By Russell Ray, senior associate editor, Hydro Review

A speedy approval for any kind of energy project is rare and unusual.

The U.S. government’s arduous approval process, which can take as long as 15 years for some new projects, has long been a chief deterrent in the development of critical energy infrastructure in the U.S.

But a new, encouraging trend is emerging in the hydropower industry. Acknowledging the need for clean, renewable energy, the Federal Energy Regulatory Commission (FERC) has employed a new system designed to expedite the licensing process for small hydropower projects.

Industry observers say the results have been extraordinary.

Just ask Sarah Hill-Nelson, co-owner of the 2.35-MW Bowersock hydroelectric plant on the Kansas River near Lawrence, Kan.

Her company submitted an application to build a new powerhouse on the north end of Bowersock Dam in February 2010. FERC approved the 5-MW expansion in August, just six months after the application was submitted.

Normally, it takes four to five years to license such an expansion. Is this a sign of things to come for the developers of small hydro projects in the U.S.?

“That’s the hope,” said Bill Smith, president of Hydropower International Services and former president of the National Hydropower Association (NHA). “This shows that it can be done.”

A faster licensing process for hydro makes sense, considering the potential for new hydropower capacity in the U.S.

According to a recent study by Navigant Consulting, the technical potential for hydropower capacity in the U.S. is 400,000 MW, four times greater than the nation's existing capacity of 100,000 MW.

For 35 years, Smith has been helping companies navigate the difficult regulatory process at FERC and other agencies. Bowersock’s receipt of a license in just six months may be unprecedented, Smith said.

As he put it, “Unbelievable.”

In addition to working with the community well before it approached regulators about an expansion, Bowersock had several advantages as it began the licensing process. The Bowersock plant was already certified as a low impact hydropower plant. What’s more, there were few environmental issues to address, prompting FERC to bypass certain stages of the process.

“My licensing staff at FERC was excellent,” Hill-Nelson said. “He did exactly what one would hope your licensing staff would do for you.”

In papers filed at FERC, the agency said issues of concern were adequately identified during the pre-filing period and that no new issues were likely to be identified through additional scoping. FERC declared in April that no further scoping would be needed, which accelerated the process.

In April, FERC officials unveiled a new licensing program designed to help applicants complete the process more quickly and efficiently. The new program was born out of discussions at FERC’s December 2009 technical conference on small, non-federal hydropower projects. The NHA said FERC’s new expedited licensing process is a “good first step” in improving the process for the developers of small hydro projects.

The Bowersock project is a good example of how new hydropower capacity is being developed in the U.S.

Growth, experts say, will be achieved through expansions and upgrades at existing facilities and the construction of smaller projects, not the building of large dams.

Mark Garner, president and chief executive officer of Voith Hydro, a leading provider of hydropower equipment and services, said his company has grown 27 percent in the past two years.

"What we've seen in the last couple of years is a huge resurgence of growth in new hydro," Garner said in an interview.

Garner pointed to four new hydropower projects being built on the Ohio River by American Municipal Power Inc.

"It's been a great boom to our business," he said. "We've added over 200 new employees and invested over $30 million in new equipment for our plant, modernizing our office, and adding new business software. We've really grown tremendously through this recession."

FERC’s expedited licensing process for small hydropower projects may be indicative of changing attitudes on Capitol Hill.

Earlier this year, the U.S. Department of Interior, U.S. Army Corps of Engineers and the U.S. Department of Energy signed a memorandum of understanding (MOU) to promote the development of hydropower, the largest and most reliable source of renewable power. Under the agreement, the agencies agreed to work more closely and align priorities to support the development of environmentally sustainable hydropower.

Roger Ballentine, president of Green Strategies Inc., spoke at NHA’s 2010 Conference in April.

He said the MOU represents a genuine effort by the federal government to boost hydropower capacity in the U.S. Such an agreement would not have been possible five years ago, Ballentine said.

“The MOU is a remarkable achievement,” he said. “I am just amazed about where we are today compared to where we were just a few years ago. It’s extraordinary.”

The hydropower industry has set a goal of doubling hydropower production in the U.S. by 2025. Together, the MOU and FERC’s expedited licensing process could be powerful tools in the industry’s effort to reach that milestone.

For more information about Bowersock and other new hydro projects, be sure to read the October issue of Hydro Review magazine, which features some of North America’s new hydropower developments.

Russell Ray is senior associate editor of Hydro Review magazine. Russell has 11 years experience as an energy journalist, covering the oil and gas industry in Oklahoma and the growth of solar and nuclear power in Florida. He served eight years as the energy reporter for the Tulsa World. He held the same position at the Tampa Tribune for two and a half years before joining Hydro Review in 2009.

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