Washington, DC – NHA applauded the reintroduction of a bipartisan, bicameral bill that extends a 30 percent investment tax credit (ITC) to incentivize investments in dam safety, infrastructure, and ecosystem improvements at existing hydropower facilities. The legislation, which is titled the Maintaining and Enhancing Hydroelectricity and River Restoration Act (H.R. 2160, S. 1183) is strongly supported by NHA as a bipartisan solution to improve aging infrastructure, thereby making water power more affordable and reliable for years to come.
The legislation is co-led in the U.S. Senate by Senators Lisa Murkowski (R-AK) and Maria Cantwell (D-WA), and in the U.S. House by Representatives Adrian Smith (R-NE) and Suzan DelBene (D-WA).
The average hydropower project in the U.S. is more than 60 years old. To comply with modern design standards and continue to operate safely and economically, the existing fleet must be upgraded, which will require significant investment.
A lack of tax support leaves many asset owners unable to finance these upgrades and at risk of license surrender. According to a recent industry study, one-third of hydropower owners are actively considering surrendering their licenses and decommissioning their facilities. Without tax incentives to help hydropower facilities fulfill federal safety and environmental regulations, hundreds of facilities up for relicensing between now and 2035 – representing nearly 16MW of power — may retire or be forced to recoup the cost through higher electricity prices.
“Hydropower is well-positioned to help America meet our bold energy goals — with the right federal support,” said NHA President and CEO, Malcolm Woolf. “America’s first electricity resource is reliable, dependable, domestically sourced, and capable of bolstering our grid at a moment’s notice, but a lack of investment in these ‘forever assets’ threatens those capabilities. NHA is proud to support this bipartisan legislation because we know that it will help preserve this critical resource at a time when America needs every megawatt to power our continued prosperity.”
“Hydropower provides clean, reliable, and affordable baseload energy around Alaska, but we’ve just begun to tap into our potential for this abundant resource,” Senator Murkowski said. “Our common sense legislation incentivizes hydropower along with innovation that will enhance grid resiliency, make our dams safer, and allow our fish habitats to thrive.”
“The ability to harness the power of moving water has paid tremendous dividends for Nebraska’s economy and many other regions of the country,” said Rep. Smith “To meet growing energy demands for the future, we must capitalize on the benefit of sustainable, affordable, and reliable energy sources like hydroelectricity. This legislation will promote development of hydropower and appropriate stewardship of our water resources. I thank my colleagues for joining me to reintroduce this important bill.”
“Washington is a leader in harnessing hydropower to provide reliable and affordable clean energy. This legislation builds on that progress by creating new incentives to improve dam safety, protect fish habitats, and enhance grid resilience. These changes will help Washington families save on energy costs while advancing our commitment to a cleaner future,” said Rep. DelBene.
