Energy, Water Appropriations Bill Would Fund Hydroelectric Projects

Researched by Industrial Info Resources (Sugar Land, Texas)--H.R. 2028, the Energy and Water Development and Related Agencies Appropriations Act 2017, which is working its way through Congress, would provide funding for the U.S. Army Corps of Engineers, Bureau of Reclamation and Department of Energy to develop conventional and pumped storage hydroelectric projects. It also includes competition for marine, hydrokinetic and tidal energy research and development funding as well as demonstration projects.

Industrial Info is tracking 132 U.S. hydroelectric and tidal capital projects valued at $12.8 billion, which are scheduled to kick off between January 2017 and January 2019.

These figures are for hydroelectric capital projects being developed by private developers as well as government entities such as the Bureau of Reclamation and U.S. Army Corps of Engineers. For more information on these developers in relation to these types of projects, see September 21, 2015, article--U.S. Hydroelectric Dam Projects Present Opportunities for Contractors, Vendors.

The U.S. Army Corps of Engineers has a $60 billion backlog of recapitalization projects consisting of new projects and major refurbishments, many of which are hydroelectric related. The Water Resources Reform and Development Act of 2014 was meant to address funding for many of these projects through public/private partnerships. However, the process has been slowed by the economy and budget negotiations in Congress, which has hampered loan guarantees for projects that were previously authorized or shovel ready.

The recently-passed Energy Policy Modernization Act, addresses the hydroelectric permitting backlog by designate the Federal Energy Regulatory Commission (FERC) as the lead agency to coordinate federal authorizations. The act also extends preliminary permit terms from three years to four years and lengthens permit extensions to four years. It requires FERC to maintain an official record of licensing proceedings and directs the agency to establish a voluntary pilot program to consider a region-wide approach to hydropower licensing.

With low capital costs, investors and contractors are finding opportunities across North America in energy storage, distributed energy and hydroelectric and natural gas-fired generation. By 2040, renewable generation sources will become the leading source of power generation worldwide, according to the U.S. Energy Information Administration (EIA), and global power production is expected to increase 69% by that time.

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