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1. PLACEHOLDER FOR FULL PAGE IMAGE Hydropower Industry Potential

2. “The country’s hydro resources are tapped out.” Hydro Myths “Development and stewardship are not compatible.” “Hydro is not cost-effective.” PLACEHOLDER FOR LARGE IMAGE “Hydro is only available in places like the Northwest.” “All U.S. hydro plants are huge.”

3. The Facts

4. Hydropower is available – it is the largest source of renewable electricity generation in the U.S., and made up 7% of overall power generation in 2009. U.S. Renewable Power Generation, 2009

5. Key Characteristics of the Hydro Fleet Only 3% of U.S. dams generate electricity – there is significant room for growth without building new infrastructure. The majority of hydropower facilities are small. Size (Capacity) Distribution of Currently Operating Units Hydropower is generated in every region and benefits every state, employing up to 300,000 workers around the U.S.

6. 80,000 Dams Across the U.S. Source: USACE, ORNL

7. pre 1900 1900 - 1929 1930 - 1939 1940 - 1949 1950 - 1969 1970 - 1989 1990 - 2008 Building the Fleet Early 20th Century Hydropower 19th Century Hydropower Late 20th Century Hydropower Development Post-War Hydropower Development WWII Hydropower Construction Depression Era Hydropower Hydropower Development since 1990 The U. S. Hydropower Fleet Build Time Sources: ORNL, NID

8. Hydropower Potential

9. Hydropower can grow significantly without adding new dams. Converting non-powered dams. Modernizing existing dams. Marine and hydrokinetic technologies. Conduit technology

10. Future Capacity Hydro Capacity Growth by Technology With the right policies in place, the U.S. could add 60,000 MW of new hydro capacity by 2025, the vast majority of which can be created without adding new dams. Source: Navigant Consulting

11. DOE/ORNL:Major Growth Opportunity

12. Non-Powered Dam Potential With Other Renewables Non-Powered Dam Potential exists in areas with less than ideal wind and solar resources Water availability, particularly for regulated rivers, is NOT correlated with wind availability (combined firming of capacity) Wind & Solar Maps: NREL

13. 1.4 million Potential Jobs by 2025 Cumulative Job Creation by 2025 under a 25% RES Direct Jobs Indirect Jobs Source: Navigant Consulting, 2009

14. Hydropower Benefits

15. Hydropower is clean and sustainable. • The hydropower industry is committed to better understanding and mitigating the impacts dams can have on local ecosystems and fish. • Hundreds of millions of dollars are invested each year in environmental enhancements at hydro facilities. • Using hydropower avoided approximately 196 million metric tons of U.S. carbon pollution in 2009 – equal to emissions from approximately 38 million cars.

16. Hydropower supports the electric grid. “[During the blackout,] one relatively large island remained in operation serving about 5,700 MW of demand, mostly in western New York, anchored by the Niagara and St. Lawrence hydro plants.” — US-Canada Power System Outage Task Force report, 2005 • Hydropower is a flexible and reliable electricity source. Hydropower’s ability to dispatch power immediately makes it an essential back-up during major electricity disruptions. • Grid support services include Frequency Control ׀ Regulation ׀ Load Following׀ Spinning Reserve ׀Supplemental Reserve

17. Hydropower is an affordable, scalable form of energy storage. • Hydropower pumped storage is one of the few large-scale, affordable means of storing and deploying electricity. • Absorbs excess generation at times of low demand, and releases it during peak demand periods. • An excellent partner for intermittent renewable electricity sources. • The U.S. has more than 20GW of pumped storage capacity today, with facilities in every region of the country. Developers have proposed an additional 31GW.

18. The National Landscape

19. Hydropower has bipartisan, multi-region support. • Hydropower Improvement Act of 2011 – co-sponsors include Sens. Murkowski (R-AK) and Bingaman (D-NM) and seven other Senators, Republicans and Democrats. • H.R. 795, the Small-Scale Hydropower Enhancement Act was introduced by Rep. Adrian Smith, had bipartisan co-sponsorship, and passed out of the House Natural Resources committee unanimously. • Incentives for hydropower and marine and hydrokinetic technologies championed by both parties. • Consensus in the 111th Congress for inclusion of hydropower in various policies.

20. “With thousands of existing dams currently not creating any power, existing dams in need of upgrades, and new technologies being developed to safely capture river currents, an additional 60,000 more megawatts is achievable within the next 15 years.” – House Natural Resources Committee Ranking Member Ed Markey (D-MA) Bipartisan support “In today’s environment – where talk centers on the need to provide clean and environmentally friendly energy – we must continue to promote and expand the use of hydropower.” – House Natural Resources Committee Chairman Doc Hastings (R-WA) “Hydropower is one of our greatest untapped resources for generating clean, renewable electricity.” - Senate Energy and Natural Resources Committee Ranking Member Lisa Murkowski (R-AK) “There’s no one solution to the energy crisis, but hydropower is clearly part of the solution and represents a major opportunity to create more clean energy jobs.” – Energy Secretary Steven Chu

21. Hydropower projects are underway around the country, bringing new jobs and low-cost electricity to many states.

22. Hydro Projects Waiting in Line • Applications/Exemptions Filed: 46 projects, 3,000+ MW, 27 states • Preliminary Permits Issued: 374 projects, 44,000+ MW, 44 states • Preliminary Permits Pending: 302 projects, 37,000+ MW, 29 states The FERC Pipeline Tops 85,000 MW across 722 projects PLACEHOLDER FOR LARGE IMAGE

23. Hydropower Priorities

24. Helping the U.S. meet renewable energy goals. Meeting that goal requires: NHA supports a CES goal of generating 80% of America’s electricity from clean and renewable energy – a goal achievable only with a significant role for hydropower. • A more efficient regulatory process • Economic incentives to support project development • A national clean and renewable electricity standard • Research and development

25. The Regulatory Process Hydropower development involves a comprehensive but sometimes redundant regulatory approval process that needs better coordination and cooperation between participants.

26. Making the regulatory process more efficient includes: • Facilitating private hydropower development on Army Corps of Engineers and Bureau of Reclamation Facilities • An expedited licensing process for hydropower development at non-powered dams and closed loop pumped storage projects, that takes no more than two years. • Support for small hydro and conduit power developers, so that the regulatory process provides assistance and is not a disincentive to project development.

27. Economic Incentives will speed development. Straightforward updates to existing renewable energy tax credit programs should be enacted: • Equalizing the production tax credit for hydropower. Currently hydropower receives only half the credit available to other renewable energy sources. • Allowing energy storage, specifically pumped hydro storage, to qualify for the ITC and CREBs (Clean Renewable Energy Bonds) Program. Expanding our nation’s energy storage capacity is essential to ensuring a secure and stable grid as well as integrating more renewable energy.

28. NHA strongly supports existing renewable incentives: • Long term extension of existing programs such as the PTC and ITC is needed, along with additional funding for oversubscribed programs such as CREBs and the 48C ITC for renewable energy equipment manufacturers. • Hydropower project development can have high upfront costs and long lead times. Though cost-effective over the life of the project, utilities, developers and investors need certainty.

29. A Clean and Renewable Electricity Standard A Clean Energy Standard is a different policy paradigm than the Renewable Energy Standard. As such, the treatment and recognition of hydropower must be re-evaluated. That includes: • Existing hydropower generation should be counted if generation from other clean resources qualifies (wind, nuclear, etc.) Hydropower should be treated equitably in comparison to other existing resources. • Energy storage, specifically pumped hydro storage, will play a critical role to firm and integrate intermittent resources and increase their contribution to the CES goal. The CES should include a mechanism to provide recognition of clean generation from pumped storage projects – both existing and new.

30. Research and Development • President Obama’s proposed FY 2012 budget increases DOE spending for all types of renewable energy with the exception of the Water Power program, with a proposed budget reduction of over 20%. • Congress must continue to invest, not retreat, on R&D funding for the next generation of hydropower and MHK technologies to achieve the country’s vision for clean energy deployment. As the Congress debates budget priorities, funding for hydropower R&D remains imperative.

31. Contacts • Linda Church Ciocci, Executive Director, • National Hydropower Association • linda@hydro.org • Ph. 202.682.1700 • Ryan Cunningham, Senior Vice President, • Glover Park Group • rcunningham@gpgdc.com • ph. 202.295.0164 • Roger Ballentine, President, • GreenStrategies • roger@greenstrategies.com • ph. 202.328.1123