[Congressional Record Volume 157, Number 41 (Thursday, March 17, 2011)]
[Senate]
[Pages S1842-S1843]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Ms. MURKOWSKI (for herself and Mr. Begich):
  S. 631. A bill to extend certain Federal benefits and income tax 
provisions to energy generated by hydropower resources; to the 
Committee on Finance.
  Ms. MURKOWSKI. Mr. President, I rise to introduce the Hydropower 
Renewable Energy Development Act of 2011, legislation to extend certain 
benefits and income tax provisions to energy generated by hydropower 
resources. This legislation is co-sponsored by my colleague from 
Alaska, Senator Begich.
  We have an incredible amount of hydropower potential in my home State 
of Alaska. To date, we have almost 50 hydropower projects--in a range 
of sizes from the 126 megawatt Bradley Lake project to the 7 kilowatt 
Walsh Creek project--that produce about 24 percent of the State's 
electricity needs. Alaska is proof that the hydropower resource is not 
tapped out--not even close. Currently, there are 32 additional 
hydropower projects, just in Southeast, that are either under 
construction or on the drawing boards. Statewide there are another 200 
areas that have been identified as promising sites for lake taps, run 
of river, pumped storage and even new hydroelectric reservoirs. With 
the proper financing, we could keep a dozen hydro construction 
companies fully employed in the State for a decade or even longer. That 
is just in Alaska. There are tremendous opportunities in each and every 
State to further develop this clean energy alternative.
  Hydropower, by definition, is a renewable resource. It produces no 
carbon emissions and through rainfall and melting snowpacks it is able 
to be replenished. Yet there are some who would deny this important 
classification to the hydropower resource. The Hydropower Renewable 
Energy Development Act of 2011 directs that the generation of 
hydroelectric power be treated as a ``renewable'' resource for purposes 
of any Federal program or standard. This reclassification of 
hydroelectric generation should help to incent the further production 
of this important and often undervalued resource.
  Next, the bill provides parity treatment for hydropower resources in 
the Production Tax Credit, PTC. Currently, companies that generate 
wind, solar, geothermal, and closed-loop biomass systems are eligible 
for the PTC which provides a 2.1 cent per kilowatt-hour, kWh, benefit 
for the first 10 years of a renewable energy facility's operation. 
Other technologies, such as incremental hydropower, certain generation 
at non-powered facilities, and wave and tidal receive a lesser value 
tax credit of 1.1 cent per kWh. The Hydropower Renewable Energy 
Development Act of 2011 eliminates the distinction between the two 
categories so that all qualified hydropower resources receive the full 
PTC credit. The bill further expands upon the types of hydropower 
resources that can qualify for the PTC, allowing new hydro generation, 
small hydropower under 50 megawatts, lake taps, and pumped storage 
facilities to qualify as well.
  The Hydropower Renewable Energy Development Act of 2011 also carries 
this expanded qualification of hydropower to the Clean Renewable Energy 
Bonds, CREBS, program.
  Because non-profits like rural electric cooperatives and public power 
providers are not eligible for the PTC due to their tax-exempt status, 
CREBS was created to encourage these entities to undertake renewable 
energy development as well. This program has been wildly popular and 
has been oversubscribed since its inception. There are endless 
possibilities for increased hydropower production by electric 
cooperatives and public power providers and they should be given the 
proper financial incentive to do so.
  Finally, the bill provides for a 5-year accelerated depreciation 
period for equipment which produces electricity from marine and 
hydrokinetic energy, as well as conventional hydropower resources.
  I ask my colleagues to support this hydropower tax legislation. The 
further development of this untapped renewable resource will help us 
meet our clean energy goals through the generation of carbon-free, 
baseload power. At a time of record unemployment, the addition of 
hydropower capacity throughout the nation will lead to hundreds of 
thousands of good paying, domestic jobs.

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