Murkowski and Colleagues Lead Efforts to Bolster Made-In-America Hydropower

Murkowski and Colleagues Lead Efforts to Bolster Made-In-America Hydropower

Washington, D.C.-Yesterday, U.S. Senators Lisa Murkowski (R-Alaska), Steve Daines (R-Mont.), and Jim Risch (R-Idaho) introduced the "Hydropower Licensing Affordability Act." This bill will reform the Federal Power Act to reduce delays and costs of hydropower licensing. Specifically, the bill would limit Section 4 (e) and Section 18 mandatory conditioning of hydropower licenses under the Federal Power Act to those conditions that are related to "direct adverse effects" of the project.

"Throughout my time in the Senate, I have heard the same message from Alaska's utilities and local leaders: the hydropower relicensing process is broken," said Murkowski. "With 40 percent of our nation's non-federal hydropower licenses set to expire by 2035, including 12 projects in Alaska, we need to address the unwarranted delays and costly federal requirements that often bear little connection to a project's direct impacts. Those burdens make it much harder to maintain and expand one of Alaska's most reliable sources of renewable, baseload power. By ensuring mandatory licensing conditions are tied to a project's direct adverse effects, this legislation will provide greater regulatory certainty, reduce unnecessary costs, and help keep electricity affordable and reliable for Alaskans."

"Hydropower is a growing source of power in both Montana and across the nation. The demand for U.S. energy is increasing every year, and we need to do everything we can to ensure we're prepared to meet this rise in demand. These reforms will ensure the hydropower licensing process is more efficient, so we can get critical projects done in a timely manner," said Daines.

"More than half of Idaho's in-state electricity generation comes from hydropower, underscoring the importance of continued investment in the operation of both public and private dams. The Hydropower Licensing Affordability Act improves the relicensing process to ensure our dams continue to meet growing demand for affordable, reliable baseload power while efficiently serving our communities," said Risch.

Read the bill text HERE.

The senators also wrote a letter to the Federal Energy Regulatory Commission, the Department of the Interior, the Department of Agriculture, and the Department of Commerce urging support and action on these reforms. The letter urges the agencies to:

1. Limit mandatory conditions to those that address direct effects of a project,
2. Limit the scope of the project area to its immediate vicinity,
3. Reasonably define 'fishway' to clarify that prescribed structures are intended only to address direct impacts to fish passage;
4. Require conditions to be backed by the best available science,
5. Require agencies to provide a statement with any conditions that demonstrates equal consideration to the effects of the condition "on energy supply, distribution, cost, and use; flood control; navigation; water supply; and air quality (in addition to the preservation of other aspects of environmental quality)," as required in Section 33, and
6. Ensure that conditions are not overly burdensome or costly.

"Taking steps now to address these issues will usher in a generational shift in hydropower production, keep costs lower for consumers, build jobs, maintain reliability for the grid, and protect blackstart assets, all while continuing to protect our natural resources. We urge you to immediately initiative rulemakings at each of your agencies and look forward to working closely with you to support new and existing hydroelectric generation," they wrote in the letter.

Senators Mike Crapo (R-Idaho), Pete Ricketts (R-Neb.), Alan Armstrong (R-Okla.), Dan Sullivan (R-Alaska) and Tim Sheehy (R-Mont.) joined Murkowski, Daines, and Risch in sending the letter.

Read the full letter HERE.

Statements of Support:

"Hydropower is a critical resource in meeting Alaska's growing energy needs while providing long-term electricity cost stabilization for families and businesses throughout the state. Alaska Power Association strongly supports the Hydropower Licensing Affordability Act, which will ensure permitting agencies properly scope their mandatory conditions to address the direct effects of hydropower projects. Too often projects, and ultimately ratepayers, are asked to bear higher costs due to issues unrelated to project operations or impacts. We commend Senator Murkowski and Senator Daines for their leadership on this issue and urge Congress to quickly pass this much needed legislation," said Crystal Enkvist, Executive Director, Alaska Power Association.

"Common sense hydropower reforms mean we need to pair the permit with the project. That's why the Hydropower Licensing Affordability Act is so important. For too long, hydropower producers have been forced to pay for wish-list items that have nothing to do with the reliable power they provide. With rising energy demand and 16,000 MW of hydropower up for license renewal over the next decade, we can't afford to keep the status quo. I thank Senators Daines, Risch and Murkowski for taking action on this top priority, along with Rep. Cliff Bentz, who is leading this effort in the House. NHA looks forward to working closely with these water power champions to move this bill through Congress as quickly as possible," said Matthew Allen, Senior Director of Legislative Affairs, National Hydropower Association.

"Thank you Senators Daines, Risch and Murkowski for introducing the Hydropower Licensing Affordability Act. This legislation will help create greater certainty in the permitting process for our hydropower assets, while ensuring our projects maintain their environmental integrity to protect fish and wildlife. Hydropower makes up nearly 23% of our generation portfolio at NorthWestern Energy, allowing our company to meet customer demand with affordable, reliable, and carbon-free power," said Brian Bird, President and Chief Executive Officer, NorthWestern Energy.

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