Sen. Steve Daines joined Sens. Jim Risch of Idaho and Lisa Murkowski of Alaska in introducing the Hydropower Licensing Affordability Act, legislation that would reform the Federal Power Act to reduce delays and costs in the hydropower licensing process.
The bill would limit mandatory conditions that federal resource agencies — including the Forest Service and the Fish and Wildlife Service — can place on hydropower licenses issued by the Federal Energy Regulatory Commission. Under the legislation, such conditions would be restricted to those that address the “direct adverse effects” of a specific project, preventing agencies from attaching unrelated requirements to licenses.
“Hydropower is a growing source of power in both Montana and across the nation,” Daines said. “The demand for U.S. energy is increasing every year, and we need to do everything we can to ensure we’re prepared to meet this rise in demand. These reforms will ensure the hydropower licensing process is more efficient, so we can get critical projects done in a timely manner.”
The legislation addresses a mounting challenge for the nation’s hydropower fleet. With 40% of non-federal hydropower licenses set to expire by 2035 — representing roughly 16,000 megawatts of generating capacity — industry groups and utilities have warned that the current licensing process is too slow, too costly and often requires project owners to pay for conditions unrelated to a project’s actual impacts.
Daines also testified before FERC the following day, urging commissioners to open a rulemaking on the same provisions and reduce what he called unnecessary red tape. The senators sent a letter to FERC, the Department of the Interior, the Department of Agriculture and the Department of Commerce urging the agencies to limit mandatory conditions to those that address direct project effects, require conditions to be backed by the best available science and ensure conditions are not overly burdensome or costly.
The bill drew support from NorthWestern Energy, whose CEO Brian Bird said hydropower makes up nearly 23% of the company’s generation portfolio. The National Hydropower Association and the American Public Power Association also voiced support for the legislation.
Sens. Mike Crapo of Idaho, Pete Ricketts of Nebraska, Alan Armstrong of Oklahoma, Dan Sullivan of Alaska and Montana’s Tim Sheehy joined Daines, Risch and Murkowski in signing the letter to the federal agencies. A companion House bill is being led by Rep. Cliff Bentz of Oregon.