Linda Church Ciocci Executive Director October 18, 2012 NHA Northwest Regional Meeting. Available. Reliable. Affordable. Sustainable.

Transcription

1 Linda Church Ciocci Executive Director October 18, 2012 NHA Northwest Regional Meeting

2 About NHA 180 members Operational Excellence Legislative Affairs Membership Outreach NHA is a forum to unite industry with a common and powerful voice Regulatory Affairs Public Affairs Research and Development 2

3 NHA Strategic Goals Double Hydropower Capacity and Green Hydropower Jobs by 2035 Elevate NHA s Voice to a Position of Major Influence on Public Policy Support a Strong Financial and Revenue Position Build a High Performance Organizational Structure Provide Resources to Help Members Achieve a High Level of Operational Excellence at Existing and Planned Hydroelectric Projects 3

4 Snapshot of NHA s Focus Securing robust business environment for existing hydro projects Furthering environmental stewardship and operational excellence Advancing new growth and development in the hydro industry Promoting hydropower as an energy choice and solution for tomorrow 4

5 Challenges to Growth Long development lead times Permitting and licensing can take over 5 years, followed by construction. Incentives generally extended on short-term basis. Numerous stakeholder involvement can add to time and cost Hard to attract investment Large up-front capital investment required In addition to licensing costs, study costs, projects can require significant up front capital. (New pumped storage projects - $1-2 billion). Projects economic over long-term, but have high immediate start-up costs. Uncertainty re: support, incentives, and regulatory policy Financial community concerned that incentives for hydro may not be renewed before project comes online. Affects both utilities and small developers abilities to pursue projects (conventional and new). 5

6 Policy Priorities What it will take: A more efficient regulatory process NHA supports the goal to significantly increase generation of America s electricity from clean and renewable energy a goal achievable only with a significant role for hydropower. Market valuation for hydro s benefits Economic incentives to support project development A national clean and renewable electricity standard that recognizes hydro Research and development 6

7 Drivers for Congressional Action Bipartisan Support Job creation & economic return No or little cost 7

8 More efficient regulatory process Hydropower Improvement Act Introduced by Alaskan Sens. Murkowski and Begich and others Examine a two-year licensing process Competitive grants for efficiency improvements/capacity additions; non-powered dams; aging infrastructure; conduit projects; environmental studies and mitigation measures. MOU between FERC and federal agencies to coordinate licensing of small hydro and conduit projects Hydropower Regulatory Efficiency Act Introduced by Reps. McMorris Rodgers (R-WA) and DeGette (D- CO) Examine two-year licensing process Increase FERC exemption for small hydro projects to 10 MW Remove conduit projects 5 MW and under from FERC jurisdiction National assessment of conduit opportunities and a study of pumped storage role in grid reliability Bureau of Reclamation Small Hydropower Conduit Development and Rural Jobs Act Introduced by Reps. Tipton (R- CO) and several others Authorize Interior (acting through the Bureau) to contract for development of small conduit hydropower at Bureau facilities. Makes the Bureau the lead agency for conduit projects 1.5 MW or less rather than FERC Requires that power privilege leases be offered first to an irrigation district or water users association operating or receiving water from the applicable transferred or reserved work. Study of barriers to private development on Reclamation infrastructure 8

9 Legislative Status Hydropower Improvement Act Introduced in March 2011 Hearing held in March 2011 Mark-up held in April 2011 Reported out of Committee in May 2011 Senate passage? Hydropower Regulatory Efficiency Act Introduced in December 2011 New discussion draft in May 2012 Hearing held in May 2012 Reintroduction, Mark-up: June 2012 Passed House unanimously (372-0) Senate action? Bureau of Reclamation Small Hydropower Conduit Development and Rural Jobs Act Introduced in September 2011 Hearing in September 2011 Mark-up in October 2011 Reported out of Committee in October 2011 Passed House of Representatives in March 2012 Senate Water and Power Subcommittee Hearing in September

10 Other Hydropower Bills S. 630 (H.R. 2994), the Marine and Hydrokinetic Renewable Energy Promotion Act Sens. Murkowski (R-AK), Sen. Begich (D-AK) / Rep. Inslee (D-WA), Young (R-AK) S.631, Hydropower Renewable Energy Development Act Sens. Murkowski (R-AK), Begich (D-AK) S.1845 (H.R.4096), the STORAGE Act Sen. Wyden (D-OR) / Reps. Thompson (D-CA), Gibson (R-NY) S. 2146, the Clean Energy Standard Act Sen. Bingaman (D-NM) S.2201, American Energy and Job Promotion Act -- Sens. Grassley (R-IA), Udall (D-CO) S. 3265, Sen. Murkowski bill on FERC land use fees for lands no longer owned by federal government S. 3275, the Master Limited Partnership Act Sen. Coons (D-DE) H.R. 2286, The Renewable Energy Parity Act Reps. Herger (R-CA), Thompson (D-CA) H.R. 3307, the American Renewable Energy Production Tax Credit Extension Act Reps. Reichert (R-WA), Blumenauer (D-OR) H.R. 6024, the Hydro 2.0 Act Reps. Markey (D-MA), Napolitano (D-CA) H.R. 6247, the Saving Our Dams and New Hydropower Development and Jobs Act Rep. Hastings (R-WA) 10

11 Economic Incentives Expand incentives H.R. 2286, Renewable Energy Parity Act PTC parity for hydropower. Currently only half-credit for hydro. Introduced by Reps. Herger (R-CA) and Thompson (D-CA) Discussed at recent House Ways and Means hearing on RE incentives Ensure long-term certainty H.R. 3307, American Renewable Energy Production Tax Credit Extension Act Extends PTC thru House co-sponsors, including Rep. Young (R-AK). Discussed at recent House Ways and Means hearing on RE incentives S.2201, American Energy and Job Promotion Act Extends PTC through Senate co-sponsors. NHA also seeking extension of ITC, Section 1603 and CREBs programs 11

12 Clean Energy Standard Introduced by Sen. Bingaman (D-NM) Employs market-based approach to encourage range of clean technologies with clean energy credits based on emissions profile Provides greater recognition for hydropower than previous standards Hydropower included without restrictions/limitations. This includes new dam construction. Some existing generation (post-1991) gets full recognition. Existing generation (pre-1992) backed out from retailer s base. Seeking clarification on the recognition of pumped storage and non-domestic hydropower resources. 12

13 Research and Development FY 08-FY 10 FY 12 Funding DOE Water Power Program (FY 13) New CR Deal $129 million for conventional and MHK R&D $59 million Largest federal investment in over 6 years President requested $20 million House proposed $45 million Senate proposed $59 million Continues FY2012 level for first 6 months of FY 2013 Continues $59 million level 13

14 NHA Recent Regulatory Filings November 28, 2011 American Eel ESA Listing January 6, 2012 FERC Annual Charges Calculation January 13, 2012 Lease of Power Privilege for Building Projects on BuRec Facilities February 1, 2012 Alewife & Blueback Herring ESA Listing February 3, 2012 Oregon Proposed Small Hydropower Development Assistance Program February 21, 2012 BPA Wind Curtailment/Oversupply Protocol February 29, 2012 DOE Advanced Research Projects Agency-Energy (ARPA-E) Funding Opportunity 14

15 NHA Recent Regulatory Filings, Cont. March 21, 2012 Army Large-Scale Renewable Energy Draft Request for Proposals June 4, 2012 BuRec Lease of Power Privilege (Second Filing on Temporary Directive and Standards) June 27, 2012 HPC Letter to FERC on ODSP July 13, 2012 Fish & Wildlife Service Advanced Notice of Proposed Rulemaking Expanding Incentives for Voluntary Conservation Actions Under the Endangered Species Act September 7, 2012 FERC s ancillary services NOPR October 23, 2012 FWS / NMFS Proposed Rule to Revise Critical Habitat Regulations 15

16 Operational Excellence New initiative undertaken in 2012 by NHA Goal: Promote enhanced project stewardship by voluntarily sharing O&M issues and their solutions through an Event Reporting system Focus: Promoting safety (employee, public, dam) and being responsive to environmental issues Industry-wide involvement, including the federal government 16 16

17 OE Event Report Illustration Hydro Industry Event Report Event Report Notifications by Category OE Database Functional Areas: Safety Operations Maintenance Hydro Industry Search by Event Type, Equipment, etc

18 Telling Hydro s Story Affordable, reliable, sustainable power Good-paying jobs in communities across the country More important than ever to tell the story of hydro s benefits to local communities PLACEHOLDER FOR IMAGE 18

19 U.S. Hydropower Supply Chain Snapshot 19

20 Northwest Supply Chain Snapshot 20

21 Meetings & Conferences: 2012 Ensuring the Industry has the opportunity to meet and network! April 16-18: NHA Annual Conference, Washington, D.C. May 15-16: Midwest Regional Meeting, Green Bay, WI July 16-20: HydroVision, Louisville, KY August 21-23: Alaska Regional Meeting, Sitka, AK September 12-13: Southeast Regional Meeting, Charleston, W.V. October 1-3: Hydraulic Power Committee Fall Meeting, Chattanooga, TN October 17-18: Northwest Regional Meeting, Boise, ID November 12: Hydropower Finance Summit, New York, NY SAVE THE DATE April 22-24, NHA Annual Conference 21

22 Fall Focus Passing hydropower legislation Increasing hydro s profile on the campaign trail Markets Barriers Taskforce State and local op-eds Outreach to both campaigns Initial meeting Legislative Action Center Grassroots effort for hydro inclusion ID market barriers & solutions Expedited Licensing Initiative Stakeholder meetings Policy development Relicensing Surveying Experience ID next steps 22

23 Outstanding Stewards of America s Waters Applications due Nov. 30,

24 Looking to 2013 Dam Removal Licensing Improvements Dam Safety Issues on the horizon Tax Reform & Incentives Climate Change Evaporative Water Use 24

25 How you can support the hydro agenda Stay engaged Be a member Contact your representatives Participate in supply chain study Be a part of the voice 25

26 Contact Linda Church Ciocci Executive Director ext. 22 Visit us on the Web NatlHydroAssoc 26