National Hydropower Association - · PDF fileNational Hydropower Association Northwest Hydroelectric Association October 15, 2015 1 Available. Reliable. Affordable. Sustainable

National Hydropower Association

Northwest Hydroelectric AssociationOctober 15, 2015

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Available. Reliable. Affordable. Sustainable.

Recent Policy Successes for Hydropower

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• August 2013: two bills to promote small hydro and conduit projects signed into law

• June 2014: WRRDA language to address USACE permitting delays for non-federal projects signed into law

• December 2014: 2nd BuRec small conduit bill signed into law

Regulatory Improvements

• Jan. 1, 2013: PTC/ITC “begin construction” provision amended to include hydropower

• Jan.1, 2013: Extension of bonus depreciation

• Apr. 2014: Hydro/pumped storage added to DOE loan program

• Dec.2014: Hydro PTC-ITC 1-year retroactive extension for 2014

Incentives

• Continued high level appropriations for the DOE Water Power R&D program for fiscal year 2015 – ($61 million)

Funding

Translating Success Directly for the Industry

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• Section 1603 grants: Because of NHA’s tax work, hydro and MHK owners and developers had access to the federal grants in lieu of taxes program.

Over $525 million awarded to 67 projects.

NW/West companies: PSE - $107+ million (WA); PPL MT - $55+ million (MT); PG&E - $19+ million (CA)

• Conduit approvals: from the Hydropower Regulatory Efficiency Act of 2013. 52 of 68 applications for the 2-month process approved with 3 pending.

Includes 20 in CA; 5 in ID; 5 in Oregon; 3 in UT and 1 in AK.

• Preliminary permit extensions sought by use of HREA 2013 provision. 16 of 33 applications approved with 1 pending.Includes 4 applications from WA and 1 from UT.

2105 Policy Work Highlights

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• Hydro 2.0. NHA’s goal in 2015/2016 - secure additional regulatory process improvements to hydro licensing. Follow-up to the 2013 bills.

• NHA has worked and continues to work with both sides of the aisle, agencies, and NGO stakeholders and others.

• Financial/tax incentives. NHA seeks extension of hydro and MHK PTC and ITC and CREBs; reauthorization of EPAct Section 242/243 hydropower production incentive; and is monitoring comprehensive tax reform proposals for 2015-2016.

• EPA Clean Power Plan. NHA submitted extensive comments in November 2014 and has conducted outreach to EPA/DOE/state organizations in 2015.

2105 Policy Work Highlights

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• DOE Hydropower Vision Report. NHA is the lead partner with the Department of Energy on this first-of-its-kind examination of hydro’s contributions to the nation’s energy portfolio as well as future growth.

• Key Regulatory Activities. NHA has filed comments on these initiatives:

• May 11 – FERC 2015 biennial staff memo on existing regulations

• June 1 – joint resource agencies proposed rule on EPAct 2005 trial-type hearings and alternative mandatory conditions

• June 19 – FERC D2SI Revision 3 security program for hydro projects

• July 21 – FERC proposed rule on changes to annual charges

Hydropower Legislation

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• Bipartisan Senate Energy Legislation. (Sens. Murkowski and Cantwell)• The Energy Policy Modernization Act – S.2012.

• FERC as lead agency; set licensing schedule; enforcement• Encourages use of existing information, studies.• Stronger documentation of equal consideration requirement.• Improvements to trial-type hearings and alternative conditions.• Start construction deadline extension.• Credit for energy & environmental improvements mid-license.• Sense of Congress that hydro is a renewable.• Inclusion of hydro in federal RE procurement requirements.• Extension of prelim permit term to 4 years. • EPAct 2005 Section 242/243 incentives extension.• Voluntary basin-wide planning pilot program.

• Bill reported out of Committee at end of July w/ overwhelming bipartisan support on a vote of 18-4.

Hydropower Legislation

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• House Energy Legislation. (House Energy and Commerce Committee)• The North American Energy Security and Infrastructure Act – H.R. 8 –

also has significant hydro provisions, including:

• FERC as lead agency; set licensing schedule; enforcement.• Encourages use of existing information, studies.• Creates exemption process for building on non-powered dams.• Creates expedited process for closed loop pumped storage.• Fast-track license amendment process for project upgrades that

increase generation, recreation, environment enhancement.• Shoreline management protections for private owners.• EPAct 2005 Section 242/243 incentives extension.• Voluntary basin-wide planning pilot program.

• Hydropower amendment was the only bipartisan amendment.Reps. McMorris Rodgers and McNerney. Passed on voice vote.

Nationwide Relicensing

• 412 Projects with 18,708 MW of capacity

0 10 20 30 40 50 60 70

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

Number of Projects by Fiscal Year

0 500 1000 1500 2000 2500 3000

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

Capacity by Fiscal Year (MW)

Proposed development: 170 projects w/ 26,000 MW of capacity


Northwest

0 1 2 3 4 5 6 7 8

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

Number of Projects by Fiscal Year

0 200 400 600 800 1000

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

Capacity by Fiscal Year

Number of Projects: 49Capacity: 1,848 MW


Northwest

0

2

4

6

8

10

12

14

16

18

AK ID MT OR WA WY

Number of Projects by State

0

200

400

600

800

1000

1200

1400

AK ID MT OR WA WY

Capacity by State


Key Milestones for NHA Licensing Work2001-2015

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2001 - NHA petitions FERC for

hydro licensing

rulemaking

2003 – FERC adopts

Integrated Licensing

Process (ILP)

2005 – EPAct 2005 signed into law (TTH & Eq. Consideration)

2012 – NHA launches

Expedited Licensing Initiative

2013 – HREA and BuRechydro bills

signed into law

2014 –WRRDA

signed into law (Corps

hydro language)

2015 – NHA launches Hydro

Hydropower Licensing and

Regulatory Improvement

Campaign

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NHA seeks legislative reforms that:

Reduce costs associated with licensing process delays by expediting the licensing process and promoting efficient decision making. (For new projects and relicensing)

Remove the barriers to new hydropower development, project upgrades, and other opportunities to expand hydropower resources.

Preserve the underlying authorities which allow for the protection of environmental values and natural resources.

NHA Broad Policy Objectivesin Licensing Reform

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Next Steps

• Awaiting floor action in both House and Senate.• House may try to take up bill in October or November.• Senate bill may slip into early 2016.

• Managers’ amendment in Senate to address questions and make clarifications.

• Conference committee – House and Senate work out differences.

• Final votes in both chambers to pass the bill.

Tax Policy Recommendations

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Given the extraordinary potential for new hydropower deployment and job creation, NHA supports these common-sense policy proposals.

• Long-term extension of the production tax credit for hydropower (conventional, conduit, and MHK resources)

• Equalizing the PTC for hydropower

• Extending the investment tax credit for hydropower

• Extending the Clean Renewable Energy bonds (CREBs) program

• Allowing pumped storage to qualify for the ITC and CREBs

• Preserving tax exempt financing for municipalities

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STAY TUNED FOR LATER!!!

Will say that NHA is pleased with the changes made from the proposed to final rule in the recognition and treatment of hydro resources!

EPA Clean Power Plan

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DOE Hydropower Vision Report

Objectives• Lead the development of a cohesive long-term vision

for the benefit of the broad U.S. hydro community• Analyze a range of aggressive, but attainable industry

growth scenarios• Provide best available information to address

stakeholder interests• Provide objective and relevant information for use by

policy and decision makers

Product• Close examination of the current state of the industry• Discussion of the costs and benefits to the nation

arising from additional hydro• A road map addressing the challenges to achieving

higher levels of hydropower within a sustainable national energy mix

“Hydropower can double its contributions by the year 2030. We have to pick up the covers off of

this hidden renewable that’s right in front of our eyes and continues to have significant potential.”

– Dr. Ernest Moniz, Secretary of Energy

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Other Federal Opportunities

White House / DOE Quadrennial Energy Review – Year 2 on valuation

Clean Power Plan outreach to state/regional DC organizations

DOE Water Power R&D program appropriations

WRRDA improvements for development on Corps dams

Operational Excellence – more below

Waterpower Week in Washington (Over 740 attendees)• NHA Annual Conference• International Marine Renewable Energy Conference• Marine Energy Technical Symposium

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NW Opportunities & Initiatives

Washington UTC workshops on energy storage• NHA filed joint comments with the NWHA on August 21, 2015.

NWPCC 7th Power PlanTarget date for draft release: October 20, 2015.

Governor Inslee’s greenhouse gas emissions initiative• Draft rule in December 2015

Northwest Energy Market Assessment• NWPP MC Executive Committee to decide whether to proceed:

November 2015.

Columbia River Treaty Negotiations• Ongoing

NHA OPERATIONAL EXCELLENCE PROGRAMOpEx Defined

OpEx is:

• Voluntary sharing of critical information, best practices and lessons learned

• A tool that can be used for managing aging assets and a work force in transition

• Educational resource for workforce development

OpEx’ scope:

• Best Practices, Event Reports and Lessons Learned in the areas of

• Safety – Dam, Employee, and Public

• Maintenance

• Operation

• Environmental

A key objective of OpEx is to prevent a defining

event in the hydropower industry.

NHA OPERATIONAL EXCELLENCE PROGRAMResults To Date

Achievements to Date

55 Event Reports from a cross section

of the hydropower industry.

Sample Reports

• Loose Generator Rotor Pole Wedges

• Lower Turbine Shrink Ring Crack

• Turbine Discharge Ring Repair• Penstock Hydraulic Valve Seal

Failure• Inadvertent Turbine Rotation

n = 55

3311

6 5

Event Reports By Functional Area

Maintenance Safety Operations Environmental

These Event Reports contain:

• 178 Corrective Actions

• 75 Lessons Learned

• 72 Recommendations

• 325 industry insights

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NHA OPERATIONAL EXCELLENCE PROGRAMObservations

Subclass

• Equipment (31)• Human Performance (1)• Control System (1)

Maintenance Events (33)

Equipment

• Powertrain (18)• Balance of Plant (6)• Control System (3)• Shut Off Valves (1)• Spillway (2)• Sluiceway (1)• Water Conveyance (1)

Powertrain

• Generator (6)• Exciter (3)• Generator Switch Gear (3)• Turbine (3)• Bearings (1)• Phase Bus (1)• Transformer (1)

Severity

Significant (18), Severe (9), Minor (6)

Three exciter failures were very similar in

cause with a collective impact of $1M.

NHA OPERATIONAL EXCELLENCE PROGRAMObservations

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2

4

6

8

10

<12 Hrs. 12-24 Hrs 1-7 Days 1-4 Weeks 1-3 Months 3-6 Months 6-12 Months

Duration

NHA OpExOperations & Maintenance Event Duration

Maintenance Operations

Contact

Jeff Leahey

Deputy Executive Director

202.682.1700 x. 150

[email protected]

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Visit us on the Web

www.hydro.org

NatlHydroAssoc

@NatlHydroAssoc


Questions?

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National Hydropower Association - · PDF fileNational Hydropower Association Northwest Hydroelectric Association October 15, 2015 1 Available. Reliable. Affordable. Sustainable