WASHINGTON, D.C.– Electricity generated by water is clean, renewable, highly reliable, and once built, extremely cost-effective. In the United States, there are 181 federal hydroelectric projects, and 2,221 non-federal hydroelectric projects. These non-federal hydro-projects generate about 55 gigawatts of reliable power (enough electricity for 40-50 million people). Non-federal hydro-projects are subject to the Federal Power Act and must be issued a license by the federal government to operate. These licenses must be renewed every 30-50 years. Between 2020 and 2035, 451 of these licenses will expire. Imprecise language in the Federal Power Act is being used by environmental organizations to “litigate to death” non-federal facilities. The Hydropower Licensing Affordability Act, led by Congressman Cliff Bentz (OR-02), is intended to clarify that mandatory federal license conditions be reasonable and that required project mitigation measures be focused on the project’s direct adverse effects. Additionally, the bill makes it clear that fish passage mitigation conditions must also be reasonable and focused on the direct adverse effects of the hydro project on fish in the applicable river system.
Said Congressman Bentz: “The current hydropower re-licensing process is complex, costly, and disconnected from meaningful protection of affected species. This bill brings clarity and accountability back into the process by ensuring that mandatory federal conditions are reasonable and that fish passage conditions in licensing are tied to the project’s direct, actual adverse effects. Hydropower is a critical part of our energy mix, and these reforms will help stop frivolous litigation and improve the chances that this invaluable resource will remain a reliable and affordable source of electricity for families and businesses across the country.”
“Hydropower is an important source of reliable, dispatchable energy, but for too long, an outdated licensing process has added burdensome red tape that fails to meet Americans’ needs,” said House Energy and Commerce Committee Chairman Guthrie. “The Hydropower Licensing Affordability Act will deliver commonsense reforms to ensure federal regulations are focused on safely and efficiently building power generation, rather than advancing a wish list of conditions unrelated to a project’s direct environmental impact. Thank you to Congressman Bentz for his work to address this issue and help to lower electricity prices for American families and businesses.”
“The ‘Hydropower Licensing Affordability Act’ is long overdue. This bill closes a loophole that lets regulators impose permit conditions unrelated to a hydropower project’s impact to secure their own wish list items. By restricting conditions to those directly related to a project’s effects, we can implement a targeted reform that will make a big difference. With rising energy demand and 16,000 MWs of hydropower pending license renewal, we can’t afford to keep the status quo. I urge Congress to pass this bill promptly”, said Malcolm Woolf, President and CEO, National Hydropower Association.
“The American Public Power Association (APPA) strongly supports the Hydropower Licensing Affordability Act and urges Congress to advance this legislation without delay. Hydropower is essential to affordable, reliable electricity, but relicensing remains costly, complex, and uncertain. While FERC must consider many factors, it cannot modify “mandatory conditions” imposed by other agencies. This bill would clarify that such conditions are limited to addressing direct adverse effects. Without reform, existing hydropower capacity is at risk, threatening grid reliability”, said Scott Corwin, President & CEO, American Public Power Association.
A copy of the legislation is available here.
The legislation is cosponsored by Congressman Amodei (NV-02), Congressman Baumgartner (WA-05), Congressman Crank (CO-05), Congressman Downing (MT-02), Congressman Evans (CO-08), Congressman Fulcher (ID-01), Congressman Griffith (VA-09), Congressman Hurd (CO-03), Congressman Newhouse (WA-04), Congressman Weber (TX-14), and Congressman Zinke (MT-01).
Background:
- Clarify the scope of federal reservation conditions: The bill amends Section 4(e) of the Federal Power Act to ensure mandatory conditions for hydropower projects located on federal reservations are used to reasonably mitigate the direct adverse effect of the applicable project on the reservation.
- Ensure fishway prescriptions are properly scoped: The bill amends Section 18 of the Federal Power Act to clarify that prescribed fishways must be used to reasonably mitigate the direct adverse effect of the applicable project on the population of a species of fish in the applicable river system.
- Reduce unnecessary regulatory burdens: By tying mandatory conditions to the direct adverse effect of the project, the bill helps prevent overly broad or unrelated licensing requirements from increasing costs for hydropower operators and ratepayers.
- Support affordable and reliable hydropower: The bill promotes continued investment in existing hydropower resources while preserving appropriate environmental protections and fishway authorities under the Federal Power Act.
By refining the hydropower licensing framework, the legislation will improve project certainty, reduce unnecessary costs, and support the continued operation of reliable domestic hydropower resources.
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