It was 2018 and the hydropower industry and environmental and tribal advocates had battled themselves to a political stalemate, recalled Kelly Catlett, hydropower reform program director with the nonprofit American Rivers.
The environmental and tribal groups had enough votes in Congress to kill any bill supported by the industry, which likewise had the votes to kill any bills being advanced by the environmental and tribal groups, Catlett said during a July 18 briefing on how the opposing sides came together to find common ground through an “Uncommon Dialogue.”
“We weren’t getting anything done,” Catlett said. “We didn’t have open lines of communication. We didn’t understand each other’s perspective.”
While frequently discounted as renewable energy, hydropower accounts for close to 30% of carbon-free generation in the U.S., and unlike wind and solar, can provide dispatchable, flexible generation. According to the National Hydropower Association (NHA), hydro makes up just over 6% of U.S. power generation but provides 40% of the nation’s black start capacity.
At the same time, hydro comes with a legacy of concerns about its impacts on the environment and tribal land and fishing rights, on top of the usual permitting challenges, all of which have raised multiple obstacles to maintaining and expanding hydro and hydro pumped storage in the U.S.
Convened by Stanford University’s Woods Institute for the Environment, the Uncommon Dialogue on hydro aimed to change the adversarial dynamics of hydropower development, with a series of meetings where industry and environmental groups, government officials and academics could talk and listen to each other and build trust.
Participants included river advocates American Rivers and American Whitewater, the NHA, Natel Energy, a developer of fish-friendly hydropower turbines, and the U.S. Department of Energy, in an observer role.
“Where we [found] common ground is when we started thinking about it as dams,” said Malcolm Woolf, president and CEO of the NHA, noting that only 3% of the more than 90,000 dams in the United States produce electricity. The other 97% were “built for flood control, for irrigation, for water storage, for navigation, sometimes for recreation.
“By focusing on dams … we’re able to talk and make progress, I hope, both on carbon-free generation and river restoration,” he said.
The result, in 2020, was a joint statement from dialogue participants identifying seven areas for ongoing collaboration, including improving hydropower technologies to increase generation efficiency and output, improving dam safety and river restoration and accelerating licensing and relicensing of dams and pumped storage hydro facilities.
Moving forward on those points of collaboration has become increasingly important as a growing number of U.S. hydroelectric dams are up for relicensing ― a long and expensive process ― and many hydro dam operators consider surrendering their licenses, rather than contend with the cost and uncertainties of relicensing, Woolf said.
Either licensing or relicensing can take seven years or, in some cases, decades, he said. “You don’t know how long it’s going to take. You don’t know what’s going to be required, and so every part of the process creates uncertainty and prevents people from investing in modernizing their existing fleet or building more.”
No new dams or pumped storage hydro have been built in 20 years or more, he said, and according to DOE, between 2010 and 2022, 68 hydro projects totaling 322 MW surrendered their licenses.
Bills Supported but Stalled
Given the current deep divisions in Congress, continuing the work of the Uncommon Dialogue also has become essential on the policy front, Catlett said.
A broad range of industry and environmental groups support a set of bills aimed at maintaining and expanding hydro in the U.S. The bills were introduced in Congress last year, with both Democratic and Republican sponsors.
The Maintaining and Enhancing Hydroelectricity and River Restoration Act (S. 2994/H.R. 6653) seeks to provide existing hydro projects with the same kind of tax credits the Inflation Reduction Act offers to new hydro projects and other renewable or carbon-free power. Under the bill, a 30% tax credit would be available for hydroelectric projects that improve safe passage for fish, dam safety, water quality and public uses of and access to public waterways. The tax credit also would be available for projects that add power generation to an existing nonpower dam.
On the permitting side, separate and slightly different bills also were introduced in the House and Senate.
The Hydropower Clean Energy Future Act (H.R. 4045) officially defines hydro as renewable energy “for purposes of all Federal programs” and allows FERC on a case-by-case basis to exempt small hydro projects of less than 40 MW from some or all licensing requirements.
The bill also would give FERC a two-year cap on licensing for any hydropower or pumped storage projects deploying “next-generation” hydro technologies, for example, run-of-river hydro or technologies that “protect, mitigate, or enhance environmental resources, that [are] not in widespread, utility-scale use in the United States.”
In the Senate, the Community and Hydropower Improvement Act (S. 1521) puts a two-year cap on permitting for the addition of hydropower to existing dams and a three-year limit for licensing of closed-loop or off-stream pumped storage projects. The bill includes provisions that make engagement with tribal governments mandatory for hydro or pumped storage projects located on tribal lands and create a pathway for tribes to submit recommendations to FERC on the protection of fish and wildlife habitats.
While H.R. 4045 has been voted out of committee to the House floor, the other bills have not moved forward since their introduction last year.
Pivotal role
The U.S. Energy Association sponsored the July 18 event, and Woolf, a fervent proselytizer for hydro, came armed with facts and figures about the pivotal role NHA sees hydro playing in the energy transition.
Hydro generation powers 30 million American homes and businesses, while also providing flexible, dispatchable power for grid support services. Hydro pumped storage makes up 96% of the nation’s long-duration energy storage.
“It’s 80 GW of hydropower capacity and another 22 GW of pumped storage; so, it’s over 100 GW of largely dispatchable, flexible, carbon-free generation, and that’s in the United States,” Woolf said. Globally, hydropower produces more energy than all other renewables combined, he said.
Hydropower capacity in the U.S. has expanded slowly in recent years, due primarily to upgrades at existing projects or the addition of power generation to previously nonpower dams, according to the Department of Energy’s 2023 Hydropower Market Report.
From 2010 to 2022, about 2.1 GW of new hydro capacity came online, 75% of which was nonpower dam retrofits. New projects, however promising, move slowly.
At the end of 2022, the U.S. had 117 new hydro facilities in the development pipeline, but only eight were under construction, and 95% of the projects were nonpower dam retrofits, according to DOE. The pumped storage pipeline included 96 projects, only 10 of which have advanced beyond basic feasibility studies. Three had received permits from FERC; none were under construction.
The two Cushman dams in Washington state provide a case study on the challenges of hydropower relicensing, said Mary Pavel, a partner at Sonosky, Chambers, Sachse, Endreson & Perry LLP and a member of the Skokomish Tribe. When the dams originally were permitted back in the 1920s, her tribe’s fishing rights largely were ignored, and tribal access to the Skokomish River and fishery essentially were wiped out, Pavel said.
Sockeye salmon disappeared from the river for decades, which she called “an act of genocide.” Dams like the Cushman are “stealing” energy, Pavel said. “You’re stealing energy that’s necessary for my fishery resource, my wildlife resources or my cultural resources or my aquatic resources. That energy is there for a reason.”
Relicensing the dams took over 30 years and ended with a settlement between the tribe and Tacoma Public Utilities, which included a $50 million project to return salmon to the river, along with the return of tribal lands and cash payments totaling about $35 million, according to local media reports.
Both Catlett and Woolf agreed the era of building large dams is over, in part because the best sites already are developed. But Catlett said intensive community engagement will be critical to ensuring the mistakes of the past are not repeated.
“We need to be designing projects to avoid aquatic ecosystem impacts and impacts to the communities in which they are situated and think a little deeper about these projects and the way they are going to interact with the communities around them,” she said.
