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NHA’s Vision: A New Era of Growth & Vitality. NHA Midwest Regional Meeting Presentation May 18, 2011. NHA Overview. NHA Board’s 4 Strategic Goals. Double Hydropower Capacity and Green Hydropower Jobs by 2025 Elevate NHA’s Voice to a Position of Major Influence on Public Policy

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NHA’s Vision: A New Era

of Growth & Vitality

NHA Midwest Regional Meeting Presentation

May 18, 2011


NHA Board’s 4 Strategic Goals

Double Hydropower Capacity and Green Hydropower Jobs by 2025

Elevate NHA’s Voice to a Position of Major Influence on Public Policy

Support a Strong Financial and Revenue Position

Build a High Performance Board and Leadership Structure


Goals Set Priority Actions

  • The board established 4 priority actions to meet our Strategic Goals:

Enact comprehensive set of energy policy and tax incentive provisions

Advance a smarter licensing and permitting process for certain minimal impact projects

Implement a strategic positioning public affairs campaign

Develop a strategy to build NHA resources


Hydropower Improvement Act


Grant Program: for efficiency improvements and capacity additions; adding generation to non-powered dams; addressing aging infrastructure; conduit projects; environmental studies and mitigation measures.

Non-powered Dams and Pumped Storage: potential 2-year licensing process development at non-powered dams and closed-loop pumped storage projects.

Conduit and Small Hydro: Allows conduit projects on federal lands and directs MOUs to better coordinate reviews. Requires regional workshops/outreach on small hydro and conduit projects.


Hydropower Improvement Act

Federal Hydropower Development: Requires DOE, DOI and the Corps of Engineers to report to Congress on the implementation of the March 24, 2010 MOU on increasing federal hydropower development. Also directs FERC and BuRec to complete a new MOU to improve the coordination of non-federal hydropower development at Bureau projects.

R&D Program: Requires DOE to develop and implement a plan to increase the nation’s use of hydropower through research, development, and demonstration initiatives.

Studies: Directs DOE to study pumped storage opportunities on federal and non-federal lands near existing or potential sites of intermittent renewable development; DOE study of conduit potential. BuREC to study barriers to non-federal development at their projects.


Is Hydro Legislation Doable?

  • Hydropower Enjoys Wide Bipartisan Support
    • Has multi-region and bipartisan support
    • Hydropower Improvement Act of 2011 co-sponsors include Sens. Murkowski and Bingaman and 7 others
    • Consensus in the 111th Congress for inclusion of hydropower in various policies

NHA is positioning hydro legislation as one of the small nuggets that can be accomplished in a Congress that is unlikely to take on large comprehensive energy legislation.


Tax Incentives

  • Clean Renewable Bonds Program: Funding currently allocated. Seek extension and additional funding.
  • PTC/ ITC: Expire at end of 2013. Secure long-term extension through 2018
  • PTC Parity: Hydro and hydrokinetics receive half what other renewables receive. Increase PTC rate from 1 cent per kwh to 2 cents
  • Energy Storage Investment Tax Credit (ITC): No current incentive for energy storage. 20 percent credit on costs of development. Pumped storage included. Several bills introduced in last Congress.

Tax Incentives

Section 48C manufacturers ITC: Funding currently allocated. Seek extension and additional funding.

Other tax incentives: Accelerated depreciation, bonus depreciation, etc.

NHA Member use of incentives: Since 2005, 69 projects have been PTC certified, increasing generation on average 12 percent.

Public power members received $570 million in CREBs allocations

4 projects have received Section 1603 grants – $4.3 million

3 equipment manufacturers received 48C allocations - $67 million


Is Tax Legislation Doable?

  • Very tough year to advance incentives
    • Congressional focus on reducing size of federal government
    • Concern about federal debt and deficit and fiscal impacts of every new piece of legislation
    • Tax debate right now focused on comprehensive reform

Tax policy will be more difficult and will require a unified and strategic renewables strategy. Opportunities may not come until the end of the year.



NHA Regulatory Work

FERC Annual Charges: Submitted comments this year on FERC NOI for methodology for payment of use of federal lands.

FERC-Corps MOU: Signed just before the NHA conference, better coordination between the agencies was apriority identified in 2010

CORPs MHK Nation-wide Permit: NHA through the OTNTC, filed comments on the proposal

Regulatory Committee Compliance Calls: The Committee has reinstituted regular calls to discuss issues of interest by members. First call held on ESA bi-op delays in the SE.

High Wind/ Water Events: Following BPA proposals to address integration and grid reliability issues during these events.


NHA Public Affairs Work

National and Local Press Opportunities: Leveraging our members and working with our public affairs consultants for positive hydro stories both nationally (such as HIA of 2011; NHA conference) and locally (OSAW winner outreach; telling individual member stories).

New Studies: In 2010, updated the Navigant Consulting hydro growth and jobs study. Conducted political and public messaging on hydro with public poll, DC policy rep interviews.

International Opportunities: NHA has received numerous inquiries on international hydro development opportunities seeking U.S. partnership and is asked to speak to international dignitaries from across the globe on the state of the U.S. hydro industry.


NHA Tools for Members

NHA Website: Newly redesigned website with much more content (NHA press releases, hydro stats, FAQ, hydro technology descriptions, Legislative Action Center, events, news stories, social media).

NHA Tax Manual: In-depth report prepared by Ernst & Young providing information on existing tax incentives to support hydro development.

NHA Meetings/Listservs: Provide forums for NHA members to communicate with one another on issues, seek solutions, and share information.


NHA Values a Strong Partnership with Its Members To Get the Job Done


Jeffrey Leahey

Director of Government Affairs

National Hydropower Association

25 Massachusetts Avenue, NW

Suite 450

Washington, DC