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Hydropower PotentialFacts Benefits Growth Political Landscape Priorities

1Hydro Myths2The countrys hydro resources are tapped out.

Hydropower development and river stewardship are not compatible.

U.S. hydro plants are all huge.

Hydro is not cost-effective.

Hydropower is only available in a few places, like the Northwest.

The Facts33Availability 4Hydropower is the largest source of renewable electricity generation in the U.S. and made up 7% of overall power generation in 2009.Source: EIAHydropower accounted for 65.9 % of all renewable power generated in the U.S. last year.U.S. Renewable Power Generation, 2009 Availability Hydropower is generated in every region and benefits every state, employing up to 300,000 workers around the U.S.

Top-ten hydropower generating states:WashingtonOregonNew YorkCaliforniaAlabamaIdahoTennesseeMontanaArizonaNorth Carolina5

Size (Capacity) Distribution of Currently Operating UnitsOnly 3% of U.S. dams generate electricity there is significant room for growth without building new infrastructure.

580,000 Dams Across the U.S.6

pre 1900Build Time

1900 - 1929

1930 - 1939

1940 - 1949

1950 - 1969

1970 - 1989

1990 - 200819th Century HydropowerEarly 20th Century HydropowerDepression Era HydropowerWWII Hydropower ConstructionPost-War Hydropower DevelopmentLate 20th Century Hydropower DevelopmentHydropower Development since 1990The U. S. Hydropower FleetExisting & Potential HydropowerSource: ORNL77

Hydropower Potential New Capacity Job Creation8Growth . . . Without New Dams 9Using new technologies and maximizing existing infrastructure, we can significantly expand hydropower capacity without building new dams.

Modernizing existing facilities

Converting Non-Powered Dams

Marine and Hydrokinetic Technologies

Conduit Technology

Future availability 10Hydro Capacity Growth by TechnologySource: Navigant ConsultingWith the right policies in place, the U.S. could add 60,000 MW of new hydro capacity by 2025, the vast majority of which can be created without adding new dams. 10DOE/ORNL: Major Growth Opportunity11

1.4 Million Potential Jobs by 202512Direct JobsIndirect JobsCumulative Job Creation by 2025 under a 25% RESJob Creation Opportunities in Hydropower, Navigant Consulting, 2009

Hydropower Benefits Affordable Reliable Sustainable 13

Clean and Sustainable14The hydropower industry is committed to better understanding and mitigating the impacts dams can have on local ecosystems and fish, with hundreds of millions of dollars invested each year in environmental enhancements at hydro facilities. Using hydropower avoided approximately 196 million metric tons of U.S. carbon pollution in 2009 equal to emissions from approximately 38 million cars.

Non-Powered Dam Potential With Other RenewablesNon-powered dam potential exists in areas with less than ideal wind and solar resourcesSource,Wind & Solar Maps: NREL1515Grid Reliability16Hydropower is a flexible and reliable electricity source. Hydropowers ability to dispatch power immediately makes it an essential back-up during major electricity disruptions.

Grid support services include . . . Frequency Control Regulation Load Following Spinning Reserve Supplemental Reserve[During the blackout,] one relatively large island remained in operation serving about 5,700 MW of demand, mostly in western New York, anchored by the Niagara and St. Lawrence hydro plants. US-Canada Power System Outage Task Force report, 2005

Energy Storage: Affordable & At Scale17Hydropower pumped storage is one of the few large-scale, affordable means of storing and deploying electricity.

Absorbs excess generation at times of low demand, and releases it during peak demand periods.

An excellent partner for intermittent renewable electricity sources.The U.S. has more than 20GW of pumped storage capacity today, with facilities in every region of the country. Developers have proposed an additional 31GW.

The National LandscapeBipartisan Regionally Diverse18Bipartisan Support19

Hydropower has multi-region and bipartisan support

Hydropower Improvement Act of 2011 co-sponsors include Sens. Murkowski (R-AK) and Bingaman (D-NM) and 7 other Senators, Republicans and Democrats

Incentives for hydropower and marine and hydrokinetic technologies championed by both parties

Consensus in the 111th Congress for inclusion of hydropower in various policies

Bipartisan Support20Hydropower is one of our greatest untapped resources for generating clean, renewable electricity. - Senate Energy and Natural Resources Committee Ranking Member Lisa Murkowski (R-AK)In todays environment where talk centers on the need to provide clean and environmentally friendly energy we must continue to promote and expand the use of hydropower. House Natural Resources Committee Chairman Doc Hastings (R-WA)Theres no one solution to the energy crisis, but hydropower is clearly part of the solution and represents a major opportunity to create more clean energy jobs. Energy Secretary Steven Chu With thousands of existing dams currently not creating any power, existing dams in need of upgrades, and new technologies being developed to safely capture river currents, an additional 60,000 more megawatts is achievable within the next 15 years. House Natural Resources Committee Ranking Member Ed Markey (D-MA)

Projects Across the U.S.21Hydropower projects are underway around the country, bringing new jobs and low-cost electricity to many states.

ABB: Chief Joseph DamVoith: FolsomEagle Crest: Eagle Mountain Pumped StorageAlstom: Glen CanyonAndritz: Webbers Falls Advanced Automation Technologies: Ozark Lock and DamDuke Energy: JocasseeGE Hydro: John H. KerrBrookfield Renewable Power: KanawhaPPL: HoltwoodNYPA: St. Lawrence-FDR Power ProjectToshiba: LuddingtonAMP: Smithland, Cannelton, Meldahl, and Willow Island

21Projects Waiting in LineApplications/Exemptions Filed: 37 projects, 3000+ MW, 23 states

Preliminary Permits Issued: 394 projects, 48,000+ MW, 47 states

Preliminary Permits Pending: 355 projects, 37,000+ MW, 29 states

22Total FERC Pipeline: 88,000+ MW

Hydropower PrioritiesRegulatory Tax Energy Standard R&D 23Overview24NHA supports a CES goal of generating 80% of Americas electricity from clean and renewable energy a goal achievable only with a significant role for hydropower. Research and development A more efficient regulatory processEconomic incentives to support project developmentA national clean and renewable electricity standardWhat it will take: Regulatory Process25Hydropower development involves a comprehensive but sometimes redundant regulatory approval process that needs better coordination and cooperation between participants. Regulatory Process26Making the regulatory process more efficient includes:Facilitating private hydropower development on Army Corps of Engineers and Bureau of Reclamation FacilitiesAn expedited licensing process for hydropower development at non-powered dams and closed loop pumped storage projects, that takes no more than two years.

Regulatory Process27Improvements can be made to the regulatory process that speed both the deployment as well as the environmental enhancements and benefits of hydro projects. Support for small hydro and conduit power developers, so that the regulatory process provides assistance and is not a disincentive to project development.Incentives28Straightforward updates to existing renewable energy tax credit programs should be enacted:Equalizing the production tax credit for hydropower. Currently hydropower receives only half the credit available to other renewable energy sources.Allowing energy storage, specifically pumped hydro storage, to qualify for the ITC and CREBs (Clean Renewable Energy Bonds) Program.Expanding our nations energy storage capacity is essential to ensuring a secure and stable grid as well as integrating more renewable energy.Incentives29Long term extension of existing programs such as the PTC and ITC is needed, along with additional funding for oversubscribed programs such as CREBs and the 48C ITC for renewable energy equipment manufacturers.NHA strongly supports existing renewable incentives:Hydropower project development can have high upfront costs and long lead times. Though cost-effective over the life of the project, utilities, developers and investors need certainty with the incentives.A Clean and Renewable Electricity Standard30The Clean Energy Standard is a different policy paradigm than the Renewable Energy Standard. As such, the treatment and recognition of hydropower must be re-evaluated. Two examples:Energy storage, specifically pumped hydro storage, will play a critical role to firm and integrate intermittent resources and increase their contribution to the CES goal. The CES should include a mechanism to provide recognition of clean generation from pumped storage projects both existing and new.Existing hydropower generation should be counted if generation from other clean resources qualifies (wind, nuclear, etc.) Hydropower should be treated equitably in comparison to other existing resources.Research and Development31As the Congress debates budget priorities, funding for hydropower R&D is imperative.Congress must continue to invest, not retreat, on R&D funding for the next generation of hydropower and MHK technologies to achieve the countrys vision for clean energy deployment.President Obamas proposed FY 2012 budget increases DOE spending for all types of renewable energy with the exception of the Water Power program, with a proposed budget reduction of over 20%.Contacts

Linda Church Ciocci, Executive Director,National Hydropower Associationlinda@hydro.orgPh. 202.682.1700

Ryan Cunningham, Senior Vice President, Glover Park Grouprcunningham@gpgdc.comph. 202.295.0164

Roger Ballentine, President, Green Strategiesroger@greenstrategies.comph. 202.328.1123

www.hydro.org