California, FERC Sign MOU to Improve Hydropower Reviews, Licensing

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Researched by Industrial Info Resources (Sugar Land, Texas)--California and federal officials have signed a memorandum of understanding (MOU) designed to improve the review and licensing of proposed hydroelectric projects in the state.

The MOU between California's State Water Resources Control Board (SWRCB) (Sacramento, California) and the Federal Energy Regulatory Commission (FERC) (Washington, D.C.) is aimed at better coordinating the review of pre-application activities for hydroelectric power proposals in the state. The agreement also is expected to provide timely input for the licensing process, improve hydro-project development timelines, and increase the efficiency and coordination of existing staff resources.

Currently, Industrial Info is tracking five conventional hydroelectric capital construction projects valued at $304 million in total investment value, as well as 17 hydro-pumped storage projects valued at more than $15 billion in California.

Almost 14% of the nation's hydroelectric capacity is concentrated in California, and since 1989, hydropower has contributed between 11% (a low-water year) to 28% (a high-water year) of the state's electrical generation capacity, according to the Energy Information Administration (EIA) (Washington D.C.). More than half of U.S. hydroelectric power is concentrated in the states of California, Oregon and Washington.

The U.S. House of Representatives recently voted 370-0 to pass the Hydropower Regulatory Efficiency Act (HR 5892), which is intended to speed up the licensing process for small hydro projects. However, market conditions, low load growth and low natural gas prices have delayed some hydroelectric projects, pending an improvement of these conditions.

In August 2013, President Barack Obama signed H.R. 267, the Hydropower Regulatory Efficiency Act, and H.R. 678, the Bureau of Reclamation Small Conduit Hydropower Development and Rural Jobs Act, which promote and speed up the development of small hydroelectric projects. The legislation also authorizes hydropower development at existing Bureau of Reclamation-owned canals, pipelines, aqueducts and other man-made waterways. The bills are the first significant pieces of energy legislation to come out of Congress since the 2009 American Recovery and Reinvestment Act.

California's current Renewable Portfolio Standards (RPS) are some of the most ambitious in the country, requiring investor-owned utilities, electric service providers and community choice aggregators to increase procurement from eligible renewable energy resources to 33% by 2020.

The National Hydropower Association (NHA) (Washington, D.C.) commissioned a study and found that the hydropower industry could create 1.4 million jobs and add 60 gigawatts (GW) of renewable hydroelectric power by 2025.

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