Congress is examining numerous energy sources to determine their
contribution to the nation's energy portfolio and the federal role
in supporting these sources. Hydropower, the use of flowing water
to produce electricity, is one such source. Conventional hydropower
accounted for approximately 6% of total U.S. net electricity
generation in 2010. Hydropower has advantages and disadvantages as
an energy source. Its advantages include its status as a
continuous, or baseload, power source that releases minimal air
pollutants during power generation relative to fossil fuels. Some
of its disadvantages, depending on the type of hydropower plant,
include high initial capital costs, ecosystem disruption, and
reduced generation during low water years and seasons. Hydropower
project ownership can be categorized as federal or nonfederal. The
bulk of federal projects are owned and managed by the Bureau of
Reclamation and the U.S. Army Corps of Engineers. Nonfederal
projects are licensed and overseen by the Federal Energy Regulatory
Commission (FERC). Considered by many to be an established energy
source, hydropower is not always discussed alongside clean or
renewable energy sources in the ongoing energy debate. However,
hydropower proponents argue that hydropower is cleaner than some
conventional energy sources, and point to recent findings that
additional hydropower capacity could help the United States reach
proposed energy, economic, and environmental goals. Others argue
that the expansion of hydropower in the form of numerous small
hydropower projects could have environmental impacts and regulatory
concerns similar to those of existing large projects. Congress
faces several issues as it determines how hydropower fits into a
changing energy and economic landscape. For example, existing large
hydropower infrastructure is aging; many of the nation's hydropower
generators and dams are over 30 years old. Proposed options to
address this concern include increasing federal funding, utilizing
alternative funding, privatizing federally owned dams, and
encouraging additional small-capacity generators, among other
options. Additionally, whether to significantly expand or encourage
expansion of hydropower is likely to require congressional input
due to the uncertainty surrounding the clean and renewable energy
portfolio within power markets. Potential expansion of hydropower
projects could take place by improving efficiency at existing
projects or by building new projects, or both. Congressional
support for this approach is evident in the House passage of the
Bureau of Reclamation Small Conduit Hydropower Development and
Rural Jobs Act of 2012 (H.R. 2842). Senate activity on this matter
includes the Hydropower Improvement Act of 2011 (S. 629), which
proposes to establish a grants program for increased hydropower
production, and to amend the Federal Power Act (FPA) to authorize
FERC to exempt electric power generation facilities on federal
lands from the act's requirements, among other things. Another
issue is the rate at which FERC issues licenses for nonfederal
projects, which is slower than some find ideal. The licensing
process can be delayed significantly as stakeholders and the
approximately dozen federal and state agencies involved give their
input. FERC responded by developing a more streamlined licensing
process in 2003. Still, some object to "mandatory conditions" that
federal agencies can place on new or renewed hydropower facilities.
The 112th Congress has introduced roughly 25 bills regarding
hydropower, a quarter of which are state- or site-specific
legislation.
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