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PLACEHOLDER FOR FULL PAGE IMAGE Hydropower Industry Potential

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PLACEHOLDER FOR LARGE IMAGE Hydro Myths The countrys hydro resources are tapped out. Hydro is not cost-effective. Hydro is only available in places like the Northwest. Development and stewardship are not compatible. All U.S. hydro plants are huge. 1

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The Facts 2

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3 Hydropower is available it is the largest source of renewable electricity generation in the U.S., and made up 7% of overall power generation in 2009. U.S. Renewable Power Generation, 2009

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4 Key Characteristics of the Hydro Fleet Size (Capacity) Distribution of Currently Operating Units The majority of hydropower facilities are small. Only 3% of U.S. dams generate electricity there is significant room for growth without building new infrastructure. Hydropower is generated in every region and benefits every state, employing up to 300,000 workers around the U.S.

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5 80,000 Dams Across the U.S. Source: USACE, ORNL

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pre 1900 Build Time 1900 - 1929 1930 - 1939 1940 - 1949 1950 - 1969 1970 - 1989 1990 - 2008 19 th Century Hydropower Early 20th Century Hydropower Depression Era HydropowerWWII Hydropower ConstructionPost-War Hydropower DevelopmentLate 20 th Century Hydropower Development Hydropower Development since 1990 The U. S. Hydropower Fleet BUILDING THE FLEET Sources: ORNL, NID 6

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Hydropower Potential 7

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Hydropower can grow significantly without adding new dams. Conduit technology Modernizing existing dams. Converting non- powered dams. 8 Marine and hydrokinetic technologies.

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9 Future Capacity Source: Navigant Consulting Hydro Capacity Growth by Technology With the right policies in place, the U.S. could add 60,000 MW of new hydro capacity by 2025, the vast majority of which can be created without adding new dams.

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10 DOE/ORNL: Major Growth Opportunity

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Non-Powered Dam Potential With Other Renewables Non-Powered Dam Potential exists in areas with less than ideal wind and solar resources Water availability, particularly for regulated rivers, is NOT correlated with wind availability (combined firming of capacity) Wind & Solar Maps: NREL

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12 1.4 million Potential Jobs by 2025 Direct Jobs Indirect Jobs Cumulative Job Creation by 2025 under a 25% RES Source: Navigant Consulting, 2009

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13 Hydropower Benefits

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14 Hydropower is clean and sustainable. The hydropower industry is committed to better understanding and mitigating the impacts dams can have on local ecosystems and fish. Hundreds of millions of dollars are invested each year in environmental enhancements at hydro facilities. Using hydropower avoided approximately 196 million metric tons of U.S. carbon pollution in 2009 equal to emissions from approximately 38 million cars.

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15 Hydropower supports the electric grid. Hydropower is a flexible and reliable electricity source. Hydropowers ability to dispatch power immediately makes it an essential back-up during major electricity disruptions. [During the blackout,] one relatively large island remained in operation serving about 5,700 MW of demand, mostly in western New York, anchored by the Niagara and St. Lawrence hydro plants. US-Canada Power System Outage Task Force report, 2005 [During the blackout,] one relatively large island remained in operation serving about 5,700 MW of demand, mostly in western New York, anchored by the Niagara and St. Lawrence hydro plants. US-Canada Power System Outage Task Force report, 2005 Grid support services include Frequency Control Regulation Load Following Spinning Reserve Supplemental Reserve

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16 Hydropower is an affordable, scalable form of energy storage. The U.S. has more than 20GW of pumped storage capacity today, with facilities in every region of the country. Developers have proposed an additional 31GW. Hydropower pumped storage is one of the few large-scale, affordable means of storing and deploying electricity. Absorbs excess generation at times of low demand, and releases it during peak demand periods. An excellent partner for intermittent renewable electricity sources.

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17 The National Landscape

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18 Hydropower has bipartisan, multi-region support. Hydropower Improvement Act of 2011 co-sponsors include Sens. Murkowski (R-AK) and Bingaman (D-NM) and seven other Senators, Republicans and Democrats. H.R. 795, the Small-Scale Hydropower Enhancement Act was introduced by Rep. Adrian Smith, had bipartisan co-sponsorship, and passed out of the House Natural Resources committee unanimously. Incentives for hydropower and marine and hydrokinetic technologies championed by both parties. Consensus in the 111 th Congress for inclusion of hydropower in various policies.

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19 Bipartisan support With thousands of existing dams currently not creating any power, existing dams in need of upgrades, and new technologies being developed to safely capture river currents, an additional 60,000 more megawatts is achievable within the next 15 years. House Natural Resources Committee Ranking Member Ed Markey (D-MA) In todays environment where talk centers on the need to provide clean and environmentally friendly energy we must continue to promote and expand the use of hydropower. House Natural Resources Committee Chairman Doc Hastings (R-WA) Hydropower is one of our greatest untapped resources for generating clean, renewable electricity. - Senate Energy and Natural Resources Committee Ranking Member Lisa Murkowski (R- AK) Theres no one solution to the energy crisis, but hydropower is clearly part of the solution and represents a major opportunity to create more clean energy jobs. Energy Secretary Steven Chu

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20 Hydropower projects are underway around the country, bringing new jobs and low-cost electricity to many states.

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PLACEHOLDER FOR LARGE IMAGE Hydro Projects Waiting in Line 21 Applications/Exemptions Filed: 46 projects, 3,000+ MW, 27 states Preliminary Permits Issued: 374 projects, 44,000+ MW, 44 states Preliminary Permits Pending: 302 projects, 37,000+ MW, 29 states The FERC Pipeline Tops 85,000 MW across 722 projects

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22 Hydropower Priorities

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23 Helping the U.S. meet renewable energy goals. NHA supports a CES goal of generating 80% of Americas electricity from clean and renewable energy a goal achievable only with a significant role for hydropower. Meeting that goal requires: A more efficient regulatory process Economic incentives to support project development A national clean and renewable electricity standard Research and development

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24 The Regulatory Process Hydro Regulatory Process FERC Federal Regula- tors Tribes State Agencies Local Govern- ments NGOsPublic Hydropower development involves a comprehensive but sometimes redundant regulatory approval process that needs better coordination and cooperation between participants.

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25 Making the regulatory process more efficient includes: Facilitating private hydropower development on Army Corps of Engineers and Bureau of Reclamation Facilities An expedited licensing process for hydropower development at non-powered dams and closed loop pumped storage projects, that takes no more than two years. Support for small hydro and conduit power developers, so that the regulatory process provides assistance and is not a disincentive to project development.

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26 Economic Incentives will speed development. Equalizing the production tax credit for hydropower. Currently hydropower receives only half the credit available to other renewable energy sources. Allowing energy storage, specifically pumped hydro storage, to qualify for the ITC and CREBs (Clean Renewable Energy Bonds) Program. Expanding our nations energy storage capacity is essential to ensuring a secure and stable grid as well as integrating more renewable energy. Straightforward updates to existing renewable energy tax credit programs should be enacted:

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27 Long term extension of existing programs such as the PTC and ITC is needed, along with additional funding for oversubscribed programs such as CREBs and the 48C ITC for renewable energy equipment manufacturers. Hydropower project development can have high upfront costs and long lead times. Though cost-effective over the life of the project, utilities, developers and investors need certainty. NHA strongly supports existing renewable incentives:

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28 A Clean and Renewable Electricity Standard Existing hydropower generation should be counted if generation from other clean resources qualifies (wind, nuclear, etc.) Hydropower should be treated equitably in comparison to other existing resources. Energy storage, specifically pumped hydro storage, will play a critical role to firm and integrate intermittent resources and increase their contribution to the CES goal. The CES should include a mechanism to provide recognition of clean generation from pumped storage projects both existing and new. A Clean Energy Standard is a different policy paradigm than the Renewable Energy Standard. As such, the treatment and recognition of hydropower must be re-evaluated. That includes:

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29 Research and Development President Obamas proposed FY 2012 budget increases DOE spending for all types of renewable energy with the exception of the Water Power program, with a proposed budget reduction of over 20%. Congress must continue to invest, not retreat, on R&D funding for the next generation of hydropower and MHK technologies to achieve the countrys vision for clean energy deployment. As the Congress debates budget priorities, funding for hydropower R&D remains imperative.

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30 Linda Church Ciocci, Executive Director, National Hydropower Association linda@hydro.org Ph. 202.682.1700 Ryan Cunningham, Senior Vice President, Glover Park Group rcunningham@gpgdc.com ph. 202.295.0164 Roger Ballentine, President, GreenStrategies roger@greenstrategies.com ph. 202.328.1123 Contacts