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River Groups Warn Administration: Hands off Hydro Licensing Press Release from American Rivers, May 17, 2001

WASHINGTON DC — As President Bush prepares to travel to Pennsylvania to tout the hydropower component of his national energy agenda, environmental leaders warn that the nation's hydropower resources are fully exploited and Administration efforts to reform dam licensing would upset the delicate balance between hydroelectric generation and the environment and riverfront economies. The Administration, which claims that the nation needs to construct a new power plant every week for the next 20 years, is expected to propose increasing hydroelectric generation by relieving utilities of many of their environmental obligations.

"It's ironic that President Bush is likely to talk about how rivers and hydro dams can coexist, even as he proposes to dismantle the process that helps strike that balance," said Andrew Fahlund, Director of Hydropower Policy at American Rivers.

Safe Harbor Dam, where Bush will appear, illustrates the vital role for the licensing process in striking a balance between producing power and healthy rivers. For many years, migrating shad were unable to pass the dam to reach spawning habitat upstream, and populations of this once-abundant and important commercial and recreational fish species crashed in the mid 1970s.

In 1980, the utility received a new 50 year operating license from the Federal Energy Regulatory Commission (FERC). During five years of negotiations, the U.S. Fish and Wildlife Service, the Pennsylvania Fish and Boat Commission, and many other environmental and outdoor recreation groups participated in the process and urged the companies to take steps to help the fish. Safe Harbor Dam is now fitted with a $17 million state-of-the-art fish lift that successfully passes some 70% of the migrating shad -- while still generating more than 415 megawatts of electricity.

"Safe Harbor Water Power Company conducted itself like a good corporate citizen throughout the process, but Administration proposals would make it much easier for utilities to say 'no' to fish lifts and other measures," Fahlund said.

Private Hydro: Trying to Fix What Isn't Broken

America gets about 8% of its electricity from hydroelectric dams, about half of that from non-federal utilities. Conservation agencies and citizens organizations' voice in the licensing process for these 2000+ hydropower dams is enshrined in law: the Federal Power Act. In the next decade, the licenses for more than 400 dams on 130 rivers will expire. Dam owners are using the energy crunch as an opportunity to seek relief from many of these environmental obligations.

The Administration's proposals are expected to closely follow a recent report from FERC that asked Congress for new authority to ignore recommendations from resource agencies. Several bills to weaken environmental safeguards at hydropower dams have been introduced in Congress.

"The common threads running through recent energy proposals are to cut out resource agencies and to create pretexts for waiving requirements to protect the environment and river recreation," said Matt Sicchio, Coordinator for the Hydropower Reform Coalition, a coalition of more than 70 conservation and recreation groups working to protect rivers impacted by hydropower dams. "Should they succeed, utilities will generate more profits, but not much more electricity."

Impartial observers have so far declined to substantiate claims that the process does not serve the public interest. In fact, the Government Accounting Office concluded just weeks ago that until FERC does a better job collecting data on the cost and timing of its process, the agency "will not be able to reach informed decisions on the need for further administrative reforms or legislative changes to the licensing process."

According to FERC, dams that upgrade their facilities and alter their operations to meet their new license requirements greatly reduce their environmental impacts while generating an average of just 1.6% less energy than before.

"It's misleading for the President to visit a hydro dam as he talks about expanding energy production, our rivers are already giving us all the electricity they can," Fahlund said. "To wring out a few extra kilowatts, utilities would have to run their dams with complete disregard to the consequences for rivers and riverfront communities."

Energy Plan Written by Industry Insiders

It should come as no surprise if the Administration's energy plan resembles a Christmas wish list from the energy industry - hydropower dams are most often part of the portfolio of large energy companies along with their oil, gas, coal, and nuclear power plants. According to the Center for Responsive Politics, the energy industry contributed almost $2.9 million to the Bush presidential campaign, and oil and gas developers contributed almost $1.85 million.

In return, President Bush and Vice President Cheney, themselves former oil industry executives, have tapped insiders boasting long resumes in the petroleum, mining, and utility industries to develop one of the Administration's first major initiatives. Conspicuous by their absence during the development of the plan were environmentalists, energy efficiency experts, and renewable energy industries.

Energy Plan Out of Step with Community Needs

The Administration's proposals on hydro are out of step with the rapidly growing number of riverfront communities that are discovering that river restoration is the key to new economic prosperity through tourism and recreation. For many communities, this includes efforts to remove dams that have outlived their usefulness and now do more harm than good.

"Since 1995, Pennsylvania has removed more than 30 dams on Susquehanna River tributaries, and this has been as important to the shad's comeback as the fish ladder at Safe Harbor Dam," said Elizabeth Maclin, Associate Director of American Rivers' Rivers Unplugged campaign. "This shad fishery on the Susquehanna alone is estimated to be worth more than $30 million annually, and these dam removals create new opportunities for boaters, bird watchers, and tourists to come to riverfront communities and spend their money."

Facts about Hydropower and Rivers

• The most suitable sites for hydroelectric dams were identified and developed long ago. No new major hydroelectric facility has been constructed since the 1970s.

• Dams are very damaging to rivers. Dams drown important habitat under reservoirs, prevent fish from migrating upstream, and kill fish migrating downstream in turbines.

• Dams can create dangerous downstream conditions by releasing too much or too little water, water that is too cold or too hot for river wildlife, and water that may not have enough oxygen in it for fish to survive. Call (800) 692-6328 for a pre-recorded message from the owners of Safe Harbor Dam to learn more.

• Shad populations in the Susquehanna River crashed in the mid 1970s. They are rebounding thanks to fish lifts and other facilities on the major hydropower dams - and the removal of more than 30 smaller dams on Susquehanna River tributaries. This fishery is worth $30 million and counting to Pennsylvania.

• Hydropower generates about 8% of the nation's electricity, about half is generated by federally-owned dams and about half is generated by utilities.

• Federally owned dams, such as the Tennessee Valley Authority and Bonneville Power Administration, do not require licenses.

• Private utilities must obtain licenses from the Federal Energy Regulatory Commission for their dams. These licenses last 30-50 years.

• In the next ten years, licenses for 400 dams on 130 rivers will expire, representing about 2.5% of our nation's energy mix.

• When utilities renew their licenses, government agencies can require dam operators to take steps to river wildlife, recreational opportunities, and aesthetic appeal downstream.

• These steps include installing fish ladders, guaranteeing minimum downstream flows, water temperatures and oxygen levels, etc...

• According to the Federal Energy Regulatory Commission, on average, these steps cost a hydropower dam an average of just 1.6% of its generating capacity.

• The Low Impact Hydropower Institute (www.lowimpacthydro.org) certifies private hydrodams that use best practices to minimize their environmental impact.

• Only once has the federal government denied an application for a new license and ordered the removal of an operational hydropower dam.