The University of Texas at Austin,
Austin, TX..................................................... 49
Wright, Jeff C., Director, Office of Energy Projects, Federal
Energy Regulatory Commission................................... 10
APPENDIXES
Appendix I
Responses to additional questions................................ 63
Appendix II
Additional material submitted for the record..................... 83
HYDROPOWER
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THURSDAY, MARCH 31, 2011
U.S. Senate,
Committee on Energy and Natural Resources,
Washington, DC.
The committee met, pursuant to notice, at 9:30 a.m. in room
SD-366, Dirksen Senate Office Building, Hon. Jeff Bingaman,
chairman, presiding.
OPENING STATEMENT OF HON. JEFF BINGAMAN, U.S. SENATOR
FROM NEW MEXICO
The Chairman. OK. Why don't we get started.
Good morning. Welcome to today's hearing.
Today we hear testimony regarding 3 pieces of legislation--
S. 629, which is the Hydropower Improvement Act of 2011, S.
630, which is the Marine and Hydrokinetic Renewable Energy
Promotion Act of 2011, and also the energy and water
integration provisions from Title I, Subtitle D, of ACELA, the
American Clean Energy Leadership Act of 2009, which was S. 1462
in the previous Congress.
Today we will hear from administration and other witnesses
about the potential we have to produce more hydropower in this
country through improved efficiency at existing hydropower
facilities and adding hydropower capabilities to existing
structures. Developing additional energy from hydropower can
help to decrease our dependence on fossil fuels, can help
reduce the Nation's carbon emissions.
I'm glad to cosponsor the Hydropower Improvement Act with
Senator Murkowski, and I appreciate her willingness to
incorporate suggestions that I and others have made to
encourage development of hydropower resources while protecting
or even improving our natural resources. I am particularly
interested in hearing about the opportunities for development
of small hydropower projects that may be feasible, even in arid
parts of the country like New Mexico.
In addition, I'm pleased to, that we'll hear testimony
today regarding legislation to recognize the connection between
energy and water. In 2009, Senator Murkowski and I introduced
the Energy and Water Integration Act. We received testimony and
comments on the bill during the last Congress. The committee
reported the bill as part of ACELA with bipartisan support. The
Energy and Water Integration Act takes a first step toward
integrating energy and water policy. Developing new policies
that integrate energy and water solutions will become
increasingly vital as populations grow and environmental needs
increase, and a changing climate continues to affect our energy
and water resources.
I'm glad to welcome the witnesses that we have here today
to give their views on the bills. The committee appreciates
everyone's efforts to be here.
Before I turn to the witnesses, let me call on Senator
Murkowski for her opening comments.
STATEMENT OF HON. LISA MURKOWSKI, U.S. SENATOR
FROM ALASKA
Senator Murkowski. Thank you, Mr. Chairman, and good
morning.
I appreciate that we're having an opportunity this morning
to really focus in on hydropower. As most folks know, I'm a
pretty strong hydropower proponent. I consider it to be one of
our hardest-working renewable resources and, unfortunately, one
that sometimes gets overlooked a little bit in the clean energy
debate. Coming from Alaska, we've got a lot of water, and we're
figuring out how to harness it in good ways.
There's certainly no question that hydropower is, and must
continue to be, part of our energy solution. It's the largest
source of renewable electricity in the United States. The
100,000 megawatts of electro-, hydroelectric capacity we now
have today provide about 7 percent of the Nation's electricity
needs. Hydroelectric generation is carbon-free baseload power
that allows us to avoid approximately 200 million metric tons
of carbon emissions each year. It's clean, it's efficient, it's
inexpensive. Yet, despite tremendous benefits, I'm amazed at
how often it seems to be undervalued as a resource.
It's a misconception that the hydropower resource is tapped
out. In Alaska, hydro already supplies 24 percent of our
State's electricity needs, and over 200 promising sites for
future hydropower development have been identified.
Today, as you mentioned, Mr. Chairman, we've got 2
hydropowers--hydropower bills that I have recently introduced.
We've got S. 629--the Hydropower Improvement Act, which seeks
to substantially increase our Nation's hydropower capacity. I'm
pleased that a number of those on the committee here have
agreed to cosponsor that--yourself, Senator Risch, Senator
Wyden, Senator Cantwell. I thank them for their support.
This Act aims to spur on the development of a wide range of
conventional projects to increase hydropower production--
everything from efficiency improvements and capacity additions
at existing facilities, to electrifying non-powered dams, to
conduits at irrigation districts, to small hydro projects, to
large pump storage facilities. We also include Federal
assistance for needed environmental studies and mitigation
efforts which should help all types of hydropower projects.
The other bill, S. 630, is the Marine and Hydrokinetic
Renewable Energy Promotion Act. This is very similar to the
provisions that this committee approved last Congress as part
of ACELA, as you have noted. S. 630 is designed to speed up the
development of renewable ocean energy--whether it's the wave,
the current, tidal energy--in Alaska, all across the Nation.
The Electric Power Research Institute has estimated that
our Nation's oceans resources could generate 252 million
megawatt hours of electricity, or 6.5 percent of our entire
electricity generation. But to reach this potential, ocean
energy must gain the same financial and research incentives
that are currently enjoyed by other forms of renewable energy.
Then, the last piece of legislation on today's agenda are
then energy-water integration provisions. This legislation
addresses the relationship between water and energy production.
I think, given what we're seeing--the turmoil in North Africa
and the Middle East--I find it interesting that the linkages
between energy and water systems were first identified in
studies in the 1970s, following the OPEC oil embargo. Since
that time, though, I think it's fair to say that minimal
investments in research and development have occurred.
Of course, all forms of energy production, distribution and
use either requires water, or affects water resources in some
manner. By identifying the relative linkages between energy and
water systems and key research needs, we'll see a greater
return on our investment in research, development and
commercialization of energy and water technologies.
I look forward to the comments from the witnesses this
morning, recognize that we've got some folks from here in town,
and some that have traveled to be with us, so I appreciate
their willingness to come and participate today.
The Chairman. All right. Thank you very much.
We have 2 panels.
This first panel are Government witnesses--the Honorable
Michael Connor, who is the Commissioner of the Bureau of
Reclamation, is not yet here. He was unavoidably delayed, but
will be here shortly; Mr. Steven Chalk, who is the Chief
Operating Officer and Acting Deputy Assistant Secretary for
Renewable Energy at the Department of Energy; Mr. Jeff Wright,
who is the Director of the Office of Energy Projects with FERC,
the Federal Energy Regulatory Commission.
So, why don't we start with you, Mr. Chalk? Then you, Mr.
Wright. If Mike Connors has arrived by the time you're through,
we'll have him go ahead, or else we'll start with questions.
So, Mr. Chalk, go right ahead.
STATEMENT OF STEVEN G. CHALK, CHIEF OPERATING OFFICER AND
ACTING DEPUTY ASSISTANT SECRETARY FOR RENEWABLE ENERGY, OFFICE
OF ENERGY EFFICIENCY AND RENEWABLE ENERGY, DEPARTMENT OF ENERGY
Mr. Chalk. Good morning, Chairman Bingaman and Ranking
Member Murkowski, and the rest of the committee.
Thanks for the opportunity to discuss the 3 pieces of
legislation today.
I've submitted detailed comments for the record, but I'd
like to take this opportunity to give you a brief overview of
the Department's activities on water power and the energy-water
nexus.
Conventional hydropower currently provides 7 percent of
U.S. generation, and 65 percent of our renewable energy comes
from hydropower. The big advantage of hydropower, of course, is
no criteria pollutants and no greenhouse gasses associated with
the actual energy production.
Conventional hydropower generation capacity in the U.S. has
been on the decline. However, significant amounts of hydropower
resources remain undeveloped. The vast majority potentially can
be utilized with relatively low environmental risk, and without
construction of any new large hydroelectric dams or
impoundments. In fact, DOE's interim Hydropower Resource
Assessment, which was completed in 2009, identifies additional
hydropower capacity of 300 gigawatts--about 3 times our current
capacity.
If S. 629, the Hydropower Improvement Act of 2011, is
enacted, it would provide authorization to fund research;
develop new technologies with improved costs and environmental
performance characteristics, such as scale-up of fish-friendly
turbines; and address environmental issues and other technical
barriers to reduce the expense and the uncertainty of the
regulatory process. It would also authorize funding to pursue
efficiency and capacity upgrade opportunities at existing
hydropower sites, as well as new opportunities to power
existing dams where there are currently no turbines.
Marine and hydrokinetic--or MHK technologies, as we call
them--are energy-conversion devices that extract energy from
moving water from wave devices, oceans, rivers, tidal areas,
and even salinity gradients. In March 2007 the Electric Power
Research Institute reported that its conservative estimate
indicated that MHK power--and this is only for wave and tidal
sources alone--could provide an additional 13 gigawatts of
capacity by 2025. If Senate Bill 630, the Marine and
Hydrokinetic Renewable Energy Promotion Act of 2011, is
enacted, it would authorize funding to enhance the current DOE
research program aimed at reducing MHK costs, to optimize
system and array designs, and validate performance and
reliability.
DOE has already established National Marine Renewable
Energy Centers which are similar to the test centers called for
in Senate Bill 630. The goal of DOE's test centers is to
provide open-water testing facilities which enable developers
to test their technologies and validate their performance
through a standardized, industry-recognized protocol. This
third party testing capability could promote greater investment
in deployment and commercialization of MHK technologies.
We are also pleased to comment on the chairman's bill from
S. 1462, subtitle D, Energy and Water Integration. DOE
estimates there are significant opportunities to reduce water
consumption for both electricity and fuels production. For
example, in the electricity sector, development of hybrid wet-
dry cooling systems could reduce water consumption by 70 to 80
percent compared to systems used today.
The various provisions of this bill could contribute to
more comprehensive understanding of the water-related
challenges to energy production, as well as the identification
of technologies and practices that will optimize water and
energy efficiency in production of electricity and fuels. In
addition, the energy-water roadmap could contribute to
establishing a cost-effective strategy for the Department's
future energy technology research, development, demonstration
and deployment efforts for addressing emerging water-related
challenges.
We recommend that any studies on this subject consider
potential increases in water demand that will result from
projected growth of energy production, and that interagency
collaboration and consultation be part of these studies, as
adequate water availability is an issue for every sector of the
economy.
Finally, the President's fiscal year 2012 budget represents
DOE's priorities for applied R&D in efficiency in renewable
technologies.
So, thanks for the opportunity to testify today on the
proposed legislation, and I will be happy to answer any
questions that you may have.
[The prepared statement of Mr. Chalk follows:]
Prepared Statement of Steven G. Chalk, Chief Operating Officer & Acting
Deputy Assistant Secretary for Renewable Energy, Office of Energy
Efficiency and Renewable Energy, Department of Energy
Chairman Bingaman, Ranking Member Murkowski, Members of the
Committee, thank you for the opportunity to discuss the three pieces of
legislation before us today: S. 629, the Hydropower Improvement Act of
2011; S. 630, the Marine and Hydrokinetic Renewable Energy Promotion
Act of 2011; and Title I, subtitle D of the American Clean Energy
Leadership Act of 2009 (ACELA, S. 1462 from the 111th Congress).
In his State of the Union address in January, President Obama
referred to America's need to transition to a clean energy economy as
``our generation's Sputnik moment,'' a goal so important that we need
to ``reach a level of research and development we haven't seen since
the height of the Space Race.''\1\ S. 629 and S. 630 would dramatically
increase the federal government's investment in both conventional
hydropower and marine and hydrokinetic (MHK) renewable energy
technologies.
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\1\ http://www.whitehouse.gov/the-press-office/2011/01/25/remarks-
president-state-union-address
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The provisions being considered from ACELA address the
interdependence of our energy and water consumption. Water is an
integral component of many traditional and alternative energy
technologies used for transportation, fuels production and electricity
generation. Energy-related water demands are beginning to compete with
other demands from population growth, agriculture and sanitation. This
competition could become fiercer if climate change increases the risk
of drought, making our water supply more vulnerable. The Department of
Energy (DOE) has initiated many activities over the last few years to
address this energy-water nexus.\2\
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\2\ See, for example, the activities undertaken by the National
Energy Technology Laboratory, http://www.netl.doe.gov/technologies/
coalpower/ewr/water/index.html.
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Since fiscal year 2008, when DOE restarted its Water Power Program,
it has made significant strides in advancing next-generation water
power technologies, assessing existing resources, promoting deployment
opportunities, and cooperating with other government agencies to
accelerate water power development. About 45 percent of all hydropower
in the United States is generated at Federally-owned facilities,
providing clean, renewable power to the grid.\3\ DOE's estimates
indicate that there could be an additional 300 gigawatts of hydropower
through efficiency and capacity upgrades at existing facilities,
powering non-powered dams, new small hydro development and pumped
storage hydropower.\4\
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\3\ http://eia.doe.gov/cneaf/electricity/page/eia906__920.html
\4\ FY09 DOE Interim Conventional Hydro Resource Assessment, Oak
Ridge National Lab
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DOE works on both conventional hydropower and on marine and
hydrokinetic (MHK) technologies. The combined FY 2012 Budget Request
for conventional hydropower and MHK technologies is $38.5 million.
Conventional hydropower--energy derived from water using dams,
diversionary structures, or impoundments for electric power--generates
more electricity than any other renewable energy source in the U.S.
Conventional hydropower represented 65 percent of U.S. renewable
electricity generation in 2010, and seven percent of total U.S.
electricity generation that year.\5\ Conventional hydropower
principally serves as a baseload electricity supply, but can also
function as a dispatchable resource to balance variable renewable
energy technologies such as wind and solar.
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\5\ http://www.eia.doe.gov/cneaf/electricity/epa/epa.pdf
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MHK technologies include energy devices that can extract energy
from moving water, including waves and currents in oceans, rivers, and
tidal areas, and from ocean thermal and salinity gradients. These
resources if also developed in an environmentally responsible manner
hold potential for helping our nation meet its clean energy goals.
In a March 2007 report, the Electric Power Research Institute
indicated that its conservative estimate was that MHK power (from wave
and tidal sources alone) could provide an additional 13,000 megawatts
(MW) of capacity by 2025.\6\ MHK power and ocean thermal energy are
resources that typically can have higher capacity factors than some
other renewable energy sources. In addition, they may not present the
same level of integration challenges that large-scale development of
variable renewable energy sources such as wind and solar may create for
electricity grid planners and operators.
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\6\ http://www.aaas.org/spp/cstc/docs/07 06 1ERPl report.pdf
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Through its Power Marketing Administrations (PMAs), DOE promotes
and creates opportunities for new conventional hydropower technologies
and development. PMAs encourage the most widespread use of hydropower
possible at the lowest rates consistent with sound business principles.
Some PMAs have established an active hydropower modernization program,
adding hundreds of megawatts of capacity at existing facilities by
updating equipment, while others have faced challenges in arranging
financing. Because some of the challenges are statutory in nature, the
PMAs and their customers may consult with the Committee on measures
that would actively encourage expansion of hydropower capacity through
updates to existing facilities.
Last year, DOE, the Bureau of Reclamation, and the Army Corps of
Engineers signed a memorandum of understanding (MOU) on hydropower that
aims to build long-term working relationships between agencies by
prioritizing similar goals and aligning ongoing and future renewable
energy development efforts.\7\ The objectives of the MOU include
deploying new, environmentally sustainable hydropower capacity,
including upgrading existing facilities; powering non-powered dams; and
research, development and deployment (RD&D) into new hydropower
technologies, among other objectives. The pursuit and ultimate
achievement of these goals will serve to strengthen our economy,
enhance our national security, and protect our environment.
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\7\ http://www.energy.gov/news/8793.htm
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Water is an integral aspect of energy consumption and generation
for many energy technologies other than hydropower as well. Many types
of energy production make use of water, particularly for cooling, and
increasingly, water-efficient technologies are being developed to
reduce these impacts and help America use less water to meet its energy
demands and use less energy to meet its water demands. Still, power
generation from thermal energy sources (which include coal, natural gas
and nuclear energy) accounted for approximately 41% of U.S. freshwater
withdrawals in 2005.\8\ Although most of the water withdrawn for
cooling thermal power plants is subsequently returned to the source,
this still can have disruptive effects on water flows and temperatures,
which in turn negatively affect aquatic organisms, namely fish
populations such as salmon. DOE estimates that there are significant
opportunities to reduce water consumption for both electricity and
fuels production. For example, in the electricity sector, development
of hybrid wet-dry cooling systems may reduce water consumption by 70-80
percent compared to recirculating cooling systems. Moving, pumping and
treating water and wastewater is in itself quite energy-intensive,
representing roughly four percent of U.S. electricity consumption.\9\
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\8\ http://pubs.usgs.gov/circ/1344/pdf/c1344.pdf
\9\ http://www.circleofblue.org/waternews/wp-content/uploads/2010/
08/EPRI-Volume-4.pdf
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The Department, through its National Laboratories and collaboration
with universities and the private sector, is pursuing three major
objectives to address the energy-water challenge. First, to address the
increasing limited supplies of freshwater, DOE is considering
strategies to increase use of nontraditional water resources in the
power sector. Second, DOE is working to reduce the consumption of fresh
water when generating electricity, while considering the full life-
cycle of various energy technologies to determine how much water they
demand and what kind of water quality they need. Finally, DOE is
researching water-efficient technologies for the production of
alternative or unconventional fuels for transportation.
I am pleased to offer the Department's perspective on these pieces
of legislation. I will discuss these bills in the order they appeared
in my invitation to testify before this Committee.
S. 629: Hydropower Improvement Act of 2011
The Hydropower Improvement Act of 2011, S. 629, seeks to
substantially increase hydroelectric capacity and generation and
improve its environmental performance.
A recent report from the Federal Energy Regulatory Commission
(FERC) demonstrates that little additional hydropower is in the
pipelines.\10\ Concerns include environmental issues and non-technical
barriers to reduce the expense and uncertainty of the regulatory
process is needed.
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\10\ http://www.ferc.gov/legal/staff-reports/03-17-11-energy-
infrastructure.pdf
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The most significant provision of S. 629 is a proposed
authorization to DOE of $50 million per year for competitive grants and
$50 million per year for RD&D to increase hydropower generation. This
authorization level is significantly higher than the FY 2012 Budget
Request for EERE's conventional hydropower program of $20 million, and
would also represent a substantial increase to the FY 2010 Budget for
conventional hydropower of $13 million. These additional resources, if
appropriated would enable increases in renewable hydropower generation,
and provide for the accelerated demonstration of innovative
technologies that can improve environmental performance.
In FY 2010, DOE funded the Hydropower Advancement Project (HAP) for
$3 million. The HAP is focused on the most cost-effective, least-
controversial types of new hydropower development, and seeks to
stimulate further hydropower development and generation without new
dams. The project has already identified multiple opportunities for
adding generation and/or improving environmental performance without
sacrificing energy efficiency. Current funding allows for fifty initial
facility assessments and three to five detailed engineering design
studies. Additional resources would be used to support facility
improvements that could result in increased hydropower generation at
the most cost-effective sites.
DOE has invested in a three year program of research and
development (R&D) to address issues related to the environmental
performance and siting of hydropower technologies. These efforts focus
on increasing fish passage, investigating adequate environmental flows
and improving water quality and will help ensure that increases in
conventional hydropower generation are coupled with concurrent
improvements in the environmental sustainability of the industry,
issues that DOE has been working on since the mid 1990s. If realized,
the additional funding authorized by S. 629 would help scale-up the
advanced turbines and optimize operational scenarios.
A quicker, two-year FERC licensing process, as proposed by S. 629
would help accelerate development of conventional hydropower resources.
A streamlined licensing approach already has been implemented by FERC
for small hydropower projects; expanding this quicker process would be
welcomed by DOE and the hydropower industry. At the same time, we must
be sure that this quicker licensing process does not sacrifice rigorous
maintenance of environmental standards and ensures adequate opportunity
to allow for public input. Providing a quicker regulatory process when
all environmental and public concerns have been addressed is a valuable
goal.
S. 629 would require FERC and the Bureau of Reclamation to conduct
workshops on small hydropower projects and conduit hydropower.\11\
These workshops would provide opportunities for the federal government,
including natural resource agencies, industry, environmental
organizations and other stakeholders to reach consensus on strategies
to overcome barriers to greater hydropower deployment, including
conflicting definitions of eligible projects and complicated, poorly
understood permitting and licensing processes.
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\11\ Conduits are defined as tunnels, canals, pipelines, aqueducts,
flumes, ditches, or similar manmade water conveyance systems that
distribute water for agricultural, municipal, or industrial consumption
and not primarily for the generation of electricity.
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S. 629 would define a ``small hydroelectric power project''
according to the definition found in Section 4.30 of title 18 in the
Code of Federal Regulations. DOE finds this definition problematic in
this context, since this definition specifies that a small
hydroelectric power project cannot be ``owned or operated by the United
States or by an instrumentality of the Federal Government.'' A majority
of the non-powered dams that are proposed to be powered through this
legislation are federally-owned by the U.S. Army Corps of Engineers and
the Bureau of Reclamation. In fact, initial analysis by DOE for a
forthcoming report indicates that the ten largest non-powered dams in
the US with potential to produce more than one megawatt are all
operated by the Army Corps of Engineers./12/ DOE accordingly recommends
that the definition of small hydroelectric power project that appears
in this legislation delete the requirement that the dam not be
federally-owned or operated.
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\12\ The National Hydropower Asset Assessment Project, to be
released in April 2011.
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The Department appreciates that S. 629 recognizes the non-
application of this legislation to the PMAs. In addition, the PMAs
believe that they should have the approval right for efficiency power
or capacity additions, improvements or replacements at Federal
projects, made in association with this legislation, where the Army
Corps of Engineers and the Bureau of Reclamation seek appropriations.
All other provisions of S. 629 would either build on or support
current DOE activities and areas of interest.
S. 630: Marine and Hydrokinetic Renewable Energy Promotion Act of 2011
S. 630, the Marine and Hydrokinetic Renewable Energy Promotion Act
of 2011, seeks to accelerate the growth of the MHK industry through
additional federal aid, and expansion of the scope and scale of DOE's
MHK activities. The additional funding authorized by this bill would
represent a significant increase in DOE's program for MHK technologies
and is significantly higher than either the FY 2012 Budget Request of
$18 million or the FY 2010 Budget of $37 million.
DOE already has several MHK systems engineering efforts underway,
but the additional systems engineering required by S. 630 would be used
to accelerate these programs.
S. 630 would also require DOE to devote more R&D funding to develop
open interface standards. This would ensure consistent design and
development and allow unbiased comparison between competing
technologies to achieve optimal energy generation in resulting systems.
As the U.S. market develops, it will be crucial to avoid the pitfalls
seen in the development of MHK technologies in Europe, where, despite
tremendous strides that have been made in device development and
deployment, the interface standards with devices and data are still
being developed.
The creation of a competitive grant program for MHK RD&D test
facilities would mimic similar innovative activities already sponsored
by DOE for other renewable energy technologies. DOE is currently
investing in three MHK test facilities that focus on the demonstration
of multiple MHK technologies. Investment in these National Marine
Renewable Energy Centers (NMRECs) is critically important in order to
help MHK technologies realize their full potential and to support their
rapid commercialization if done in an environmentally responsible way.
Each Center is currently developing plans for the development of open-
water test facilities. Further investment in NMRECs, as called for by
this legislation, would enable the open-water test berths to be
established. Third-party testing and evaluation of device performance
and reliability would enable private sector investment in these
emerging technologies.
All three of DOE's existing NMRECs are unrestricted in terms of the
device types they develop and support. Although none are geographically
located for in-stream testing, tidal device research and development
can substitute. It is unnecessary to distinguish between ``marine'' and
``hydrokinetic'' centers as the existing NMRECs could conduct research
on any type of device.
On June 29, 2010, the Department of Energy and the Department of
the Interior (DOI) signed an MOU for the coordinated deployment of
renewable energy technologies on the OCS. The MOU's Action Plan
includes a number of MHK-related activities, including coordination of
studies and other activities to support future BOEMRE-issued MHK
research leases, the development of environmental monitoring and
mitigation protocols and collaboration on environmental study efforts,
and development of a plan for MHK resource management and prediction.
Additionally, on August 3, 2010, DOE announced the designation of
Florida Atlantic University (FAU) as a national center for ocean energy
research and development. With this designation, DOE awarded the new
Southeast National Marine Renewable Energy Center $250,000 to undertake
research and development of technologies capable of generating power
from ocean currents and ocean thermal energy. FAU has applied for a
five-year limited lease under BOEMRE's Interim Policy. If issued, this
lease would allow for limited testing of ocean current devices on the
OCS offshore Florida. DOE has also provided funding to the Northwest
National Marine Renewable Energy Center to aid in the development of
facilities to serve as an integrated, standardized test center for
developers of wave and tidal energy, and the Hawaii National Marine
Renewable Energy Center for the development of a site for the testing
of wave energy conversion devices and ocean thermal energy conversion
systems. DOE may seek to obtain research leases from DOI.
If funding is realized under S. 630, development of MHK
technologies would be accelerated, speeding their transformation from
promising but fledgling technologies to commercially viable, clean,
renewable energy sources.
Title I, Subtitle D of the American Clean Energy Leadership Act of 2009
Title I, Subtitle D of ACELA contains provisions that would create
an energy-water clean technology grant program in DOE and would require
several studies on the energy-water nexus.
The grant program created under ACELA could serve as a useful way
to spur industry to devote time and resources to develop strategies to
minimize water consumption in energy processes. These provisions would
also require DOE and other agencies to collaborate on several studies
on this subject. The study that would be run by the Natural Academy of
Sciences regarding the effects of energy development and production on
U.S. water resources would be a useful, in-depth analysis. However, in
this legislation, the analysis appears limited to a current assessment.
While this in itself would be useful, DOE recommends that any such
study also consider the expected increase in water demand from
projected growth in energy production, and the water implications of
moving to a clean energy economy. This will be especially important
since certain clean energy technologies (carbon capture and storage,
bioenergy, concentrated solar power, etc.) may result in increased
water demands. The effects of climate change on water availability
should also be analyzed in order to better understand the potential
vulnerability of the energy sector to water constraints.
One of the other studies included in ACELA would require the
Department of the Interior (DOI) to evaluate the amount of energy used
in water storage and delivery operations. This study would be useful,
but DOE suggests that the proposed study would benefit from
consultation with other agencies with expertise in the energy-water
area, including DOE.
In general, interagency consultation must be an integral component
of our national strategy to address the energy-water nexus. Along with
energy production, agriculture uses more water than any other sector in
the U.S., so engagement with the U.S. Department of Agriculture will be
essential. The U.S. Army Corps of Engineers must also play a vital role
in developing more efficient water usage strategies. DOE welcomes
efforts to build on existing collaborations with these and other
agencies, such as the MOU referenced above.
These provisions would also require DOE to develop an Energy-Water
R&D Roadmap to define future RD&D and commercialization efforts
necessary to address emerging water-related challenges to future clean
energy generation and production. DOE has already produced a report
examining these issues, which it transmitted to Congress in January of
2007, and has developed a follow-up report, ``Energy-Water Challenges
and Research and Development Issues,'' that we expect will be finalized
and transmitted to Congress shortly.
Conclusion
In conclusion, I would like to again thank this Committee for its
leadership in supporting both conventional hydropower and MHK energy
technologies and in confronting the challenges associated with the
interrelation of our energy and water consumption.
As Secretary Chu stated last year, ``While hydropower is the
largest source of renewable electricity in the nation, hydropower
capacity has not increased significantly in decades. As the single
largest owner of hydropower generation in the United States, it is
important for the federal government to tap this valuable asset so it
can continue to contribute to our clean energy portfolio and energy
security.''/13/ S. 629 and S. 630 both contain provisions that would
help realize this goal; however, both bills contain authorizations
significantly in excess of the 2012 Budget request within EERE for
Water Programs. The President's FY 2012 budget represents DOE's
priorities for applied R&D in energy efficiency and renewable energy
technologies.
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Transitioning to a clean energy economy will be greatly enhanced if
we also identify ways to minimize or eliminate water use associated
with energy generation. The ACELA provisions could be the catalyst to
finding these solutions.
I would be pleased to address any questions the Committee might
have.
The Chairman. Thank you very much.
Mr. Wright, why don't you go right ahead?
STATEMENT OF JEFF C. WRIGHT, DIRECTOR, OFFICE OF ENERGY
PROJECTS, FEDERAL ENERGY REGULATORY COMMISSION
Mr. Wright. Chairman Bingaman, Ranking Member Murkowski,
other members of the committee, I appreciate the opportunity to
appear before you to discuss specifically S. 629 and S. 630.
As a member of the Commission's staff, the views I express
in my testimony are my own.
The Commission regulates over 1,600 non-Federal hydropower
projects at over 2,500 dams pursuant to Part I of the Federal
Power Act, or FPA. Together, these projects represent 54
gigawatts of hydropower capacity--more than half of all the
hydropower in the U.S. The FPA authorizes the Commission to
issue licenses and exemptions for projects within its
jurisdiction.
About 71 percent of the hydropower projects regulated by
the Commission have an installed capacity of 6 megawatts or
less. The Commission has seen an increased interest in small
hydropower projects, and has responded by implementing measures
to facilitate efficient review of project proposals, including
the following: (1) adding new web-based resources at the
Commission's website to make it easier for applicants to
understand and complete the licensing process, including
application templates; (2) updating or creating MOU's with
other agencies to improve coordination, such as the MOU with
the State of Colorado, and the recently updated MOU with the
Army Corps of Engineers; (3) continuing our small hydropower
hotline and email address to answer applicant questions; and
(4) educating potential hydropower developers through a new
education and outreach program.
With this background I will turn to the draft legislation.
Section 7 of S. 629 would require the Commission to
investigate the feasibility of implementing a 2-year licensing
process. I support the goal of expedited licensing. It's always
been our goal to act on applications as quickly as possible,
and the Commission has established processes that allow for
greater flexibility and efficiency.
However, the Commission operates under the constraints
imposed by the FPA and by other legislation affecting the
licensing process--the Clean Water Act, Coastal Zone Management
Act, the Endangered Species Act, and the National Historic
Preservation Act among them. Without the ability to waive
sections of the FPA and other acts or to set enforceable
schedules in licensing proceedings, a shortened process may be
problematic.
Section 8 would establish various measures to promote
conduit and small hydropower projects, which have been a major
focus of the Commission's staff effort in the last few years.
I support section 8(a), which would amend section 30 of the
FPA to allow conduit projects to be located on Federal lands.
Section 8(a) would also require the Commission and the
Commissioner of Reclamation to conduct regional public
workshops on reducing barriers to conduit projects and report
any recommendations to Congress. We are prepared to join them
in this effort.
Section 8(b) would require the Commission to conduct
regional public workshops on reducing barriers to small
hydropower projects and to report the results of this effort to
Congress. Noting the outreach described earlier, we are well
prepared to undertake this effort.
Section 9 would amend the FPA to authorize the Commission
to extend the term of a preliminary permit to up to 2 years,
which I support. It might be worth considering, as an
alternative, authorizing the Commission to issue permits for
terms of up to 5 years, avoiding the need for developers to go
through the process of seeking an extension.
Section 10 would require the Commissioner of Reclamation,
in consultation with the Commission, to study barriers to non-
Federal hydropower development at Bureau of Reclamation
Projects, and to develop an MOU to improve the coordination and
timeliness of such development. We have already begun working
with the Bureau on this matter.
S. 630 would authorize the Secretary of Energy to take
various steps to promote marine and hydrokinetic renewable
energy technology. I have 2 comments on this.
Section 3 would allow the Secretary of Energy to issue
grants to support national testing facilities for marine and
hydrokinetic technology research, development and
demonstration, which would be helpful in the development of new
technologies. It may be worth considering either placing any
test centers under the direct authority of DOE or another
Federal agency, or providing an exemption from the provisions
of Part 1 of the FPA for such test centers.
Second, section 6 of the bill would authorize the Secretary
of Energy to issue grants to advance development to help fund
the cost of environmental analysis, and the collection and
dissemination of environmental data, and to support
demonstration projects. This will help the regulatory process,
and advance the development of the technology as a whole.
In conclusion, there is a great deal of hydropower
potential throughout the country, including small projects, and
marine and hydrokinetic projects. The Commission continues to
adapt its procedures to facilitate the review and, where
appropriate, the approval of such projects. The legislation
under consideration will, as I have testified, assist in
realizing that potential.
This concludes my remarks, and I'll be pleased to answer
any questions you may have.
[The prepared statement of Mr. Wright follows:]
Prepared Statement of Jeff C. Wright, Director, Office of Energy
Projects, Federal Energy Regulatory Commission
on s. 629 and s. 630
Before the Committee on Energy and Natural Resources, United States
Senate
Legislative Hearing , to improve hydropower, and for other
purposes; S. 630, to promote marine and hydrokinetic renewable energy
research and development, and for other purposes; and Title I, subtitle
D of the American Clean Energy Leadership Act of 2009 (S. 1462 from
111th Congress).
Chairman Bingaman, Ranking Member Murkowski, and Members of the
Committee:
My name is Jeff Wright and I am the Director of the Office of
Energy Projects at the Federal Energy Regulatory Commission (Commission
or FERC). I appreciate the opportunity to appear before you to discuss
S. 629, S. 630, and S. 1462. As a member of the Commission's staff, the
views I express in this testimony are my own, and not those of the
Commission or of any individual Commissioner.
I. Background
The Commission regulates over 1,600 hydropower projects at over
2,500 dams pursuant to Part I of the Federal Power Act (FPA). Together,
these projects represent 54 gigawatts of hydropower capacity, more than
half of all the hydropower in the United States. Hydropower is an
essential part of the Nation's energy mix and offers the benefits of an
emission-free, renewable, domestic energy source with public and
private capacity together totaling about nine percent of U.S. electric
generation capacity.
Under the FPA, non-federal hydropower projects must be licensed by
the Commission if they: (1) are located on a navigable waterway; (2)
occupy federal lands; (3) use surplus water from a federal dam; or (4)
are located on non-navigable waters over which Congress has
jurisdiction under the Commerce Clause, involve post-1935 construction,
and affect interstate or foreign commerce.
The FPA authorizes the Commission to issue either licenses or
exemptions for projects within its jurisdiction. Licenses are generally
issued for terms of between 30 and 50 years, are renewable, and carry
with them the right to exercise federal eminent domain to obtain
property necessary for the construction, operation, and maintenance of
a project. Exemptions are perpetual, and thus do not need to be
renewed, but do not permit the use of eminent domain. Congress has
established two types of exemptions. First, section 30 of the FPA
allows the Commission to issue exemptions for projects that utilize for
generation only the hydroelectric potential of manmade conduits that
are operated for the distribution of water for agricultural, municipal,
or industrial consumption, and not primarily for the generation of
electricity. Conduit projects must be located on non-federal lands, and
have a maximum capacity of 15 megawatts (40 megawatts if the exemptee
is a state or local government entity). Second, in section 405(d) of
the Public Utility Regulatory Policies Act, Congress authorized the
Commission to grant exemptions for small hydroelectric power projects
having an installed capacity of 5,000 kilowatts or less. To qualify for
this type of exemption, a project must be located at an existing dam
that does not require construction or the enlargement of an
impoundment, or must use the hydropower potential of a natural water
feature, such as a waterfall. Both types of exemptions are subject to
mandatory fish and wildlife conditions provided by federal and state
resource agencies.
The Commission has established three licensing processes, with the
intent of allowing parties to select the process that is best suited to
individual proceedings. The integrated licensing process (ILP)
frontloads issue identification and environmental study to the period
before an application is filed, and is thus well-suited to complex
cases with substantial issues. The alternative licensing process (ALP)
allows participants significant flexibility to tailor licensing
procedures in a manner that may work well for unique cases. The
traditional licensing process (TLP), in which environmental and other
work can occur after the application is filed appears to work best for
less controversial matters. The TLP may be the process that is best-
suited for many simple cases involving exemptions or small, low impact
licenses. Commission staff has also developed a pilot licensing process
for hydrokinetic projects in which, with the assistance of federal and
state resource agencies, a project can be licensed in as little as six
months.
It is extremely important to note that project developers and other
stakeholders, not the Commission, in most instances play the leading
role in determining project success and whether the regulatory process
will be short or long, simple or complex. The first key issue is site
selection and proposed project operation. For example, the processing
of applications tends to be expedited when applicants propose projects
that: (1) are located at an existing dam where hydropower facilities do
not currently exist, (2) would result in little change to water flow
and use, (3) are unlikely to affect threatened and endangered species
and are unlikely to need fish passage facilities, and (4) involve lands
and facilities that are already owned by the applicant. To the extent
that a proposed project, even one of small size, raises concerns about
water use and other environmental issues, it may be difficult for the
Commission to quickly process an application. It is important to
remember that the small capacity of a proposed project does not
necessarily mean that the project has only minor environmental impacts.
Another, and related, factor is the extent to which project
developers reach out to affected stakeholders. If a developer contacts
concerned citizens, local, state, and federal agencies, Indian tribes,
and environmental organizations, and works with them to develop
consensus as to what information is needed to understand the impacts of
a project and what environmental measures may be appropriate, and to
develop support for the project, the application and review process is
likely to be simpler and quicker. Where a project comes as a surprise
to affected entities or where a developer does not respond to expressed
concerns, the Commission's job becomes much more difficult, because the
Commission must, and does, ensure that all expressed concerns are
addressed.
A final, and again related, matter is the development of the full
record that the Commission needs to act on an application. A potential
applicant needs to work with Commission staff and with federal and
state resource agencies and other stakeholders to determine what
information is needed to support an application, and to provide the
Commission with a complete application. Where Commission staff or other
stakeholders must ask an applicant to provide information that is
missing from an application, the regulatory process slows down.
The other entities with roles in the licensing and exemption
process regarding small hydropower projects are also key to its
success. The quickest, most efficient process can be achieved only
where federal and state agencies, as well as other stakeholders, devote
the resources early on to help project review move ahead, and where
they display the flexibility to look at the merits of individual
projects and the willingness to shorten the process in appropriate
cases. Commission staff is dedicated to making the regulatory process
as short and cost-effective as possible. We can only do that where
applicants, resource agencies, and other stakeholders serve as willing
partners in the process.
II. Commission Efforts Regarding Small and Innovative Projects
The majority of the hydropower projects regulated by the Commission
are small projects, with about 71 percent having an installed capacity
of 5 megawatts (MW) or less. In recent years, the Commission has seen a
greatly increased interest in small hydropower projects, in innovative
hydrokinetic projects, and in pumped storage projects, particularly
closed loop pumped storage, which does not involve regular water
withdrawals from rivers or other water sources. The Commission has
responded by implementing a number of measures to facilitate efficient
review of project proposals. In 2007, in order to provide personalized,
responsive service to entities seeking to develop small hydropower
projects, Commission staff established a dedicated phone line and email
address for inquiries on small hydropower, developed a brochure to
provide guidance to potential developers of small, low impact
hydropower projects, and put these resources and a list of frequently-
asked questions on the Commission's website.
In light of the continued growing interest in such development, the
Commission held a technical conference on December 2, 2009, at its
Washington, D.C. headquarters to explore issues related to licensing,
and exempting from licensing, small non-federal hydropower projects in
the U.S. The December technical conference generated discussion on
recommendations that could improve the process for authorizing small
hydropower projects. In addition to insights received from the
panelists and attendees at the December conference, written comments
were solicited and over 40 comment letters were received from industry
representatives; federal, state, and local agencies; private citizens;
and non-governmental organizations. At the Commission's April 15, 2010
meeting, staff reported on the conference and the comments received,
and presented an action plan to assist and expedite the review of small
hydropower proposals. The action plan adopted the following immediate
changes: (1) adding new web-based resources to the Commission's website
(www.ferc.gov) to make it easier for applicants to understand and
complete the licensing process; (2) updating or creating Memoranda of
Understanding (MOUs) with other agencies to improve coordination; (3)
continuing our small hydropower hotline and email address to answer
applicant questions; and (4) educating potential small hydropower
developers through a new education and outreach program.
The Commission has, under its small hydro initiative, held numerous
outreach meetings with small hydropower developers and interested
stakeholders, and implemented web based tools, such as conduit
application templates and application checklists, which potential
applicants can use to prepare their applications. The small hydro
website further contains guidance and sample letters that applicants
can use to obtain waivers from fish and wildlife agencies for part of
the prefiling consultation process. The Commission staff has also
relaxed some of the standards, under Section 4.39 of its regulations,
for exhibits and drawings for conduit applications. For those
applicants that have filed complete and adequate applications, and for
which the Commission has determined that impacts are minimal, the
Commission has reduced the public notice period from 60 days to 30 days
and the reply period from 45 days to 15 days. A number of conduit
exemptions have been approved in as short as two months from the date
that an application has been deemed complete.
Since the April 15, 2010 Commission meeting, we have signed an MOU
with the State of Colorado to expedite the small hydro licensing
process (August 2010); launched a small hydro program website (August
2010); participated in small hydro workshops in Oregon (September
2010), Massachusetts (October 2010), and New Hampshire (November 2010);
conducted two webinars on our small hydro website (November/December
2010); and updated our small hydro brochure. Upcoming outreach efforts
will include: participating in small hydro workshops in Washington, DC,
Vancouver, BC, and California as well as conducting another webinar
this summer. We have also completed an update on our MOU with the Army
Corps of Engineers.
The MOU with the State of Colorado provides an excellent example of
a Federal-State solution for developing a pilot process to find
flexible and innovative ways to reduce barriers to small hydro and
conduit project development. In order to facilitate the Commission
approval of such projects, the MOU provides that Colorado will
prescreen any proposals and ensure that the applications are complete
and meet Commission regulations before they are filed.
With this background, I will turn to the draft legislation.
III. S. 629
S. 629, the Hydropower Improvement Act of 2011, has the laudable
goal of increasing hydropower capacity and generation in United States.
I strongly support that goal, and offer comments on specific sections
of the bill.
A. Sections 5 and 6
Sections 5 and 6 of the bill would authorize the Secretary of
Energy to issue grants to increase hydropower generation, and to
support hydropower research, development, and demonstration projects. I
support these sections, which would assist in the development of
additional renewable energy.
B. Section 7
Section 7 would require the Commission to investigate the
feasibility of implementing a two-year licensing process, in
particular, with respect to hydropower development at existing, non-
powered dams, and for closed-loop pumped storage projects.
I support the goal of an expedited licensing process. Indeed, as I
have discussed, it is Commission staff's goal to act on all license
applications as quickly as possible, and the Commission has established
processes that allow for great flexibility and efficiency. I am thus
not certain whether an additional licensing process is necessary.
During the last few years, we have been able to issue some licenses in
a matter of a few months, where the project proponent had selected a
site wisely, stakeholders had agreed on information needs, and state
and federal agencies performed their responsibilities quickly.
Moreover, the Commission operates under significant constraints imposed
by the FPA, and by other legislation affecting the licensing process--
the Clean Water Act, Coastal Zone Management Act, Endangered Species
Act, and National Historic Preservation Act among them. In the absence
of the ability to waive sections of the FPA and other acts, or to set
enforceable schedules in licensing proceedings, it is not clear that
the Commission, under its existing authorities, can mandate a shortened
process.
C. Section 8
Section 8 would establish various measures to promote conduit and
small hydropower projects. Again, this goal is consistent with
Commission policy and has been a major focus of Commission's staff's
effort in the last few years.
Section 8(a)(1) would amend section 30 of the FPA to allow conduit
projects to be located on federal lands. I support this provision,
which would remove the current bar on siting conduit projects on
federal lands. This section would also amend the FPA to provide
conditioning authority to federal land management agencies. These
agencies already have the ability to impose conditions on proposed
projects through the requirement that developers obtain special use
authorizations under the Federal Land Management and Policy Act, so
this amendment may not alter the current regulatory regime. As a
general matter, however, I do have some concern that authorizing
additional mandatory conditioning authority may slow down the licensing
process and result in increased potential bars to hydropower
development.
Section 8(a)(3) would require the Commission and the Commissioner
of Reclamation to conduct regional public workshops on reducing
barriers to conduit hydropower projects and thereafter report any
recommendations to Congress. We have worked successfully with the
Bureau of Reclamation in the past and are prepared to join Reclamation
in this effort.
Section 8(b) would require the Commission to conduct regional
public workshops on reducing barriers to small hydropower projects, and
to report the results of this effort to Congress. Noting the outreach
efforts described above, we are prepared to undertake this additional
effort should Congress deem it helpful.
D. Section 9
Section 9 would amend the FPA to authorize the Commission to extend
the term of a preliminary permit issued under FPA section 5 once for up
to two years. Preliminary permits grant the permittee a ``first-to-
file'' preference with respect to license applications for projects
being studied under a permit. Commission staff has heard anecdotally
that developers are concerned that the need for environmental studies
in some instances makes it difficult to complete a license application
within the current maximum three-year term of a permit, with the result
that a developer which has invested substantial time and money studying
a project may face the possibility of losing its project based on
competition from other entities--particular those with statutorily-
granted municipal preference--if it needs to seek a subsequent permit.
I therefore support the proposed FPA amendment, which could ameliorate
this problem. It might be worth considering, as an alternative,
authorizing the Commission to issue permits for terms of up to five
years, which could avoid the need for developers to go through the
process of seeking an extension.
E. Section 10
Section 10 would require the Commissioner of Reclamation, in
consultation with the Commission, to study barriers to non-federal
hydropower development at Bureau of Reclamation projects and to develop
a memorandum of understanding to improve the coordination and
timeliness of such development. We have already begun working with the
Bureau of Reclamation on this matter, and we have no objection to
Section 10.
IV. The Marine and Hydrokinetic Renewable Energy Promotion Act of 2011
S. 630 would authorize the Secretary of Energy to take various
steps to promote marine and hydrokinetic renewable energy technology.
As a general matter, the bill is consistent with the Commission's
initiatives to support the development of appropriate marine and
hydrokinetic projects, which I have previously described. I have only
two comments on the bill.
Section 3 of S. 630 would allow the Secretary of Energy to issue
grants to support national testing facilities for marine and
hydrokinetic technology research, development, and demonstration.
Commission staff has informally discussed this concept with DOE staff
over the last year or so, and I believe that testing centers could be
extremely helpful in the development of new renewable technologies.
Section 3 provides that test centers may be nonprofit institutions,
state or local governments, national laboratories, or National Marine
Renewable Energy Research, Development, and Demonstration Centers
established pursuant to section 634 of the Energy Independence and
Security Act of 2007. The Federal Power Act contains no provisions
allowing the Commission to authorize the testing of jurisdictional
hydropower facilities; accordingly, with some limited exceptions, tests
centers operated by private entities or by state and local government
may be required to be licensed by the Commission. Moreover, if a test
center were to use a variety of technologies with differing
environmental impact, the Commission might be required to issue
separate authorizations for individual tests. This would not be the
case for centers under the aegis of other federal entities, such as
DOE, which do not fall within the Commission's jurisdiction. Therefore,
to allow for the maximum flexibility and simplicity, it may be worth
considering either placing any test centers under the authority of DOE
or another federal agency or providing an exemption from the provisions
of Part I of the FPA for such test centers.
Second, section 6 of the bill would authorize the Secretary of
Energy to issue grants to advance the development of marine and
hydrokinetic renewable energy; to help fund the costs of environmental
analysis, the collection and dissemination of environmental data; and
to support demonstration projects. The provision of grant funding to
address the environmental information needs surrounding these new
technologies directly addresses an issue of concern to federal agencies
and other stakeholders. Environmental information is essential to the
development and regulation of energy projects, yet, because marine and
hydrokinetic technology is relatively new, and because these projects
may be sited in areas, such as coastal zones, where the environment is
not as well understood as onshore areas, much necessary information has
yet to be developed. The cost of obtaining environmental information
falls in large part on pioneering developers, and may thus discourage
their efforts. The Commission and other federal agencies are partnering
to reduce this burden by assembling and sharing environmental
information. However, there are still issues which will require new
studies, some of which are relevant to many developers. Federal funding
to support gathering such information will help the regulatory process
and advance the development of the technology as a whole.
V. The American Clean Energy Leadership Act of 2009
Title I, subtitle D of the American Clean Energy Leadership Act
deals with the integration of energy and water resources. While this
subtitle would not impose any direct requirements on the Commission, I
note that the Commission recognizes the link between energy development
and the use of our Nation's water resources. In siting natural gas and
hydropower projects, the Commission conducts thorough analyses of the
impact of proposed projects on water resources, authorizes only those
projects that appropriately balance energy development and
environmental protection, and imposes mitigation measures to ensure
that approved projects are developed in an environmentally responsible
manner.
VIII. Conclusion
There is a great deal of potential for the development of
additional hydropower projects throughout the country, including small
projects and marine and hydrokinetic projects. Working within the
authority given it by Congress, the Commission continues to adapt its
existing, flexible procedures to facilitate the review and, where
appropriate, the approval of such projects. Commission staff remains
committed to exploring with project developers, its sister federal
agencies, Indian tribes, the states, local government, and other
stakeholders every avenue for the responsible development of our
nation's hydropower potential. The legislation under consideration
will, as I have testified, assist in realizing that potential. This
concludes my remarks. I would be pleased to answer any questions you
may have.
The Chairman. Thank you very much.
Mike, I introduced you when we, at the beginning, and
indicated you were unavoidably detained but would be here, and
we look forward to your testimony. Go right ahead.
STATEMENT OF MICHAEL L. CONNOR, COMMISSIONER, BUREAU OF
RECLAMATION, DEPARTMENT OF INTERIOR
Mr. Connor. Thank you, Mr. Chairman.
My apologies to the committee for being late.
I am pleased to be in familiar territory here, along with
our Federal partners, to express the Department of the
Interior's views on S. 629 and on Subtitle D of the American
Clean Energy Leadership Act of 2009. I've submitted the written
statements for the record.
With respect to S. 629, the Hydropower Improvement Act of
2011, there are a number of ongoing actions at Reclamation that
relate to the provisions of the bill. As a threshold matter, I
would say that our overall goal in carrying out those actions
is to work in partnership with Federal, private and local
governmental entities to identify and assess opportunities for
sustainable hydropower development at Reclamation facilities.
Hydropower is a clean and efficient way to produce reliable
energy, and is a renewable resource. Reclamation has nearly 500
dams and dikes, and owns 58 hydropower plants. Annually, these
plants produce an average of 40 million megawatt hours of
electricity, enough to meet the needs on an annual basis of
over 9 million people.
This afternoon Reclamation will publish the Hydropower
Resource Assessment at Existing Reclamation Facilities, a
comprehensive review of the potential for new hydropower
development at Reclamation facilities. In addition to the
assessment, Reclamation will soon be publishing 2 Federal
Register notices and make available Lease of Power Privilege
opportunities at Granby and Pueblo dams in Colorado. These 2
facilities are identified as having good hydropower potential
in the assessment I just mentioned.
I should also note that Reclamation and DOE are working on
a funding opportunity announcement to conduct pilot studies on
low-head hydropower units at Reclamation facilities.
Section 10 of S. 629 directs Reclamation to conduct a study
of barriers to non-Federal hydropower development similar to
the constraints analysis outlined in the assessment being
released today. The assessment examines how regulations and
legal requirements could potentially affect development of
hydropower. Using historic data--land or water use regulations
that could potentially affect development of hydropower, of
hydropower sites--these were identified, and specific
mitigation costs were accounted for in the economic analysis
that's part of the assessment that's being released today.
Section 10 also calls for Reclamation and FERC to develop
and issue a memorandum of understanding to improve the
timeliness of non-Federal development of hydropower resources
at Reclamation facilities. Reclamation and FERC have an
existing MOU developed in 1992 that addresses issues related to
the timely development of non-Federal hydropower. I agree that
the MOU needs updating. Reclamation and FERC recently met to
discuss how to improve timeliness of the processes developed in
the MOU and resolution of authority issues, and those
discussions will continue.
Section 8 of the bill allows low-head hydropower
development on Reclamation-owned conduits to be eligible for
inclusion in FERC's conduit exemption program. Currently,
Reclamation is assessing the potential for developing low-head
capacity on federally owned canals and conduits. A report
similar to the Resource Assessment being released today is
expected to be released for public review by year's end.
Reclamation expects that the provisions in section 8 would
address uncertainty in the approval process for new licenses
and facilitate the development of new capacity at our existing
facilities. Reclamation supports the opportunity to enter into
new agreements to develop low-head hydropower potential in an
environmentally sustainable manner.
Overall, the Department shares the committee's view that
interagency coordination can leverage Federal and private
sector investment in additional hydropower development. This
administration is committed to increasing the generation of
sustainable, affordable hydropower for our Nation. We hope that
the assessment and the new efforts described will provide a
lasting contribution to the power supplies, just as past
investments in Reclamation's water power and infrastructure
have done. We will, of course, continue to coordinate with
other agencies, and look forward to working with Congress in
this important area.
With respect to Subtitle D of S. 1462, I'll speak to
sections 143 and 144, which involve the Bureau of Reclamation.
Section 143 directs Reclamation to study the energy used in
water storage and delivery on major Reclamation projects, with
an emphasis on opportunities to reduce consumption and costs.
We share the committee's interest in this area.
Through our WaterSMART program, the Department is committed
to integrating energy and water policies that promote
sustainable use of our limited natural resources. WaterSMART
grants and Title XVI Water Reuse projects funded in the last
fiscal year are expected to conserve an estimated 149,000 acre-
feet of water once they're complete. With funds requested in
fiscal year 2012, we'll seek to increase the total by an
additional 140,000 acre-feet. Under WaterSMART, Reclamation
incentivizes the conservation of energy in the delivery of
water, and proposals receive additional consideration when they
not only address water conservation, but also the use of
renewable energy.
In fiscal year 2010, Reclamation's 37 water and energy
efficiency grants included several proposals exploring the
relationship between water and energy savings. Simply put,
water conservation can yield significant energy savings, too.
Section 144 of the bill calls for specific research
objectives and authorizes operations and cost recovery at the
Brackish Groundwater National Desalination Research Facility in
New Mexico. As the Chairman is well aware, desalination is one
of an array of tools that will likely to be needed to face
future water supply challenges that we face across the Nation.
The directives in section 144 are consistent with and build
upon ongoing activities at the research facility. Reclamation
is currently partnered with New Mexico State University in a
year research program with projects at the facility
focused on research, education and outreach in water
desalination. The bill calls on Reclamation to operate the
facility to develop technologies that help create new water
from municipal, agricultural, industrial or environmental uses.
We support those goals and actions.
As members of the committee know, one of the authorities
used to operate and maintain the desalination research facility
stems from Public Law 104-298, commonly called ``the Desal
Act''. The Desal Act has been funding research leading to pilot
and demonstration testing at the facility. This provides a
venue for the award of competitive, cost-shared funding with
universities and private sector organizations for research on
creating usable water supplies in a cost-efficient manner.
The Desal Act's current authority expires at the end of
2011, and its extension by Congress would enable this important
work to continue. The research also helps enhance U.S.
competitiveness in providing solutions to worldwide water
issues in the 21st Century, and we would be pleased to work
with the committee in this area.
This concludes my written statement. I will answer
questions at the appropriate time. Thank you.
[The prepared statements of Mr. Connor follows:]
Prepared Statement of Michael L. Connor, Commissioner, Bureau of
Reclamation, Department of the Interior
on s. 629
Chairman Bingaman, Ranking Member Murkowski, and members of the
Committee, I am Mike Connor, Commissioner of the Bureau of Reclamation
(Reclamation). I am pleased to be here alongside the Department of
Energy (DOE) and the Federal Energy Regulatory Commission (FERC) to
discuss activities underway at the Department of the Interior
(Department) as they relate to S. 629, the Hydropower Improvement Act
of 2011.
Hydropower is a clean and efficient way to produce energy and is a
renewable resource. Each kilowatt-hour of hydroelectricity is produced
at an efficiency of more than twice that of any other energy source.
Where hydropower does have environmental impacts, particularly on fish
species and their habitats, we work with our partner bureaus and
agencies to evaluate and mitigate these impacts. Further, hydropower is
very flexible and reliable when compared to other forms of generation.
Reclamation has nearly 500 dams and dikes and 10,000 miles of canals
and owns 58 hydropower plants, 53 of which are operated and maintained
by Reclamation. On an annual basis, these plants produce an average of
40 million megawatt (MW) hours of electricity, enough to meet the
entire electricity needs of over 9 million people on average.
Reclamation is the second largest producer of hydroelectric power
in the United States, and today we are actively engaged in looking for
opportunities to encourage development of additional hydropower
capacity at our facilities. This afternoon, Reclamation will publish
the Hydropower Resource Assessment at Existing Reclamation Facilities
(Assessment), a comprehensive review of power potential at all
Reclamation facilities. The Assessment benefitted from public comment
received this past winter. The Assessment will detail our findings on
hydropower potential, providing information on whether or not
hydropower development at existing Reclamation facilities would be
economically viable and warrant further investigation. In addition to
the Assessment, Reclamation will be publishing two Federal Register
notices in the near future regarding Lease of Power Privilege
opportunities at Granby and Pueblo dams in Colorado (two facilities
that were identified to have good hydropower development potential in
the Assessment). Reclamation and DOE are also working on a funding
opportunity announcement to conduct several pilot studies on a low-head
hydropower unit at Reclamation facilities.
I am pleased to report on these recent activities as they relate to
the directives in S. 629. Subsection 10(a) of the bill calls for study
of non-Federal hydropower development at Bureau of Reclamation
projects. Reclamation is directed to conduct a study of barriers to
non-Federal hydropower development at Reclamation projects. This
provision may duplicate efforts already underway. For example, the
constraints analysis outlined in Chapter 3 of the Assessment, titled
Site Analysis Methods and Assumptions (specifically, Chapter 3.5 of the
Assessment), examines how land or water use regulations and legal
requirements could potentially affect development of hydropower. These
factors were taken into account when assessing the potential for
hydropower development on existing Reclamation facilities. Further, the
identified regulatory constraints have been mapped within Reclamation's
regions using Geographic Information System (GIS) data. Local
information for fish and wildlife and fish passage constraints, issues
that could add significant development costs to a project site but are
important to address from an environmental and natural resource
standpoint, were identified by Reclamation's regional and area offices
and accounted for in the Assessment as well.
Subsection 10(b) of S. 629 calls for Reclamation and FERC to
develop and issue a memorandum of understanding to improve the
coordination and timeliness of the non-Federal development of
hydropower resources at Reclamation projects. Reclamation and FERC
already have an MOU, signed in 1992, that addresses the establishment
of processes for early resolution of issues related to the timely
development of non-federal hydroelectric power at Bureau of Reclamation
facilities. Reclamation and FERC recently met to discuss how to improve
the timeliness of the processes developed in that MOU and other issues.
Section 8 of the bill would allow low-head hydropower development
on Reclamation-owned conduits to be eligible for inclusion in FERC's
conduit exemption program. Currently, Reclamation is assessing the
potential for developing low-head hydroelectric generating capacity on
our Federally-owned canals and conduits. A report, similar to the
Resource Assessment, is expected to be released for public review by
the end of this year. We expect that the provisions in section 8 of the
bill would help address uncertainty in the approval process for new
licenses and would facilitate the development of new capacity at
existing facilities. Reclamation supports the opportunity to enter into
new agreements with private or quasi-public entities to develop low-
head hydropower potential in an environmentally-sustainable manner.
Overall, the Department shares the Committee's view that
interagency coordination can leverage Federal and private sector
investment in additional hydropower development. This consideration was
foremost in the Department's signing a Memorandum of Understanding with
the Department of Energy and U.S. Army Corps of Engineers on March 24,
2010, to increase communication between federal agencies and strengthen
the long-term relationship among them to increase in a sustainable
manner hydropower production at existing Federal facilities.
In conclusion, Reclamation recognizes the importance of hydropower.
We hope that the Assessment and the new efforts described will provide
a lasting contribution to the power supplies of our nation. We will of
course continue to coordinate with other agencies and look forward to
working with the Congress in this important area to avoid duplication,
and utilize existing authority and resources.
This concludes my written statement. I am pleased to answer any
questions the Committee may have.
on s. 1462
Chairman Bingaman, Ranking Member Murkowski and Members of the
Committee, I am Mike Connor, Commissioner of the Bureau of Reclamation
(Reclamation). I am pleased to be here alongside the Department of
Energy (DOE) and the Federal Energy Regulatory Commission (FERC) to
provide the views of the Department of the Interior (Department) on the
Reclamation-specific provisions in Subtitle D of the American Clean
Energy Leadership Act of 2009, S. 1462 from the 111th Congress. This
subtitle promotes the integration of energy and water policies to
address the challenges that exist in making sustainable use of finite
natural resources. Two sections of this bill call for specific
deliverables from Reclamation: Section 143 and Section 144. Reclamation
is continuing to explore ways to improve energy efficiencies within the
scope of its projects.
Section 143: Energy Usage Study
Section 143 directs Reclamation to conduct a study on the
quantities of energy used in water storage and delivery operations in
major Reclamation projects, with an emphasis on identifying
opportunities to reduce water and energy consumption and costs. The
energy usage study required by Section 143 may provide a helpful data
point for project managers and water customers. Facilitating
sustainability of the Nation's natural resources is one of the
Department's highest priorities. Through our WaterSMART program, the
Department is committed to integrating energy and water policies to
promote the sustainable use of all resources, including incorporating
water conservation criteria and the water/energy nexus into the
Department's planning efforts, including recommendations to reduce
conflict in water management. Within existing operations and budget
authority, Reclamation strives to operate its projects with the maximum
amount of energy efficiency, and Reclamation is working to meet a
Departmental Priority Goal for Water Conservation through
implementation of the WaterSMART Program. This program was created by
Secretarial Order 3297, issued on February 22, 2010 (available at
http://elips.doi.gov/app__SO/act__getfiles.cfm?order__number=3297).
WaterSMART specifically recognizes that water and energy are
inextricably linked and that water conservation can yield significant
energy conservation benefits too.
WaterSMART Grants and Title XVI Water Reclamation and Reuse
projects funded in FY 2010 are expected to enable the conservation of
an estimated 149,000 acre-feet of water each year once complete. fiscal
year 2011 grants are awaiting completion of the appropriations process.
With funds requested in FY 2012, we will seek to increase the 2010
total by an additional 140,000 acre-feet. The energy savings associated
with this conservation will vary greatly from project to project, but a
study focused across the Reclamation program is likely to provide
valuable context for Reclamation's water conservation efforts generally
and identify new opportunities for increasing efficiency.
Overall, Reclamation has already been actively integrating energy
and water policies under its existing activities. Under the WaterSMART
Program's Water and Energy Efficiency Grants, which fund projects that
help to meet the Priority Goal for Water Conservation, Reclamation
incentivizes the conservation of energy in the delivery of water.
Proposals that not only address water conservation but also explore the
use of renewable energy and other energy efficiency improvements
receive additional consideration during the selection process. In
fiscal year 2010, through its WaterSMART program, Reclamation awarded
37 water and energy efficiency grants for amounts as high as $1
million, including a number of funded proposals that explored the
relationship between water efficiency improvements and energy savings.
We aim to continue these WaterSMART projects in FY 2011. If the
legislation before the Committee today were enacted, the study
authorized by Section 143 would need to compete for resources within
the existing Reclamation program.
Section 144--Uses of the Brackish Groundwater National Desalination
Research Facility
Section 144 calls for specific research objectives and authorizes
operation, management, maintenance, and cost recovery at the Brackish
Groundwater National Desalination Research Facility (Facility) in Otero
County, New Mexico. The directives in Section 144 relative to the
Facility in New Mexico would be consistent with ongoing activities at
the Facility. Reclamation is partnered with New Mexico State University
in a four-year research program with projects at or associated with the
Facility focused on research, education, and outreach in water
desalination. The bill language calls on Reclamation to operate and
manage the Facility as a state-of-the-art desalination research center
to develop new water and energy technologies with widespread
applicability, and create new supplies of usable water for municipal,
agricultural, industrial, or environmental purposes. The bill also
authorizes Reclamation to collect charges to offset the costs of
operating and maintaining the Facility.
As members of the Committee may know, one of the authorities to
operate and maintain the Facility stems from Public Law 104-298, as
amended, commonly known as the Water Desalination Act of 1996. The
Desalination Act has been funding research at the lab scale leading to
pilot and demonstration testing at the Facility. The Facility, as well
as Reclamation's desalination program generally, provides a venue for
the award of competitive, cost-shared cooperative agreements with
universities and public and private sector organizations for the
purpose of research on converting unusable waters into usable water
supplies. The Facility represents an avenue to advance the real-world
potential of water desalination. The Desalination Act's current
authority expires at the end of the 2011 fiscal year, and its extension
by the Congress for a term of five years could enable this important
research to continue. Providing these authorities could help
Reclamation develop water-related technologies and other water
management practices and may also potentially enhance U.S.
competitiveness in providing solutions to world-wide water issues in
the 21st century. We look forward to working with the Congress on S.
1462 to avoid duplication of activities that are already being
performed by the Bureau of Reclamation.
This concludes my written statement. I am pleased to answer any
questions the Committee may have.
The Chairman. Thans to all 3 of you for your excellent
testimony.
Let me start with a few questions.
Maybe I'll ask you first, Mr. Chalk. You talked about the
potential for more production of power from hydropower, as I
understood your testimony. I'm just a little unclear as to
where that potential comes. Is, there's some talk in your
testimony also about conduit projects, and to what extent is
that a significant part of the opportunity that has not yet
been tapped? What are the other parts of the opportunity that
haven't been tapped?
Mr. Chalk. Yes, sir. So, we identify possibly 300 gigawatts
of potential hydro. I would say roughly 12 gigawatts of
capacity is from existing hydropower facilities from upgrading
efficiency and capacity. A lot of these facilities are very
old, so the turbines aren't very efficient. So, if we can put
modern turbines in there, we could get probably about 12
gigawatts of power----
The Chairman. That's 12 out of the 300?
Mr. Chalk. Twelve out of the 300.
If we look at existing dams--and there's 80,000 dams in the
U.S.--most of those are not powered. But we could probably get
an additional 12 gigawatts from 595 of those dams if we put
powerhouses on those, as long as it can be done in an
environmentally sensitive way.
The big potential, we estimate about 255 gigawatts, is in
small hydro, and this potential is all over the country. In
fact, there's 90 gigawatts of small hydro in Alaska. Incredible
potential. Most of these locations have less than 5 megawatts
of potential. So, that's where most of the growth could occur
if we would look to grow hydropower. Then there's----
The Chairman. Does that includes these conduit projects? Is
that part of what you call----
Mr. Chalk. Yes, it could. The conduit projects are gravity-
fed, with the natural difference in height the source of the
potential energy. We have developers that are going after that
market. We're designing turbines for that market.
But if they're pumped already, we have to look at the
pumping energy. We don't want to make power from the energy
they use for pumping, because it just wouldn't make sense. So,
if they're naturally gravity-fed from different elevations, if
they're irrigation canals or somehow used by the municipality
to move water, it's possible to get a small amount of capacity
from that, and we have people looking at those markets.
Then the last area is pump storage, which really is more of
a capacity thing than energy. It actually uses more energy,
because you have to pump the water back up the hill, and then
it takes more energy to do that than you get when you need the
power. But this is really important for backstopping and
firming up intermittent renewables like wind and solar. So,
this is a really important area. We estimate there's roughly
about another 34 gigawatts of this type of power that's
available.
So, you add all of those up, it's a considerable amount of
power that's available through conventional hydropower.
The Chairman. OK.
Mike, let me ask you about this resource assessment,
hydropower resource assessment that you're releasing today.
Could you give us a little more information about what that,
what the main conclusions of that are, in your view?
Mr. Connor. Absolutely. Absolutely, Mr. Chairman.
The Assessment that we're releasing today has been a
process that's been going on for about the last year. It
started as a result of the MOU that we have between DOE and the
Corps of Engineers and the Bureau of Reclamation to assess our
existing facilities and build upon a previous study that was
done as a result of section 1834 of the 2005 Energy Policy Act.
So, we released the report at the end of last year for public
review, took a lot of input, made some changes to the report,
and that's what's being released today.
The conclusions of that report are fundamentally, we looked
at our 530 sites that we have--Reclamation dams, diversion
dams, conduits, tunnels, canals, et cetera. What we've ended up
finding--some of those we set aside. We're going to do a
further study on, I think, at least 52 of those sites, which
are conduits and tunnels, and low-head hydropower
opportunities, so we set that aside. We basically looked at 191
sites that had some potential.
What we've concluded is that 70 of those sites bear a much
more rigorous analysis--basically, feasibility study analysis.
But, 70 of those sites, basically, on our preliminary
analysis--which is pretty rigorous. We looked at all the
generation capacity, the output that we could get from those
sites. We looked at the various environmental issues associated
with them, development costs, and then we also looked at the
economic benefits that could be yielded--so, 70 of those sites
had a preliminary benefit-cost ratio in excess of 0.75, which
warrants further consideration, from our perspective. Overall,
the capacity of those 70 sites is about 225 megawatts of
capacity that we could bring online, which would serve about
85,000 households.
So, it's pretty significant. It's not the numbers, the
gigawatt numbers that Mr. Chalk were, was talking about. But
the reality is that, through this screen we've put them at,
they demonstrate that they're economically feasible, and that
makes sense for developers to come in and want to do that.
The Chairman. Thank you very much.
Senator Murkowski.
Senator Murkowski. Thank you, Mr. Chairman.
Gentlemen, thank you for your testimony this morning.
Mr. Chalk, I like what you say about the potential. I
clearly like what Secretary Chu has stated about hydropower,
about it being an incredible source, and important for the
Federal Government to tap this so that we can contribute to our
clean energy portfolio.
But then you go on to say that the President's fiscal year
2012 budget represents DOE's priorities for applied R&D and
energy efficiency in renewable energy technologies. So then,
when you go to the budget, the proposed budget, it doesn't
share that optimism that you have expressed and that the
Secretary has stated. The water power program, excuse me, is
cut by 20, by over 20 percent from fiscal year 2010 levels,
while wind is plussed up by over 60 percent, solar is plussed
up by over 87 percent, geothermal by 135 percent, biomass for
57.5 percent.
So, how am I to interpret this statement when you say that
the Department's priorities are set by the budget? You clearly
recognize the potential, and yet the support for it doesn't
seem to be manifested.
Mr. Chalk. These are really tough choices we have to make
considering we're trying to balance the Federal budget. We're
to do this as best we can. They're very, very hard choices.
If you peel the onion back a little bit, you actually see
our overall water power program is roughly flat and going down
a little bit in fiscal year 2012. But the conventional hydro
funding that we were talking about here is actually increasing.
The program was zeroed out in 2006 and 2007, and we've been
able to build it up. In fact, our 2012 request for conventional
hydropower is $20 million of the total water program request of
$38 million.
So, the conventional hydropower piece is growing, because
in fiscal year 2010 it was $13 million, for instance. So, we're
growing that by almost 50 percent. The----
Senator Murkowski. But you have to admit that that's pretty
minimal, given the totality of the, of what hydropower has to
offer.
Mr. Chalk. I think it's a good start compared to where the
program was a few years ago, zeroed out.
The other thing that we did under the Recovery Act is we
put an additional $30 million into hydropower, and we ran a
solicitation. That $30 million was leveraged 5 to 1 by private
industry. We were able to get 30 megawatts of additional power
at a relatively low levelized cost of energy--2 to 4 cents per
kilowatt hour. In the projects, where we did capacity and
efficiency upgrades, we were actually able to increase the
generation anywhere from 10 to 20 percent from where they were
for a relatively low cost. Again, the cost was estimated to be
between 2 and 4 cents per kilowatt hour. So, we were able to
leverage that money. The hydropower portion of our water power
budget is growing. We see lots of opportunities in the future.
The marine and hydrokinetic portion has gone down a little
bit, but in that particular area, the marine and hydrokinetic
devices are really where the wind program was 20 years ago.
These device designs are just emerging. There's been very
little open water testing--almost no testing like you have wind
farms today. We call them ``arrays,'' in the water. Almost no
testing there.
So, we feel like the amount of money that we're putting
into the marine and hydrokinetic is the right amount for the
current state of development, which is rather immature. But
there is great hope there, as well. Developers are going to
have excellent opportunities to market and grow that area.
Senator Murkowski. I hear what you're saying. I guess I
look at those budget numbers and would suggest that we're
clearly picking winners and losers. We recognize fully the
enormous potential of hydropower, and yet we are not doing
justice, if you will, in terms of where we're spreading those
hard to come by Federal dollars.
Mr. Wright, I want to go to you very quickly, because I'm
running out of time here. But, you mentioned the impediments to
the licensing process, and I think that this is a very
important issue that we deal with. You know that without the
ability to waive sections of the Federal Power Act or to set
some enforceable schedules, that there's little that FERC can
do to shorten the licensing process under its current
authorities.
Can you give me some suggestions? Is there any remedy that
we might be able to look to here to make the licensing process
more efficient while, at the same time, we still keep in place
those necessary environmental protections?
Mr. Wright. I think most basic--and this is, reflective of
our natural gas program--is having a situation where FERC would
be the lead agency, if you will, charged with setting the
schedule. We would get together with those agencies, find out
what the schedules would be to do their necessary permitting,
set a schedule--you could have a schedule whereby, if they go
over the time that they agreed to, their permit is deemed
either approved or waived, if you will, and then we go forward
with the license itself.
Senator Murkowski. OK.
Mr. Chairman, I've got some other questions, but I will,
I'll reserve them, or, have an opportunity to submit them
later. Thank you.
The Chairman. All right.
Senator Coons.
Senator Coons. Thank you, Chairman. Thank you, Chairman
Bingaman and Ranking Minority Member Murkowski. I'm grateful
for your convening this hearing today.
I've long thought that this was an area that deserved more
attention and investment in the renewable portfolio. My own
State more than 200 years ago owed its early industrial
development to river-based hydrokinetic power. So, your
characterization of the enormous amount of hydroelectric power
that is potentially accessible in existing dams and existing
structures all over the United States will relatively modest
investment is quite interesting to me, and something I hope
we'll pursue further. I hope this legislation will make
progress.
In Delaware we've got an organization, UEK, that's doing
demonstration projects on tidal hydrokinetic power at our very
large Indian River Power Plant.
I'd like to hear more from your vision of how the DOE might
partner the development of offshore wind with hydrokinetic
technologies in a way that, as you mentioned, Mr. Chalk, would
then provide for some firming up of intermittent sources--one
of the major challenges with wind, whether onshore or offshore,
is it's intermittent.
How do you see the technology development moving? What
sorts of investments do you think would be responsible to
accelerate that? What are the major challenges to the
deployment of HDK technologies?
Mr. Chalk. Yes. There are a lot of synergies between
offshore wind and some of these offshore water devices.
Materials, for instance. We have to use composite materials to
prevent erosion, corrosion, and other similar phenomena.
A major barrier is ensuring that we have the transmission
for offshore wind, and for these smaller ocean or wave or tidal
devices. Perhaps they could be tied together. How to finance
that transmission, and how to go about installing it would
actually be a significant hurdle that we would have to address.
But there are many synergies there. Essentially, instead of
dealing with the hydrodynamics of air, you're dealing with
water, which is many times more dense. So, we have a lot of
synergies in our modeling efforts on how to optimize the
designs of these devices. That's really probably the area that
we're looking at the most right now.
Because the water devices are just emerging, we're trying
to come up with reference models to help developers figure out
what the best designs are, what are some of the benchmarks they
ought to use in terms of the fluid mechanics codes, and things
like that. All of that's being borrowed from the wind industry.
So, there's a tremendous amount of synergies here to take
advantage of.
Senator Coons. The early estimates are that the West Coast
has greater potential in MHK--at least, in current
technologies, but I think there are ways in which the East
Coast may also ultimately be a significant site. The University
of Delaware has estimated 18 gigawatts in extractable power
from the Gulf Stream from Florida through North Carolina,
partly because it flows 24 hours a day, 7 days a week.
Have you done anything in moving toward an estimate of the
potential of offshore MHK technologies?
Mr. Chalk. We have. First of all, with the Gulf Stream, we
have a national test center at Florida Atlantic University----
Senator Coons. That's right.
Mr. Chalk [continuing]. Specifically looking at how to best
extract energy from the Gulf Stream. We have estimates of 13
gigawatts of MHK capacity by 2025. A lot of this is going to
depend, if we can get the cost down, on how much market
penetration we actually get.
Senator Coons. Thank you.
I appreciate the chance to ask a question.
The Chairman. Senator Portman.
Senator Portman. Thank you, Mr. Chairman.
Gentlemen, thank you for being here this morning. It's good
hear the potential. Although Ohio is not a State that has a lot
of hydro--it's about 1 percent of our electricity currently--we
have potential in Ohio, too. It primarily is on the Ohio River.
As you probably know, we have four current projects
underway. Each of them has the potential of creating a lot of
jobs, economic development. They happen to be in areas of Ohio
that are suffering from relatively high unemployment, so these
are good jobs projects as well as good renewable energy
projects.
But there's frustration and roadblocks, as you can imagine.
One project, Mr. Wright, I want to talk to you a little bit
about this morning, because FERC's been involved with it. I
worked with this project years ago when I was in the House, and
I'm still working on it. It is a joint venture by the city of
Hamilton, Ohio, and American Municipal Power, AMP. It's a 84
megawatt plant. It's the Meldahal Hydro Plant, on the Ohio
River, again. It's expected to be completed now in 2013, but
the time period keeps getting pushed back because of various
delays. City officials have recently approached me again to
express their frustration with some of the permanent licensing
issues. I will say, Mr. Wright, to the credit of your agency,
their frustration is not so much with you. In fact, they have a
good working relationship with you--I'm not just saying that to
try to get you to help them more, but they actually do--but
primarily with the Corps.
I understand that last night there was a new, or, I think
us said a moment ago, updated Memorandum of Understanding with
the Corps, and that FERC and the Corps are now going to be
working more closely together, particularly, the early
involvement of FERC and the Corps during some of the pre-filing
stages, including the environmental review process--I hope the
archeological review process, which has been one of the great
frustrations at this particular site--and then, a schedule
between FERC and the Corps, sharing of more data, and finally,
establishing FERC as the lead agency.
I guess my question to you today is, one, Mr. Wright, do
you have any specific thoughts on this project? Second, do you
think this MOU is going to make a difference? Is this going to
help move this progress--this project forward? More generally,
since the committee's looking at this issue in the context of
S. 629, is this going to help us to try to avoid some of these
delays and--by the way, it's not just delays. We're killing
projects through delay, because often the costs become
prohibitive, particularly for these smaller municipalities. So,
if you could comment on the MOU and comment on this particular
project, I'd appreciate it.
Mr. Wright. Thank you.
Briefly, with regard to the city of Hamilton and the AMP
project, the Commission did work very quickly on getting a
license out and moving forward. But, like you point out, our
work with the Corps sometimes would come sequentially, and that
leads us toward the MOU that was updated, or, signed yesterday
with the Corps, so that instead of sequential processing, if
you will, we'll have more of a parallel processing. We'll bring
the Corps in early on, so that we will be working together, so
we will reach a decision, not only a FERC license decision, but
a decision from the Corps--conditions, whatever they need to do
to have the project on their facility--in a quicker timeframe
and more responsive to the market and to the licensee.
Senator Portman. How about the legislation that's being
discussed today? Will S. 629 help? I notice there's a required
report on the partnership between FERC and the Corps.
Mr. Wright. We will definitely look into that if the bill
goes forward. We will look into what we need to do to get to,
for instance, the 2-year licensing--if that's a possibility at
all. The MOU itself has a provision for us to get together for
implementation. So, we will be working with the Corps to make
sure this MOU works going forward.
Senator Portman. But, in S. 629 have you looked at this
requirement that there be a partnership between FERC and the
Corps going beyond the MOU? Is that----
Mr. Wright. Yes.
Senator Portman [continuing]. Something you've looked at?
Mr. Wright. Yes.
Senator Portman. Do you think that'll help in terms of the
kinds of problems we've had on these kinds of projects like the
Ohio----
Mr. Wright. I, anything will help. I believe that would be
beneficial to the relationship between our agencies and to, and
for the development of hydropower in an efficient and quick
way.
Senator Portman. Thank you.
I would ask that you provide the committee with any
additional suggestions you have to streamline these processes,
and particularly, if you have any thoughts on how to move this
particular project forward, I would appreciate it. Thank you,
Mr. Wright.
Thank you, Mr. Chairman.
The Chairman. Thank you.
Senator Udall.
Senator Udall. Thank you, Mr. Chairman.
Good morning, gentlemen. Let me pick up on Senator
Portman's theme of partnerships.
Mr. Wright, I'm going to direct my questions and comments
at you.
I'm particularly interested in the agreement that FERC has
signed with the State of Colorado last August--and you
referenced it in your testimony--and the agreement is for a
pilot program to expedite permitting for certain types of small
scale hydro projects. In exchange for an expedited permitting
process, the State has agreed to do significant pre-screening
of applicants for the Federal permits that are involved. It's
important to note the agreement includes strict standards for
minimal environmental impacts resulting from these proposed
projects. I'm very encouraged by what FERC and the State of
Colorado are attempting, which, as I understand the legislation
we're discussing today, is exactly the kind of agreement that
the Hydropower Improvement Act would promote.
So, in that vein, in your testimony you describe some of
the reasons that permitting can take so long. I'm curious what
you expect will be the lessons learned from these pilot
projects out of the pilot program.
So, a couple of questions: What parts of the permitting
process do you feel should be streamlined, and that this pilot
program will tease out? Going forward, which aspects of the
pilot program do you believe will be applied to expedite the
permitting process nationwide?
Mr. Wright. Thank you, Senator.
What we're seeing with the Colorado MOU and the agreement
with Colorado is, the State and the State's energy office will
be actually vetting projects, if you will--whether they are
conduits, 5-megawatt exemptions, other small hydro projects--
they will be ``running the traps,'' if you will, going to the
State agencies, the Fish and Wildlife agencies, the other
agencies that will be, that have a role in issuing these
permits. So, by the time it comes to FERC, or we're presented
with projects, sites have been chosen that are appropriate,
consultation has begun with the agencies that are going to be
involved with the permitting, and a relatively complete
application will be filed with us.
That's, when those 3 things are done, we at FERC can get
out licenses fairly quickly. We've done anywhere from 2 to 5
months when those ``traps are run,'' if you will.
Senator Udall. So, I hear you saying, then, that you
believe all aspects of the permitting process could be applied
nationally if this pilot program bears fruit.
Mr. Wright. I would be, that would be my hope and dream--if
we could do something like this and it is a success in
Colorado, that it could be adapted and possibly spread
nationwide.
Senator Udall. So, let's move to Colorado itself. I'd like
a little status update, if you will.
It's my understanding that the States receive proposals for
pre-screening, but no projects have been submitted for approval
and permitting. Do you have a time when you think projects will
begin? When do you expect to learn best practices from the
pilot program that then could be applied in the ways we were
just discussing?
Mr. Wright. We're expecting 3 projects to be filed in the
April to May timeframe that have been vetted by the Colorado
Governor's Energy Office. Given that they achieve the goals of
the MOU in terms of the hurdles they needed to get past to come
to us, we would expect to be able to license those in anywhere,
probably 3 to 6 months.
Senator Udall. So, we're moving. There's----
Mr. Wright. We are moving.
Senator Udall. The whole of point of this is to move, to
show the State, to show those who'd like to produce some
innovative power, that we don't have to sit on our hands any
longer.
Mr. Wright. Yes.
Senator Udall. Now, do you expect that changes to Federal
permitting based on lessons learned from the Colorado program
could be accomplished administratively? Or do you think we need
to act legislatively? I know that's a speculative question,
but----
Mr. Wright. I could envision possibly a regulatory kind of
change that may do this. But probably the structure of it is
such that it may be a statutory change that may be necessary.
Really, only when we kind of, as you say, when we look back and
see, kind of, lessons learned will we know exactly maybe what
we need, in addition to what we agreed with in the beginning on
the MOU.
Senator Udall. I look forward to working with you.
I listened with interest to both the chairman and the
ranking member's testimony. Particularly, I think, Senator
Murkowski makes the case that there are almost, if not
limitless, a very large number of micro-hydro projects that are
just waiting to be developed.
Mr. Wright. Right.
Senator Udall. I hear this from ranchers, from farmers,
from those who are involved in moving water from place to place
in Colorado. We have extensive plumbing systems, if you will,
to move water in our State. It just, it seems like it's an
unrealized asset, and has great energy potential. So, I hope
FERC will continue to move and work with all of us.
It's been a long time coming, if I might make that
editorial comment. But this is some good news. Let's take
advantage of it.
So, thank you.
The Chairman. Senator Murkowski, did you have any
additional questions of this panel?
Senator Murkowski. If I can just ask one quickly of Mr.
Connor, please.
In your statement you asked for Congress to extend the
Desal Act authorization. How long should it be extended? What
cost annually? What are you thinking, in terms of parameters?
Mr. Connor. I think we haven't thought through a lot of the
details there. I think the extension's been going on 2-year
increments. So, I think maybe the--it was longer in the
initial--I think the Act has proved to be very valuable, not
just for the Bureau of Reclamation, but for a lot of other
entities. So, I think it's an authorization that should be
looked at as a long-term extension now. It's very valuable.
We're doing good, a lot of good public-private partnerships
through those efforts. So, from that standpoint, I think for
us, the Bureau of Reclamation--I'm not sure, you know, it
applies to different Federal entities--for us, you know, we're,
probably budgeting in the realm already of anywhere between $2
million to $4 million per year specifically to create those
research partnerships. So, that's, from our budget standpoint,
where we're putting that to use.
Senator Murkowski. Then, one last question for you, Mr.
Wright, and this is as it relates to the marine hydrokinetic
bill. You raise an interesting problem, that the FERC may be
required to license the national test facilities that are
called for in the bill, and that's clearly not the intention
here. You offer up 2 possible solutions: 1, either place the
centers under the authority of DOE, or to provide an exemption
to part I of the fpa.
Do you have a preference as to which would be more
effective?
Mr. Wright. No. I think either one. We don't license
Federal facilities, so, simply put, it's easy to go, or, put it
under the aegis of an agency like DOE. Possibly, DOE doesn't
want that responsibility. I don't know. That was just a
thought. Maybe more efficient would be the exemption under part
I of the FPA for a test facility for the marine and
hydrokinetic research.
Senator Murkowski. Any comment from DOE?
Mr. Chalk. I think we can work with the committee on that.
I think of it as a small detail. You know, typically the
government doesn't put its good housekeeping seal of approval--
we have organizations like the UL, and for solar hot water
heaters we have an independent certifying organization.
I think the real key here is to make sure we have protocols
that have standardized testing procedures and we follow those
so everything is tested in an uniform fashion. Then whoever the
testing organization is can then certify that it was, in fact,
done to that procedure. That way, results are comparable. You
have apples to apples. I think that's really the important
point here.
Senator Murkowski. Let me ask just one quick question.
I'm reviewing Mr. Webber's article, ``Water versus
Energy.'' In it he suggests that we've got a Department of
Energy, and given the incredible nexus between energy and
water, that perhaps we need a Department of Water, that we've
got different entities--EPA oversees water quality, USGS
responsible for collecting data, but no Federal agency ensures
the effective use of water.
Do we need a Department of Water?
Mr. Chalk. I think that's for others to determine.
[Laughter.]
Mr. Chalk. But I could tell you that they're very
integrated. If you look at the challenges in siting a solar or
thermal plant, it has a steam cycle to produce the energy, or a
geothermal plant in the desert where there's no access to
water, you have to come up with ways of, what we call dry
cooling. You have to minimize water use. That's a tough R&D
challenge because as you do that, a lot of times you reduce
your efficiency in producing electricity.
In biomass, for instance, if we're going to grow
sustainable energy crops, it's a requirement that we have to
use very little water--not like irrigating corn that we have
today. We have to grow those crops with virtually just natural
rainfall. Another example would be in our appliance standards
program where we regulate standards for energy and water use
for washing machines and dishwashers.
So, it's very much integrated now, and it's very much an
important factor.
Senator Murkowski. But, it's integrated, most certainly.
But you have, you've got these agencies that all have their
different initiative, their different missions. It may be that
you're focused on washing the cleanest clothes in one area, but
you're not really keyed into, is there going to be enough water
in this area?
Mr. Connor, you look like you want to jump in.
Mr. Connor. Yes--probably ill-advised on my part, but I'll
jump in on that one.
With, I think the idea is that water and energy policies
have to be integrated. Sometimes that means, for the Bureau of
Reclamation, we should be partnering with FERC. Sometimes that
means we should be partnering with DOE. Sometimes it means we
should be partnering up with the Department of Agriculture.
That's what these MOUs are about.
Until somebody else decides whether there should be a
Department of Water, I think that stovepipe approach to
governing has been very, very inefficient and has resulted in
lost opportunities. I think that's what we're trying to do
through these MOUs and these activities, is see those
additional opportunities out there, get information to people
that can bring in some private industry, or local governmental
entities, to try and work with us on both energy and water
policies. From that standpoint we'll start to have efficiencies
and we'll start doing better in this area.
Senator Murkowski. Thank you.
Thank you, Mr. Chairman.
The Chairman. Senator Wyden.
Senator Wyden. Thank you, Mr. Chairman. I'm very glad
you're holding this hearing today, Mr. Chairman. I saw your
remarks yesterday talking about energy complacency, and I think
they were spot-on. This gives us a chance--particularly with
Senator Murkowski's leadership generally--in water-power
technologies to really make a difference. So, I'm very much
looking forward to working with you. I'm already a cosponsor of
one of the Murkowski bills, and we're going to work out the
issues on the wave energy legislation as well.
Mr. Chairman and colleagues, my home State has led the
country in both conventional hydropower generation and in the
development of wave energy technology. In fact, an Oregon
company, Oregon Ironworks, is building the first commercial
scale wave energy buoy in the United States, and it's going to
be deployed off our coast at Reedsport.
Oregon State University has also been designated by the
Department as a National Marine Energy Research Center and is
developing a test bed on the coast that would allow U.S.
designers and manufacturers to test their wave machines in real
ocean conditions.
So, Oregonians are very proud of what has been accomplished
already. But I think we recognize--and this is why the
legislation today is so important--that there is much more to
be done.
Now, the Hydropower Improvement Act is a piece of
legislation that's going to help us tap the unused energy in
existing dams and irrigation canals, and even city water
systems, with minimal environmental impact. It's going to allow
us to tap, in effect, untapped energy from water on its way to
the kitchen tap that's now being wasted in water and irrigation
systems, and it's my understanding that this bill is going to
have broad support from hydro-developers, farmers and
utilities. So, the opportunity to promote clean power
generation and create domestic jobs, while at the same time
addressing environmental safeguards that are going to be good
for fish and other natural resources, are protected. So, I look
forward to going forward with both of these bills.
As I indicated, Senator Murkowski and I are going to work
on the wave energy bill. But it is definitely legislation that
my colleague has correctly initiated, and certainly on the
right track. I'm of the opinion that wave and tidal and low-
impact hydro-technologies have an enormous amount of potential
to help solve our energy problems, get beyond the complacency
that Chairman Bingaman was talking about yesterday.
That's, really, what my question to you, Mr. Chalk, is all
about. I think Senator Murkowski touched on this as well.
That's this budget question. I think my question is, is, what
is it about the potential benefits for these low-impact water
power technologies that the Department up to now how been
unwilling to see? This is not only the smallest program in the
Department's renewable energy budget--it's also a program which
you proposed to cut 20 percent in the 2012 budget.
Now, I'd be the first to acknowledge that this is not the
first administration in the history of our country to be
disinterested in this. But, if we are going to get beyond this
question of complacency on energy--and particularly, the
exciting opportunities--why isn't there more support for these
particular technologies that we're looking at today at the
Department of Energy?
Mr. Chalk. Again, Senator Wyden, we really face difficult
choices in coming up with the budget. It's very hard to try to
keep overall balance in terms of the Federal budget and keeping
the DOE budget as flat as possible.
It's been, it's a decrease, as you say, but relatively
stable, I think. In fiscal year 2009 the budget was $40
million. It was $50 million in fiscal year 2010. The request
was $40 million in 2011. Then, down $2 million, to $38 million
in fiscal year 2012. So, it's relatively flat, decreasing a
little bit.
Due to the maturity of the technology, we think the
funding's right. A lot of these devices, like wave devices that
you talked about, are really in the early stages of design, so
we're still doing a lot of analytical work, a lot of modeling,
a lot of short testing. Many of these devices have not even
been scaled up to their full scale yet. So, we think the money
in this particular instance is appropriate.
Now, as we gain success, perhaps in the out years, there
will be growth in the budget. But at this particular time,
given the maturity of the technology, we think our current
funding request is appropriate.
Senator Wyden. I guess what makes me question the
commitment--I'm looking at a document indicating that the
budget for renewable energy went up $1 billion in terms of the
fiscal year 2012 request compared to the fiscal year 2010
current appropriations. So, it's up $1 billion, and you're
proposing to cut one of the most promising sources by more than
20 percent.
Now, I don't think that passes the smell test. I just think
we've got to turn this around.
My time is up, Mr. Chairman. I want to work with Senator
Murkowski and you on this, because I think this is one of our
best bets for the future. If we're going to get beyond what you
correctly characterize as the early design stage, we've got to
make it a priority now. When you look at these budget numbers,
it is not a priority. That's what we've got to change, and on a
bipartisan basis. I think you're going to find senators on this
committee anxious to work with our chair and our ranking
minority member to make it the priority that's warranted.
So, thank you, Mr. Chairman.
The Chairman. Thank you very much.
We appreciate this panel testifying. Excellent testimony.
We have one other panel, so why don't we dismiss the 3 of
you, and call the second panel forward.
The second panel is--I'll introduce them as they're coming
forward--Mr. John Seebach, who is the Director of Hydropower
Reform Initiative with American Rivers; Mr. Sean O'Neill, who
is the President of the Ocean Renewable Energy Coalition; Mr.
Andrew Munro, who's President of the National Hydropower
Association; and Mr. Michael Webber, who is with the Center for
International Energy and Environmental Policy at the University
of Texas in Austin.
Thank you all for being here.
Mr. Seebach, why don't you go ahead?
If each of you would give us 5 or 6 minutes of testimony,
making the main points you think we need to understand, we will
include your full statement in the record as a thread, and then
we'll have a few questions.
Mr. Seebach.
STATEMENT OF JOHN SEEBACH, DIRECTOR, HYDROPOWER REFORM
INITIATIVE, AMERICAN RIVERS
Mr. Seebach. Chairman Bingaman, Ranking Member Murkowski,
and members of the committee, good morning, and thank you for
inviting me to testify at this hearing today.
My name is John Seebach, and I am the Director of American
Rivers's Hydropower Reform Initiative.
I'm a lifelong kayaker. I'm a former river guide. I love
rivers, and I'm committed to protecting them. American Rivers
is, too.
We're the Nation's leading voice for healthy rivers and the
communities that depend on them. We believe rivers are vital to
our health, safety and quality of life.
American Rivers supports S. 629, the Hydropower Improvement
Act.
We've been involved with improving hydropower wince we were
founded nearly 40 years ago. We recognize that hydropower, done
right, will be an important part of our Nation's future energy
mix, especially given the urgent need to get off of fossil
fuels. But the key lies in getting it right. When it's done
wrong, hydropower can be far from clean.
Hydropower is unique among renewable resources because of
the scale at which it can damage the environment when it's done
poorly. Unless a hydropower dam is sited, operated, and
mitigated appropriately, it can have enormous impacts on river
health and the livelihoods of future generations that will
depend on those rivers. Poorly done hydropower has caused some
species to go extinct, and put others, including some with
extremely high commercial value, at grave risk. That's not
something we should take lightly.
Now, the good news is, we've come a long way over the past
few decades. Thanks to modern environmental laws and values,
coupled with FERC's regulatory process, hydropower's
environmental performance is much better today.
When NHA approached us a couple years ago to share their
vision for increasing hydropower capacity, we proposed linking
that capacity--that increase in capacity, with a huge increase
in environmental performance and quality as well. This joint
vision, in my belief, should be the hallmark of a balanced
hydropower policy, pursuing better environmental performance
and new generation together, as 2 goals that we can achieve
simultaneously, rather than an either-or, zero-sum game.
I'm proud that the Hydropower Improvement Act is the result
of that spirit of collaboration, both among our organizations
and among senators from both sides of the aisle here.
Here's why I think the Hydropower Improvement Act does a
good job of getting this balance right.
First, the Act encourages appropriate hydropower
development. It creates a competitive grant program for new
hydropower projects, but it limits those grants to projects
that improve existing water infrastructure, such as adding
turbines to non-powered dams, canals, and pipes, or adding
updated, more efficient equipment to existing hydropower dams.
Now, this is not a silver bullet. Some individual projects
may have tricky environmental issues that make them
inappropriate to build. But, as a class, these projects are
likely to have far fewer serious impacts per kilowatt than any
other type of new hydropower development. They're also more
cost-effective. Many of these projects, if done right, can
actually result in improved environmental outcomes.
Second, the Act considers the environmental cost of
hydropower and proposes to do something about it. The
competitive grant program I've just described also provides
funding for environmental studies and mitigation measures. This
is a great idea. Being able to measure environmental impacts
and then do something to fix them is critical to getting
hydropower right. It has to be done. Developers often complain
that these measure--excuse me--these measures are costly. So,
this will help otherwise good projects with a couple of
environmental issues get past those issues and get built.
The Act also directs the Department of Energy to provide
technical assistance on environmental issues and environmental
studies. This will help ensure that developers will have better
access to good ideas and best practices for dealing with tricky
problems.
Finally, the Act aims to see if the regulatory process can
be improved, while avoiding the stale concept that regulations
are just barriers that need to be removed, or hurdles that need
to be overcome. We're not fans of process for its own sake.
Time is money for environmental NGO's just like it is for the
industry. If we can find ways to make the regulatory process
work more efficiently without sacrificing quality--great. But
make no mistake, it is because--not in spite of--our existing
regulatory system that hydropower is much cleaner today than it
used to be. It's because of these rules that hydropower
operators have done great things, like put water back into
dewatered river reaches and build fish passage.
Sometimes getting to the solutions--especially when the
problems are tricky--takes careful study and time, and
sometimes that can take longer than 2 years. These laws and
regulations are there for a good reason, and they work really
well.
But that doesn't mean they can't be improved. We agree with
NHA that there are quite a few good projects that could get
licensed in 2 years or less, and we've seen that happened at
FERC. A one-size-fits-all approach probably wouldn't work. We
want good projects to go, to be--excuse me. We want good
projects to get built faster, but it's not good for rivers or,
frankly, for the industry, if a bad project gets fast-tracked
and does some real damage. Again, the Act gets this right by
asking questions without dictating solutions, and creating a
space where stakeholders can continue to work together to find
the right answers.
This is a tricky problem to solve, but few things worth
doing are easy to do. It'll require careful thought, improved
cooperation among FERC and other Federal and State agencies,
and probably some trial and error. But we're committed to
working with NHA and others to see if it can be done in a way
that achieves the twin goals of increasing capacity and
improving environmental outcomes.
Thank you for the opportunity to testify before this
committee today. I look forward to your questions.
[The prepared statement of Mr. Seebach follows:]
Prepared Statement of John Seebach, Director, Hydropower Reform
Initiative, American Rivers, on S. 629
Introduction
Chairman Bingaman, Ranking Member Murkowski, and Members of the
Committee: thank you for this opportunity to testify and share American
Rivers' perspective on the three bills that are before your committee
today.
American Rivers is the nation's leading voice for healthy rivers
and the communities that depend on them. We believe rivers are vital to
our health, safety and quality of life. American Rivers mobilizes an
extensive network comprised of tens of thousands of members and
activists located in every state across the county. We have been
working to protect and restore the health of rivers that have been
impacted by hydropower dams since we were founded in 1973. We also
serve on the Steering Committee of the Hydropower Reform Coalition, a
broad consortium of more than 150 national, regional, and local
organizations with a combined membership of more than one million
people. In doing so, we represent stakeholders--from canoeists to
conservationists to lake homeowners--that seek to improve the water
quality, fisheries, recreation, and general environmental health of
rivers that have been damaged by antiquated hydropower dam operations.
Coalition members are active in most of the hydropower licensing
proceedings currently pending before the Federal Energy Regulatory
Commission (FERC), the Bureau, and the Corps, and have constructively
contributed to numerous hydropower-related policy discussions. Most
recently, we worked with your staff, the staff of other Senate offices,
and industry representatives as you developed S. 629, the Hydropower
Improvement Act that is before your committee today.
We support S. 629, and while we believe that S. 630 has promise, we
oppose section 9 of S. 630 as it is currently written.
2 Towards a balanced Federal hydropower policy that encourages
environmentally responsible hydropower development and
operation
American Rivers is emphatically not anti-hydropower. Conventional
hydropower is one of the oldest and most well-established among a
growing number of technologies that provide low-emissions alternatives
to fossil-fuel energy. Nationally, hydropower provides about 96,000
megawatts of capacity, representing nearly 7% of total generation. We
expect that hydropower will continue to be a part of our nation's
energy mix for years to come, and accordingly we have signed dozens of
agreements supporting the operation of hydroelectric dams that together
provide our nation with thousands of megawatts of generating capacity.
Reasonable modifications have dramatically improved the performance of
these dams, providing fish passage, improving flows, enhancing water
quality, protecting riparian lands, and restoring recreational
opportunities.
American Rivers supports the development of new hydropower
resources that can be brought online while avoiding significant
additional harm to local ecosystems. In recent years, we worked closely
with the National Hydropower Association to craft renewable energy
legislation that provides incentives for new hydropower development. In
short, we support hydropower that is developed and operated in a
responsible manner that avoids harm to America's precious river
resources. Given the very real environmental and social impacts of
global climate change--especially on vital freshwater systems--we
understand the need to develop new sources of energy that can replace
America's reliance on fossil fuels. Hydropower will be an important
part of this mix.
However, we also know that the energy we receive from hydropower
comes at an enormous cost to the health of our nation's rivers and
communities. Hydropower is unique among renewable resources in the
scale at which it can damage the environment. Hydropower's
environmental and social impacts are serious and extremely well
documented. Hydropower dam operations are responsible for the
extinction and near-extinction of a number of species. Hydropower
plants often divert water around entire sections of river, leaving them
dry or constantly alternating between drought and flood-like
conditions. Hydropower dams have flooded forests, destroyed fisheries,
diminished recreational opportunities, and decimated the local--mostly
rural--economies that depend on those resources.
The harm caused by most hydropower dams can be avoided if
hydropower is sited, constructed, and operated in a responsible manner,
particularly if management decisions are made at a basin-scale rather
than at the individual project level. A few simple changes can make an
enormous difference in the health of a river. Hydropower operators can
change the timing of power generation to mimic a river's natural
hydrologic conditions, stabilize lake levels and dam releases to
protect riverside land from erosion, provide fish ladders and other
measures that protect fish and allow them to pass safely upstream and
downstream of dams, restore habitat for fish and wildlife, alter the
design and operation of plants to maintain appropriate temperature and
oxygen levels in rivers, and provide public access and release water
back into rivers so that people can fish, boat, and swim. These types
of changes have a miniscule impact on overall generation: when FERC
studied more than 240 non-federal dams where such measures had been
introduced, it found that such changes cost, on average, only 1.6% of
power generation. Indeed, since many of these modifications involve
replacing outdated generating equipment with more efficient modern
technology, overall generating capacity has actually increased by 4.1%.
The benefits to human and natural communities have been immense.
When it comes to water, climate changes everything--when, where and
how much water is available, how water is used, and the ecosystems in
which humans, fish and wildlife live. Warmer temperatures are
increasing evaporation and lowering water levels in rivers and
aquifers. Mountain snowpack, which acts as a natural reservoir that
releases water throughout summer months, is shrinking and melting
earlier in the year. Precipitation is also becoming more erratic and
shifting towards winter months. As a result, droughts and floods alike
are becoming more frequent and more intense. These changes may make our
hydropower system less reliable in the coming decades. They also
highlight the urgent need to improve the environmental performance of
existing hydropower dams. Poorly operated hydropower plants radically
alter the timing, magnitude, and duration of streamflows, change water
temperature, and stress aquatic species. In other words, hydropower
operations anticipate--and exacerbate--the impacts of climate change on
our rivers and watersheds.
The threat of global warming demands urgent action on two major
fronts. First, we must dramatically reduce greenhouse gas emissions.
But even if we bring emissions under control, the carbon already in the
atmosphere from historic emissions will cause inevitable changes to the
climate. We must therefore also take immediate action to help both
human and natural communities adapt to inevitable climate changes by
making them more resilient. Resilient communities are able to withstand
extreme events and recover quickly from disasters. By protecting and
restoring healthy watersheds, increasing water efficiency and improving
the quality of our infrastructure we can build resilient communities
and ecosystems that stand a better chance of weathering the impacts of
global warming.
Hydropower policy must play a role on both fronts. Developed
responsibly, hydropower can increase our nation's portfolio of
emissions-free energy. However, we must consider more than just
increased megawatts. America is still blessed with many healthy, free-
flowing watersheds, wetlands and floodplains that provide numerous
services and values. We must preserve these intact systems and promote
them as a vital part of our water supply and flood protection
infrastructure. At the same time, we must rehabilitate rivers and
streams that have been damaged by existing hydropower projects, and
protect habitat from further degradation. A failure to improve the
health of rivers now will doom more species to extinction as the world
warms. Now and in the years to come, we need hydropower projects that
are sited, built, and operated to produce power while minimizing
impacts to the rivers that sustain America's human and natural
communities. Federal agencies with a role in U.S. hydropower policy,
including the Bureau of Reclamation, the U.S. Army Corps of Engineers,
the Department of Energy, and the Federal Energy Regulatory Commission
must make the enhancement of environmental quality--at existing and new
sites alike--a top priority.
A balanced and responsible hydropower policy must take seriously
both the promise of hydropower and the risks of hydropower development.
It must encourage responsible development while also continually
holding developers and federal operators accountable for their
environmental impacts and insisting on the strictest performance
standards. It must remove obstacles to development while recognizing at
the most fundamental level that a high level of environmental
performance and the costs of achieving that performance are not an
``obstacle'' to development but a fundamental and necessary component
of it. It must encourage new development to take place while also
accepting that some sites are simply not appropriate for new or
increased hydropower production. Congress must address both sides of
this equation equally.
3 The Hydropower Improvement Act (S. 629)
The Hydropower Improvement Act (S. 629) is a good step towards a
well-balanced U.S. hydropower policy like the one described above.
American Rivers joined the National Hydropower Association in working
with the bill's sponsors to help them to craft a bill that would meet
the twin goals of encouraging the development of new hydropower
capacity while enhancing hydropower's environmental performance. This
bill represents a substantial improvement over the Hydropower
Improvement Act (S. 3570) that was introduced in the previous Congress.
American Rivers is pleased to support this bill. We would like to thank
all of the parties involved with drafting this bill for their extremely
hard work and willingness to incorporate our perspective.
American Rivers supports this bill for three main reasons. First,
we believe that it appropriately distinguishes between those hydropower
projects which should be encouraged and those which should not and
directs its attention towards the former. Second, it has a strong focus
on research and development that focuses on improving hydropower's
environmental and technical performance, recognizing that both are
equally important. Third, it encourages regulators and stakeholders
alike to work together to find creative and innovative ways to improve
the existing regulatory process without falling into the all-too-common
trap of equating critical environmental protections with ``regulatory
barriers.''
3.1 S. 629 encourages appropriate hydropower development
American Rivers supports the development of hydropower projects
that are sited, constructed, and operated in a responsible manner so as
to avoid harm to America's precious river resources. S. 629 recognizes
that not all hydropower development is appropriate by focusing on those
types of projects which can be brought online with the least impact to
aquatic resources. Hydropower projects that re-use existing water and
hydropower infrastructure are the best candidates for responsible
development.
Section 5 of S. 629 would create a competitive grant program which
would encourage projects which upgrade aging facilities or provide
power to non-powered dams. This section also recognizes that solid
environmental performance is critical to any new development, providing
funding for studies and mitigation measures that can help to reduce a
project's environmental footprint.
American Rivers has long advocated for policies that would
encourage or require hydropower operators to upgrade aging turbines and
generating equipment with updated, modern equipment. We believe that
the public should receive the full benefit of each drop of water that
passes through a turbine, and antiquated, inefficient equipment dilutes
these benefits. Efficiency improvements are relatively lowcost, use
turbines and equipment that is manufactured in the United States, and
can often contribute to improved environmental outcomes. These
efficiency upgrades are the simplest, most cost-effective, and lowest-
impact means of increasing hydropower generation. The potential gains
in generation are significant: in many cases, these upgrades can result
in a 10-20% increase in generation from the same amount of water. There
are substantial environmental benefits to these upgrades as well:
modern turbines often feature designs which are less harmful to fish,
and can operate efficiently across a different range of release levels,
allowing for managed flow regimes which more closely mimic a natural
river.
Turbines can also be added to many existing hydropower and non-
hydropower dams. While these retrofits are not appropriate in every
case, they offer new capacity for minimal additional environmental
impacts when done right. In some cases, retrofitting existing dams for
hydropower can leverage additional environmental improvements to the
affected river reach. For instance, a pending retrofit at the Holtwood
project on the Susquehanna River in Pennsylvania will more than double
that project's generating capacity while also providing for
substantially improved fish passage. Several years ago, American Rivers
worked closely with the hydropower industry and members of Congress to
craft legislative language that would encourage such forward-thinking
development. This language has since been incorporated into the federal
law which provides a Production Tax Credit for Renewables, providing
developers with an incentive to develop at existing dams that are
currently operated for flood control, navigation, and water supply and
that could be developed without harmful changes to river flows. S. 629
carries this basic concept further in two ways: Section 5 provides
grant funding for these types of projects, while sections 7 and 8(b)
encourage regulators and stakeholders to test new ways to improve the
regulatory process for these projects in order to allow capacity to be
brought online faster without sacrificing critical environmental
safeguards. Finally, an increasing number of developers--especially in
the west--are exploring off-stream hydroelectric development. Some
developers propose to place turbines in existing water conveyance
pipes. Others are adding hydropower capacity to irrigation canals.
Still others are placing turbines in municipal water treatment
facilities. Many of these projects have the potential to create
substantial environmental benefit. For instance, some irrigation
districts are using the revenue from power sales to fund projects that
will result in the more efficient use of water, leaving more water in
the river to provide ecosystem services. S. 629 encourages these types
of projects in five ways: Section 5 provides grant funding for
developing these projects; Section 8(a)(1) updates the conduit
exemption provisions in the Federal Power Act to allow projects on
Federal land to qualify while preserving critical environmental
protections; Section 8(a)(2) encourages federal agencies to better
coordinate their review of these projects; Section 8(a)(3) opens a
public dialogue about ways that the regulatory process for these
projects might be improved to bring capacity online faster while
protecting the environment and public health and safety; and the
updated definition of ``conduit'' in Section 3 will prevent abuse of
the existing exemption by ensuring that it is only applied to
appropriate projects that use water infrastructure that was built for
some other legitimate beneficial use.
3.2 S. 629 has an appropriate focus on hydropower research and
development
Section 6 of S. 629 directs the Secretary of Energy to develop a
plan for research and development which will facilitate new hydropower
generation and improve the environmental performance of hydropower
technology. It also provides dedicated funding for this work. This
would build on the excellent work that the Department of Energy's
Office of Energy Efficiency and Renewable Energy Water Power Program is
already doing in this area, both on its own initiative and as part of
the Federal hydropower MOU that was signed in 2010. This section
appropriately places increased generation and improved environmental
quality as co-equal goals. American Rivers is particularly heartened by
this section's requirement that the secretary provide technical
assistance to project proponents that will help them to address
environmental issues through studies and mitigation measures, as well
as the requirement that the Secretary consult with other federal
agencies that play important roles in protecting non-power public
resources affected by hydropower projects.
3.3 S. 629 aims to improve the regulatory process for hydropower
without falsely equating critical environmental protections
with ``regulatory barriers''
Sections 7 and 8 of S. 629 direct FERC to explore ways ``to improve
the regulatory process and reduce delays and costs'' associated with
hydropower development. As a frequent participant in regulatory
proceedings for individual hydropower projects, American Rivers has an
interest in reducing inefficiencies in these regulatory proceedings as
well as the costs associated with participating in them.
Our enthusiasm for regulatory reform, however, is tempered by our
recognition that the existing permitting system for hydropower provides
critical protections for the ecological health of rivers, public
safety, recreation, and many other non-power values. American Rivers
emphatically does not subscribe to the notion that our nation's
environmental, health, and safety regulations constitute ``barriers''
in need of streamlining, ``delays'' that must be shortened, or
``costs'' that need to be reduced. Hydropower is not intrinsically
clean energy: it must be sited, constructed, and operated in an
appropriate manner, or it can cause enormous environmental damage. Laws
like the Federal Power Act, the Clean Water Act, the National
Environmental Policy Act, and the Endangered Species Act are critical
to ensuring that hydropower is done right. We encourage this Committee
to be clear that any proposed modification to the regulatory process
for hydropower that would weaken any of these vital environmental
protections would be unacceptable.
In our view, S. 629 largely gets this distinction right,
recognizing FERC's willingness to innovate to help good projects get
built more quickly. When developers choose appropriate sites for
hydropower projects and invest in addressing resource issues up front,
FERC has shown remarkable flexibility in processing license
applications quickly and efficiently. For example, we have seen FERC
staff waive pre-filing requirements with the concurrence of
stakeholders in cases where there are no controversial resource issues.
FERC recently published a list\1\ on its website of more than 20
hydropower projects that have been permitted in less than one year
since 2006. The Commission also recently signed an innovative
Memorandum of Understanding with the State of Colorado\2\ that
identifies classes of projects that are likely to be permitted quickly,
with FERC agreeing to expedite the processing of those applications
where the state has conducted pre-screened to ensure that there are no
complex or contentious resource issues at stake.
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\1\ http://ferc.gov/industries/hydropower/gen-info/licensing/small-
low-impact/expedite-process/projectsexpedited.xls
\2\ http://ferc.gov/legal/maj-ord-reg/mou/mou-co.pdf
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Despite FERC's willingness to be flexible, there are a number of
points in the process where FERC can do better. For instance, FERC's
Integrated Licensing Process was designed to synchronize FERC's NEPA
scoping and record development with the information requirements of
other state and federal agencies that have separate--and critical--
statutory responsibilities. These other agencies can now can identify
at the beginning of a licensing those information gaps that must be
filled in order for them to complete their own processes. Some
applicants are unwilling to provide this information because it might
result in additional requirements to mitigate project impacts. The
resulting stalemate is a perennial source of delay in licensing. While
FERC staff have the authority to order applicants to provide this
information, they often choose not to do so, arguing that the
information is not necessary for FERC's licensing decision. This may be
technically true--FERC may not consider the information necessary for
its own analysis--but the reality is that FERC cannot issue a license
until it has received a Water Quality Certification from the state and
all required ESA consultation is complete. Staff may be able to work
with agencies to narrow the scope of the necessary information, but
ultimately those agencies must decide what information is necessary for
them to act. The Commission should direct its staff to improve their
cooperation with other federal and state agencies, especially where
those agencies have identified a need for information that will enable
them to fulfill their own responsibilities and clear the path for FERC
to issue a license. By doing so, FERC would substantially increase the
likelihood that licenses will be issued on time and with an appropriate
set of environmental protections.
S. 629 directs FERC to solicit recommendations like these from the
public and examine how it might implement such improvements to the
licensing process. It then directs the Commission to test some of those
ideas through a pilot process and ultimately report to Congress on what
works, what does not, and how it intends to translate those lessons
into more formal policies that improve the licensing process. This
gives FERC the flexibility to conduct controlled experiments, further
refining some of the tools it is already using to permit
noncontroversial projects more quickly. Any resulting policy change
will be better by virtue of having been tested in a real-world
situation first.
S. 629 also gives FERC the ability to limit this flexibility to
only those projects where it is likely to work. A one-size-fits-all two
year process is unlikely to be appropriate for all projects. Hydropower
projects that feature more complex resource issues often need more time
to process, and this is entirely appropriate. Consider, for instance,
two proposals to add hydropower to an existing dam. The first would add
a turbine to an existing control structure at the base of the dam to
capture uncontrolled flows that are already passing through the dam.
The second proposes to divert water from behind an existing dam to a
powerhouse two miles downstream, dewatering a section of river that is
known as a highquality trout stream and a popular destination for
canoeing. While the first project might be quite simple to license, the
second would almost certainly require one or more season of studies in
order to determine appropriate operating guidelines that would protect
the river's fisheries and recreational resources; it would be very
difficult to fit such a project into a two-year process without
glossing over these complex resource issues.
American Rivers supports this inquiry, and we look forward to
participating in the Commission's examination of its licensing
processes. We also encourage the Committee to ensure that FERC will
have sufficient resources to complete this undertaking. FERC has more
new applications for preliminary permits and hydropower licenses before
it now than at any other time in recent memory. The new requirements
that S. 629 proposes to place on the Commission should not become a
workload burden for Commission staff that creates the very processing
delays that it was designed to reduce.
4 Hydrokinetic and Marine energy (S. 630)
There has been a great deal of discussion about damless
hydrokinetic technologies that use free-flowing rivers, waves, ocean
currents, or other means to generate electricity. As a river
conservation group, American Rivers does not claim to be an authority
on Marine energy. However, we have followed the development of instream
hydrokinetic technologies closely. Moreover, since ocean and instream
hydrokinetic technologies are often lumped together, we have
participated in a number of policy discussions that have addressed both
technologies.
We are hopeful that these new technologies will eventually allow us
to harness the power of moving water in a responsible manner that
avoids the devastating impacts associated with dam-building.
Unfortunately, there is still precious little information available
about how these technologies interact in a natural setting. As of
today, we are aware of only one instream hydrokinetic project that is
currently licensed to generate in U.S. waters, and our understanding is
that it is currently out of service. With so little information
available, it is difficult to assess the environmental impacts of these
technologies, let alone their commercial feasibility. We can only
speculate as to what the costs and benefits of these technologies might
be.
It is clear, then, that there is a need for more testing, as well
as for research into the potential environmental impacts and new and
innovative ways that those impacts might be avoided. There is also a
need for strong siting criteria that take into account environmentally
sensitive areas or areas that are vital to economic activity (like
transportation or commercial fishing), and consider the risk that the
cumulative impacts of additional development may simply be too high in
some watersheds that are already highly impacted by existing hydropower
development.
S. 630 largely addresses these needs, focusing on research,
development, and the creation of testing zones where environmental and
operating data can be collected in a controlled environment. The
proposed amendments to The Energy Independence and Security Act of 2007
are an incremental improvement to a public policy that is already
largely good. The adaptive management and environmental grant program,
like the program proposed by Section 6 of S. 629, is a particularly
good idea. While we believe that the information gaps about the
environmental impacts of these technologies need to be filled before
these projects are deployed at a full commercial scale, we also
recognize that the cost of filling these gaps places the initial
developers of these technologies in an extremely precarious financial
situation. It makes sense to devote public resources towards filling
these gaps, both at the macro level and the individual project level,
in order to take some of this pressure off of the individual project
developers. The bill also insures that the public receives a return on
this investment by requiring that most information developed as a
result of studies performed under this grant program be made publicly
available. This is good policy, and will accelerate the responsible
development of these technologies.
American Rivers is, however, opposed to section 9 of S. 930 as it
is currently written. Section 9 would authorize federal funds to be
granted for the construction of new hydropower dams. Given the
relatively high economic, environmental, and social costs associated
with new dam construction and the enormous amount of new hydropower
capacity that can be developed without constructing new dams, we do not
think it makes sense for federal funds to be obligated to projects that
involve new dam construction. Rather, scarce taxpayer dollars should be
directed towards projects that minimize environmental harm by making
use of existing water infrastructure like the projects that would be
eligible for grants under Section 5 of S. 629.
We understand that the intent behind this section was to encourage
the development of new sources of renewable energy in remote
communities that rely primarily on expensive sources of fossil-fuel
fired generation for their electricity. We agree that this is a
laudable goal, and we recognize that this bill attempts to give
priority to grants to communities that find themselves in this
situation. We recognize that in some rare and exceptional cases, the
construction of a new hydropower dam may be the only feasible renewable
energy alternative for some of these communities. If federal funds are
to be obligated for the construction of new non-federal dams--something
which in general we do not support--then it should only be limited to
exceptional cases where the construction of a dam is truly a last
resort. As it is currently written, the bill's support for new dam
construction is too broad, and could be used to fund the constructions
of dams that simply should not be built. We recommend that the
Committee explore alternate approaches to achieving what is an
otherwise worthy goal of encouraging renewable energy development, and
we stand willing to offer our assistance.
5 Conclusion
A balanced U.S. energy policy must recognize that hydropower has
impacts as well as promise, and it should address both. New hydropower
development must be sited, operated, and mitigated responsibly, and it
must simultaneously encourage increased generation and improved
environmental stewardship at new and existing projects. American Rivers
supports the development of new hydropower resources that can be
brought online responsibly, avoiding significant additional harm to
local ecosystems. S. 629 represents a substantial step forward down
this path, and American Rivers is pleased to be able to support it.
Thank you again for this opportunity to testify before the
Committee today. I look forward to answering your questions.
The Chairman. Thank you very much.
Mr. Munro, go right ahead.
STATEMENT OF ANDREW MUNRO, PRESIDENT, NATIONAL HYDROPOWER
ASSOCIATION
Mr. Munro. Good morning, Chairman Bingaman, Ranking Member
Murkowski, and members of the committee.
Thank you for this opportunity to share with you the
National Hydropower Association's perspective on S. 629 and S.
630. We strongly support both measures, and we urge the
committee to proceed swiftly to marking up these bills.
I'd also like to particularly acknowledge my Senator,
Senator Maria Cantwell, who is, like myself, from ``the other
Washington.'' Thank you for being here.
My message today is simple: There's a real opportunity with
these bills to increase U.S. hydropower capacity that will
support our economy, support our environment, and increase our
energy supplies. Think about this one statistic for a moment:
Of the 80,000 dams that currently exist in the U.S., just 3
percent are utilized to generate electricity.
You're familiar with hydropower's current contributions--I
heard those today--that it's the largest source of renewable
electricity in the U.S., providing 7 percent overall of our
generation, and 2 thirds of all renewable energy.
Hydropower also employs 300,000 Americans. Hydro-generation
avoids 200 million metric tons of carbon emissions, and they
did so in 2009 alone.
In addition, hydro provides many other benefits, including
managing river flows for species and habitat protection,
recreation, irrigation, flood control, and navigation.
Importantly, hydropower, as well as pump storage, help to
balance our electricity grid, provides a reliable grid, and
also enables the greater use of variable energy, such as wind
and solar, by balancing demand and supply.
I'm happy to say that I believe the old view of hydro, is,
that it's tapped out is in the past. Today's hydro has a lot
more to offer. According to a study by Navigant Consulting,
hydropower can create 1.4 million jobs in the next 15 years,
both inside and outside of the industry. These are domestic,
good-paying, family sustaining jobs in manufacturing,
construction, engineering, and operations. We could do this by
adding 60,000 megawatts of additional sustainable hydropower
capacity to the U.S. electric grid. In fact, 88,000 megawatts
are in the FERC queue today.
The U.S. hydropower industry is committed to future growth
that is sustainable in every way. NHA commends the sustainable
nature of the Hydropower Improvement Act because it recognizes
that much of the near term growth can be achieved by increasing
and maximizing capacity at existing U.S. infrastructure. For
example, the bill supports adding electric-generating equipment
to dams that have none today. As mentioned before, 97 percent
of the dams are not used to generate electricity.
My utility, Grant PUD in the central part of Washington
State, illustrates another sustainable way to expand our
renewable capacity, through modernizing existing hydro-projects
with more efficient technologies and environmental enhancement
technologies.
At our Wanapum Dam on the mid-Columbia River we are
installing new, advanced designed hydroturbines which boost the
project's output by 12 percent and, maybe more importantly, has
a fish passage rate of 97 percent, which is above our license
requirement of 95 percent. We also built a 35-million-fish
slide--it's a bypass system--which has a fish passage survival
rate of 99 percent for steelhead that use the slide. These are
modern technologies that improve safe fish passage, and
increase energy output. We can have both fish and renewable
generation at hydroelectric facilities.
While grants work spotlights growth opportunities in the
industry, without the right Federal policy, such as the
Hydropower Improvement Act, we will not realize this full
potential.
Crucial near term policy changes are needed, such as a
smarter, more efficient licensing process, and
intergovernmental agency cooperation, which we've heard
testimony today about.
Also, tax policies that encourage more investment in
hydropower technologies in deployment and environmental
efficiencies, reinvestment in the Federal hydropower system, as
well as the renewed commitment to hydropower R&D initiative--
and I'm glad to hear that today.
These 2 bills are an important policy step forward and
should pass.
Briefly, we concur with the provisions in both bills that
would direct the Department of Energy to ramp up domestic
hydropower production and establish a competitive grants
program to improve environmental performance as well as output.
These are common-sense initiatives.
Last, I do want to acknowledge 2 organizations before you
today--American Rivers and the National Hydropower Association.
Over the past several years we have purposely committed
ourselves to working together collaboratively to demonstrate
leadership, and moving us in a sustainable energy future. We
both jointly support the Hydropower Improvement Act, and we
commend--I commend the sponsors of the legislation, appreciate
Senator Murkowski taking the lead on this legislation, as well
as all of the sponsors. We think that this is a smart bill, and
it should proceed forward.
Thank you.
[The prepared statement of Mr. Munro follows:]
Prepared Statement of Andrew Munro, President, National Hydropower
Association
on s. 629 and s. 630
Introduction
Good morning Chairman Bingaman, Ranking Member Murkowski and
members of the Committee. I am Andrew Munro, President of the National
Hydropower Association (NHA). I am also the Director of External
Affairs for the Grant County Public Utility District located in the
central part of the state of Washington. Grant County PUD is a
consumer-owned utility that serves a rural, predominantly agricultural
population. Hydropower, irrigation-canal hydro and wind power comprise
our total combined generating capacity of approximately 2,000 MW. I
would also like to acknowledge Senator Maria Cantwell, who is my
Senator from the ``other Washington''.
The National Hydropower Association greatly appreciates this
opportunity to discuss with you two important pieces of legislation--
S.629, the Hydropower Improvement Act of 2011, and S.630, the Marine
and Hydrokinetic Renewable Energy Promotion Act of 2011, both of which
we strongly support.
My message today is simple--There is a real opportunity to increase
U.S. hydropower generation that will strengthen our economy,
environment and renewable energy supplies.
I will go into further details on each bill later in my testimony,
but to summarize, NHA believes S.629 and S.630 represent significant
steps forward to promote increased deployment of clean and renewable
hydropower, pumped storage and marine and hydrokinetic (MHK) projects.
We urge the Committee to proceed swiftly to mark-up on these bills, and
we support full Senate passage as soon as possible.
Background
NHA is a national association dedicated exclusively to advancing
the U.S. hydropower industry, including conventional hydropower, pumped
storage, conduit power and marine and hydrokinetic technologies. We
seek to secure hydropower's place as an available, reliable, affordable
and sustainable energy resource that serves our national environmental,
energy, and economic policy objectives.
NHA represents more than 180 companies in the hydropower industry,
from Fortune 500 corporations to family-owned small businesses. Our
members include both public and investor-owned utilities, independent
power producers, project developers, manufacturers, law firms and
environmental and engineering consultants.
Today, hydropower projects generate power in every region of the
country and are America's leading source of domestic renewable
electricity. Hydropower accounts for approximately 7 percent of the
nation's total electricity generation and two-thirds of our renewable
electricity generation. Hydropower capacity in the United States is
currently about 100,000 MW. Hydropower generation avoids millions of
metric tons of carbon emissions each year. In fact, regions that rely
on hydropower as a primary energy source, such as Grant County and
Washington State, reap the benefits of significantly cleaner air.
Satellite imagery has shown that the Pacific Northwest, home to the
most hydropower in the United States, is an island of low carbon
emissions.
In addition to this clean energy, hydropower infrastructure also
provides a myriad of other important benefits, including managing river
flow for species and habitat protection, water supply, recreation
opportunities, irrigation, flood control and navigation.
And importantly, hydropower and pumped storage assets provide
essential grid reliability and stability services such as the ability
to quickly meet changing demand in load, firming for intermittent
variable energy resources, and blackstart capability in times of outage
(such as the August 2003 East Coast blackout, where hydropower projects
in New York and Canada operated continuously and also served as the
base for restoring power to millions of Americans).
Hydropower is a proven renewable energy resource--one that has been
in use in our country for well over 100 years. However, hydropower is
also an energy resource for our future, with tremendous growth
potential. One of the many myths about hydropower is that there are no
new opportunities for growth in our industry. In fact, the opposite is
the case.
Right now, there are proposed projects totaling over 88,000 MW with
pending license applications and preliminary permits filed with the
Federal Energy Regulatory Commission (FERC). These projects span every
sector of the waterpower industry. And while not every single one of
these projects may be built, the list demonstrates the universe of
untapped hydropower potential that exists.
In 2009, NHA commissioned a study examining the hydropower
industry's job-creation and growth potential. That assessment confirmed
what Energy Secretary Steven Chu has described as an ``incredible
opportunity'' to develop America's ``lowest-cost energy option.''
The study found that the industry could add up to 60,000 MW of
capacity by 2025, which could support the creation of approximately 1.4
million cumulative direct, indirect and induced jobs across the
country.
In the study, Navigant Consulting estimated that 9000 MW alone
could come from upgrades and additions of capacity at existing hydro
facilities, with another 10,000 MW by converting non-powered dams into
generating assets.
The result of the study, confirmed by the project development
pipeline before FERC, led NHA to adopt an ambitious, but achievable,
goal of doubling the U.S. hydropower industry's contribution to the
electric system. And in January, NHA, in response to President Obama's
State of the Union address, committed to meet 20 percent of the 80
percent clean energy goal by 2035.
NHA believes America should take maximum advantage of our nation's
infrastructure. Adding capacity and increasing efficiencies at existing
hydropower facilities and installing generation equipment to existing
non-powered dams are two near-term steps to reach this goal, as we also
look to the long-term effort to expand hydropower resources. For
example, only about 3 percent of the nation's approximately 80,000 dams
currently generate hydropower; just 3 percent.
My utility, Grant County PUD, illustrates how our nation can better
maximize our existing infrastructure and sustainably increase renewable
energy generation--through modernizing existing hydro facilities with
more efficient electric generating equipment and environmental
enhancement technologies. The PUD is in the process of a major upgrade
at one of our hydropower projects. At our Wanapum Dam, we are
installing new, advanced-designed hydro turbines and new generators,
which will result in a 12 percent generating capacity boost and support
our fish survival rate of 95 percent. We also built a $35 million, 290-
foot fish ``slide'' for which studies show a fish survival rate of 99
percent for steelhead salmon using the slide.
These are examples of modern technologies that allow hydropower
operators to improve safe fish passage, while also expanding renewable
energy generation. We can have both fish and renewable generation at
hydropower facilities.
While Grant PUD's work spotlights the opportunities for growth in
the hydropower industry, additional policy support from the federal
government is needed to promote these opportunities nationwide. Simply
put, conducting business as usual will not provide the incentive to
fully realize the untapped potential available throughout the country.
Crucial near-term policy changes include:
A more efficient licensing and permitting process with
greater intergovernmental cooperation;
Tax policies that encourage more investment in hydropower
technologies and deployment;
Re-investment in the federal hydropower system; and
Renewed commitment to R&D initiatives.
In NHA's opinion, the Hydropower Improvement Act of 2011 and the
Marine and Hydrokinetic Renewable Energy Promotion Act of 2011 take a
substantial policy step forward to expand our hydro resources in a pro-
active and balanced approach.
The Hydropower Improvement Act of 2011
As stated earlier in my testimony, NHA fully and strongly supports
this bipartisan bill and commends the leadership shown by the original
cosponsors of the legislation.
The Hydropower Improvement Act of 2011 sets a dynamic hydropower
agenda for the nation. The bill will advance project deployment (from
conduit power and small hydro to non-powered dams to pumped storage) by
requiring better interagency coordination; through funding of
competitive grants for increased production; and with continued support
for research and development activities. All of this while ensuring
continued environmental reviews and public participation are part of
the process.
NHA believes the Hydropower Improvement Act of 2011 represents a
common-sense result, achieved through outreach to the agencies,
industry, the environmental community and other stakeholders. It not
only seeks to stimulate deployment and increase clean energy
generation, but takes a moderate approach that respects and values the
environmental principles and the public participation standards that
have been an important part of the hydropower development process. I
will now highlight some of the provisions of particular interest to NHA
and the hydropower industry.
Section 7 of the bill would promote development at existing non-
powered dams and closed-loop pumped storage by requiring FERC to
investigate a 2-year pilot licensing process for these projects.
NHA and the industry appreciate the work of Congress, FERC, and
other agencies and stakeholders on past improvements to the regulatory
environment for hydropower development (for example, the consensus
provisions contained in EPAct of 2005 and the 2003 integrated licensing
process (ILP)). However, the hydropower regulatory process, in
comparison to those for other energy resources such as wind or natural
gas, remains considerably longer. The ILP is structured to be completed
in 5 to 5.5 years followed by the time needed for construction, while
the development timeline for wind and natural gas projects, for
example, can be as short as 18-24 months.
At a time when project developers are competing for a limited pool
of funding from investors, or when utilities are seeking the quickest
return on investment for their customers and shareholders, hydropower
project development is put at a competitive disadvantage. Section 7
attempts to address this disparity. It does not mandate a 2-year
process, but requires FERC to examine the possibility and move forward
with a pilot process or report back to Congress if such a process is
deemed not practicable. However, NHA believes a 2-year process is
possible and improvements can be made while maintaining environmental
standards and resource protection.
Section 5 of the bill creates a competitive grants program for
increased hydropower production. While the section focuses on existing
infrastructure and conduits, it also includes applications to develop
and perform environmental studies and carry out environmental
mitigation measures. These costs can be significant and affect the
economics of projects, particularly small projects. Providing a
mechanism to support these activities is a win-win, ensuring that
environmental data is collected and mitigation, if needed, conducted
while gaining the benefits of additional renewable electricity
generation.
Section 8 allows for conduit projects on federal lands and directs
FERC and other federal agencies to enter into a Memorandum of
Understanding (MOU) to better coordinate reviews of these projects. It
also requires regional workshops to seek public input to reduce
barriers and investigate improvements to the regulatory process for
small hydro and conduit projects. NHA believes there is significant
growth potential in the small hydro/conduit power sectors of the
industry.
NHA has seen numerous towns and counties across the country re-
examine the feasibility of retrofitting their local dam infrastructure
to add power generation equipment as well as to invest in irrigation
power projects and others. Increasing the efficiencies in the process
to support these projects makes sense--as we have seen recently with
the MOU between FERC and Colorado to simplify the procedures for
developing small-scale hydro in the state.
NHA also supports the provisions in the bill to increase deployment
of federal hydropower resources. Section 13 requires a report to
Congress updating the status of the federal hydropower MOU signed by
the Departments of Energy (DOE) and Interior and the Army Corps of
Engineers (Corps). Section 10 requires FERC and the Bureau of
Reclamation (Bureau) to complete a new MOU to improve the coordination
and timeliness of non-federal hydropower development at Bureau
projects.
The federal system makes up approximately 50 percent of U.S.
hydropower generation. As such, the Bureau and the Corps will play a
major role in meeting the growth potential goals of the industry. NHA
and the industry want to work as partners with these agencies.
Recently, we were pleased to see the Bureau re-examine potential
opportunities for new hydro facilities on their projects as well as the
outreach they have conducted on conduit opportunities. NHA also
understands that the Corps and FERC are close to updating their MOU on
non-federal hydropower development at Corps facilities.
Section 6 of the bill requires the Department of Energy continue to
fund R&D activities and provides for a new technical assistance program
to assist applicants applying for a new license or for re-licensing.
NHA believes the DOE waterpower program is critical to support
advancements in technology research and project deployment, with
tremendous benefits for hydropower projects both federal and non-
federal. We appreciate the work of the Department and the recent
funding levels that have supported it (though the FY 2012 budget
proposes a funding cut). We believe Congress must continue to invest,
not retreat, from the waterpower program--the smallest of the renewable
energy programs at the Department. NHA understands that the Department
will be releasing new details on the status of the U.S. hydro system as
well as potential development on non-powered dams. It is work such as
this that highlights the importance of the waterpower program.
Lastly, the bill directs a series of studies to be conducted
including: a DOE study of pumped storage project opportunities on
federal and non-federal lands near existing or potential sites of
intermittent renewable resource development; another DOE study of
potential from existing conduits; and a Bureau of Reclamation study on
barriers to non-federal development at Bureau projects. These studies
and reports will provide the baseline resource data on the growth
potential for these sectors--data that is currently incomplete or has
never been compiled.
With all of these provisions, the Hydropower Improvement Act is a
comprehensive piece of legislation that recognizes the vital role of
hydropower as an affordable, reliable, available and sustainable
domestic energy source and sets a course to significantly increase its
contribution to our nation's electricity supply.
The Marine and Hydrokinetic Renewable Energy Promotion Act of 2011
NHA also strongly supports the Marine and Hydrokinetic Renewable
Energy Promotion Act of 2011, S.630. Marine and hydrokinetic
technologies represent a huge opportunity to create reliable, clean
energy. While these technologies are currently in various stages of
research, development and deployment, thousands of megawatts of
potential are available from ocean energy projects from New England to
the West Coast and Alaska, and in-river hydrokinetic projects proposed
along the Mississippi River and others.
Focusing on these new technologies, the National Hydropower
Association established an Ocean, Tidal and New Technologies Council.
The council examines potential growth opportunities of emerging
technologies, shares information among industry members, and provides a
forum in which to discuss the various challenges ocean, tidal,
hydrokinetic and emerging water technologies face.
The Marine and Hydrokinetic Renewable Energy Promotion Act
particularly addresses the needs of the MHK industry by creating
programs to develop these technologies, test devices, gain
environmental and other data, and deploy. Section 3 is a critical piece
of the bill, as it provides for the establishment of MHK test
facilities to demonstrate technologies in actual operating environments
here in the United States.
The international MHK industry has seen the benefit of such
facilities, particularly in Europe. The United Kingdom established the
European Marine Energy Center in Scotland almost a decade ago.
The center has directly assisted the advancement of the European
MHK industry by providing independent assessment of devices' energy
conversion capabilities, structural performance and survivability;
research and engineering support; testing validation; and other
services. In addition to the test centers, Section 5 of the bill would
establish a similar device verification program and Section 6 would
also create an MHK grants program.
Finally, the bill also seeks to better coordinate and reduce
duplication of activities across the federal agencies supporting MHK
development. As in the conventional hydropower industry, NHA believes
that regulatory improvements are possible for MHK project development,
while still maintaining environmental standards and resource
protection.
The United States must lead in the development and deployment of
MHK technologies, not lag behind. Not only will this increase the
amount of our clean energy generation, but it will create new markets,
both domestically and internationally, for U.S. companies and American
products and technologies--markets that will stimulate domestic job
growth and new economic opportunities.
Conclusion
In closing, I would like to acknowledge collaboration demonstrated
by the organizations appearing before you today. Over the past several
years, American Rivers and the National Hydropower Association have
mutually and purposely called upon our respective organizations to
demonstrate leadership together in an effort to move our country
forward on sustainable energy policy.
We have jointly supported hydropower technologies in renewable
energy and tax policies over the past several years. Speaking for NHA,
I encourage Congress and the Administration to join us in working
together on a balanced and sustainable energy future--that grows our
economy, expands renewable energy and enhances our environment. The
Hydropower Improvement Act of 2011 has built on that partnership and we
look forward to further collaboration on the bill to move it forward.
NHA also appreciates the cooperative relationship with the Ocean
Renewable Energy Coalition. Both of our organizations believe that
marine and hydrokinetic technologies will play a critical role in
meeting our country's clean energy goals and we both support policies
that promote their commercial development.
Every state in the Union is already home to hydropower projects,
hydro equipment manufacturing plants, companies that benefit from the
hydropower supply chain and consumers who enjoy hydro's lower
electricity costs. This job-sustaining sector of our economy has the
potential for substantial growth, and we believe the bills you are
considering today provide key support to fully realizing this growth.
There is much at stake and hydropower, America's leading
affordable, reliable, and renewable domestic energy resource, stands
ready to help meet our common clean energy goals. We look forward to
working further with the Committee and other groups on these bills, as
we also continue to advance additional policies to stimulate
development of the country's untapped hydropower resources.
I thank the Committee for providing me this opportunity to testify
on hydropower's current and future role in meeting our nation's
environmental, energy and economic objectives and look forward to
answering your questions.
The Chairman. Thank you very much.
Mr. O'Neill.
STATEMENT OF SEAN O'NEILL, PRESIDENT, OCEAN RENEWABLE ENERGY
COALITION, DARNESTOWN, MD
Mr. O'Neill. Thank you, Mr. Chairman and Ranking Member
Murkowski, and your, thank all of your colleagues today for
devoting time to this very important topic--time and resources.
The Ocean Renewable Energy Coalition is the national trade
association for what we call the MHK industry--marine and
hydrokinetic, including wave, tidal, ocean thermal energy, and
offshore wind.
I hope today to provide some additional justification and
some context in asking for your support of S. 630. This bill
adds important elements to EPA 2005 and EISA 2007.
Specifically, and most importantly, the bill would provide much
needed research and development funds to continue the excellent
work that the Department of Energy has done, and other
agencies, to foster the responsible commercialization of this
industry.
S. 630 adds advanced systems engineering and systems
integration to identify critical interfaces and develop open
standards for marine and hydrokinetic renewable energy. It also
provides for 3 open water test centers and a device
verification program. Combined, these 3 programs address
technology development from turbine design, to how arrays
function and affect efficiency and environmental performance,
as well as grid integration and environmental data collection.
These synergistic programs will bring technology from initial
testing to pre-commercial demonstrations and ultimately full
grid integration.
The MHK industry benefits greatly from other industries--
other renewables, the marine industry, the maritime,
traditional power. For example, when I mention the test centers
I think about the National Wind Test Center just north of
Denver, Colorado, where they had a 10-diameter, 1-kilowatt
turbine when they first started in 1977. Today they've got 3
megawatt turbines that are 100 meters in diameter. They're
still improving that technology.
The wind industry also initiated a turbine verification
program to assist in the performance verification and grid
integration, and continues to be actively involved in improving
international standards and other R&D.
We're actively involved in creating international standards
in the MHK industry because of funding from the Department of
Energy, and we're helping to prompt the global development of
this new renewable energy technology.
Now, the test centers have been identified to support wave,
tidal, and ocean current research, and S. 630 will provide
greatly needed support to those 3 already identified test
centers. Utility systems engineering will provide the last, and
key, element for ultimate grid integration for these new energy
sources.
Our industry has learned a lot from the international
community as well, where Marine Current Turbines in the United
Kingdom has a 1.2 megawatt tidal turbine operating in
Strangford Lough, Northern Ireland--1.2 megawatt that has been
operating, is grid connected, providing 1,500 homes with power,
and also demonstrating the environmentally friendly nature of
this technology, despite the fact it's only be operating since
2008. While this is only anecdotal information, it's similar to
the Roosevelt Island Tidal Project that Verdant Power had in
New York City, where we witnessed fish swimming around the
tidal turbines. With marine current turbines, we've been
watching marine mammals swim around that, and, nicely
coexisting with the turbines in Strangford Lough.
Measuring environmental performance is another key facet in
S. 630. The Adaptive Management Grant Program provides public
funding for environmental studies of our public waterways, our
oceans, with the data being placed in the public domain. This
is a key element that was developed in 2007 with the help of
committee staff, my friend over here--John Seebach--and other
environmental organizations and industry. It addresses the
common need to put public information and more environmental
data into the public domain.
Last, S. 630 encourages cooperative efforts between
universities, industry, national labs, and government agencies.
Similar to the great work done by committee staff on this bill,
the industry is witnessing new rulemaking and accelerated
decisionmaking processes that are helping get projects in the
water, like ORPC's project in Eastport, Maine, or Columbia
Power Company's recent wave buoy deployment in Puget Sound;
Ocean Power Technologies' PowerBuoy in the Marine base at
Kaneohe Bay, and Verdant Power's Roosevelt Island Tidal Energy
Project, which is undergoing its final commercial licensing.
We are at a stage right now where these young companies
need your support in order to continue the great work that
they've been doing in the past several years.
Thank you very much for the opportunity to speak. Thank you
for your support of this promising new industry.
[The prepared statement of Mr. O'Neill follows:]
Prepared Statement of Sean O'Neill, President, Ocean Renewable Energy
Coalition, Darnestown, MD
on s. 630
Thank you, Mr. Chairman. I thank you and your colleagues for
devoting your time and resources to this important topic. The Ocean
Renewable Energy Coalition is the national trade association for marine
and hydrokinetic renewables, otherwise known as MHK, including wave,
tidal, ocean thermal energy, and offshore wind. We're made up of 54
companies ranging from small technology and project developers, to
large investor-owned utilities, publicly owned utilities, engineering
consulting and law firms.
I hope today to provide some additional justification and context
in asking for your support of S. 630, the Marine and Hydrokinetic
Promotion Act of 2011. This bill adds important elements to the Energy
Policy Act of 2005 and the Energy Independence and Security Act of
2007. Specifically, and most importantly, the Bill would provide much
needed research and development funding to continue the excellent work
done by the Department of Energy and other agencies to foster the
responsible commercialization of this industry.
S. 630 adds advanced systems engineering and system integration
methods to identify critical interfaces and develop open standards for
marine and hydrokinetic renewable energy. It also provides for three
open water test centers and a device verification program. Combined
these three programs address technology development from turbine design
to how arrays of devices affect efficiency and environmental
performance as well as grid integration and environmental data
collection. These synergistic programs will bring technology from
initial testing to pre-commercial demonstrations and ultimately full
grid integration.
The marine and hydrokinetic renewable energy industry benefits
greatly from other industries including: other renewables, maritime,
and traditional power. For example, when I mention test centers the
National Wind Test Center just north of Denver, Colorado began
operating in 1977 with a single 1 kilowatt machine with a turbine ten
feet in diameter. Today, single turbines with one hundred meter
diameters are producing more than three megawatts. The wind industry
also initiated a turbine verification program to assist in performance
verification and grid integration, and continues to be actively
involved in research and development, and improvement of international
standards today.
The MHK industry has benefited from all these experiences and, with
the help of federal funding, is actively involved in the creation of
international standards to prompt global development of this new
renewable energy technology. Test centers have been identified to
support wave, tidal and ocean current research and S. 630 will provide
greatly needed support to bring these centers into fully functioning
reality. Utility systems engineering will provide the key element for
the ultimate grid integration of this new energy source.
Our industry has also learned a great deal from the international
community where devices are in the water, grid connected, and
establishing a record of accomplishment in technology and environmental
performance. For example, Marine Current Turbines based in the United
Kingdom has successfully operated a one point two (1.2) megawatt tidal
device in Strangford Lough, Northern Ireland since 2008. The project is
grid connected and provides enough electricity for 1500 homes. While
anecdotal at this time, the experience in Strangford Lough is
demonstrating the environmentally benign nature of this technology.
Similar to the fish that swam around the turbines at Verdant Power's
Roosevelt Island Tidal Energy Project in New York City, marine mammals
are co-existing nicely with the Marine Current Turbines tidal device.
Measuring environmental performance is another key facet of S. 630.
The Adaptive Management Grant program provides public funding for
environmental studies of our public waterways and oceans with the data
being placed in the public domain. This is a key element that was
developed in 2007 with input from Committee Staff, environmental
organizations, and industry. It addresses the common need for more
publicly available data on our oceans and waterways.
Lastly, S. 630 encourages cooperative efforts between universities,
industry, national labs and government agencies. Similar to the great
work done by Committee staff in preparing this bill, cooperation across
sectors is bearing fruit and the industry is witnessing new rulemakings
and accelerated decision making that is allowing pilot and
demonstration projects to be deployed. Projects like Ocean Renewable
Power company's tidal energy facility in Eastport Maine, Columbia Power
Company's recent wave buoy deployment in Puget Sound; Ocean Power
Technologies' PowerBuoy at the Marine Base in Kaneohe Bay, Hawaii; and
Verdant Power's Roosevelt Island Tidal Energy Project which is
undergoing its final commercial licensing.
Thank you for the opportunity to speak. And thank you for your
support of this promising new industry.
The Chairman. Thank you very much.
Dr. Webber, you're our final witness. Go right ahead.
STATEMENT OF MICHAEL WEBBER, PH.D., ASSISTANT PROFESSOR,
DEPARTMENT OF MECHANICAL ENGINEERING, ASSOCIATE DIRECTOR,
CENTER FOR INTERNATIONAL ENERGY AND ENVIRONMENTAL POLICY, CO-
DIRECTOR, CLEAN ENERGY INCUBATOR, THE UNIVERSITY OF TEXAS AT
AUSTIN, AUSTIN, TX
Mr. Webber. Mr. Chairman and members of the committee,
thank you so much for your invitation to testify on the nexus
of energy and water.
My name is Michael Webber. I'm the Associate Director of
the Center for International Energy and Environmental Policy at
the University of Texas at Austin.
My testimony today will make four main points. The first
point is that energy and water are interrelated. The second
point is that the energy-water nexus is already under a strain
today. The third point is that trends imply these strains will
be exacerbated because of population growth, economic growth,
climate change, and because of policy choices. The fourth point
is that there are policy actions available at the Federal level
that can help, and I will elaborate on each of these points
during this testimony.
The first point is that energy and water are interrelated.
We use energy for water, and water for energy. We use energy to
heat, treat and move water. For example, the public water
supply system requires about 4 percent of national energy
consumption, about 6 percent of national electricity
consumption. This is about the same as lighting, or about a
quarter of all light duty vehicle transportation, so this is a
big enough number to care and make it relevant.
We also use water for energy directly, the other way
around. We use water for hydroelectric power, as you've heard,
and indirectly as a coolant for thermoelectric power plants.
These are power plants that you use heat to generate steam to
make power. We use water as a critical input for the production
of biofuels.
In particular, the thermoelectric power sector, like
nuclear, coal, natural gas, is the single largest water user in
the United States. They withdraw about 200 billion gallons of
water every day. This is about the same as agricultural, in
terms of withdrawals, or use. That's an average of between 1 to
40 gallons of water for every kilowatt hour of electricity.
In this room, during this testimony at this hearing today
over a couple of hours, several kilowatt hours of electricity
will be used for the lights and the cameras and things like
that. That implies a couple hundred gallons of cooling water
were used to generate electricity for this hearing. Very little
of that water is actually consumed. Most of it is returned to
the water source from which it was taken, but it's at a
different temperature and a different quality.
The use of water depends on the fuel type and the
generation technology, and the cooling system. Nuclear power
plants tend to use the most water, followed by coal, followed
by natural gas, followed by wind, and solar PV. So, the type of
fuel that your using and the type of cooling system you are
implementing affects how much water you need.
The second point is that the energy-water relationship's
already under strain today. This strain introduces
vulnerabilities from one sector to another. For example, we can
have heat waves, or droughts, that can strain energy, and we
can have energy outages that can strain water. For example, we
have heat waves--there was one in 2003 in France that killed
over 10,000 people, where the nuclear power plants had to dial
back their output by about 15 percent because the river
temperatures were to hot to effectively cool the power plants
without violating thermal pollution limits. We also have
droughts in places like in the southeastern United States 3
years ago, where nuclear power plants were within days of
shutting off because of water availability problems. Then we
had blackouts in New Mexico and Texas a few weeks ago that were
caused because a couple power plants went offline when their
water pipes froze. So, you can have heat waves, droughts, or
freezes that affect your water availability--if you don't have
the water, then you don't have power.
It goes the other way around--if you don't have power, you
can't get the water treatment or movement you always need, so
we have hurricanes that can knock power out, then you might
have water outages afterwards.
The good news is--there's a corollary. If you have energy,
then you have water availability, and vice versa. With
unlimited energy, we have unlimited water, and with unlimited
water, we have unlimited energy.
The third point is that the strains in this nexus will be
exacerbated because of population growth--more people who need
energy and water, economic growth--which means we all want more
energy and water than we used to, climate change--which
intensifies the hydrological cycle affecting droughts and heat
waves and snow melt, and things that affect the energy system,
and policy choices, where we are electing to move toward more
energy-intensive water and more water-intensive energy.
More energy-intensive water shows up in places where we
need to move water from further away or drill deeper because of
water tables falling, or use more low-quality sources, like
desalination or brackish sources, and that implies more energy.
More water-intensive energy is because of motivation for
domestic decarbonized sources, which means we might go to, more
toward nuclear power, which uses more water than coal or
natural gas, and the counter-trend there is actually solar and
wind, and other forms, natural gas, that use less water for
electricity. Then, in the transportation fuel sector, all the
unconventional fossil fuels require more water to produce.
Electricity needs a little more water to produce than
conventional gasoline. But, in particular, biofuels need a lot
of water. So, this is something for us to be aware of as we
move forward.
In particular, the Energy Policy Act of 2005 and the Energy
Independence and Security Act of 2007 have biofuels mandates
that are essentially water mandates, depending on how we make
these biofuels. They dictate that water use for biofuels go up
by a couple trillion gallons a year out of 36 trillion gallons
a year--our national consumption.
The fourth point is that there are different policy actions
that can help. Because rivers, watersheds, basins and aquifers
can span several States and several countries, it's hard for
one State to always manage the water, so there is a role for
Federal engagement on energy-water issues. But there are some
policy pitfalls to be aware of.
First of all, energy and water policymaking are
disaggregated--they have different funding oversight, different
agencies and committees with no clear authority. Water planners
often assume the have the energy they need, and energy planners
often assume they have the water they need. Energy tends to be
top-down, with strong Federal agencies and weak local agencies,
and water's the other way around--strong local agencies and
weak Federal agencies. Then, the data on water quantity are
sparse, out of date, error-prone, or inconsistent, so there's a
lot of problems. People talk about water in the East in terms
of gallons--in the West they use acre-feet--a acre-foot has
hundreds of thousands of gallons, so there's a mismatch in the
language they use, and that leads to problems.
The good news is, there are policy opportunities at the
energy-water nexus. Conservation is synonymous. If you want to
achieve energy conservation, then you should push for water
conservation. If you wish to achieve water conservation, push
for energy conservation. because they go hand in hand.
There's a big role federally for collecting, maintaining
and making available accurate, updated and comprehensive water
data--perhaps through the U.S. Geological Survey, or the Energy
Information Administration. The EIA has a lot of energy stats.
We could use an equivalent for water. Policymakers need good
data to make good decisions.
We can invest in water-related R&D to match increases in
energy-related R&D. The energy industry gets mocked for
spending less on R&D that the dog food industry, and the water
industry spends even less than the energy industry. We have
increased energy R&D in the last few years, but not water R&D,
so it would be great to see more of that. That includes low-
energy water treatment, novel approaches to desalination, leak
detectors to find water leaks--15 percent of our water supply
actually leaks underground. We could encourage resource
substitution of fuels that have water, emissions and security
benefits, like natural gas, solar PV, and wind.
We could support the use of reclaimed water for irrigation
or process fueling, and look at dry or hybrid wet-dry cooling
at power plants. We could also look at strict standards in
building codes for water efficiency. So, we have a lot of
opportunities.
In summary, the energy-water nexus is complicated and
important, and I'm very pleased to know you're being attentive
to this matter.
That concludes my testimony. I'll be pleased to answer
questions at the appropriate time.
[The prepared statement of Mr. Webber follows:]
Prepared Statement of Michael E. Webber, Ph.D., Assistant Professor,
Department of Mechanical Engineering, Associate Director, Center for
International Energy & Environmental Policy Co-Director, Clean Energy
Incubator The University of Texas at Austin, Austin, TX
Mr. Chairman and Members of the Committee, thank you so much for
the invitation to speak before your committee on the nexus of energy
and water. My name is Michael Webber, and I am the Associate Director
of the Center for International Energy and Environmental Policy and
Assistant Professor of Mechanical Engineering at the University of
Texas at Austin. I am here to share my perspective on important trends
and policy issues related to this nexus.
My testimony today will make four main points:
1. Energy and water are interrelated,
2. The energy-water relationship is already under strain,
3. Trends imply these strains will be exacerbated, and
4. There are different policy actions that can help.
I will briefly elaborate on each of these points during this
testimony.*
---------------------------------------------------------------------------
* All figures and tables have been retained in committee files.
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However, regionally, that number can be much higher. In California,
where water is moved hundreds of miles across two mountain ranges,
water is responsible for more than 19% of the state's total electricity
consumption. Similarly large investments of energy for water occurs
wherever water is scarce and energy is available.
In addition to using energy for water, we also use water for
energy. We use water directly through hydroelectric power generation at
major dams, indirectly as a coolant for thermoelectric power plants,
and as a critical input for the production of biofuels. The
thermoelectric power sector-comprised of power plants that use heat to
generate power, including those that operate on nuclear, coal, natural
gas or biomass fuels-is the single largest user of water in the United
States. Cooling of power plants is responsible for the withdrawal of
nearly 200 billion gallons of water per day. This use accounts for 49%
of all water withdrawals in the nation when including saline
withdrawals, and 39% of all freshwater withdrawals, which is about the
same as for agriculture.
The amount of water required by powerplants depends on the type of
fuel, power generation process, and cooling technology. Nuclear is the
most water-intensive, while solar PV, wind, and some uses of natural
gas are very water lean.
Typically, anywhere between 1 to 40 gallons of water is needed for
cooling for every kilowatt-hour of electricity that is generated.
However, while power plants withdraw vast amounts of water, very little
of that water is actually consumed; most of the water is returned to
the source though at a different temperature and with a different
quality. Thus, while power plants are major users of water, they are
not major consumers of water, which is in contrast with the agriculture
sector, which consumes all the water it withdraws.
The Energy-Water Relationship Is Already Under Strain
Unfortunately, the energy-water relationship introduces
vulnerabilities whereby constraints of one resource introduce
constraints in the other. For example, during the heat wave in France
in 2003 that was responsible for approximately 10,000 deaths, nuclear
power plants in France had to reduce their power output because of the
high inlet temperatures of the cooling water. Environmental regulations
in France (and the United States) limit the rejection temperature of
power plant cooling water to avoid ecosystem damage from thermal
pollution (e.g. to avoid cooking the plants and animals in the
waterway). When the heat wave raised river temperatures, the nuclear
power plants could not achieve sufficient cooling within the
environmental limits, and so they reduced their power output at a time
when electricity demand was spiking by residents turning on their air
conditioners. In this case, a water resource constraint became an
energy constraint.
In addition to heat waves, droughts can also strain the energy-
water relationship. During the drought in the southeastern United
States in early 2008, nuclear power plants were within days or weeks of
shutting down because of limited water supplies. Today in the west, a
severe multi-year drought has lowered water levels behind dams,
reducing output from their hydroelectric turbines. In addition, power
outages hamper the ability for the water/wastewater sector to treat and
distribute water.
While constraints in one resource introduce constraints on the
other, the corollary of that relationship is also true: with unlimited
energy, we could have unlimited freshwater; with unlimited water, we
could have unlimited energy.
Trends Imply These Strains Will Be Exacerbated
While the energy-water relationship is already under strain today,
trends imply that the strain will be exacerbated unless we take
appropriate action. There are four key pieces to this overall trend:
1. Population growth, which drives up total demand for energy
and water,
2. Economic growth, which can drive up per capita demand for
both energy and water,
3 Climate change, which intensifies the hydrological cycle,
and
4. Policy choices, whereby we are choosing to move towards
more energy-intensive water and more water-intensive energy.
Population Growth Will Put Upward Pressure on Demand for
Energy & Water
Population growth over the next few decades might yield another 100
million people in the United States over the next four decades, each of
whom will need energy and water to survive and prosper. This
fundamental demographic trend puts upward pressure on demand for both
resources, thereby potentially straining the energy-water relationship
further.
Economic Growth Will Put Upward Pressure on Per Capita
Demand for Energy & Water
On top of underlying trends for population growth is an expectation
for economic growth. Because personal energy and water consumption tend
to increase with affluence, there is the risk that the per capita
demand for energy and water will increase due to economic growth. For
example, as people become wealthier they tend to eat more meat (which
is very water intensive), and use more energy and water to air
condition large homes or irrigate their lawns. Also, as societies
become richer, they often demand better environmental conditions, which
implies they will spend more energy on wastewater treatment. However,
it's important to note that the use of efficiency and conservation
measures can occur alongside economic growth, thereby counteracting the
nominal trend for increased per capita consumption of energy and water.
At this point, looking forward, it is not clear whether technology,
efficiency and conservation will continue to mitigate the upward
pressure on per capita consumption that are a consequence of economic
growth. Thus, it's possible that the United States will have a
compounding effect of increased consumption per person on top of a
growing number of people.
Climate Change Is Likely To Intensify Hydrological Cycles
One of the important ways climate change will manifest itself it
through an intensification of the global hydrological cycle. This
intensification is likely to mean more frequent and severe droughts and
floods along with distorted snowmelt patterns. Because of these changes
to the natural water system, it is likely we will need to spend more
energy storing, moving, treating and producing water. For example, as
droughts strain existing water supplies, cities might consider
production from deeper aquifers, poorer-quality sources that require
desalination, or long-haul pipelines to get the water to its final
destination. Desalination in particular is energy-intensive, as it
requires approximately ten times more energy than production from
nearby surface freshwater sources such as rivers and lakes.
Policy Choices Exacerbate Strain in the Energy-Water Nexus
On top of the prior three trends is a policy-driven movement
towards more energy-intensive water and water-intensive energy.
We are moving towards more energy-intensive water because of a push
by many municipalities for new supplies of water from sources that are
farther away and lower quality, and thereby require more energy to get
them to the right quality and location.
At the same time, for a variety of economic, security and
environmental reasons, including the desire to produce a higher
proportion of our energy from domestic sources and to decarbonize our
energy system, many of our preferred energy choices are more water-
intensive. For example, nuclear energy is produced domestically, but is
also more water-intensive than other forms of power generation. The
move towards more water-intensive energy is especially relevant for
transportation fuels such as unconventional fossil fuels (oil shale,
coal-to-liquids, gas-to-liquids, tar sands), electricity, hydrogen, and
biofuels, all of which can require significantly more water to produce
than gasoline (depending on how you produce them). It is important to
note that the push for renewable electricity also includes solar
photovoltaics (PV) and wind power, which require very little water, and
so not all future energy choices are worse from a water-perspective.
Almost all unconventional fossil fuels are more water-intensive
than domestic, conventional gasoline production. While gasoline might
require a few gallons of water for every gallon of fuel that is
produced, the unconventional fossil sources are typically a few times
more water-intensive. Electricity for plug-in hybrid electric vehicles
(PHEVs) or electric vehicles (EVs) are appealing because they are clean
at the vehicle's end-use and it's easier to scrub emissions at hundreds
of smokestacks millions of tailpipes. However, most powerplants use a
lot of cooling water, and consequently electricity can also be about
twice as water-intensive than gasoline per mile traveled if the
electricity is generated from the standard U.S. grid. If that
electricity is generated from wind or other water-free sources, then it
will be less water-consumptive than gasoline. Though unconventional
fossil fuels and electricity are all potentially more water-intensive
than conventional gasoline by a factor of 2-5, biofuels are
particularly water-intensive. Growing biofuels consumes approximately
1000 gallons of water for every gallon of fuel that is produced.
Sometimes this water is provided naturally from rainfall. However, for
a non-trivial and growing proportion of our biofuels production, that
water is provided by irrigation.
Note that for the sake of analysis and regulation, it is convenient
to consider the water requirements per mile traveled. Doing so
incorporates the energy density of the final fuels plus the efficiency
of the engines, motors or fuel cells with which they are compatible.
Conventional gasoline requires approximately 0.2 gallons of water per
mile traveled, while irrigated biofuels from corn or soy can consume 20
to 100 or more gallons of water for every mile traveled.
If we compare the water requirements per mile traveled with
projections for future transportation miles and combine those figures
with mandates for the use of new fuels, such as biofuels, the water
impacts are significant. Water consumption might go up from
approximately one trillion gallons of water per year to make gasoline
(with ethanol as an oxygenate), to a few trillion gallons of water per
year. To put this water consumption into context, each year the United
States consumes about 36 trillion gallons of water. Consequently, it is
possible that water consumption for transportation will more than
double from less than 3% of national use to more than 7% of national
use. In a time when we are already facing water constraints, it is not
clear we have the water to pursue this path. Essentially we are
deciding to switch from foreign oil to domestic water for our
transportation fuels, and while that might be a good decision for
strategic purposes, I advise that we first make sure we have the water.
There are Different Policy Actions That Can Help
Because there are many rivers, watersheds, basins and aquifers that
span several states and/or countries, there is a need for federal
engagement on energy-water issues.
Unfortunately, there are some policy pitfalls at the energy-water
nexus. For example, energy and water policymaking are disaggregated.
The funding and oversight mechanisms are separate, and there are a
multitude of agencies, committees, and so forth, none of which have
clear authority. It is not unusual for water planners to assume they
have all the energy they need and for energy planners to assume they
have the water they need. If their assumptions break down, it could
cause significant problems. In addition, the hierarchy of policymaking
is dissimilar. Energy policy is formulated in a top-down approach, with
powerful federal energy agencies, while water policy is formulated in a
bottom-up approach, with powerful local and state water agencies.
Furthermore, the data on water quantity are sparse, error-prone, and
inconsistent. The United States Geological Survey (USGS) budgets for
collecting data on water use have been cut, meaning that their latest
published surveys are anywhere from 5 to 15 years out of date. National
databases of water use for power plants contain errors, possibly due to
differences in the units, format and definitions between state and
federal reporting requirements. For example, the definitions for water
use, withdrawal and consumption are not always clear. And, water
planners in the east use ``gallons'' and water planners in the west use
``acre-feet,'' introducing additional risk for confusion or mistakes.
Despite the potential pitfalls, there are policy opportunities at
the energy-water nexus. For example, water conservation and energy
conservation are synonymous. Policies that promote water conservation
also achieve energy conservation. Policies that promote energy
conservation also achieve water conservation.
Thankfully, the federal government has some effective policy levers
at its disposal. I recommend the following policy actions for the
energy-water nexus:
1. Collect, maintain and make available accurate, updated and
comprehensive water data, possibly through the USGS and EIA.
The Department of Energy's Energy Information Administration
maintains an extensive database of accurate, up-to-date and
comprehensive information on energy production, consumption,
trade, and price available with temporal and geographic
resolution and standardized units. Unfortunately, there is no
equivalent set of data for water. Consequently, industry,
investors, analysts, policymakers and planners lack suitable
data to make informed decisions.
2. Invest heavily in water-related R&D to match recent
increases in energy-related R&D. R&D investments are an
excellent policy option for the federal government because
state/local governments and industry usually are not in a
position to adequately invest in research. Consequently, the
amount of R&D in the water sector is much lower than for other
sectors such as pharmaceuticals, technology, or energy.
Furthermore, since energy-related R&D is expected to go through
a surge in funding, it would be appropriate from the
perspective of the energy-water nexus to raise water-related
R&D in a commensurate way. Topics for R&D include low-energy
water treatment, novel approaches to desalination, remote leak
detectors for water infrastructure, and air-cooling systems for
power plants. In addition, DoE's R&D program for biofuels
should emphasize feedstocks such as cellulosic sources or algae
that do note require freshwater irrigation.
3. Encourage resource substitution to fuels that have water,
emissions and security benefits. Some fuel sources such as
natural gas, wind, and solar PV are domestic, need much less
water, and reduce emissions of pollutants and carbon.
4. Support the use of reclaimed water for irrigation and
process cooling. Using reclaimed water for powerplants,
industry, and agriculture can spare a significant amount of
energy and cost. However there are financing, regulatory and
permitting hurdles in place that restrict this option.
5. Support the use of dry and hybrid wet-dry cooling at
powerplants. Not all powerplants need wet cooling all the time.
Finding ways to help plants upgrade their cooling to less
water-intensive versions can spare significant volumes of water
to meet public supply or in-stream flow requirements.
6. Establish strict standards in building codes for water
efficiency. Building codes should include revised standards for
low-flow appliances, water-heating efficiency, purple-piping
for reclaimed water, rain barrels and so forth in order to
reduce both water and energy consumption.
7. Invest aggressively in conservation. Water conservation
can be a cost-effective way to save energy, and energy
conservation can be a cost-effective way to save water.
Therefore, conservation has cross-cutting benefits.
The energy-water nexus is a complicated, important issue, and so I
am very pleased to know that you are being attentive to the matter.
Mr. Chairman, that concludes my testimony. I'll be pleased to
answer questions at the appropriate time.
SUMMARY--Trends and Policy Issues For The Nexus of Energy and Water
There are four main points:
1. Energy and water are interrelated,
2. The energy-water nexus is already under strain,
3. Trends imply these strains will be exacerbated, and
4. There are different policy actions at the federal level
that can help.
Point #1: Energy and Water Are Interrelated
We use energy for water, and we use water for energy.
Energy for Water--US public water supply requires 4% of
national energy and 6% of national electricity consumption
Water for energy--Half of all water withdrawals are for
power plant cooling (most is returned to the water source);
water needs vary with fuel type and cooling system
Point #2: The Energy-Water Relationship Is Already Under Strain
The energy-water relationship is already under strain:
constraints are cross-sectoral
Heat waves and droughts can constrain energy
Energy outages can constrain water
Corollary: with unlimited energy, we could have unlimited
freshwater and vice-versa
Point #3: Trends Imply These Strains Will Be Exacerbated
Trends imply that the strain will be exacerbated unless we
take appropriate action
1. Population growth, which drives up total demand for energy
and water,
2. Economic growth, which can drive up per capita demand for
energy and water,
3. Climate change, which intensifies the hydrological cycle
(droughts and heat waves) causing more energy for water
storage, conveyance and treatment
4. Policy choices: moving to energy-intensive water & water-
intensive energy.
Energy-intensive water: Long-haul, Deeper aquifer
production, Desalination
Water-intensive energy: Motivation: domestic,
decarbonized sources
--Nuclear power and biofuels
--Counter trend: natgas/Solar PV/wind lower the water use of
electricity
Point #4: There are Different Policy Actions That Can Help
Because Rivers, watersheds, basins and aquifers can span
states and countries
There is a need for federal engagement on energy-
water issues.
There are some policy pitfalls at the energy-water nexus.
There are policy opportunities at the energy-water nexus
Water conservation and energy conservation are
synonymous.
Collect, maintain and make available accurate,
updated and comprehensive water data, possibly through the
USGS.
Invest in water-related R&D to match increases in
energy-related R&D.
--Low-energy water treatment,
--Novel approaches to desalination,
--Remote leak detectors for water infrastructure,
--Air-cooling systems for power plants
--Biofuels that don't require freshwater irrigation (algae,
cellulosic)
Encourage resource substitution to fuels with water/
emissions/security benefits
--Natural gas, solar PV, wind
Support the use of reclaimed water for irrigation
and process cooling.
Support the use of dry and hybrid wet-dry cooling at
power plants
--R&D and infrastructure swap-outs
Establish strict standards in building codes for
water efficiency.
--low-flow appliances, water-heating efficiency, purple-piping for
reclaimed water, rain barrels, etc.
Invest aggressively in conservation
The Chairman. Thank you. Thank you for the testimony.
Thank you all for your testimony.
Senator Murkowski wanted to make a statement here, and I'll
defer to her.
Senator Murkowski. Thank you, Mr. Chairman.
I apologize, gentlemen. I have to excuse myself to go
attend another hearing.
I appreciate the testimony that you each have provided, and
the level of detail.
Dr. Webber, I really appreciate it, because you've given a
whole laundry list of things. You speak very quickly, but I
heard it all.
[Laughter.]
Mr. Webber. I saw the timer ticking down. Yes.
Senator Murkowski. That's right. But, I also appreciated
your article about Water versus Energy, and just the very, the
way that you articulated the nexus. I don't think it's
something that we appreciate as fully as we need to. When we're
talking about energy we need to understand how water really is
so integrally tied in there. I think you've laid it out well.
I'm not sold on the idea of creating yet another department
here. I don't think from a budget perspective we're there yet.
But I do agree that we must do more to really understand what
that nexus is, and how it works.
I'd also like to recognize you, Mr. Seebach and Mr. Munro,
as representatives from American Rivers and the National
Hydropower Association. I do think that through your efforts we
do have a better piece of legislation that is moving forward. I
appreciate the collaboration there. I really think that that
has helped us.
Mr. O'Neill, I'm really excited about what our potential is
with our ocean energy resources, and look forward to working
with you on that.
I do have questions. I will present those to you for your
written responses. Again, I appreciate you being here.
Thank you for the courtesy, Mr. Chairman.
The Chairman. All right. Thank you.
Senator Shaheen, go right ahead. Why don't--you haven't had
a chance to ask questions. Go right ahead.
Senator Shaheen. Thank you, Mr. Chairman.
Thank you all very much for your testimony. It was
particularly fascinating, and a good reminder of just how
related energy and water are.
I'm particularly interested, Mr. O'Neill, in what you had
to say about the potential of our oceans and rivers for energy
production. This is an interest for me because at the
University of New Hampshire, where I'm from, New Hampshire,
they're doing some of the cutting-edge research around tidal
and wave energy. We also have one of the fastest-flowing rivers
in North America, so it makes a good place to do some of that
research.
Can you talk a little bit about how much potential there
is, or, we think there is, in terms of ocean and river energy?
Then, if you, if we have breakdowns, how that breaks down for
the Northeast?
Mr. O'Neill. Thank you very much.
I want to call you Governor Shaheen, Senator Shaheen.
Senator Shaheen. I get that a lot.
Mr. O'Neill. Actually, when you were Governor I was working
for the Merrimack River Watershed Counsel.
Senator Shaheen. Ah. Good. I knew I liked you.
Mr. O'Neill. The Electric Power Research Institute has
estimated 250 megawatt hours--252 million megawatt hours of
wave potential alone in the United States. A lot of that is in
Alaska. Professor Martin Wosnick at UNH, who's doing a lot of
that cutting-edge research that you mentioned--we do have great
rivering resources in New Hampshire. You also have, up north in
Maine, especially, you've got tremendous tidal resources. But
we're looking at--the first rivering resource assessment was
done in 1986, and that has stood alone by itself until just
recently, when DOE funded the Electric Power Research Institute
to update that. We're looking at probably 3.5 percent of our
capacity in the United States coming from tidal and rivering
resources. So, when you can, add wave and tidal and river
resources together, it's about 10 percent.
Senator Shaheen. What's the, what are the best projections
on how long it's going to take us to get to commercialization
for the research that's being done? If I could ask you to also
talk about, what are the biggest obstacles to moving forward
with the research, to get all of these efforts to
commercialization?
Mr. O'Neill. Fear of the unknown. We do not have a real-
time experience in research and development on projects in the
water. That data is just starting to come out. Most of it's
coming from overseas right now. I mentioned the Strangford
Lough project.
Permitting is a very difficult aspect of this technology
because we're not exactly certain. We've--in our gut we
understand that these are going to be pretty benign, but the
risk of catastrophic disaster is tiny when we look at the
anecdotal evidence in terms of the Verdant project or MCT--we
saw that the fish are actually swimming around the turbines.
So, we're getting that anecdotal information. It is going to be
technology-specific. It's going to be site-specific. So,
getting past those things.
Now, people have been really working hard at this. FERC has
been working hard at it. The Bureau of Ocean Energy Management
Resources and Enforcement has been working hard at this. We
have ARPA-E at the Department of Energy that has a categorical
exclusion rulemaking in process right now. We've got the Army
Corps of Engineers that wants to have a national permit that
would include test center transmission lines.
So, we're making great headway. We're standing on the
shoulders of other renewables. I think it was Mr. Chalk this
morning who mentioned that we're 20 years behind wind. I think
5 years ago that would be right on point. But I think we're
making--just in the last 3 months, the great progress that has
happened is, has just been tremendous. So, we're getting there
much quicker than we thought.
Senator Shaheen. My time is almost up, but if I could just
do one follow-up.
How big an issue is funding to do the research and get the
dollars that are needed?
Mr. O'Neill. Once you start funding these companies and
projects like this, if the funding goes away for 6 months or
for a year, those companies could die on the vine.
Senator Shaheen. Is there much private sector investment?
Mr. O'Neill. About $500 million is, in equity valuation
today.
Senator Shaheen. Can you compare that for us to, say,
what's going on in wind or solar?
Mr. O'Neill. It's tiny compared to wind----
Senator Shaheen. Yes.
Mr. O'Neill. [continuing]. Or solar. In fact, one of the
problems that we've had is, when wind and solar first started
they had huge utility-scale tests, where you had 9 square miles
in the Mojave Desert in California. Now, they learned a lot
from those tests. The wind industry also had over 4,000
turbines in the same area. Huge, huge utility-scale projects.
But when you're working in public waterways--and I think our
friends from FERC----
Senator Shaheen. Sure.
Mr. O'Neill. [continuing]. Have described that. It takes a
lot of, as many as 17 to 25 State and Federal agencies to get
your permits.
Senator Shaheen. Thank you.
Thank you, Mr. Chairman.
The Chairman. Let me just ask, and maybe, Dr. Webber, you'd
have a point of view on this, or any of the rest of you. But my
impression from the previous panel is that we're talking here
about very low-cost power generation, as compared to other ways
that we can generate power. I mean, the investment is not that
great. I think, one of the witnesses--maybe Mr. Chalk--talked
about how 30, I guess, $30 million had gone, had been, come out
of the Stimulus Act--or maybe it was $30 billion----
Mr. O'Neill. Million.
The Chairman.--$30 billion was used for projects--
hydroelectric projects, as I understood it, and that those
projects were producing power in the range of 2 to 3 cents per
kilowatt hour. I thought I heard him say that. Two to four
cents per kilowatt hour.
If that's true, what's the problem that is keeping
utilities from making this choice when they need to add power,
or need to add renewable power? Why is it that they are not
going ahead and choosing this if, in fact, you can produce
power at 2 to 4 cents per kilowatt hour, rather than at 10
cents per kilowatt hour, which might be the cost of solar?
Mr. Webber. The, with a lot of these opportunities for
power, the capital costs up front are very expensive. But once
you've paid to build it, the cost of incremental generation's
quite cheap. So, once you've built a hydroelectric system it
generates power very cheaply, but it costs money up front to
build it. So, sometimes that price is just the marginal cost of
each additional kilowatt hour.
The Chairman. So, you think the 2 to 4 cents per kilowatt
hour is just the marginal cost once the capital investment's
been made?
Mr. Webber. Typically, for the numbers I see--these
gentlemen can correct me if I'm wrong--so, that's one issue, is
that capital costs versus marginal costs. A lot of the water-
based technologies are very cheap to operate, very inexpensive
to operate. Very clean to operate. But are expensive up front
to build. Then, for some States, like, Texas, New Mexico,
others, there water resources are unavailable. So, this is
geographically unequal. Some State have better resources
available than others. So, you have, first of geographical or
geological resource constraint, and after that, price
competition. Usually for the capital, once its built it's very
cost-competitive.
The Chairman. Mr. Munro, did you have a thought on this?
Mr. Munro. Yes, Mr. Chairman.
So, as a public utility in the Northwest, we, part of
integrated resource plan, we evaluate all the various resources
from, you know, coal to hydroelectric generation, to nuclear,
and so, we look at it from a variety of lenses, one being cost,
another being, how clean is it? Another being, is, how quickly
can you get this online? So, from our perspective, the most
inexpensive research right now is conservation. So that's where
we put a lot of our efforts. Of course, we're upgrading our
current hydro facilities.
The costs on new hydro can range, as you mentioned, but,
I'll put it to a megawatt hour, it's about $70 to $95 a
megawatt hour. Compare that to a combined cycle gas plant, it's
about $90. Then you look at other resources--they get more
expensive, other renewables are more expensive. So, actually,
we considered a combined cycle gas plant primarily because we
could get that permitted in 2 years, versus the Cle Elum hydro
project we were looking at--it's an existing dam--we looked at
about a 5-year plus timeline to get that online.
So, we've shelved the gas plant for right now, but we think
that, like, a policy like the Hydropower Improvement Act, we
believe that will help us have a smarter, you know, process.
We're encouraged by that.
But, again, we're going to pursue conservation. We'd like
to do more hydro, like to see pump storage, because of it's
ability to integrate intermittent resources.
The Chairman. So, from your perspective, it's not so much
that the power from hydropower is more expensive than natural
gas--it's not.
Mr. Munro. Right.
The Chairman. But, it just takes so much longer to get the
permits and to get it constructed, and online.
Mr. Munro. That's true. Also, gas is a firm--it's a real
firm resource, meaning it's there when you need it. You know,
hydropower would be a great alternative because of its
renewable nature. But, that's absolutely right. There's more to
it than that, but you've basically got the gist of it.
The Chairman. OK. All right.
Senator Shaheen, did you have other questions? If so, go
ahead.
Senator Shaheen. I'm sorry--Mr. Seebach's testimony, but,
are there, can you talk a little bit about what kinds of
environmental mitigation measures that we ought to be looking
at in terms of hydropowers? We're thinking about getting--in
New Hampshire we have a lot of small hydropower dams. Many of
them are community owned. Many of them are not producing
electricity anymore, and one of the concerns is just what the
impact would be on the environment, the fish in particular, of
starting those again. In fact, I have to say, when I was
Governor one of the things that we were very proud of was that
we dismantled a number of those dams because we thought it was
going to be better for the rivers and the environment in the
rivers. So, could you speak a little bit to that issue?
Mr. Seebach. Yes, Senator. Thank you.
I think, hydropower is very site-specific, so there are a
series of impacts that we look at when we're evaluating a
project. Obviously, things like fish passage--ensuring that if
part of the river is being dewatered to divert water to a
powerhouse, that that section of river has adequate flows to
support aquatic life.
But I think when you're looking at individual projects, the
keys are really some of the same things that Mr. Wright said in
his testimony. The first important thing is that you're
choosing a good site and that you have good project design. So,
a good site is a site that does not have significant resource
issues. There's a difference between building on a dam--on a
stretch of river that doesn't have a high value fishery
compared to, say, building a new dam in a fish--in a river with
a critical run of salmon, for example.
I think the second thing that developers can do is reach
out early and often to stakeholders, both environmental groups,
and particularly resource agencies and regulators, to make sure
that they understand what will be required of them, and to
really keep those lines of communication clear and, really,
work hard to provide that information as quickly as possible.
I think the other thing that's really important to making
sure projects are appropriately mitigated is improved
coordination between the multiple Federal agencies that work on
hydropower projects, and, the Federal and State agencies. I
think there are things they do well together. But I think it
could be done better.
Senator Shaheen. Thank you.
Thank you, Mr. Chairman.
The Chairman. Thank you all very much. It's been useful
testimony.
We will ask that any additional statements, written
statements that anyone wants to provide to the committee be
provided no later than Tuesday. We're hoping that sometime in
the next couple of weeks we can have a markup and proceed with
these bills.
Thank you all very much.
[Whereupon, at 11:14 a.m., the hearing was adjourned.]
APPENDIXES
----------
Appendix I
Responses to Additional Questions
----------
Responses of Jeff C. Wright to Questions from Senator Bingaman
Question 1. Some of the testimony we have received today has
asserted that the licensing process for hydropower projects is much
slower than the process for other types of renewable energy such as
wind and solar projects--if that is the case, are there steps that FERC
has taken to make the licensing process for hydropower projects more
efficient, and are there any areas where there is still room for
improvement?
Answer. The Commission has taken a number of steps to improve the
efficiency of the hydropower licensing process. These include
developing three separate licensing processes, so that developers and
other stakeholders can select the process that is best suited for a
particular case, as well as the expedited pilot process for
hydrokinetic projects; creating model applications and other web-based
tools designed to make the process of small hydropower development
easier; entering into memoranda of understanding with several states
and with federal agencies; conducting public outreach; and working one-
on-one with potential applicants.
There is undoubtedly room for improvement, but the Commission's
ability to shorten the licensing process is greatly constrained by
current law. The Federal Power Act gives federal land management and
resource agencies the authority to impose mandatory conditions on
hydropower licenses. The courts have held that the statute does not
give the Commission the authority to set deadlines for these agencies
to act. In addition, the Commission must comply with other statutes,
such as the Clean Water Act, the Endangered Species Act, the Coastal
Zone Management Act and the National Historic Preservation Act. As with
the Federal Power Act, the Commission lacks authority to require the
agencies with authority under those statutes to act within a set
timeframe. As a result, licensing proceedings are often delayed, after
the Commission has reviewed the application and prepared its
environmental analyses, waiting for other entities to act.
Approximately one-fourth of the applications currently pending before
the Commission have been delayed, in some cases for up to six years,
because other agencies have not completed their respective processes.
As I stated in my testimony, if Congress were to make clear that the
Commission can establish enforceable schedules for license application
processing, delays of this nature could be eliminated.
With respect to small hydropower projects, we have taken several
steps to make the licensing process more efficient. When adequate
consultation has been conducted, we have been able to waive some pre-
filing consultation requirements (with resource agency cooperation) and
combine environmental scoping with pre-filing consultation. We have
also been able to combine public noticing requirements and shorten
comment periods to expedite the licensing process. On some projects,
encouraging applicants to coordinate with resource agencies during pre-
filing has resulted in obtaining these agencies' final terms and
conditions with the license or exemption application.
Question 2. I am aware of at least one project in New Mexico, for
the City of Santa Fe, that was able to receive an authorization to
proceed with a ``conduit'' hydropower project within two months of
filing an application. The project is estimated to save the City
approximately $20,000 per year in electricity costs. What are some
suggestions you might make for applicants to enable them to quickly
move through the application process? For example, your testimony
suggests that the process works most efficiently when applicants work
in advance with resource agencies and other stakeholders--how are you
encouraging applicants to do that?
Answer. The main reason that the City of Santa Fe's conduit
application was processed so quickly was that the city's application
was substantially complete when filed. The city had discussions with
Commission staff prior to filing the application. Staff referred the
city to the Commission's small hydro website, where there was guidance
on how to move efficiently through the prefiling process, including
several templates that the applicant could use to prepare its
application and request waivers of consultation from resource agencies.
The City followed that guidance. In addition, the city, after preparing
its initial consultation document, submitted that draft document to
Commission staff for review, and staff was able to point out portions
of the document that required revision before the application was
filed. When the application was filed, because the City demonstrated
that proposed project would likely have few potential environmental
effects, staff was able to shorten the public notice period, further
facilitating the application's swift approval.
Commission staff has made substantial efforts to alert developers
and other stakeholders of the tools that the City used to shorten the
authorization process. Staff has conducted a number of outreach
sessions, attended by over 100 potential small hydro developers, as
well as by other stakeholders and is planning more over the next six
months. I believe that the Commission's enhanced web site is also
serving as a valuable tool. In addition, Commission staff is available
to the public and spends a substantial amount of time working with
potential applicants, as it did with the City, to ensure that they
understand the application process and prepare the best possible
application. This one-one-one approach continues to be very successful.
Responses of Jeff C. Wright to Questions From Senator Murkowski
Question 1. Currently, there are proposed projects totaling over
88,000 MW with pending license applications and preliminary permits
filed with FERC. That alone should demonstrate that the hydropower
resource is not tapped out. For what types of projects are you
receiving applications? What trends do you see in applications?
Answer. Although relicense applications still outnumber
applications for new projects, we have seen an increase in the number
of applications for new projects (licenses and exemptions) in recent
years. The number of currently pending applications (94, representing
about 12,304 MW) breaks down as follows: original licenses (26,
representing about 2,000 MW); 5-MW exemptions (7, representing about 3
MW); conduit exemptions (3, representing about 1 MW); and relicenses
(58, representing about 10,300 MW). Nearly all of the pending
applications for original licenses are for conventional hydro projects
at existing dams; one is for a pumped storage project and three are for
hydrokinetic projects.
There has also been a sharp rise in the number of preliminary
permits the Commission has issued in recent years, including
competition for permits. Of the nearly 400 permits that are in effect
(representing about 49,600 MW), 25 are for conventional projects (3,500
MW), 90 are for hydrokinetic projects (10,200 MW), and 48 are for
pumped storage projects (35,900 MW). There are also over 300 permit
applications pending which could represent a significant amount of
potential additional capacity. I note, however, that the capacity
numbers for projects in the permit stage are not firm, because there is
competition for the permit at many sites and only one entity will
receive the permit; and if an application is ultimately filed, the
capacity of the proposed project often changes.
Question 2. S. 629 opens federal lands to the conduit ``exemption''
licensing process for the first time. In response to concerns raised by
environmental groups, the legislation authorizes the federal land
management agencies to impose conditions on proposed projects on their
lands. The Fish and Wildlife Service and the National Marine Fisheries
Service already have this authority. In your testimony before the
Committee, you noted some concern with this authorization of additional
mandatory conditioning authority because it may slow down the licensing
process. Please elaborate on this point.
Answer. In authorizing the Commission to issue conduit exemptions--
and subsequently exemptions to small project of 5 megawatts or less--
Congress provided in section 30(c) of the Federal Power Act that
exemptions must include fish and wildlife conditions imposed by federal
and state resource agencies. In our experience, this process has worked
reasonably well, with little delay and few conflicts arising regarding
conditions for exemptions. While I recognize the valid interest that
federal land management agencies have in protecting the lands entrusted
to their supervision, I also have some concern that the more entities
that have mandatory conditioning authority under the Federal Power Act
or other Federal statutes, the more likely it is that the exemption
process will become more cumbersome and slow, and that conditions will
be imposed that make projects infeasible. This concern could be to some
extent ameliorated if Congress were to make clear that the Commission
can establish enforceable schedules for processing hydropower cases.
Question 3. Please elaborate on how assembling and sharing
environmental information may speed up the advance of the marine
hydrokinetic industry. How expensive is the permitting process at
present for individual projects and how long does it take to complete
baseline studies? In 2007 there were discussions regarding funding a
generic environmental impact statement for hydrokinetic devices. This
proposal somewhat replaces that idea. Please comment on its ability to
expedite the licensing of such devices.
Answer. Because marine hydrokinetic technology is relatively new
and the sites for proposed projects--particularly offshore--are not
well-studied, it is necessary to develop the information needed to
understand the potential environmental impacts of these projects, as
well as technological issues. To the extent that this information can
be developed and shared in a centralized manner, rather than requiring
each applicant to fund and perform its own studies, time, effort, and
money can be saved. Some of the pioneer developers in the marine
hydrokinetic industry consider their collected environmental data to be
proprietary, due to the high costs that they incur in collecting them.
Aiding to fund some of the costs of these studies would alleviate some
of the economic burden of these pioneer developers and promote
information-sharing. Also, the assembling and sharing of information
would facilitate efficient government oversight of the development of
the industry by expanding the baseline knowledge of environmental
effects and monitoring methods. Further, a greater understanding of the
environmental effects and monitoring methods related to marine
hydrokinetics could foster public acceptance and so help to advance the
industry. The expense of the application process varies too widely to
give a fixed number, but the three developers who have filed
applications for hydrokinetic projects reported costs of,
approximately, $1 million, $2 million and $3 million. Because these
were among the first hydrokinetic projects and involved some testing of
equipment, I cannot say whether these figures will be predictive of
costs in future cases. From the Commission's limited experience to date
with marine hydrokinetic project proposals, the baseline studies
necessary for project authorization typically take one to two years.
Question 4. S. 629 calls on FERC to conduct a series of regional
workshops for both conduit and small hydropower projects. You noted in
your testimony that the Commission has already done local outreach on
small hydro projects. Given the Commission's previous work in this
area, do you think additional regional public workshops for small hydro
projects are unnecessary?
Answer. As I discussed in my testimony, the Commission has
conducted extensive outreach with respect to small hydro and, based on
what we heard, has set up a number of web-based tools, including
``fill-in-the-blank'' applications, to provide information to those
interested in developing small hydro projects and to make the
application process easier. To date, we have conducted a number of
outreach sessions, attended by over 100 potential small hydro
developers, as well as by other stakeholders and we are planning more
over the next six months. Given this outreach and regulatory effort, I
am not certain that additional workshops are necessary. However, we are
certainly prepared to conduct them, should Congress deem it
appropriate.
Question 5. Please describe the recent Memorandum of Understanding
the Commission entered into with the State of Colorado, and please
specifically describe the simple application process for certain types
of micro-conduit hydropower projects.
Answer. The Memorandum of Understanding (MOU) between the
Commission and the State of Colorado established simplified procedures
for developing small-scale hydropower projects in Colorado. Under the
MOU, Colorado has developed a pilot program to assist developers in
consulting with the relevant agencies, developing applications for
small projects, and prescreening those applications for compliance with
the Commission's regulations. In turn, Commission staff has agreed to
waive certain consultation requirements (when all relevant agencies
agree to do so), combine public noticing requirements, and shorten
comment periods, in order to expedite the licensing of these projects.
The MOU states that Colorado's pilot program will continue until 20
projects have completed the program, at which point Colorado and FERC
will evaluate the effectiveness of the pilot program. Should the
procedures or some aspects thereof prove successful, both Colorado and
FERC intend that these approaches be continued. Beginning in May 2011,
Colorado proposes to submit three conduit exemption applications in a
six-month period. This approach shows great promise for expediting
action on small hydropower projects and we look forward to working with
Colorado.
Responses of Jeff C. Wright to Questions From Senator Wyden
Question 1. Micro-hydropower conduit projects application
requirements--We hear from small conduit developers in Oregon that the
Commission has made its conduit exemption application process more
user-friendly, with changes like the Commission's new template.
However, we also hear that more can be done. Farmers and small
developers assert that particular aspects of the application are
burdensome and unnecessary for no-impact micro-hydropower projects. For
example, FERC's requirement of three copies of surveyor-stamped maps
and drawings from three different angles have been cited as adding to
the cost of these small, no-impact projects. As a result, developers
have cited costs to move through the FERC conduit exemption process
that range from $6,000 to $8,000 in a good case, and often up to
$10,000 or $20,000. For very small projects, these costs can become
prohibitive. For example, a typical 5 kw irrigation pipe turbine may
generate $300 of electricity a month during the irrigation season, or
$1,500 a year. What additional actions could FERC take to reduce
application requirements for no-impact micro-hydropower projects, such
as projects involving municipal pressure reduction valves and existing
irrigation conveyances?
Answer. The Commission is prepared to consider any suggestions for
ways to make the small hydro process simpler and less expensive. This
may be particularly fruitful for conduit projects, with respect to
which the Commission already has issued a categorical exemption from
NEPA review, based on the premise that construction of the conduit on
which such a project is located has already been approved by a state or
federal agency, which has examined and required appropriate mitigation
for the environmental impacts of that action. It is more difficult to
develop similar, generally-applicable steps for non-conduit small
hydro, because the small size of an in-stream project will not always
guarantee minor environmental impacts (for example, a 200-kilowatt
project could be located on a stretch of river where there are
endangered species or important spawning grounds). However, the ``pre-
approval'' approach being taken by the State of Colorado holds great
promise. Where state and federal resource agencies, along with other
stakeholders, have been able to agree that a proposed project has few
environmental impacts, the Commission has already been able, under its
existing processes, to authorize the project very quickly, with little,
if any, additional burden on the applicant. As I discussed in response
to a question from Senator Murkowski, giving the Commission the ability
to set enforceable schedules in hydropower licensing proceedings would
help ensure that these cases are resolved in a timely manner. With
respect to the surveys and maps that you mention, the requested data is
needed so that the Commission can plot, using the global information
system (GIS), the precise locations of projects it authorizes. However,
we would certainly be willing to consider whether there are less
expensive ways to develop this important information.
Question 2. Micro-hydropower outreach requirements--Another concern
raised by Oregon developers of micro-hydropower projects is the
significant outreach required to consult with stakeholders. The same 5
kw turbine in a rural Oregon irrigation pipe requires outreach to over
a dozen different agencies, agencies that invariably have no concerns
with the project. Why can't the Commission establish a process whereby
Commission staff consolidates outreach notifications for micro-
hydropower projects by maintaining lists of stakeholders in various
states, and then once a month Commission staff could send a batched
notice out of any pending micro-hydropower projects? Is it really
necessary to maintain the typical three-stage consultation process for
this class of projects?
Answer. I agree that it makes sense to simplify the process for the
consideration of micro-hydropower projects as much as possible. The
Federal Power Act establishes a regulatory scheme that is premised on
notice to the public and on shared decisionmaking, in which agencies
other than the Commission have statutory authority to be consulted and
to impose conditions with respect to proposed hydropower projects. It
is not possible for the Commission to predict in advance whether local,
state, and federal agencies will express concerns about, or decide to
impose conditions on, any given project. Moreover, the Commission
cannot waive statutory notice requirements or authority that Congress
has given to other entities. If, however, those entities--particularly
the federal and state resource agencies--show a willingness to waive
some or all of the consultation and conditioning process or to sign off
in advance on certain types of projects, it might be possible for the
Commission to establish an expedited process, such as that which you
suggest. We are willing to consult on batches of similar projects, and
have already done so in some instances.
______
Responses of Michael E. Webber to Questions From Senator Bingaman
Question 1. Your testimony points out that this issue is not just a
western issue, but that water shortages in other areas of our country
may also impact power generation. For example, you note that during the
drought in the southeastern U.S. in 2008, nuclear power plants were
within days or weeks of shutting down because of limited water
supplies. How can a greater understanding of the connection between
energy sources and water supplies help to avoid those types of
conflicts?
Answer. The relationship between water and energy is a global
issue, though some regions of the world, such as the western U.S., feel
the tensions in this relationship very acutely. A greater understanding
of the connection between energy sources and water supplies can help
avoid those types of conflicts by: 1) integrating decision-making such
that water planners and energy planners work together, 2) pursuing
synergistic R&D programs (for example, to develop energy-lean sources
of water and water-lean sources of energy), and 3) building resiliency
into our energy system so that it is less vulnerable to water scarcity
and building resiliency into our water system so that it is less
vulnerable to energy shortages.
Question 2. Your testimony highlights the need to investigate the
water supply needs associated with electricity generation AND
transportation fuels, which our legislation seeks to do. You have also
indicated that a ``switch from gasoline to electric vehicles or
biofuels is a strategic decision to switch our dependence from foreign
oil to domestic water''. Can you please elaborate on your thoughts
there?
Answer. Today, petroleum-based fuels supply more than 95% of our
energy for transportation. Because of converging desires to switch to
lower-carbon, less volatile, and domestic forms of transportation
fuels, a variety of policy mechanisms support the displacement of
imported petroleum with electricity, biofuels, unconventional fossil
fuels, hydrogen, and natural gas. In general, gasoline and diesel are
relatively water-lean to produce. By contrast, most of the alternative
transportation fuels-in particular biofuels, unconventional fossil
fuels, some forms of electricity, and some forms of hydrogen-are more
water-intensive. Thus, by switching from imported petroleum to these
domestic options, we are essentially substituting the use of domestic
water for petroleum. While this tradeoff has important strategic
benefits, it can be problematic from a water resources perspective.
Question 3. As someone who has been thinking about the connection
between energy and water for a longer time than most of us, do you have
any recommendations for how to get out ahead of this issue before we
are dealing with a crisis situation such as shutting down power plants?
Answer. I recommend that the federal government use its convening
power to bring together leading experts in national labs, academia and
industry, possibly through the National Academies or some similar
institution, to develop an energy-water roadmap. This roadmap could
serve policymakers in many ways, including the following: identifying
cross-sectoral vulnerabilities, creating a geographically-resolved
inventory of energywater relationships nationwide, laying out a
strategic research plan for relevant technical innovation, and making
recommendations for federal, state and local policymakers. In addition,
it would be valuable for the federal government to gather data that are
lacking. Because many water and energy systems span several states, it
is difficult for any one state agency to gather all the pertinent
information that planners need.
Question 4. Many of us are familiar with the concept of ``peak
oil''. Can you please elaborate on the concept of ``peak water''?
Answer. ``Peak Water'' is a reference to the concept of declining
productions rates for freshwater. In contrast with ``Peak oil,'' which
refers to a finite resource (petroleum), water is very abundant
globally. However, most of that water is available in a form, location,
or time of year that is inconvenient or unusable for many people.
Consequently, significant amounts of energy are invested to move that
water in place, time and form (through pipelines, storage reservoirs
and treatment plants) such that it is clean, potable, and available
when and where we want it. If energy sources become constrained or
prohibitively expensive, then clean, piped water might also become
constrained or prohibitively expensive in certain locations or
particular times of year. Consequently, ``Peak Energy'' could trigger a
decline in production of freshwater.
Responses of Michael E. Webber to Questions From Senator Murkowski
Question 1. Please describe how the United States can satisfy all
the expected water needs of newly proposed power plants, including
concentrated solar, in arid and semi-arid regions.
Answer. Traditional steam-electric (or thermoelectric) power
plants, including many of those powered by nuclear, coal, biomass,
natural gas, or concentrated solar power, use extensive amounts of
water for cooling. Locating these power plants in arid or semi-arid
regions, where water resources are scarce, exposes the plants to the
risk that they will compete with other municipal, agricultural,
industrial or ecological needs for that water. Ensuring that the water
needs will be met by the power plants will be challenging if
conventional cooling technologies and freshwater sources are used.
However, novel dry-cooling and wet-dry-hybrid cooling systems require
much less water for power plants, and therefore might be a promising
option. For example, some new concentrated solar power systems that use
dry cooling have been proposed in Nevada. While these types of systems
significantly reduce the amount of water that is needed by power
plants, they have a tradeoff of 1) requiring more capital up front to
build the cooling systems and 2) reducing the operating efficiency of
the power plant. Other options include the use of reclaimed water or
saline water for cooling, or building power plants with water-lean
combinations of fuels and technologies, such as solar PV, wind
turbines, and natural gas simple cycle combustion turbines.
Question 2. Does your research show any regions in the country that
are not expecting a significant water problem over the next decade?
Answer. Generally speaking, the northern latitudes of the U.S. have
more abundant sources of water available. However, even ``water-rich''
regions of the country can be exposed to periods of drought. In
addition, water abundance can lead to flooding, which also puts the
energy sector at risk. Thus, the risk of water problems are widespread.
Question 3. What are the most significant data gaps inhibiting our
understanding of the current and potential future demand for water by
the energy sector? Does you research indicate that currently funded
efforts to improve federal water and energy data address these gaps
within the next few years, or will key data remain uncollected?
Answer. The current funding for data collection at the energy-water
nexus is insufficient to provide adequate information to policy makers
for informed decision making. There are many data gaps, a few of which
are listed here: 1) data about water withdrawals, consumptions,
diversions, and returns by sector, county, and time of year are
lacking, 2) data about the energy use by the water sector (in
particular by water treatment plants, wastewater treatment plants,
residential sector, commercial sector, agriculture and industry) are
lacking, and 3) water flows (withdrawals, evapotranspiration, returns)
for agriculture based on crop, time of year and location are unknown.
Question 4. What are the benefits and the opportunity cost to the
economy and society of the energy sector's growing water use?
Answer. The energy sector's growing water use, primarily for
irrigating biofuels crops, provides a benefit of displacing some
petroleum use, but introduces a risk of competition for water
resources. By displacing petroleum, we reduce our exposure to oil price
volatility tied to geopolitical events. However, we exchange those
risks for water-related risks driven by climate and weather systems.
These risks can show up in the form of higher energy prices, which can
impact economic growth. Developing more energy-efficient water systems
and more water-efficient energy systems can be economically beneficial
because they mitigate the downside risks. Building more energy-
intensive water systems and more water-intensive energy systems
exacerbates the exposure to risk.
Question 5. Options to reducing freshwater use by the energy sector
include using impaired water sources or increasing reuse of water
within the energy sector. What are the most significant barriers to
using impaired water to meet energy sector water demands? For instance,
what are the barriers to using saline water for power plant cooling,
and is currently funded research anticipated to significantly reduce
this barrier?
Answer. Using reclaimed water or saline water at power plants
reduces the need for freshwater in the power sector and can save on
water costs for plant operators. Such systems have been built. For
example the Palo Verde nuclear power plant in Arizona, and the Sand
Hill natural gas power plant in Austin, Texas both use reclaimed water.
And, coastal nuclear power plants use saline water. However, these
water sources can be more corrosive or cause mineral build-up and thus
might require more expensive piping and heat exchanger materials and
additional maintenance. Furthermore, in some cases the use of reclaimed
water requires permitting approval from relevant agencies and
significant up-front capital-intensive infrastructure investments to
connect reclaimed water sources from wastewater treatment plants to the
electricity stations. Supporting R&D in the areas of demineralizing
water, creating novel materials that have improved fouling-resistance,
and improving the efficiency of cooling systems would be worthwhile.
Question 6. Please describe the current research being undertaken
to understand the water intensity for MWh of electricity for different
fuels and different generation technologies.
Answer. A variety of research groups, including mine at the
University of Texas at Austin, are studying the water intensity of
power plants based on fuels, generation technologies, and cooling
technologies. The Department of Energy's (DoE) National Renewable
Energy Laboratory (NREL) released a report on the topic in Spring 2011.
While the basic relationship of water for power plants based on fuel
type, generation technology and cooling system is known, additional
research to understand the relationship under varying climatic
conditions and usage patterns is warranted.
Question 7. How have other countries integrated freshwater concerns
into efforts to promote domestic and clean energies? What are some ways
in which water quantity and quality impacts have been integrated into
clean energy and biofuel policies internationally?
Answer. In general, most countries globally fail to properly
integrate energy and water policymaking. Thus, the water quantity and
quality impacts of biofuels and other energy options have not been
integrated broadly into international energy policies. Israel, which
has scarce resources of both energy and water, seems to have
sophisticated thinking in terms of integrating water and energy
policymaking. Many countries have not addressed the issues directly,
and are at risk of confronting serious shortages in one commodity or
the other.
Question 8. Please describe the impact on energy use with stricter
treatment standards for water and wastewater. Are there any energy
related tradeoffs that may occur with stricter treatment standards?
Answer. In general, stricter water treatment standards correlate
with higher energy intensity of the water and wastewater treatment
plants. That is, raising water quality standards tends to cause higher
energy consumption for water treatment. At the same time, treatment
plants improve their efficiency year-over-year. The consequence of
these two competing effects (tighter standards driving energy
consumption up and improved efficiency driving energy consumption down)
is to roughly cancel each other out.
______
Responses of John Seebach to Questions From Senator Bingaman
Question 1.1 Your testimony describes a ``basin-scale'' approach to
hydropower development--can you please elaborate on what that means and
how it is different that what the normal practice is today?
Answer. When the operation, management, and environmental impacts
of multiple facilities located on the same river basin are addressed in
a coordinated manner, it is possible to get an increase in generation
and significant improvements in environmental quality. The Federal
Power Act requires that the Federal Energy Regulatory Commission (FERC)
balance all of the competing interests that are potentially affected by
hydropower development in order that the American public would receive
the greatest amount of benefit from its waterways. FERC must ensure
that its licenses for hydropower projects:
``shall be such as in the judgment of the Commission will be
best adapted to a comprehensive plan for improving or
developing a waterway or waterways for the use or benefit of
interstate or foreign commerce, for the improvement and
utilization of water-power development, for the adequate
protection, mitigation, and enhancement of fish and wildlife
(including related spawning grounds and habitat), and for other
beneficial public uses, including irrigation, flood control,
water supply, and recreational and other purposes'' 16 U.S.C.
Sec. 803(a)(1).
While the Federal Power Act envisioned that FERC would prepare
comprehensive plans on a broad ``waterway'' scale (and the Federal
Power Commission--FERC's predecessor--did in fact prepare a handful of
such plans in the 1920s), FERC interprets its comprehensive planning
responsibility to mean its comprehensive analysis of an individual
project. As a result, FERC generally treats a basin as the sum of its
parts rather than a coherent whole. Each individual hydropower project
in a river basin is analyzed separately on its own terms, the subject
of its own relatively narrow comprehensive plan. ``Waterway'' simply
refers to the stretch of river in the immediate vicinity of the
project. The Commission does not perform a larger-scale analysis to
determine how the individual pieces could be fit together in order to
maximize the public interest.
This narrow, project-level approach to planning leads to missed
opportunities. Individual hydropower projects do not exist in a vacuum.
The decision to construct and operate a hydropower dam requires a
number of tradeoffs between multiple beneficial uses of a waterway:
energy, the health of commercial fisheries, water quality, water
allocation, power generation, flood control, and recreation. In the
context of a single dam, it can be difficult to strike an equitable
balance. However, when one steps back and consider an entire river
basin, considering multiple dams on a connected set of rivers and
tributaries, opportunities to achieve a much better balance begin to
emerge.
For instance, consider Maine's Penobscot River basin. For decades,
a series of dams in this basin blocked access to high-quality habitat
and all but wiped out the river's valuable Alewife, Atlantic Salmon,
and Shad fisheries. When these projects were relicensed by FERC,
parties examined the entire basin and came up with a plan that would
restore more than 1000 miles of habitat--and millions of fish--by
removing two dams, bypassing a third with a nature-like fishway, and
installing fishways at others. This plan also allows the remaining dams
to generate more power, concentrating environmental restoration
measures where they are most needed and concentrating power production
where it will have the least impact on the basin as a whole. Had the
Penobscot River been considered as a whole rather than the sum of its
parts before any of its dams were built, this is likely how it would
have been developed in the first place.
The Penobscot agreement demonstrates how the coordinated review and
planning of hydropower in a basin can result in more power and better
environmental outcomes. Unfortunately, the unique circumstances on the
Penobscot--where all of the dams were owned by a single entity and
subject to the jurisdiction of a single agency--are the exception
rather than the rule. There is an urgent need for the type of basin-
scale planning and coordination of hydropower projects that led to the
Penobscot agreement.
The ``Integrated Basin Scale Opportunity Assessments'' initiative
in the DOE/DOI/Corps hydropower MOU signed in 2010 is an excellent
first step. This pilot program will develop methods for such planning
and test them in several pilot basins to see if additional
opportunities for generation and environmental restoration will emerge.
We encourage Congress to follow this work closely and, should it be
successful, direct FERC and the federal hydropower operators to
cooperate to address multiple projects in a coordinated fashion to
increase power generation and environmental outcomes at the basin--not
project--scale. For instance, when FERC is licensing a new project or
relicensing an existing project in a basin where the Corps or the
Bureau also operate hydropower projects, those agencies should
participate as cooperating agencies in FERC's analysis and use that
opportunity to review the operations of their own projects in
coordination with the FERC-licensed projects in order to maximize power
production and environmental performance.
Question 1.2 With regard to S. 630, the Marine and Hydrokinetic
Renewable Energy Promotion Act, you emphasize the need to continue to
collect data regarding the environmental impacts associated with the
technologies that are emerging for hydrokinetic energy development.
What are some of the potential impacts we should be concerned about?
Answer. A number of issues have been identified in individual
licensing proceedings for these projects. These include (but are not
limited to):
Aquatic Species' interaction with devices and anchoring
systems (including Marine mammals, sharks, fish, etc.).
Potential risks include avoidance, behavior change, collision,
entrainment, or mortality.
Effects due to the removal of energy from waves and
currents. Potential risks include altered sediment transport
and changes in flow velocity, tidal exchange, and water
quality.
Effects of noise, vibration, lighting, EMF from transmission
cables, and releases of chemicals (lubricants, oils, etc.) on
aquatic and avian species.
Effects of exclusion / restriction zones on recreation,
navigation, commercial fishing, etc.
For a much more detailed discussion of some of these impacts, we
recommend the following excellent documents:
The U.S. Department of Energy's Wind and Hydropower
Technologies Program's December 2009 ``Report to Congress on
the Potential Environmental Effects of Marine and Hydrokinetic
Energy Technologies.'' (http://www1.eere.energy.gov/
windandhydro/pdfs/doe__eisa_633b.pdf)
The West Coast Framework's sections on environmental
impacts: (http://www.advancedh2opower.com/framework/
Hydrokinetics%20Knowledge%20Base/Environmental%20Effects.aspx)
Question 1.3 You indicate there may be some room for improvement
with respect to the current FERC application processes. What are some
suggestions you might make for applicants as they move through the
permitting process? For example, your testimony suggests that the
process works most efficiently when applicants work in advance with
resource agencies and other stakeholders--how are you encouraging
applicants to do that?
Answer. Over the past several years, we have heard from a number of
potential developers of new hydropower projects. Many of these
developers are responsible and committed to working with stakeholders
to develop only those projects that can be brought online in an
environmentally sensitive manner. Others do not share this ethic, and
appear determined to withhold information from stakeholders, agencies,
and regulators in order to limit their responsibility for mitigating
environmental impacts. Still others (perhaps the largest group) simply
lack experience with developing hydropower projects. We encourage all
developers to emulate the first group.
First, developers should engage as soon as possible with key agency
staff and stakeholders that are likely to take an interest in their
proposed projects. Early and extensive public outreach is critical in
ensuring the success of a hydropower project, and too often American
Rivers or its partners learn about proposed hydropower projects only
through formal notice of a preliminary permit or license application.
Developers that approach stakeholders first and engage them
constructively throughout the licensing process are more likely to meet
with success.
Second, if this consultation reveals that a site has particularly
sensitive resource issues, then the developer should seriously consider
finding a site that is not similarly constrained. It may be possible to
develop a good project at a site with sensitive resource issues, but it
will take longer and cost more.
Third, developers should work with agencies and stakeholders to
address information needs and potential resource issues, and then make
a good-faith effort to provide requested information in a timely
manner. Once resource issues are quantified, the developer should work
with agencies and stakeholders to develop mutually acceptable
solutions. Again, time spent fighting over whether or not information
is needed or a proposed environmental mitigation measure is necessary
will only increase the costs and time associated with licensing.
FERC staff can also play a role in improving the process. First,
FERC should regularly update its statelevel or regional mailing lists
of stakeholders and agency staff that have previously expressed
interest in hydropower licensings and require potential license
applicants to demonstrate that they have made a good-faith effort to
contact those individuals or organizations early in the process.
Second, FERC could do more to reach out directly to new developers
(either through workshops or individually) to guide them through the
process. FERC staff have done a tremendous job of improving the quality
of this outreach and education over the past several years, but they
are constrained by resources and the record number of new applications
that they are being asked to process. If FERC were given the resources
necessary to assign one or two full time staff members to developer
outreach, they could significantly improve the quality of new license
applications.
Third, FERC must cooperate better with its sister federal and state
agencies that have a defined role in recommending license conditions to
protect public resources, as well as agencies that have independent
responsibilities under the Clean Water Act or the Endangered Species
Act. These agencies need reliable, accurate scientific information in
order to fulfill their responsibilities. Some applicants are unwilling
to provide this information because they are reluctant to incur the
cost of studies, especially if that information may require them to do
more to mitigate project impacts. Unlike FERC, most resource agencies
lack the tools to compel applicants to provide this information. The
resulting stalemate is a perennial source of delay in licensing.
While FERC staff have the authority to order applicants to provide
this information, they often choose not to do so, arguing that the
information is not necessary for FERC's licensing decision. This may be
technically true--FERC may not consider the information necessary for
its own analysis--but the reality is that FERC cannot issue a license
until it has received a Water Quality Certification from the state and
all required ESA consultation is complete. FERC Staff may be able to
work with agencies to narrow the scope of the necessary information,
but ultimately those agencies must decide what information is necessary
for them to act. FERC should improve its cooperation with other federal
and state agencies, especially where those agencies have identified a
need for information that will enable them to fulfill their own
responsibilities and clear the path for FERC to issue a license. FERC
must bear the responsibility for delays that result when it fails to
support other agencies' stated information needs.
Responses of John Seebach to Questions From Senator Murkowski
Question 2.1 Although your organization is generally opposed to the
construction of new dam infrastructure, the lower 48 states are in a
different situation than Alaska. Alaska has both tremendous hydropower
potential and a desire to get its villages off of diesel power. What
are your thoughts on the construction of new conventional hydropower
facilities in Alaska?
Answer. American Rivers is generally opposed to the construction of
new dams, but we are not categorically opposed: we approach each
proposal with an open mind. Our decision to support or oppose any given
project is based on the unique facts and circumstances of the proposal
and the natural resources that would be affected. The tradeoffs that
would be involved in developing a new hydropower project in Alaska are
the same set of tradeoffs that must be addressed in evaluating any
hydropower project that is being proposed anywhere in the world: the
power from a given project must be weighed alongside the economic,
environmental, and social costs associated with developing it. Alaska
is different from the lower 48 states in a number of ways, and those
differences will certainly inform the way that these tradeoffs are
calculated. But we cannot say--especially in the hypothetical--how
these differences might affect a decision to build or not build an
individual dam. Each river and each proposed dam is different.
While each project is different, the process for developing then
should not be. The decision to build a project or not should be a fair
one. American Rivers has advocated for years that decisions about
hydropower dam operations should be based on an open public process
that features the highest quality scientific information, a robust
analysis of alternatives, and fully transparent decisionmaking.
Proposals to build new conventional hydropower projects should be held
to an equally high standard, and if a new project is deemed by
regulators to be in the public interest, then its ecological and social
impacts must be accurately quantified and fully mitigated.
Question 2.2 Section 9 of S. 630, the Marine and Hydrokinetic bill,
is a provision intended to clarify that the Renewable Energy Deployment
Grant Program I authored in the 2007 energy bill is open to all states
and not limited to only Alaskan utilities. I believe you are concerned
that this provision may be used to help fund new dam construction, is
that correct? Do you have any proposals to modify this provision
further in a way that your organization may find acceptable? Do you
support the requirement that aid be prioritized to areas where
electricity costs exceed 125% of the national average or where it will
be used to replace fossil fuel projects?
Answer. Yes, our primary concern was with the provision being used
to fund new dam construction with Federal tax dollars. Hydropower dams
are unique among renewable energy projects in terms of the scale of
environmental damage that they can cause, and we do not support federal
funding for the construction of new dams. Section 9 of S. 630 expands
the existing provision both in terms of geographic scope and the type
of hydropower projects that could qualify: instead of being limited to
small hydroelectric projects in Alaska, the provision would expand the
grant program to large or small hydropower dams constructed anywhere.
As we wrote in our testimony, we understand that the intent behind
this section was to encourage the development of new sources of
renewable energy in remote communities that rely primarily on expensive
sources of fossil-fuel fired generation for their electricity, and we
support this goal. Assuming that the goal of the program in Section 9
of S. 630 is to help remote communities transition away from expensive
and inefficient fossil fuel projects, the following recommendations may
help the program to achieve its goal in an environmentally sustainable
manner.
First, if any federal funding is to be used to construct non-
federal hydropower dams, it should only be limited to exceptional cases
where the construction of a dam is truly a last resort and the only
feasible alternative to fossil-fuel burning generation. We recommend
the following changes to the program in order help ensure that this is
the case:
Section 9 needs to clarify that the grant program should not
be used to help utilities comply with state or municipal
Renewable Energy Standards. The federal taxpayer should not be
asked to foot the bill for utilities' compliance with
applicable state or local laws.
Section 9 should also clarify that all new energy generation
will be used locally instead of exported.
As it is currently written, the program would prioritize
grants to two kinds of utilities: those with high energy costs
or those that intend to replace an existing fossil fuel
project. The goals of Section 9 would be better met if
utilities were required to meet both of these criteria instead
of one or the other. To demonstrate actual replacement of
fossil fuel generation, all recipients must be required to
demonstrate that a corresponding amount of fossil-fuel fired
capacity is actually taken offline as the result of the grant.
This would ensure that the aid goes only to those communities
that truly need of it.
The requirement that grant funds be prioritized to
communities meeting the above criteria is not sufficient to
ensure that the program is used to accomplish its goal. The
program must be limited to communities that meet these
criteria.
Second, we recommend that the definition of eligible hydropower be
restricted so that any new hydropower is least likely to cause new
environmental damage. While American Rivers cannot support any federal
funding for new dam construction, the following types of hydropower may
help to minimize the environmental impacts of the program:
Efficiency upgrades, hydropower capacity added to existing
upgrades, conduit hydropower, and marine and hydrokinetic
energy should be eligible for grants.
New conventional hydropower construction should be limited
to projects where all essential project works (dams,
powerhouses, etc.) are located above a natural fall line above
which no ocean going fish such as salmon may migrate. New
conventional projects should not create a significant new
bypassed or dewatered reach of river, and should not
significantly modify natural flows.
______
Responses of Sean O'Neill to Questions From Senator Bingaman
Question 1. The testimony we have heard today indicates that the
technology associated with hydrokinetic energy is still emerging and
that further studies of the environmental impacts of certain projects
may still be necessary. I was interested to note that you indicated
that some current testing indicates that fish and other animals may be
able to ``co-exist nicely'' with certain types of devices. Can you give
us a little more explanation of what technologies have been found to
work well?
Answer. Since 2008, the U.S. Department of Energy has supported
several studies with funding from its Water Power R&D program on
potential environmental impacts of pre-commercial marine and
hydrokinetic (MHK) renewable energy devices. These studies are based on
hypothetical evidence of environmental effects with the exception of a
few pilot demonstrations, to be discussed below. OREC has urged that
our limited federal dollars are best spent studying actual
environmental effects of pilot scale projects while in the water.
Great care has been taken in the development of marine and
hydrokinetic technologies to limit any potential negative environmental
effects of these devices. The limited experience to date with deployed
pilot projects has provided anecdotal evidence of the environmentally
benign nature of these wave and tidal energy convertors.
For example, the Ocean Power Technologies wave power project in
Hawaii underwent an extensive environmental assessment by an
independent environmental firm in accordance with the National
Environment Policy Act (NEPA). This study featured evaluation of
potential effects on: the seabed, fish and benthic organisms, mammals,
vegetation, and water quality. The project study resulted in a finding
of no significant impact (FONSI), which is the highest such
environmental rating.
Regarding a notable tidal energy project, Marine Current Turbines
in Ireland submitted their final Environmental Impact Study to the
regulatory authority, the Environment and Heritage Service (EHS) in
Northern Ireland in June 2005. The license for the temporary
installation for the SeaGen tidal system for a five-year duration was
first issued in December 2005, revised in February 2007 and again in
February 2008.
Pre-installation environmental monitoring commenced in May 2004. A
baseline report was completed and submitted to EHS in August 2006. The
environmental impact of SeaGen will be continuously monitored by an
independent science team throughout the licensed five-year installation
period.
It took SeaGen from July 2008 until March of this year to generate
the first million kWh largely due to license restrictions placed on its
operation to check that SeaGen did not have any adverse effect on
marine life. The restrictions were lifted in March by the regulating
authority and 24/7 operation has commenced.
Another example here in the United States involves Ocean Renewable
Power Company (ORPC), based in Maine. ORPC initiated a project during
the summer of 2009 when the University of Maine received funding from
the U.S. Department of Energy to conduct research associated with the
development of tidal power. A primary focus of the research was to
develop an understanding of how fish would be affected by tidal power
development. At the time, ORPC had initiated planning for an in-stream
tidal power deployment in the Cobscook and Passamaquoddy Bays of
eastern Maine.
Data collected thus far using industry-standard fish monitoring
equipment and study protocols note different behavioral responses to
these tidal devices. Individual fish have responded to the devices with
avoidance and some moved through the device and continued to move with
the water current. However, data analysis is not complete enough to
determine if these will be the only interactions at a tidal power
device site.
To date, there has been no known marine mammal or fisheries impact
as a result of any MHK device installation. Once the many oversight
agencies allow for more timely permitting, the industry can deploy
these devices to demonstrate predicted benign environmental effects,
and employ adaptive management where needed.
Question 2. It appears that other countries may be ahead of us in
terms of hydrokinetic research capabilities. How is your organization
working to build off of the expertise that exists in other countries
and what suggestions do you have for how to improve our countries
capabilities?
Answer. The development of a substantial marine hydrokinetic
industry in the U.S. could drive billions of dollars of investment into
heavy industrial and maritime sectors, as well as in advanced
electrical systems and materials common to many renewable technologies.
Federal investments would stimulate private funds in the construction,
manufacturing, engineering and environmental science sectors. The
further development of each industry has the potential to employ a
significant skilled workforce.
Unfortunately, the U.S. is falling behind in the race to capture
the rich energy potential of our oceans. Many countries, particularly
in Europe, recognize the potential of wave and tidal energy as part of
comprehensive renewable energy policy and have deployed viable,
operating, electricity generating projects using the emission-free
power of ocean waves, currents, tidal forces. The U.S. is just
beginning to acknowledge the importance of these technologies.
A 2009 report conducted by the U.S. Navy found that the U.S. has
lost world leadership in ocean wave and tidal energy technology
development and deployment. The report finds that the U.K. is at least
five years (or more) ahead of the U.S. government-led efforts with
support for renewable ocean power at approximately $900 million vs. $50
million in the U.S.
For example, the U.K. has a head start on the U.S. in MHK
technology development, testing and deployment. They can permit
projects within six months and have accelerated decision-making of
marine renewable siting protocols. The U.K. also has an aggressive
target of 2GW of marine renewable energy in U.K. waters by 2020. While
Europe has nine open water marine energy testing centers, we currently
have none available to the industry here in the U.S.
Congressional support has increased for the Department of Energy's
MHK activities since they were first authorized in the Energy Policy
Act of 2005 and the Energy Independence and Security Act of 2007. The
DOE program was originally funded at $10 million in FY 2008. By FY
2010, that figure had grown to $50 million. However, these figures are
somewhat misleading. While the MHK program is currently authorized at
$50 million per year, the Department of Energy is using a considerable
amount of the funding appropriated by Congress for this subprogram to
support conventional hydroelectric activities. The result is that the
DOE MHK activities are underfunded.
OREC has been promoting a multi-pronged strategy that will propel
the U.S. to the forefront of the race to commercialize MHK
technologies. Critical to this effort will be a coordinated,
comprehensive federal effort, led by DOE and the U.S. Navy, to develop
our national marine renewable energy resources. This strategy includes:
Technology advancement, verification and acceptance through
support for research, development, testing and deployment;
Clear, timely, predictable, and workable regulatory
framework for siting and permitting of marine renewable
projects, particularly for limited pilot projects;
Stable incentive regime structures that facilitate rapid
advancement of technology deployment;
Close federal agency coordination and review of lessons
learned here and abroad in both wind and hydrokinetic power
technology development and deployment; and,
Development of standards and certifications to provide
confidence to customers and financial markets.
The Ocean Renewable Energy Coalition (OREC) is actively involved
with the international marine and hydrokinetic industry and governments
on several fronts. OREC's president and several of its members are
participating in the International Electrotechnical Committee's
Technical Committee 114, the international standards setting body that
the United States participates in through the American National
Standards Institute.
In addition, OREC is one of the principal sponsors of the Global
Marine Renewable Energy Conference (GMREC), along with the
International Energy Agency's Ocean Energy System Implementing
Agreement Executive Committee. Now in its fourth year, GMREC brings
together marine and hydrokinetic experts from over a dozen countries.
Conference sponsors include organizations from Scotland, Ireland, the
United Kingdom, Norway, Australia, Ireland, Portugal, Denmark and
Scotland.
Responses of Sean O'Neill to Questions From Senator Murkowski
Question 1. S. 630 contains an adaptive management program to
provide grants to help the industry collect data for permitting and to
do demonstration projects. How important is that provision to help the
industry get past the so-called ``Valley of Death'' between device
creation and more widespread deployment of marine hydrokinetic devices?
Answer. One of the greatest impediments to the responsible
commercialization of MHK devices is environmental permitting. Where
land based renewables, at one point, could install pilot and
demonstration devices by obtaining a single site plan approval from a
local or county planning board, the MHK industry operates in oceans and
public waterways-oftentimes requiring a multitude of permits from
federal and state resource agencies. The Adaptive Management Grant
program acknowledges the public nature of our oceans and waterways, as
well as the need for environmental data to be placed in the public
domain. These grants also acknowledge the importance of deploying
technologies and gaining real-life, real-time data rather than
speculating on hypothetical effects.
This is a critical piece of S. 630 that will support these
companies surviving the ``Valley of Death'' and, ultimately, setting
the stage for timely, responsible deployments. Federal grant funding
would stimulate private investments thereby reducing the overall long
term costs of industry commercialization efforts.
Question 2. Your testimony gives examples of developers that are
making progress in developing and deploying wave and current devices.
Please assess the current health of the industry and whether there is
need for federal assistance.
Answer. The MHK industry has benefited from federal investments in
technology research, development and limited pilot deployments. If this
funding is significantly decreased or eliminated the viability of
several wave and tidal energy companies could be in jeopardy. The
funding invested to date from DOE would be lost if these technology
development partners are allowed to fail.
While the efforts, to date, by Congress and the Department of
Energy have been an important down payment to help develop this
technology and industry, more remains to be done. In order to capture
the energy, environmental and economic benefits of utilizing our vast
marine-based renewable resources, it will require a mix of new
incentives, updated regulatory regimes, tax treatment on par with other
renewable energy technologies (particularly with regard to accelerated
depreciation and investment and production tax credits), and general
outreach and education.
However, the most important action that can be taken by the federal
government in the short term is to provide significant resources for
research, development and deployment of various ocean, tidal and
offshore renewable energy systems, including funding for test center
infrastructure build-out. We need to join the international race to get
pilot projects into the water and monitor the environmental effects and
efficiencies of these technologies. Increased federal support will
create thousands of high paying ``green'' jobs, hasten deployment of
these technologies, give confidence to investors and help attract
private capital.
Federal funding of a sustained ocean energy R&D program and
required regulatory activities would enable the United States to
leverage its technological superiority in shipbuilding and offshore oil
and gas production, creating jobs and diversifying these maritime
industries toward developing new domestic energy supplies and capturing
an emerging global export market. In the absence of such funding,
however, the United States will have to depend on foreign suppliers for
ocean renewable energy technology, and we will have missed a
significant economic development opportunity.
We also encourage your consideration of the creation of multi-
agency and public-private partnerships to provide efficiencies for
permitting pilot projects in one year or less, participation in a DOE/
Industry discussion on how to accelerate deployment of devices, and the
development of cooperative agreements with Canada and the British Isles
to accelerate resolution of technical, market and policy barriers for
commercialization of the MHK industry.
Question 3. In previous years the Committee has discussed
permitting as a major problem adding to the cost of deploying devices.
In the months since the memorandum of understanding between FERC and
the former MMS on permitting, has there been any improvement in the
permitting/licensing process? Also, please elaborate on the needs that
the industry still faces to make deployment of devices more economic.
Answer. While the memorandum of understanding between FERC and the
former MMS helped clarify some aspects of jurisdiction, the process of
obtaining permits remains a challenge. It is estimated that securing a
permit would require the involvement of a multitude of federal and
state agencies. It is also estimated that working through the existing
regulatory framework could take between five and ten years. The
combination of these two issues creates an unacceptable level of risk
for the investment community.
All emerging technologies, including new power generation
technologies such as MHK, rely heavily on a clear, timely and
predictable regulatory framework related to deployment. This is
especially true in the case of the first-in technologies, such as wave
and tidal generators. In order to responsibly develop the nation's MHK
resources in a timely fashion, OREC suggests that an adaptive
management approach be taken. Contrary to hypothetical studies of
speculative effects, real-time in situ studies are required to
accurately gauge environmental interactions. This would provide much
greater value to understanding the real-life impacts from MHK
technologies and not compete with the capital required to continue to
advance and test the technology.
______
Responses of Andrew Munro to Questions From Senator Bingaman
Question 1. Your testimony indicates you believe it is critical for
Congress to continue to support the Department of Energy's hydropower
research programs. Can you think of some examples of how that research
work has benefited the hydropower industry?
Answer. The DOE's hydropower research program has been tremendously
valuable to support technological advancements and the growth of this
clean energy resource. However, the program is well underfunded.
Some have questioned the need for robust R&D funding for
hydropower, stating that it is a mature and proven technology. My
response is that just as the automobile is a mature technology, we
continue to innovate that technology and look at ways to improve its
performance. The same should be done for hydropower.
Grant PUD's R&D investments have benefited directly from the work
that the Department has conducted on advanced hydropower turbine
systems (AHTS). Grant PUD's Wanapum Dam modernization effort was
supported by the DOE's AHTS program.
Some background, the hydropower industry has long supported the DOE
R&D program for the next generation of hydro turbines--the Advanced
Hydropower Turbine System (AHTS). The aim of the program is to design,
develop, test and deploy a new generation of turbine designs that
provide greater protection for fish and aquatic habitat and higher
operational efficiency. The program follows a two-track approach--
develop new turbine technology and improve upon existing technology.
The program seeks to make available technology that will simultaneously
optimize environmental performance and increase the generation
efficiency of our nation's existing hydroelectric facilities.
In addition to Grant PUD, several federal hydropower projects have
installed advanced designed turbines based off the work on the DOE AHTS
program. Also, work continues on a second turbine design that has never
been tested in a commercial application for which the DOE program is
providing support.
Beyond turbine work, there have been many other important DOE
hydropower initiatives for which funding has been critical throughout
the years. The short list below includes some, but certainly not all,
of the Department's activities:
updated national resource assessments,
research into optimization methods and alternative
operations strategies and opportunities for spill reduction,
field testing of new technologies to increase dissolved
oxygen content of discharged water,
grid services research (develop and deploy technologies that
increase operational flexibility, including pumped storage;
modification of regional computer models to better assess
potential capacity expansion of pumped storage to facilitate
introduction of other variable renewable resources into the
market),
new materials research,
sensor and control testing to improve energy efficiency and
environmental performance,
fish passage research (includes development of baseline
biological methodologies and data for key species for
improvements in dam infrastructure, such as turbines, fishways,
and fish screens; demonstration of new technology to determine
fishway effectiveness in real-world applications; methods to
measure and predict indirect fish mortality and non-lethal
injury rates), as well as
research into the marine and hydrokinetic technologies to
test equipment and support deployment.
In 2010, the Department also held a series of workshops with
industry, federal agencies and environmental stakeholders to discuss
R&D initiatives to promote small hydropower projects, pumped storage,
and develop better environmental mitigation techniques.
Lastly, with the signing of the federal hydropower MOU in March
2010, there are a series of DOE activities, such as basin-scale
planning and other initiatives, that require continued support if they
are to reach a successful conclusion. After developing this
collaboration among the agencies and renewing focus on federal
hydropower deployment, it would be a tremendous setback to retreat from
the DOE program.
NHA also understands that the Department is scheduled to unveil new
data on growth potential on existing non-powered dams as well as new
data on the existing fleet of hydropower units that would provide data
on the opportunity for nationwide capacity additions and upgrade
possibilities.
Question 2. As you may know, we have recently released a White
Paper on the proposed Clean Energy Standard. Does the National
Hydropower Association plan to submit comments to us in connection with
the role that hydropower might play in determining how to develop a
Clean Energy Standard?
Answer. Yes, NHA intends to submit comments on the CES white paper
and we commend both you and Senator Murkowski for seeking input on the
policy.
In January, NHA sent a letter of support to President Obama on his
CES goal as outlined in the State of the Union, committing to meet 20
percent of the 80 percent target by 2035. NHA believes this goal will
be difficult, if not impossible, to meet without including both
existing and new hydropower generation as qualifying resources under
the CES.
In the past, NHA has supported consensus definitions on the
treatment of hydropower for the purposes of a renewable energy standard
(RES), specifically those contained in S.1462, the American Clean
Energy and Leadership Act. However, a CES is a different policy
paradigm than an RES. Therefore, NHA believes the treatment of
hydropower under a CES must be re-examined.
NHA highlights two particular examples--existing hydropower
generation and pumped storage. If a CES policy provides for a
substantial increase in the percentage of generation that will be
required to come from clean resources, and if existing generation from
other clean resources qualifies (wind, nuclear, etc.), then existing
hydropower generation must also qualify. Hydropower should be treated
equitably in comparison to other resources when it comes to existing
generation.
Secondly, NHA believes that energy storage, specifically pumped
hydropower storage, will play a critical role to firm and integrate
intermittent energy resources, increasing their contribution to the CES
goal. As such, NHA believes a mechanism should be included in the
policy to provide recognition of clean generation from pumped storage
projects--both existing and new.
As work continues on the CES policy, additional questions both on
the treatment of various hydropower resources and the mechanics of the
program will be raised. NHA commits to continued dialogue with you,
other Members of Congress, the Administration and stakeholders on how
to address these issues.
Responses of Andrew Munro to Questions From Senator Murkowski
Question 1. The National Hydropower Association (NHA) has called
for additional policy support from the federal government in order to
promote hydropower opportunities across the country. Specifically, NHA
highlights the need for a more efficient licensing and permitting
process with greater intergovernmental cooperation. The Committee tried
to address some of these issues in S. 629 with a possible 2-year
licensing process for closed loop storage and non-powered dams as well
as greater cooperation among agencies for conduits and small hydro.
Beyond these measures, is there more that can be done? Please elaborate
on how the lengthy licensing process puts hydropower at a competitive
disadvantage relative to other renewable energy projects.
Answer. Throughout its history, NHA has played an active role in
various forums to improve the hydropower licensing process. In
anticipation of the passage of the bill and a FERC solicitation of
input on potential solutions to address the length of the permitting
and licensing process, NHA has formed a regulatory working group to
examine these issues. We look forward to a proposal from the Commission
on this issue, and anticipate that there are licensing improvements to
be made that may be accomplished administratively, or require a
rulemaking process, or perhaps necessitate a statutory change.
The workgroup has recently reviewed all projects licensed between
2006 and 2011 and those pending licensing now, to analyze trends
regarding the length of the licensing process throughout the industry.
This preliminary review showed that projects took an average of 4.7
years to license--from submission of the Notice of Intent and the Pre-
Application Document (or its equivalent) to license issuance. For
projects that are still awaiting a license, the process to date has
taken an average of 3.9 years so far.
This data is generally consistent with the schedule in FERC's
Integrated Licensing Process (ILP) regulations, but it highlights the
fact that even when the process works as anticipated, it remains
lengthy and costly when compared to other energy projects. As mentioned
in NHA's written testimony, the development timeline for other energy
projects can be as short as 18-24 months (for example, wind and natural
gas).
This significant difference places hydropower development at a
disadvantage and contributes to holding back investment in worthwhile
projects--an unfortunate result at a time when we should be supporting
policies that promote a diversified energy portfolio for our country.
NHA can provide some preliminary themes that have emerged from the
working group, though further consultation and examination on the
issues continues with final NHA policy recommendations to come.
The work group has noted that resource agencies (federal and state)
should be encouraged or required to participate early in study
discussions and development in order to minimize additional information
requests, resolve disagreements early, and allow speedy processing of
permit applications later in the process. All resource agencies
performing their own environmental reviews should be encouraged or
required to work concurrently with the FERC process to coordinate and
not duplicate the environmental review process.
Also noted, for all federal and state reviews of a proposed
hydropower facility, evaluation and conditioning of new projects should
be consistently limited to impacts created by the hydropower project.
FERC's ILP regulations do require a ``nexus'' between a requested
project and project-related effects. However, other agencies with
related review and consultation responsibilities often rely on a
different standard. Because the current regulatory landscape does not
provide for consistent treatment of environmental baseline analysis and
study requests, time is spent attempting to address and manage issues
that are not within the scope of project impacts. Addressing this
issue--particularly for proposed projects at existing impoundments
utilizing existing infrastructure--could reduce licensing and
permitting time and expense significantly.
Lastly, one area where the working group has seen some greater
efficiencies in the process is that of exemptions. Broadening the scope
of projects that could be approved by the exemption process could help
lower approval costs and advance some projects along sooner.
We look forward to the opportunity to engage with FERC, other
agencies and stakeholders to discuss and find solutions to these
process issues.
Question 2. What is the biggest thing Congress can do to help the
hydrokinetic energy industry take off? Is it establishing the adaptive
management program, supporting research, funding test centers,
developing device verification, or all of the above? Should Congress
also be examining tax assistance policies?
Answer. NHA believes all of the policies identified in the question
are important to providing the support needed to fully realize the
growth opportunities for marine and hydrokinetic technologies (MHK).
We do strongly agree that Congress must also focus on tax policies
as part of this equation. As you are aware, both marine and
hydrokinetic and conventional hydropower technologies receive disparate
treatment under various federal incentives for renewable energy
deployment.
To start, though the production tax credit (PTC) was a program in
place for many years, it was only until 2008 that MHK technologies were
included (hydropower was included in 2005). So while other renewable
resources were able to utilize this incentive, waterpower technologies
were placed at an economic disadvantage, affecting the ability to
effectively raise capital and find financial support.
Additionally, once included under the PTC, waterpower technologies
received only half-credit compared to other renewable technologies,
such as wind and geothermal. Again, this disparate treatment picks
winners and losers within the renewable community. NHA supports your
efforts, and those of others, to equalize the credit for all qualifying
technologies.
Lastly, NHA continues to strongly support other incentives for
renewable energy deployment such as extension and additional funding
for the clean renewable energy bonds (CREBs) program, the investment
tax credit (ITC) and Section 1603 grants program, the Section 48C ITC
for renewable energy equipment manufacturers and other discrete tax
items such as accelerated and bonus depreciation.
The longer-term extension of incentives is an issue of particular
importance to both MHK and conventional hydropower resources. Short-
term extensions do not provide the certainty for the industry in
project planning. The development timeline for projects can take
several years, with no assurance that the incentives will actually be
in place when projects are scheduled to actually come online.
We appreciate your efforts on these fronts and highlight that tax
issues remain a priority agenda item for NHA and the waterpower
industries.
Question 3. NHA's goal is to double the U.S. hydropower industry's
contribution to the electric system from today's 100,000 MW capacity
figure. You noted in your testimony that in response to President
Obama's call for an 80 percent Clean Energy Standard by 2035, the
hydropower industry is committed to meet 20 percent of that standard.
As you know, Chairman Bingaman and I recently released a White Paper on
the CES which asks stakeholders to comment on a number of design
questions. If Congress were to adopt such a standard, how do you think
hydropower should be treated?
Answer. NHA refers to our response above (Senator Bingaman;
Question 2) and restates our appreciation to you and Senator Bingaman
for seeking input on a CES policy. NHA reiterates that hydropower will
play an indispensable role in meeting any CES goal and must be
recognized as a qualifying resource under the policy.
We look forward to working with you, other Members, the
Administration and stakeholders to answer questions and work toward
solutions on addressing hydropower's inclusion in a CES.
Question 4. In your testimony you talk about the benefits that the
United Kingdom European Marine Energy Center in Scotland has realized.
Please elaborate on what we can learn from them and how we should be
fashioning aid to the industry in the United States. Please provide
examples of what has and has not worked for marine hydrokinetics in
Europe.
Answer. The U.K. has a longer history of support for MHK
industries. In fact, when the U.S. was eliminating funding for the
Department of Energy R&D program for both MHK and waterpower
technologies, Europe, and the U.K. in particular, were ramping up
funding. This leadership not only provides technical and financial
support needed for a new industry, but it sends an important signal to
the marketplace that private investment in the technology is sought and
will be supported.
As a result, it is not a surprise that some of the very first
actors pursuing projects in the U.S. were European developers. However,
as the U.S. has placed a greater emphasis on MHK development and
increased its support both at DOE and by including MHK in renewable
energy and tax policies, we are seeing an increase in American MHK
developers.
Some activities that have been supported by the U.K. over the years
include:
Establishing the ``European Marine Energy Centre'' in
Orkney, Scotland.
Launching the ``Carbon Trust, Marine Energy Challenge'' an
initiative whereby device developers could get access to high
level engineering design and verification through partnering
with engineering companies.
Awarding over #25 M to support the ongoing development of
marine energy devices.
Launching a #50M support fund which directed #8M in funding
for test centers with #42M available to support demonstration
projects. Project funding comprises both capital and revenue
funding.
______
Responses of Steven G. Chalk to Questions From Senator Bingaman
Question 1. Regarding the Energy and Water Integration Act, your
testimony indicates that the ``clean technology grant program'' would
create a helpful incentive for industry to develop strategies to
minimize water consumption in energy process. What is your assessment
of what an appropriate budgeting authority for that type of a program
would be?
Answer. The Department is not currently in the position to provide
an appropriate budget number without further analysis of the
provisions. Funding levels would vary significantly depending upon
whether the focus of the grant program is on funding the assessments of
current energy-water use and the identification of opportunities for
efficiency improvements or funding the deployment of commercial
technology to address the identified opportunities for efficiency
improvements (e.g., renewable desalination technologies, newer
efficient pump technology, biogas utilization, etc). The potential
investment would have the highest return by focusing on applied R&D for
technologies that can provide significant reductions in water use,
while also balancing other requirements.
Question 2. Your testimony regarding S. 629, the Hydropower
Improvement Act, refers to the ''Hydropower Advancement Project'' and
indicates that it is focused on the most cost-effective, least-
controversial types of new hydropower development. Can you please give
us an example of what some of those projects are?
Answer. DOE's Hydropower Advancement Project (HAP) is focused on
upgrades at existing facilities to increase unit and plant efficiency
and capacity. The initial phase of HAP will create a catalog of
industry best practices for operation, maintenance and evaluation of
overall plant performance. This catalog will become the basis of a
standardized assessment manual for use in evaluating existing
hydropower stations and identifying opportunities to increase
generation and maximize ancillary benefits. DOE intends to select up to
50 hydropower facilities at which these standardized assessments will
be performed. These assessments will identify opportunities to improve
efficiency and increase energy capacity and production at existing
hydropower plants. DOE will then conduct detailed feasibility studies
at three to five selected projects that stand to gain significant
performance improvements through the implementation of the
recommendations identified in the assessments, and that indicate a
favorable return on investment.
Examples of energy-increasing improvements projects include:
Redesign Turbines using advanced computational fluid
dynamics methods that were not available when older power
plants were built, to improve turbine efficiency and
performance. Redesigned turbines will have improved flow
characteristics to extract more energy from the same amount of
water.
Upgrades of generators and other electrical equipment to
increase efficiency and generation.
Installation of automated monitoring systems to alert
operators to the buildup of debris in front of intakes. Such
debris causes excessive energy loss and reduces the efficiency
of the turbine.
Installation of advanced control systems that automatically
optimize plant configuration to achieve maximum efficiency.
Question 3. Regarding S. 630, the Marine and Hydrokinetic Renewable
Energy Promotion Act, do I understand your testimony correctly that you
believe the current marine and hydrokinetic test facilities DOE is
already sponsoring provide sufficient research capabilities such that
the creation of new test centers would not be necessary? In your
opinion, how would the new facilities authorized by S. 630 help to
advance the existing research capabilities?
Answer. DOE is currently funding three competitively-selected
marine and hydrokinetic (MHK) test facilities, which are designated as
National Marine Renewable Energy Centers (NMRECs). These NMRECs are
appropriately located geographically to address the full range of
marine and hydrokinetic resources (ocean wave, ocean and tidal current,
and ocean thermal) that are of primary interest, and hold the most
promise for contributing to our nation's clean energy goals. As such,
additional test centers would be duplicative of efforts currently
underway.
The NMRECs are currently developing capabilities for researching,
developing, testing and evaluating MHK technologies. Ultimately the
NMRECs are planning to develop open-water, multi-berth test sites where
device performance and reliability can be validated through rigorous
industry-recognized testing protocols. S. 630 would accelerate the
development of the NMREC facilities and provide critical domestic
testing capabilities for the nascent MHK industry.
Question 4. During the last Congress, we enacted the SECURE Water
Act. Section 9505 of that Act asks DOE to prepare an assessment of the
potential impacts of climate change on hydropower production in the
U.S. Can you please tell us what the status is on that report?
Answer. As called for in Section 9505 of the Omnibus Public Land
Management Act of 2009 (P.L. 111-11), DOE has the lead for producing an
assessment of the effects of global climate change on water
availability and generation at federal hydropower facilities. DOE has
been engaged in extensive interactions with the four Power Marketing
Administrations (PMAs), the Department of the Interior's Bureau of
Reclamation, and the U.S. Army Corps Engineers in order to produce this
report, and has designed an approach to complete the assessment. DOE is
currently working with the PMAs to develop recommendations from the PMA
Administrators, as required by the legislation.
Developing the appropriate methods to project future climate change
and scale these projections down so that they are relevant to the 140
federal hydropower projects presents significant technical challenges.
Due to these technical challenges and the time required to consult with
a large number of federal and state agencies, DOE will be requesting an
extension with a revised delivery of the report at the end of CY 2011
(December 2011).
Responses of Steven G. Chalk to Questions From Senator Murkowski
Question 1. In March 2010, DOE, along with DOI, and the Corps of
Engineers, signed a Memorandum of Understanding on hydropower, the goal
of which was to increase energy generation from Federal hydro
facilities and maintain environmental protections. What steps has the
Department taken to implement the MOU? Has the MOU resulted in any
additional hydropower capacity to date? Have the agencies identified
any ways to make the licensing process more efficient?
Answer. Through the Hydropower MOU, DOE, DOI and the U.S. Army
Corps of Engineers agreed to cooperate more closely and align
priorities to support the development of environmentally sustainable
hydropower. The MOU signatories agree to focus on increasing energy
generation at federally-owned facilities and explore opportunities for
new development of low-impact hydropower.
Since signing the MOU, DOE, DOI and the Corps have hosted a series
of technology workshops focusing on pumped storage hydropower,
innovative low-cost small hydropower and environmental mitigation
technologies. A workshop on new turbine technology is scheduled for May
2011, and a Request for Information has been developed for technologies
that could be deployed at federal facilities.
DOE has been working closely with the Corps and DOI's Bureau of
Reclamation (BOR) to identify federal facilities where hydropower
generation could be increased or added.
On March 31, 201, BOR released the Hydropower Resource Assessment
at Existing Reclamation Facilities report pursuant to the 2010 MOU. The
report estimates that additional hydropower opportunities at 70
facilities could create enough clean, renewable energy to annually
power more than 85,000 households. The report was general in nature and
more detailed analysis would be needed to determine the feasibility of
expansion at these facilities.
DOE is also currently helping BOR to assess power production
potentials within their canal and irrigation infrastructure. DOE's Oak
Ridge National Lab is working on a Non-Powered Dam Resource Assessment
and presented preliminary results at the National Hydropower
Association's Annual Conference on April 5, 2011. While the MOU has not
directly resulted in any additional hydropower capacity to date, these
resource assessments will help identify the best locations for future
hydropower improvement projects.
On April 5, 2011, DOE released a Funding Opportunity Announcement
announcing $26.6 million for hydropower in four topic areas: 1)
sustainable small hydropower research, development and testing; 2)
environmental mitigation technologies to increase electricity
generation while mitigating fish and habitat impacts; 3) financial and
technical assistance for pumped storage hydropower projects in the
licensing or pre-construction process; and 4) advanced hydropower
system testing at a non-powered BOR facility. Topic area 4 is co-
sponsored by DOE and DOI's BOR, and is anticipated to result in
additional hydropower capacity.
As directed by the MOU, a staff-level interagency working group has
been formed of federal agencies involved in the regulation, management
or development of hydropower assets for the purpose of sharing
information on all initiatives, efforts and projects related to
hydropower. This group also includes the Fish and Wildlife Service,
National Park Service, NMFS, Forest Service, USGS, Bureau of Indian
Affairs, EPA, Power Marketing Administrations, BLM and FERC.
The interagency working group has established a regulatory sub-
committee that is working to better understand the time and costs
associated with regulatory and permitting processes. While licensing is
under the jurisdiction of FERC, DOE has taken the lead as an unbiased
third party to examine the permitting and licensing processes for
private development at federal facilities. DOE is interviewing project
developers in order to identify redundancies that could be eliminated,
as well as examples of efficient review and coordination that could be
replicated. The end result will be the identification of ways to make
the licensing process more efficient.
The Bureau of Reclamation and the U.S. Army Corps of Engineers also
have separate MOUs with FERC that focus on reducing the licensing and
permitting time of projects at their facilities. The FERC and the U.S.
Army Corps of Engineers entered into a revised MOU on March 30, 2011,
to enhance the effectiveness and efficiency for non-federal hydropower
development decision making, including addressing 404 permit and 408
approval processes.
Question 2. I understand that the Department is looking at
potential locations for pumped storage--something we call for in S.
629, the Hydropower Improvement Act. S. 629 directs DOE, along with the
USGS, to identify suitable locations on both federal and non-federal
lands that may help with integrating intermittent renewable resources.
How does the Department's initiative differ from S. 629's provisions in
this area?
Answer. DOE's pumped storage hydropower (PSH) initiative is focused
on integrating variable renewable resources and identifying and
addressing the barriers to deployment in the United States. In
September 2010, DOE sponsored a PSH workshop where experts from the
industry, manufacturers, laboratories, environmental groups, and
government agencies were convened to identify the major PSH deployment
barriers. The barriers identified in this workshop include permitting
time and cost, lack of models that identify the full value of PSH, lack
of uniform markets for ancillary services provided by PSH, high capital
cost, and long payback period. DOE has also studied PSH projects filed
with FERC and is working with PSH developers to identify the most
favorable sites for pumped storage for variable renewable energy
resources integration.
To address the PSH barriers identified in the workshop and to
better integrate variable renewable energy resources, DOE included two
relevant topic areas in its hydropower funding opportunity announced on
April 5, 2011. The first topic will provide technical and financial
assistance to aid projects in the early stages of development
(licensing and pre-construction planning). The second topic will
provide for improved modeling of hydropower benefits such as load
following voltage and frequency regulation and the ability to integrate
variable renewables such as wind and solar.
While DOE is pursuing several activities, including those described
above, that are in line with the objectives of the Hydropower
Improvement Act S. 629, we are not conducting a study to identify
Federal and non-Federal land for pumped storage sites in coordination
with the USGS as would be required in Section 12 of S. 629.
Appendix II
Additional Material Submitted for the Record
----------
Association of California Water Agencies,
March 28, 2011.
Hon. Jeff Bingaman
Chairman, Energy and Natural Resources Committee, 304 Dirksen Senate
Office Bldg., Washington, DC.
Hon. Lisa Murkowski,
Ranking Member, Energy and Natural Resources Committee, 304 Dirksen
Senate Office Bldg., Washington, DC.
Dear Chairman Bingaman and Ranking Member Murkowski;
The Association of California Water Agencies (ACWA) is pleased to
support the Energy and Water Integration Act of 2011 and appreciated
the opportunity to testify in support of this legislation last
Congress. ACWA's 450 public water agency members supply over 90 percent
of the water delivered in California for residential, agricultural, and
industrial uses.
As highlighted in a 2005 report by the California Energy
Commission, saving water saves energy. Your bill recognizes the
importance of the energy/water nexus and calls for baseline studies
examining numerous aspects of this relationship. The clean technology
grant programs in your bill will provide an opportunity to demonstrate
both water and energy savings available from new technologies.
Additionally, the rural water utilities program will help small systems
save money by providing assistance to help agencies conserve both
energy and water.
Thank you for your hard work on this legislation. ACWA appreciates
your leadership on this issue and looks forward to working with you in
the future.
Sincerely,
David Reynolds,
Director of Federal Relations.
______
Association of California Water Agencies,
March 23, 2011.
Hon. Jeff Bingaman,
Chairman, Energy and Natural Resources Committee, 304 Dirksen Senate
Office Bldg., Washington, DC.
Hon. Lisa Murkowski,
Ranking Member, Energy and Natural Resources Committee, 304 Dirksen
Senate Office Bldg., Washington, DC.
Dear Chairman Bingaman and Ranking Member Murkowski;
The Association of California Water Agencies (ACWA) is pleased to
support S. 629, the Hydropower Improvement Act of 2011. ACWA's 450
public water agency members supply over 90 percent of the water
delivered in California for residential, agricultural, and industrial
uses.
Your bill, S. 629, will help small scale projects move forward more
quickly. In California, water systems are looking to install in-conduit
microturbines in their water distribution systems to generate
hydropower. Currently, many of these small projects are exempt from
FERC jurisdiction. However, obtaining an exemption can take six months
or more and cost upwards of fifty thousand dollars. Your bill, S. 629,
will help reduce this regulatory burden.
Thank you for your hard work on this legislation. ACWA appreciates
your leadership on this issue and looks forward to working with you in
the future.
Sincerely,
David Reynolds,
Director of Federal Relations.
______
Alliance for Water Efficiency,
March 31, 2011.
Hon. Jeff Bingaman,
Chairman, Energy & Natural Resources Committee, 304 Dirksen Senate
Office Bldg., Washington, DC.
Hon. Lisa Murkowski,
Ranking Member, Energy & Natural Resources Committee, 304 Dirksen
Senate Office Bldg., Washington, DC.
Dear Chairman Bingaman and Ranking Member Murkowski:
The Alliance for Water Efficiency is pleased to support the
committee's interest in integrating energy and water programs. Water
and energy are interconnected issues, and your bill highlights the
importance of better managing this connection. We strongly support
provisions in a 2011 bill that would mandate baseline studies to
examine numerous aspects of this relationship. Further, clean
technology grant programs would provide an opportunity to demonstrate
both water and energy savings available from new technologies.
Additionally, a rural water utilities program would help small systems
save money by providing assistance to help agencies conserve both
energy and water.
The Alliance for Water Efficiency is a non-profit stakeholder
organization whose mission is to promote the efficient and sustainable
use of water. One of our primary activities is working with water
utilities to help them design and implement cost-effective water
conservation programs, programs which save energy as well as water. We
have been working with the American Council for an Energy Efficient
Economy to develop a list of policy priorities for national
consideration. We will be sending that report to you shortly.
Thank you for your attention to the water and energy issue. We very
much appreciate your leadership.
Sincerely,
Mary Ann Dickinson,
President and CEO.
______
National Rural Water Association,
Duncan, OK, April 9, 2011.
Hon. Jeff Bingaman,
Chairman, Energy & Natural Resources Committee, 304 Dirksen Senate
Office Bldg., Washington, DC.
Re: The Energy and Water Integration Act of 2011
The National Rural Water Association (NRWA), the country's largest
community-based water organization, appreciates your assistance and
support to rural and small communities reducing energy consumption,
utilizing renewable energy sources (including energy generation from
existing sanitation facilities), reducing water loss, and realizing the
cost-savings for their citizens.
We are writing in support of your legislation, ``The Energy and
Water Integration Act,'' and we encourage you to introduce the
legislation in this Congress and support its passage into law.
Providing safe public drinking water and adequate public sanitation
requires one of the greatest demands of energy in society. Most of the
country's over 50,000 water and wastewater systems are small, with
limited economies of scale, and often lacking technical and financial
resources. Initiating an on-site technical assistance network to reach-
out to all drinking water and wastewater supplies to assist in the
adoption of comprehensive energy conservation plans would result in
dramatic energy and cost savings in every participating community.
Small communities want to implement the most advanced energy plans
possible--and the small water and sanitation systems provision in the
Energy and Water Integration Act would provide the shared technical
resources to achieve this important objective.
Thank you for your leadership and assistance. Please
contact us if we can be of any assistance.
John Montgomery,
Mike Keegan.
______
Family Farm Alliance,
Klamath Falls, OR, March 16, 2011.
Hon. Lisa Murkowski,
U.S. Energy and Natural Resources Committee, 304 Dirksen Senate Bldg.,
Washington, DC.
Dear Senator Murkowski:
On behalf of the Family Farm Alliance, I thank you for introducing
``The Hydropower Improvement Act of 2011''. This bill is a major step
towards allowing the United States to substantially increase the
capacity and generation of clean, renewable hydropower resources,
improve environmental quality and support hundreds of thousands of
green energy jobs.
The Family Farm Alliance is a grassroots organization of family
farmers, ranchers, irrigation districts and allied industries in 16
Western states. Many of our members operate existing irrigation canals
and ditch systems that may provide opportunities to develop in-canal,
low-head hydroelectric projects that have tremendous potential for
producing significant amounts of renewable energy with virtually no
negative environmental impacts. Historic irrigation structures can be
retained while the system is updated with modern clean-energy producing
technologies. Increased revenues from the sale of this renewable energy
can result in lower irrigation costs to farmers. And, importantly,
irrigation water delivery services can continue while utilizing flows
for clean, emissions-free ``green'' energy production.
The Hydropower Improvement Act of 2011 seeks to substantially
increase our nation's hydropower capacity in an effort to expand clean
power generation and create domestic jobs. The legislation establishes
a competitive grants program and directs the Energy Department to
produce and implement a plan for the research, development and
demonstration of increased hydropower capacity. The bill provides the
Federal Energy Regulatory Commission with the authority to extend
preliminary permit terms; to work with federal resource agencies to
streamline the review process for conduit and small hydropower
projects; and to explore a possible two-year licensing process for
hydropower development at non-powered dams and closed loop pumped
storage projects. The Act also calls for studies on the resource
development at Bureau of Reclamation facilities and in conduit
projects, as well as on suitable pumped storage locations. By utilizing
existing authorizations, the bill does not represent new funding.
Thank you for this opportunity to provide input on this matter,
which is very important to the family farmers and ranchers of our
membership.
Sincerely,
Dan Keppen,
Executive Director.
______
Statement of the Colorado Governor's Energy Office, Denver, CO
on s. 629
The Governor's Energy Office applauds the bipartisan effort to
boost hydropower development in the United States through the
introduction of a progressive bill such as S. 629, the Hydropower
Improvement Act of 2011.
Introduction--The Governor's Energy Office
``The Governor's Energy Office promotes sustainable economic
development in Colorado through advancing the state's energy market and
industry to create jobs, increase energy security, lower long-term
consumer costs, and protect our environment.''
In the last few years, Colorado has become a national leader in
clean technology innovation. The new markets for clean energy developed
in Colorado have made the state a magnet for clean energy companies,
such as wind, solar and natural gas, clean-tech workers and venture
capital. The state has set the pace in energy efficiency as well, with
policy and private sector innovations that are leading businesses,
industries and homeowners to significantly reduce their energy costs.
The Governor's Energy Office (GEO) has played an important role in
these achievements since its inception in January of 2007. The GEO has
strengthened the foundation for clean energy with forward-thinking
programs and partnerships that have generated widespread adoption and
deployment of renewable energy and energy efficiency in communities,
businesses, non-profits and utilities across Colorado.
Fiscal year 2010 was a capstone year for the GEO. The agency played
a critical role in historic legislation that will dramatically increase
clean electricity generation. It continued efforts to reduce
consumption by promoting greater energy efficiency in Colorado. It
directed millions of American Recovery and Reinvestment Act dollars to
Coloradans through programs that created jobs in the renewable energy
and energy efficiency sectors. It doubled weatherization services to
help thousands of low-income Colorado families save money and it
launched a popular new website-rechargecolorado.com-and rebate program
to help consumers more easily adopt efficiency and green energy
measures. To date, more than $11 million in rebates have been issued
resulting in more than $90 million in economic activity throughout the
state.
The GEO led new efforts to create innovative financing programs
that will facilitate the adoption of clean energy and energy-saving
upgrades while also addressing the current lack of capital available.
In four fast-paced years, the GEO has spurred new jobs, saved energy,
cut pollution and reduced Colorado's reliance on imported energy.
Hydropower--An untapped resource
The Governor's Energy Office values small hydroelectric projects as
a clean and environmentally-friendly source of renewable
energy.Hydropower developed in an environmentally responsible way is a
clean source of base-load energy and a job creator. Furthermore, the
U.S. Energy Information Agency's latest forecast estimates that by the
year 2016 the levelized cost of electricity produced by hydropower
plants will be in average lower than coal. The Idaho National
Laboratory has identified a combined potential of more than 1,400 MW in
Colorado alone for projects under 5 MW, which represents over 10% of
the peak demand of electricity in the state. For all these reasons, the
GEO has taken a keen interest to promote the development of this
wonderful resource.
Market barriers for Small Hydropower
A vast majority of the hydro projects in the US must be permitted
by the Federal Energy Regulatory Commission (FERC). The current
permitting process employed by FERC needs to be streamlined and
simplified to encourage the responsible development of small-scale
hydropower projects. The Governor's Energy Office, the National
Hydropower Association, a few state energy offices, a host of private
developers and other organizations across the United States agree that
the resources needed today to obtain a hydropower permit from FERC
represent a disproportionate burden for the developers of small
projects. As a result, the development of this renewable resource is
stifled nation-wide. Colorado has not been immune to this effect: in 31
years, only 26 small hydropower projects in the state have received an
exemption permit from FERC, in spite of having over 5,000 sites with an
excellent hydro resource, an accessible transmission line and no major
environmental concerns.
The Governor's Energy Office has taken a proactive stance to
correct this situation by working with FERC to find opportunities to
streamline their current framework. The result of this effort is a
signed MOU agreement that will not just shorten the time needed to
receive a permit but also simplify and clarify the process, making it
cost-effective for small projects. As part of this initiative, GEO used
Recovery Act funding to contract a group of experts, known as the
Renewable Energy Development Team (REDT), to assist the best projects
in the state in navigating the FERC permitting process. In February,
the GEO launched the Small Hydro Permitting Pilot Program, which has
already reviewed more than 2MW of potential projects, from which six
projects are ready for FERC full review.
The Hydropower Improvement Act of 2011
As mentioned before, the Governor's Energy Office commends Senator
Murkowski and the cosponsors of this bill for the effort and their
resolution to improve the conditions under which hydropower is
developed in this country.
In this bill, we see a few parallels with the Small Hydro
Permitting Pilot Program that the state designed in collaboration with
FERC. It is our intention to share the results of our Pilot Program
with FERC and other federal authorities in order to make systemic
changes to the way hydropower is permitted at the federal level. The
GEO finds that this bill will advance a more consistent and supportive
policy for this clean and low-cost resource, which will help the United
States move forward towards energy independence and a cleaner future
for our children.
The GEO would like to highlight Section 8, intended to promote
conduit and small hydropower projects, which offer a great opportunity
to increase the installed hydropower capacity without compromising our
environment. Through the Small Hydro Permitting Pilot Program at the
GEO we have come to realize that the part of FERC's permitting process
where resource agencies and other stakeholders participate is
particularly important to address to have an efficient process. The GEO
applauds the intention to sign an MOU with the relevant federal
organizations and encourages the bill sponsors to include state
agencies as well. Through interactions with FERC, the GEO has
discovered that, in the case of Colorado, there are four state agencies
involved in every application, and one federal agency; hence, the
importance to involve the agencies working at a state level. This
section also states a provision to expedite the approval of conduit
projects through the aggregation of projects. This is a great step, but
there are other ways to improve the permitting process.
Other opportunities include:
Increase the engagement of the state agencies involved in
permitting hydropower projects locally. While conditions will
be different for every state, increasing state engagement is a
key component to increase the efficiency of the process. The
workshops included in this same section will help enormously to
discover the needs of each state and their particular set of
agencies involved in the regulation of hydropower. The GEO
thinks that these workshops will be enormously positive and
applauds this effort.
Section 5 has great merit since the Federal Government is in
a unique position to incentivize the development of minimal-
impact projects throughout the country. By targeting existing
plants and conduits, as well as non-powered dams, the proposed
grants will go to the projects that offer the least impact to
the environment, promoting the development of truly clean
energy sources. This opportunity should be intensified and
closely monitored
In this same line, the funding of the research and
development program-outlined in Section 6-to look at increasing
efficiencies and minimizing environmental impacts is a big step
forward in the right direction.
Section 7 looks to permit non-powered dams in two years or
less. We recommend working further with FERC to refine the
language of this section, since it is known that FERC has been
able to reduce the time needed for this type of permits in
general, and in some particular cases, the permit was issued in
less than a year. The GEO commends the intention of receiving
public input in this section since it has received several
comments from the public stating that the federal standards for
dam safety add an unjust burden at dams that comply with the
state's regulations. Colorado's dam safety program is well
known nationally for its sound standards and high reliability.
During the public input process the GEO will certainly offer
more details and hopefully find a way to improve the
collaboration between the state and the federal government in
this matter.
Conclusion
The Small Hydropower Permitting Pilot Program that the Governor's
Energy Office in Colorado is administering aims not just to permit 20
projects, create more jobs and develop more projects, but to generate
systemic changes by informing the public and the government at every
level about ways to improve the current federal permitting process,
without compromising the federal authority or environmental standards.
The GEO wishes to congratulate the sponsor and cosponsors of this bill
and encourage Congress to pass this landmark effort to improve the
conditions under which hydropower is developed in this country.
______
Calleguas Municipal Water District,
Thousand Oaks, CA, March 30, 2011.
Hon. Jeff Bingaman,
Chairman, Energy and Natural Resources Committee, 304 Dirksen Senae
Office Bldg., Washington, DC.
Hon. Lisa Murkowski,
Ranking Member, Energy and Natural Resources Committee, 304 Dirksen
Senate Office Bldg., Washington, DC.
Re: Support S. 629-Hydropower Improvements
Dear Chairman Bingaman and Ranking Member Murkowski,
On behalf of Calleguas Municipal Water District (Calleguas) I am
writing to express our support of S. 629, Hydropower Improvements.
Calleguas is a member agency of the Metropolitan Water District of
Southern California and supplies drinking water for more than 75
percent of the population in Ventura County, California.
S. 629 will help small scale projects move forward more quickly
through financial assistance programs and stream-lined permitting.
Currently, many of these small projects are exempt from FERC
jurisdiction. However, obtaining an exemption can take six months or
more and cost upwards of fifty thousand dollars. S. 629 will help
reduce this regulatory burden.
Calleguas supports installing in-conduit generators in water
distribution systems to generate clean, renewable energy of hydropower
resources. The district currently maintains four in-conduit
hydroelectric generation stations with a combined capacity of 3.25
megawatts as part of its water transmission system and has plans to
develop a fifth generator as a component of new pressure regulating
facility to be constructed soon. Again, we want to thank you for your
efforts on this issue and underscore our support of this important
legislation.
Sincerely,
Susan B. Mulligan,
General Manager.
______
Large Public Power Council,
Alexandria, VA, April 20, 2011.
Hon. Harry Reid, Majority Leader,
United States Senate, U.S. Capitol, Washington, DC.
Dear Majority Leader Reid: I am writing on behalf of the Large
Public Power Council (LPPC) to voice our solid support for the
Hydropower Improvement Act of 2011 (S. 629) and urge floor action in
the Senate on this important piece of clean energy legislation.
We are pleased that this bi-partisan legislation, introduced by
Senators Jeff Bingaman and Lisa Murkowski, passed out of the Senate
Energy and Natural Resources Committee on April 12, LPPC believes it
will foster and facilitate the growth of responsible hydropower
development in the United States.
The Large Public Power Council represents 25 of the largest locally
owned and operated not-for-profit electric systems in the nation. LPPC
member utilities are located in 11 states and Puerto Rico; and own and
operate more than 86,000 megawatts of generation capacity and over
35,000 circuit miles of high voltage transmission lines. LPPC member
utilities supply electricity to some of the largest cities in the
country--including Los Angeles, Seattle, Omaha, Phoenix, Sacramento,
Jacksonville, San Antonio, Orlando and Austin.
For over 100 years, hydropower has been the most widely employed
renewable energy resource in the United States. Hydropower is the
nation's largest renewable resource for electric generation, currently
producing seven percent of the nation's electricity--and avoiding 225
million metric tons of carbon emissions each year.
In addition to generating clean electricity, hydropower has the
ability to firm and stabilize variable renewable resources such as wind
and solar, thereby integrating additional renewable electric power into
the transmission grid.
We believe that this legislation will increase the nation's
hydropower capacity, will expand renewable power generation and create
major job growth and economic opportunities throughout the United
States. These include good paying engineering, manufacturing,
construction and operations jobs that could revitalize communities.
The LPPC strongly supports the Hydropower Improvement Act of 2011
and urges floor action in the Senate on this important piece of clean
energy legislation.
We appreciate your leadership as Majority Leader on national energy
issues and stand ready to assist you and the bill's numerous co-
sponsors in promoting hydropower as a low cost, reliable and emissions
free source of power to our nation's electricity consumers.
Sincerely,
Jorge Carrasco,
LPPC Chair.