Low Impact Hydropower, a Pathway to Green Markets

Hydroelectric power provides a significant percent of US electric generating capacity and does so without contributing to air pollution. However some hydropower dams have a history of adverse impacts to aquatic ecosystems, including the fish, wildlife, and human communities that depend on them. The Low Impact Hydropower Institute (LIHI) has established a voluntary certification system that allows hydropower entry into green power markets. LIHI certification is the standard Green-e uses for the eligibility of hydropower into the voluntary marketplace. It is also the basis for hydropower entry into several state renewable energy markets. This hour-long webinar explains the requirements for hydroelectric facility owners interested in joining the LIHI program and how owners are benefiting from LIHI certification.

Panelists included Mike Sale, LIHI Executive Director; Dana Hall, LIHI Deputy Director; and Sarah Hill-Nelson, owner of the Bowersock Mills & Power Company in Lawrence, KS.

Transcript

1. View Slide

2. Outline
   1.  Green-e and Low-Impact Hydropower (Jeff Swenerton)
   2.  Hydropower and LIHI (Mike Sale)
   3.  Green Energy Markets (Dana Hall)
   4.  Owner’s Perspective (Sarah Hill-Nelson)
   5.  Q&A
   

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3. View Slide

4. Green-e Requirements for Hydro
   1.  LIHI certification required in
   the U.S.
   2.  No new impoundments
   3.  10MW (nameplate capacity)
   cap on repowering
   

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5. Low Impact Hydropower
   Mike Sale
   LIHI Executive Director
   mjsale@lowimpacthydro.org
   

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6. “The Low Impact Hydropower Institute (LIHI)
   is a non-profit 501(c)(3) organization
   dedicated to reducing the impacts of
   hydropower generation through the voluntary
   certification of hydropower projects that have
   avoided or reduced their environmental
   impacts.”
   www.lowimpacthydro.org
   

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7. LIHI was conceived in 1998
   •  Initial leadership from CRS, Green Mountain Power,
   and environmental NGOs (see Grimm, 2002, below)
   •  Our Goal -- create an independent, objective, and
   transparent source of information about hydropower
   and consumer choices in green energy markets
   •  Our Strategy -- provide a market incentive to reduce
   the impacts of hydropower generation
   •  Our Vision -- achieve dual goals:
   –  Environmental quality and investment in rivers
   –  Enable more clean, renewable electricity
   Lydia Grimm on LIHI Formation, 2002 http://alturl.com/cxrc4
   

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8. Why was this new approach
   needed for hydropower?
   •  Hydropower has a long, successful history of
   electricity generation, BUT….
   •  It also has had a mixed history of environmental
   performance:
   –  Flow modification below dams
   –  Blockage and mortality of migrating fish and wildlife
   –  Adverse changes in water quality
   –  Flooding of riparian ecosystems
   •  All hydropower issues are site-specific
   •  There are very real opportunities for avoiding adverse
   impacts – not all hydropower is “bad”
   •  Project size is not an adequate indicator of impacts –
   more information is need to distinguish among projects
   

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9. LIHI is the combination of Board,
   Staff, and Advisors
   LIHI Staff
   Mike Sale, ED
   Dana Hall, DD
   LIHI Governing Board
   President, Secretary, Treasurer, members
   Revenue
   Committee
   Management
   Committee
   Technical
   Committee
   Industry
   Advisors
   Subcontractors
   Reviewers
   Accountant
   Admin. Support
   Renewable
   Markets
   Advisors
   

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10. LIHI governance includes a
    diversity of perspectives
    Richard Roos-Collins, Water & Power Law
    Group
    Steve Malloch, Independent Consultant
    Dana Hall, Attorney
    Mike Sale, Independent Consultant
    Ken Kimball, Appalachian Mountain Club
    John Seebach, American Rivers
    Vicki Taylor, Catawba-Wateree Relicensing
    Coalition
    Laura Wisland, Union of Concerned
    Scientists
    Pierre Bull, Natural Resources Defense
    Council
    Jack Palmer, Kleinschmidt/retired
    Glenn Cada, ORNL/retired
    Tara Moberg, The Nature Conservancy
    GOVERNING BOARD
    > 50% environmental NGOs
    

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11. The original certification
    approach has changed little
    •  Existing facilities and incremental new
    development at existing dams are eligible
    •  Facilities recommended for dam removal are
    not eligible
    •  Seven criteria must be satisfied:
    –  Flows
    –  Water quality
    –  Fish passage and protection
    –  Watershed protection
    –  Protection of threatened and endangered species
    –  Cultural resource protection
    –  Recreational resource protection
    

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12. Our certification process involves
    multiple steps
    •  Intake Review – informal consultation to assist in
    preparation of the full application
    •  Formal Application – reviewer evaluation of
    Questionnaire, public comment period, and
    recommendation to Board
    •  Certification Decision – Governing Board action
    or delegated to Exec. Dir./Tech. Comm.
    •  Annual Reporting – status check on any special
    conditions, plus annual fee payment
    •  Recertification – re-examination of all criteria
    after 5 to 8 years, including public comments
    

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13. Current certification fees
    are modest
    •  Intake fee = flat fee to cover consultation time
    •  Application fee = fixed fee plus variable rates
    –  Fixed fee covers reviewer time plus administrative
    costs
    –  Variable rate is a function of annual generation
    •  Annual fee = percentage of application fee
    •  Recertification fee = percentage of
    application fee, plus additional cost if major
    changes have occurred
    •  All fees subject to change after Program
    Review has been completed (~mid-2014)
    

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14. LIHI is now a nationwide program
    To date, we have:
    113 facilities
    certified, at ~170
    dams,
    in 28 states.
    The total capacity of
    LIHI-certified
    hydropower
    projects is 4.4 GW.
    

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15. The future for hydro looks bright
    •  Advanced technologies will become cost-competitive, to
    improve energy and environmental performance:
     Aerating turbines to improve downstream water quality
     Fish-friendly turbines to reduce/eliminate mortality of fish passing
    through turbines
     Optimized environmental flow requirements for downstream
    aquatic habitat
    •  Opportunities to grow hydropower may be realized:
    NOTE: actual new development will depend on economic
    competitiveness versus alternatives and on policies and regulations.
    

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16. Green Energy Markets
    Dana Hall
    LIHI Deputy Director
    dhall@lowimpacthydro.org
    

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17. Renewable Energy Policy
    In the US today…
    •  Renewable Portfolio Standards
    •  Voluntary Green Power Purchasing
    •  Public Benefit Funds
    •  Net Metering
    •  Federal Tax Credit Programs
    Low impact hydropower is useful in some but
    not all of these policies…
    

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18. Renewable Energy Certificates
    (Green Attributes)
    Source: Clean Power Markets http://www.cleanpowermarkets.com/green_certificates.php
    

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19. Renewable Portfolio Standard Policies
    Database of State Incentives for Renewables and Efficiency
    www.dsireusa.org / March 2013.
    29 states,+
    Washington DC and 2
    territories,have
    Renewable Portfolio
    Standards
    (8 states and 2 territories have
    renewable portfolio goals).
    

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20. Renewable Portfolio Standards
    and Hydropower
    •  Most RPS allow “small” hydro (under
    30MW)
    •  Distinguish by age, capacity/size, vintage,
    or technology.
    •  12 States impose environmental criteria
    for hydroelectric eligibility
    AZ, CA, CT, DE, ME, MA, NH, NJ,
    NY, OH, OR, and PA.
    http://www.cleanenergystates.org/assets/2013-Files/RPS/Environmental-Rules-for-
    Hydropower-in-State-RPS-April-2013-final.pdf
    

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21. State Environmental Restrictions on
    Hydropower RPS Eligibility
    •  Prohibitions of new impoundments or
    diversions
    •  only incremental production increases or
    efficiency gains
    •  Environmental protections for:
    – Adequate water flow
    – Fish passage
    – Water quality
    – Watershed protection
    http://www.cleanenergystates.org/assets/2013-Files/RPS/Environmental-Rules-for-
    Hydropower-in-State-RPS-April-2013-final.pdf
    

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22. Source: http://www.renewableenergyworld.com/rea/blog/post/2013/08/nepool-rec-market-q1-2013-update
    

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23. Massachusetts RPS
    •  Class I – New facilities up to 30 MW or
    incremental new generation or efficiency
    gains up to 25 MW
    – began commercial operation after 12/31/97
    – REC prices approx $60/REC
    •  Class II – Existing hydro up to 7.5 MW
    – in commercial operation before 12/31/97
    – REC prices approx $25/REC
    

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24. Green Power Purchasing
    Options for LIHI Certified Hydro
    •  REC contracts with green power marketers or
    project developers
    –  LIHI Certified Projects may enter into bilateral
    agreements to sell their RECs
    •  Utility Green Power Pricing programs
    –  LIHI Certified Projects may sell power to a utility
    to include in a green pricing program
    •  Community Aggregation
    –  LIHI Certified Projects may respond to RFPs for
    aggregation groups looking for green power
    

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25. Green Power Purchasing
    •  Leading US certification
    program for renewable
    energy
    •  Provides oversight for
    voluntary renewable
    energy transactions
    •  Prevents double counting
    •  Code of Conduct and
    Customer Disclosure
    Requirements
    

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26. LIHI Value Statement
    LIHI offers value to all
    stakeholders:
      Revenue streams for
    certificate holders
      Investments in rivers to
    NGOs
      Verifiability of green source
    to purchasers
      Accountability for RPS
    programs
    

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27. Owner’s Perspective
    Sarah Hill-Nelson
    Bowersock Mills and Power
    Company
    Lawrence, Kansas
    shn@bowersockpower.com
    

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28. The Bowersock Mills and Power Co.,
    Lawrence, KS
    

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29. The Bowersock Mills and Power Co., Lawrence, KS
    Pre-Existing Project – South Powerhouse & Dam
    

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30. Hydro – The History and Future of Energy in Kansas
    1st Bowersock-related Company
    to take power from the dam
    

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31.   The largest, oldest, and only major hydro plant in
    Kansas - 1905
      Certified “Low Impact” in 2005
      South Powerhouse – 2.35 MW 2300 cfs
      Offtaker – KCK Board of Public Utilities
      City of Lawrence maintains dam,
    which pools water for over 50% of daily
    water supply for the City – Public/Private
    partnership
      Median Water Flow in the Kansas River – 3400 cfs
      Significant quantities of unused water – potential
    for additional powerhouse
    South Powerhouse
    Structure Circa 1905 – More energy today than ever in its history.
    

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32. North Plant Project
    A long time coming…
    •  1924 – Present
    –  Blueprints from 1924 found in files at the Army Corps of Engineers
    

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33. BMPC North Powerhouse
    4.65 MW
    

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34. What worked from a local
    perspective.
      Site Selection – Incremental Hydro
      The BMPC expansion makes sense – existing dam used for city water supply
      Limited Additional Footprint
      Community & environmental group support – current climate is good
      LIHI Certification
      Had recently worked with all the agencies and NGOs
      They knew BMPC, I knew all the key individuals
      Official thumbs up that BMPC was being a good steward of the river
      Community Involvement
      BMPC – long history with the Lawrence community
      Chamber, Environmental Groups, Neighborhoods… got everyone involved EARLY
      City of Lawrence – Worked with almost every City department. Very responsive, esp. Legal, Planning
    and Public Works.
      City of Lawrence helped BMPC navigate the system.
      Keeping it Close To Home – We have the talent & resources here.
      Key team members – local. We have everything we need here – a lesson learned – no need to go to Chicago.
      Landmark National Bank, Stevens & Brand, Gilmore & Bell, Lowenthal, Webb & Odermann (MizeHouser)
      Overall a remarkably smooth process – permitting delays at back end
    

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35. Wrapping up the Project
    October, 2012: Finishing Touches, Flooding the Powerhouse
    Letting the Water In…
    

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36. Hydroelectric Energy Potential for
    U.S.
    “In our estimates we have about 70 GW of additional hydro which would have minimal
    impact; and so where does this come from? It comes from putting in better turbines in
    existing dams, it comes from run-of-the-river turbines that don't create the minimal
    environmental impact and it comes from using water storage that was made for flood
    control and then as you let that water out, it generates small electricity with it. The fact is,
    its 70 GW and 96 GW today of hydro, so it's nearly double. Seventy GW is 70 nuclear
    power plants, maybe 100 new coal plants. If you look at the economics of hydro, it's far
    less than any of those. So it's one of the best kept secrets.”
    Secretary of Energy
    Stephen Chu
    September, 2009
    

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37. The Bowersock Mills and Power Co.,
    Lawrence, KS
    

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38. Thank You for Listening!
    Mike Sale, Executive Director
    mjsale@lowimpacthydro.org
    Dana Hall , LIHI Deputy Director
    dhall@lowimpacthydro.org
    Sarah Hill-Nelson
    shn@bowersockpower.com
    For more information, see www.lowimpacthydro.org
    

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39. Questions
    

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40. Upcoming Webinars
    Renewable Energy 101
    Thursday, March 6, 2014
    LEED v4 and the Green Power Point
    Thursday, April 10, 2014
    Introduction to Green-e Climate
    Wednesday, April 23, 2014
    Register at www.resource-solutions.org/events
    

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41. Contact
    Mike Sale
    LIHI Executive Director
    mjsale@lowimpacthydro.org
    Dana Hall
    LIHI Deputy Director
    dhall@lowimpacthydro.org
    Sarah Hill-Nelson
    Bowersock Mills and Power Company
    Lawrence, Kansas
    shn@bowersockpower.com
    Jeff Swenerton
    Center for Resource Solutions
    jeff@resource-solutions.org
    

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42. Massachusetts Statute
    MGL c. 25A, s. 11F (c) (6)
    RPS Class I list of eligible resources
    (i)  each such new facility or increased capacity or efficiency at each such existing
    facility must meet appropriate and site-specific standards that address adequate
    and healthy river flows, water quality standards, fish passage and protection
    measures and mitigation and enhancement opportunities in the impacted
    watershed as determined by the department in consultation with relevant state
    and federal agencies having oversight and jurisdiction over hydropower
    facilities;
    RPS Class II list of eligible resources
    (i)  energy generated by existing hydroelectric facilities, provided that such existing
    facility shall meet appropriate and site-specific standards that address adequate
    and healthy river flows, water quality standards, fish passage and protection
    measures and mitigation and enhancement opportunities in the impacted
    watershed as determined by the department in consultation with relevant state
    and federal agencies having oversight and jurisdiction over hydropower
    facilities;
    

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43. Massachusetts RPS
    REGULATIONS
    225 CMR 14.00 - RENEWABLE ENERGY PORTFOLIO STANDARD
    Eligibility Criteria for ... Hydroelectric ... Generation Units
    225 CMR 14.05(1)(a)6.d.i: LIHI Certification of the Unit…
    –  DOER can request additional information from the Agencies or Applicant
    IF:
    •  a Relevant Hydroelectric Agency identified an environmental concern and a proposed
    remedy to LIHI during the LIHI certification process, and such concern was not
    addressed in the LIHI certification to the satisfaction of the Agency
    •  between issuance of the LIHI certification and the Department’s determination of the
    Unit’s eligibility, a Relevant Hydroelectric Agency submits to the Department evidence
    of a significant environmental problem not previously known by such Agency
    –  A denial of certification from LIHI specifying the reasons the
    certification was denied and the applicant’s proposed rationale for why
    the project should nevertheless receive a Statement of Qualification. In
    this instance, the Department shall notify and seek input from the
    Relevant Hydroelectric Agencies, which shall have 30 days from the
    date of their receipt of such notification to provide feedback to the
    Department
    

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44. Massachusetts
    http://www.mass.gov/eea/docs/doer/rps-aps/sqa-rps-class1.pdf
    

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45. Massachusetts RPS
    Application Procedure
    1.  Apply for LIHI certification.
    2.  When LIHI certificate is granted (or when
    confident of pending LIHI certification): go to
    DOER’s SQA page, identify and link to the
    relevant Class (I or II),
    3.  read that page and follow the link to DOER’s new
    (since January 2014) Web-based SQA,
    4.  register, log-in, and complete the SQA,
    5.  send all relevant attachments by email to
    doer.rps@state.ma.us, and
    6.  mail the relevant signed/notarized SQA
    certificates to DOER.
    

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46. Massachusetts RPS
    Agency Notification Requirements
    1.  When LIHI certification has been issued, whether
    before or after SQA submitted, notify Relevant
    Hydro Agencies (see definition) of SQA
    submission and give them 30 days in which to
    either comment or state intention not to
    comment, with comments/intent to be sent to
    doer.rps@state.ma.us and to applicant.
    2.  IF LIHI certificate was not yet issued, then either
    wait until then to notify Agencies or re-notify them
    when issued, provide link to Certification, and
    then give the 30 day time limit.
    

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47. Green-e National Standard – Hydro Definition
    

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48. http://www.cleanenergystates.org/assets/2013-Files/RPS/Environmental-
    Rules-for-Hydropower-in-State-RPS-April-2013-final.pdf
    

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49. H.R. 267: Hydropower Regulatory Efficiency Act!
    H.R. 678: Bureau of Reclamation Small Conduit
    Hydropower Development and Rural Jobs Act!
    Signed into law August 13, 2013!
    

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