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WATER RESOURCES: SMALL-SCALE HYDROELECTRIC DEVELOPMENT

ISSUE BRIEF NUMBER IB78035

AUTHOR:
Julia M. Newcomb

Office of Senior Specialists

A THE LiBRARY or CONGRESS
CONGRESSIONAL RESEARCH sERvIcE

MAJOR ISSUES SYSTEN

DATE ORIGINATED 02/24/78
DATE UPDATED 05/10/82
. ‘ 3 .

FOR ADDITIONAL INFORMATION CALL 287-5700

0512

/

CRS- 1 IB78035 UPDATE-05/l0/82

ISSUE DEFINITION?

The "energy crisis" has rekindled congressional interest in development Of

new hydroelectric facilities and in the improvement of existing ones.
(Hydroelectric power is derived by the conversion of mechanical power to
electricity through the use of a hydraulic turbine.) In particular, the idea

of installing small electric generating units on minor rivers and tributaries

has become popular. Many previously developed sites, now abandoned, offer
attractive possibilities for modestly augmenting the Nation's electrical
energy needs because they pose the fewest environmental and social risks.
Generally speaking, hydroelectric projects are not fuel consumptive andf do
not create air or water pollution problems. They can, however,. cause
ecological problems insofar as the impounding of water can change the site.

Moreover, the projects can be expensive.

BACKGROUND AND POLICY ANALYSIS

In his comprehensive Energy Plan of Apr. 20, 1977, President Carter stated
that small-scale hydro development at existing sites could add approximately
14,000 megawatts (MW) to the Nation's total electric generating capacacity (a
megawatt is the equivalent of one million watts in the meter-kilogram second
system of units). since that time, many investigations have revealed
concrete sources of hydro power.~

In 1979, the capacity of 1,251 hydroelectric facilities was aapproximately

64,000 megawatts of electrical energy (1979 Corps of Engineers‘ preliminary).
figures). This was approximately 13% of the Nation's total (generating
capacity. Small-scale hydro, depending on one's definition, contributed.
l6,422 MW (.05 to 15 MW range) or 28,422 MW (.05 to 25 MW range). In the

future, significant increases in hydroelectric output are expected since the
combined hydro resources from existing and undeveloped sites as well as from
additions to existing sites are estimated by the Corps to be dmore than
512,000 MW. By 1990, it is, calculated that development of hydroelectric
potential at sites with existing generating capacities could increase output
to 158,000 MW.) In addition, preliminary estimates of the
Hydroelectric Power Resources Study by the Corps of Engineers (CE) suggest
that development of 4,500 potentially feasible, undeveloped sites could raise

the Nation's generating capacity by 354,000 MW. This would be in addition to

the new incremental power potential at approximately 5,400 existing
locations. Pumped storage sites were not part of the inventory. (Pumped
storage is the excess electrical energy produced during low demand periods,
which is used to pump water into a reservoir and released during times of

high demand.)
realized,

POSSiDlY as much as half the estimated potential may never be
however, due t0 environmental and other constraints.

The CE, along with the Bureau of Reclamation (BuRec) of the Department off

the Interior, are for the

building, operation,

the principal Federal agencies responsible
and maintenance Of hydroelectric projects.

Definition of Small-Scale Hydroelectric Power

An area of some confusion has been the definition of a small-scale

more

National

CRS- 2   IB78035 UPDATE-05/l0/82

hydroelectric project. It has been defined in a variety of ways depending on
the Federal agency or program involved. Under the Public Utility Regulatory
Act of l978 (PURPA, P.L. 95-617), Section 408, whose purpose is the issuance
of licenses, loans, and incentive programs, some consensus about th¢

definition among agencies was achieved. A small hydroelectric power project-

was defined in the statute as "... located at the site of anyt existing dam,
which uses the water power potential of such dam, and which has not more than
l5 MW of installed capacity." An existing dam was considered one which was
completed on or prior to Apr. 20, l977, and which required no construction or
enlargement of the impoundment structure, in connection with hydroelectric
facilities installation (Sec. 408(6)). *0 ~

Under the Energy Security Act of 1980, P.L. 96-294, Title IV-9 Renewable

Energy Initiatives -- (Section 408), they original’ PURPA definition of a

small-scale hydroelectric project was altered from 15 MW as an upper capacity,

to 30 MW. The definition of an acceptable project was expanded to include
development at sites where an impoundment structure was not. necessary. In

addition, it was) provided that FERC,, the Federal Energy Regulatory

Commission, CO'L1ld grant licensing exemption authorizations on a” case-by-case

basis for projects with a capacity under 5 MW. Section 409 pofe P.L. 96-294.
provides for a $10 million loan program for small hydro projects as described)

in Section 402 of PURPA, and $100 million: in loans under Section 403 of
PURPA. ’)r A 5

In its July l979 report, the CE originally specified a maximum limit of l5
MW for small-scale hydroelectric facilities. In 1980 this was revised upward
to 25 MW. The CE is governed in this definition fby the Water Resources
Council's Procedures for Evaluation of National Economic Development (NED)
Benefits and Costs in Water  Resources (Planning, (Level c),j specifically

(subpart H (Federal Register: Dec. (l4, 1979) which refers. to economic

evaluation.

The definition of small-scale hydro will probably continue to change to

the extent that this alternative energy source jbecomes more politically,
socially, and economically attractive. Proponents will likely urge megawatt
redefinition upwards as more grants, loans, and other formsi of assistance
emerge. The General Accounting Office (GAO), for example, has recommended a
100 MW capacity limit. if:

Agency Programs

The Department of Energyis (DOE) Smallscale Hydro Program includes grants

for feasibility studies of development at, new and jexisting (sites. Other
pertinent DOE endeavors are the agency's. demonstration projects ,and loan
programs. The latter provides for both feasibility studies and construction.
Under DOE's Program Research and Development Announcement, proposals may be
submitted to explore means to improve the economic feasibility of "low head
hydro" —- that is, projects with hydraulic heads (depths above .the turbine)
less than three meters and with an installed capacity of 25 MW or less. "Low
head hydro" is a subdivision of small-scale hydroelectric power;

Another program which could be instituted is under the PURPA law. Section
402 oft PURPA authorizes Federal loans to municipalities, electric
cooperatives, industrial development agencies, and non-profit organizations
to defray up to 90% of the costs for feasibility studies and (license
preparation. The interest rate on loans in FY81 was 7 3/8%. Loans, are

CRS- 3 1378035. UPDATE-05/10/82

forgiven when the Secretary of Energy concludes, on the basis of the study,
that the proposed project is not feasible for small-scale hydroelectric
development. Under Section 403, construction loans can provide up to 75% of

pthe costs of a small hydroelectric power project. This program, however, has
/?never been funded by the Congress. The construction of new dams or other

impoundments iS not permitted by the law and there are DO provisions for a
loan guarantee program. ‘ ‘ ‘

DOE, the lead agency in the development of small—scale hydropower,
coordinates the Rural Energy Initiative (REI), a multiagency program with ten
regional offices. DOE is governed by the PURPA definition, as amended by the
Energy Security Act of 1980, in its definition of a small-scale hydro project

unless otherwise stated. RBI provides grants, loans, and loan guarantees t0

eligible developers. other agencies involved through their appropriate
financial assistance programs are the tRural Electrification Administration

(REA), the Farmers Home Administration (FmHA), the Department of Housings ands

Urban Development (HUD), and the Economic Development Administration. AREA,

as a result of the REI program, has provided a 5% direct (or uninsured) loan 

to be used for feasibility studies, licensing, and construction in addition
to loan guarantees. eYet another significant program is FmHA. The Community
Loan Program has been authorized to include 5% small-scale hydroelectric
facility loans for those not eligible under REA. 6   i

O

The primary responsibility of FERC, as stated in the Federal water Powert

Act of 1920, is toe license all non-Federal publici and private hydro
development projects on navigable waterways (16 USC, Sec. 791 et seq.).
FERC, formerly the Federal Power Commission, divided i its.“ licensing

frequirements- into ‘three stages: the ifirst involves projects( with an
Vinstalled capacity of less than 1.5 MW (minor projects); the second refers tow

projects with an installed capacity greater than 1.5 MW at existing dam (and
reservoir sites; and the third refers to undeveloped projects which will have
an installed capacity of more than 1.5 MW.

A new FERC regulation, RM 80-65, exempts all developers of hydroelectric

power projects with a generating capacity of‘ less than 5 MW from the«
Commission's licensing procedures if they install generating equipment withinl
the first year and complete the project within 4 years. A, license twould;

automatically be granted after 120 days of acceptance of an (application if
FERC had not acted during that time.

The Department of Interior's Bureau of Reclamation operates hydro projects
in the 17 western States. In July 1980, BuRec identified 46 existing small
hydro sites as being economically feasible. 1 These sites possessed an
estimated 189 MW of undeveloped potential capability.t Nine of those sites
could have significant environmental or social impacts and thus were tagged
for further study. An additional .113 sites were considered potentially
economically, environmentally, and socially feasible at the time of the study
but would require further reevaluation at a future date prior to activation.
In its report, BuRec defined a small-scale project as one having  a capacity
of 15 MW or less. BuRec has completed Phase I of its Smalli Hydroelectric
Development Evaluation and Inventory. This study investigated the potential
generating capabilities at all existing BuRec sites having less than 15 MW of
capacity. A maximum head height was not considered.

The CE (published a preliminary six-volume assessment of national
hydroelectric resources entitled  National Hydroelectric Power Resources:
Study Preliminary Inventory of Hydropower Resources in July 1979. The CE is
authorized under the Water Resources Development Act of 1976, Section 167, to

CRS- 4   IB78035 UPDATE-05/10/82

conduct this survey, which has an expected completion date of 1981. The
figures obtained during the first phase were theoretical potentials and not

osite-specific.

Hydroelectric Estimates

Current U.S. electric demand (peak use) is approximately 400 gigawatts.

The potential capacity iS roughly one-third greater than this, WhiCh. is an

indication of the Nation's ygenerally overbuilt condition. Thus, the
justification for increased capacity is future need and the ability to meet
peak loads. A further point to consider in the development of hydroelectric
power in general and small-scale hydro in particular is whether the sites are
where the squeeze is most felt.

In 1979, a hydroelectric capacity of approximately 64,000  megawatts (MW)'

of electrical energy (1979 Corps of Engineers‘ preliminary figure) was
available at 1,251 facilities. This was approximately 13% of the Nation‘s1
total electric generating capacity in that year. The total hydroelectric

potential from existing, additions to existing, and undeveloped sites .is
estimated, however, at more than 512,000 MW. By 1990, it is calculated that
development of sites with existing generating capacities could increase their
output to 158,000 MW. In addition, preliminary estimates of the Corp of.
Engineers National Hydroelectrical .Power Resources’ Study suggest  sthati
development of 4,500 potentially feasible, undeveloped sites could raise Ether
Nation's generating capacity by 354,000 MW.. Nearly 50 % of the estimated
potential could prove difficult to develop, however, due to environmental and
other constraints. A more detailed study is in progress .and will( likely
result in a revision of the figures cited above. (Pumped storage sites were

not included in the inventory.)

The CE was authorized under P.L. 94-587 to assess the total hydroelectric
potential of this country.‘ Relative to small—scale hydro development
(considered as less than 15 MW), the CE in a 1979 report concluded. from
preliminary figures that: 1

-— There were approximately 5,600 existing small dams’,
(.05 to 15 MW of installed capacity) which were
identified as generating energy or having the
capacity to produce new or increased power.

-- These existing small-scale sites amounted to an.
estimated 3,000 MW of installed capacity, or 5%.
of the Nation's presently installed capacity.

 -— New or increased capacity, totalling 5,400 MW,
could be installed at many of the existing small
scale dams. M 5

-- at the 2,6000 potentially feasible undeveloped sites,
an additional 8,000 MW or more of capacity could be
produced.     1 .

Engineering News Record (Mar. 19, 1981) reported that $12 billion would be
required to upgrade and expand existing hydroelectric powerhouse sites. Such
a program would increase capacity by as much as 63,300MW.

CRS- 5 IB78035 UPDATE4o5/10/82

DOE reported in 1979 that there was an installed capacity of 70,989 MW for.
1,146 hydroelectric plants in 1978. Between the period of 1968-1978, while)

the number of existing plants had dwindled because of decommissioning, new
installations actually resulted in a 68.8% increase in installed generating
capacity due to the enlarged size of these new plants (Hydroelectric (Plant
Construction Cost and Annual Production Expenses -- 1978).

In a more recent study (Inventory of Power Plants in the United States ;;
December 1979), DOE reported that through December 1979 existing capacity was
74,910.5 MW for 3,146 units (the report did not identify the number of plants
involved) with projected new capacity in the amount of l8,230.2 MW involving
144 units. Pumped storage existing in 1979 was estimated to be l6,888.8 MW
and pumped storage projects under construction or proposed as of January 1979
were forecast to furnish 40,463 MW., . 6 ‘ i ’ “. ’

A study) by Bureau of Reclamation (Report on Assessment of Small
Hydroelectric Development at Existing Facilities, July 1980) concluded that
there were 45,140 MW of installed hydroelectric capacity in the 17 western
States. National undeveloped hydroelectric potential was stated as 109,000

MW with approximately 37,000 MW coming from the 17 western States. Phases‘II)

and III of the WRPS report will provide a more in-depth inventory.

The National Electric Reliability Council (NERC) estimated in 19800 that

hydroelectric power production would decline in its contribution to installed.)

generating capacity down to 8.6% in 1989 relative to) other fuel stypes.
Contributing factors for ithis percentage decrease were described: as an
upsurge in the discovery of new and existing types off fuel, “advancing

+techno1ogies, and the finiteness of water. Actual installed hydro generation
would increase slightly, though, to a capacity (of 66,809 MW in? 1987, as.

compared to what it was in 1979 (i.e., 64,986 -- NERC figures).

According to a 1980 General Accounting Office (GAO) report, Hydropower ;;
an Energy source Whose Time Has Come Again,i there are hydropower. sites
currently under construction estimated to have a generating capacity of 7,200
MW. ‘Of that amount, 1,600 MW are presently being constructed by non~Federal
entities. Authorized legislation places an additional capacity of 4,200 MW
for future Federal construction. ‘GAO reported that there were another 26,000
MW of capacity from pumped storage under construction, authorized or included
in the 1978 licensing approval process. Total installed capacity at existing
hydroelectric facilities was said to be 69,000 MW, including- 10,000, MW of
pumped storage. 5

Appendix A (attached to printed copy only) indicates variances among the
Federal agencies in stating precisely how much hydroelectric _power is
generated, undeveloped, and/or how much can be attributed solely to
small-scale facilities. In a few cases, complete data are ‘lacking. such
weaknesses in data make it difficult to separate small-scale hydro potential
from total hydroelectric potential, a matter that merits more attention by
those reporting figures for future expansion in this alternative technology.

Appendix A indicates that no consensus has been reached among the“ various

‘Federal agencies. on hOW ‘much existing hydroelectric capacity exists. The CE

has the most up-to-date and detailed inventory, however, and their. figures
are probably the most reliable. The only agency to compute a total figure
(including potential) for hydroelectric capacity was the CE. I 6

DOE's figures are much higher than those of the CE while NERC's are

CRS- 6 IB78035 UPDATE-O5/l0/82

compatible. GAO reported the lowest estimate for the entire United States by.

any Of the agencies. WPRS figures were only reported for the 17 western
States.

One of the major problems in comparing estimates of undeveloped potential
or existing hydro is the nonuniformity in the reporting of figures. FERC,
for instance, reports on the potential existing at sites generating less than
5 MW; the CE reports the amount of small-scale capacity in terms of existing,

undeveloped, and incremental capacity; and DOE references certain, specific

units at existing sites while omitting any mention of the total theoretical,
undeveloped potential. WRPS reports only on specific western sites and does
not address the national potential.

7 A need exists to develop consistency in Agency findings so that useful 
comparisons may be made and existing and potential hydroelectric capacity in-
sterms of category and locality may be readily understood. a

State Progress in Small-Scale Hydroelectric Development

I

«Various States have taken the initiative in developing their conventional
and small-scale hydro potentials. In Oregon, for example, ll7 proposed dams
were identified as possessing generating potentials between 200 KW (0.2 MW)
and 25 MW. The theoretical power yield for the State from proposed

small-scale hydroelectric dams is 1,839 MW (oregon Environment: June l980)i

and the CE (July 1979) indicated that there are 514 existing, additional, and
undeveloped smallescale sites (.05-l5 MW) which could produce 1,726 MW-

The CE identified the Pacific Northwest region of the country” as having

the greatest amount of installed capacity, and indeed, this region has relied
almost exclusively on hydroelectric power. These findings were summed up in
the CE 1979 preliminary report, National Hydroelectric Power Resources study:
Small-Scale Hydroelectric Power Resources, and are given below in Table 1.

TABLE l:i Small-scale hydroelectric power
resources for the Pacific Northwest
(existing, incremental, undeveloped)

State, 7 i Capacity (MW) Sites

Alaska , 1,176 227
California x 1,137 _ 451
Idaho - 768 . ' 172
(Montana is ‘ 345 ll9
washingtoni - l,l04j M 6 207
Wyoming 172 7 6 79
Oregon l,726i M ~ ~ ~ 514

H 6,428 MWN , 1,769 sites

[NOTE: The CE is presumably revising its preliminary report and the
new data should be available in the near future.]

The New England Congressional Caucus (NECC) reported in 1979 (New Englant

Rural Energy Sources) that approximately 300 of the 9,000 hydro dams

CRS- 7 IB78035 UPDATE-O5/10/82

generating industrial power in New England in 1900 were in operation and that
90% of these were small-scale. Major small-scale user-States in the region
are New Hampshire with 598 and Maine with 537 existing undeveloped dams.
Among the other New England States with existing undeveloped sites as

‘reported by preliminary findings of the NECC are: Connecticut, 204;

Massachusetts, 284; Rhode Island, 113; and Vermont, 171 dams with a power
potential of nearly 1,784 MW. 4

The CE reported in 1977 that there were a total of 2,727 small dam sites
(less than 5 MW) with a total generating capacity of 2,432 MW in New England.
In its 1979 study, however, this figure was revised downward even though the
capacity definition has been changed to include installed generation from .05
to 15 MW. The figures are given in Table 2.

TABLE 2:4 Small-scale hydroelectric power,
resources for New England (existing,
undeveloped, incremental)

state Capacity (MW) Sites
Connecticut 3 124 218
Maine 2 N 431 502
Massachusettsr 188 324, i
New Hampshire 312 N 2 565
Rhode Island   i  342‘ i ,_ E E 107
Vermont in I 2    i240yi     199

1,337 7 1,915

CRS- 8 IB78035 UPDATE-O5/l0/82

Table 3 is a compilation of the CE preliminary data for the
remainder of the States regarding their small-scale hydropower resources
(.05 to 15 MW): - * ‘

TABLE 3: CE preliminary data on small-scale hydro resources

State Sites (existing, 3 ‘ Capacity
undeveloped, incremental) (MW)
Alabama ’ 61 p 121
Arizona 1 * 68 79
Arkansas. ’ 1 140 205
Colorado 230 455
Delaware (only undeveloped
sites were planned) 2 . 2
District of Columbia NA NA
Florida p. T 20 55
Georgia   97 281
Hawaii % 32 61
Illinois 285 321
Indiana J 79 ‘ 147
Iowa 65 y 102
Kansas % p A e 249 246
sKentucky (no small-scale g 75 ll5
hydro sites presently exist) ’
Louisiana (no small-scale 24 55
hydro sites presently exist)   .
Maryland A 24 40
Michigan (there are no) A 222 N 586
undeveloped sites planned) V
Minnesota 4 150 _ 300
Mississippi (no small-scale 88 1 71
hydro sites presently exist) 3
Missouri 3 126 3 254
Nebraska “ 69 83
Nevada 7 . 45 71
New Jersey (there are no A 38 A 27
undeveloped sites planned to date)
New Mexico (no small-scale hydro 70 A 101
sites presently exist) .
New York * 1 417 1,227
North Carolina 1981» 394
North Dakota (no small-scale 46 31
hydro sites presently exist)
Ohio (no small-scale hydro 86 . l52
sites presently exist) 2
Oklahoma (no small-scale 268   227
)hydro.sites presently exist) 5 *
Pennsylvania (no small-scale« 196 5 1 7 347.
hydro sites presently exist) 6
Puerto Rico % A 21 4 78
South Carolina 83 183
South Dakota 7 . 35 51
Tennessee 41 128
Texas 334 505

Utah 141 j 268

,CRS- 9 IB78035 UPDATE-O5/10/82

Virgin Islands

Virginia   A   ‘ 168   495

West Virginia“ « % V. _» 52 . 196
wisconsin‘ <  A 8   258 5» 8 597<
8TotalV ~~‘ A. 5 5   ii%~ 4.513’   i_ 5’ 8.657
Subtotals: yi 8 5 A: 5. _ A

Table 3‘ ~ A . 54,513  i 5 % 8.557

New England Subtotal 5 5 iii i  1,915   , 8 1,337
Pacific Northwest Subtotal 5 A: 5l;769i A1% 85 6,428. ‘ LL
imotal   f 5   8   . %   8,197 sites   '15,422 uwi

CRS-10 IB78035 UPDATE-O5/l0/82

If, however, one were to extrapolate the preliminary findings of the CE
for generating capacity between .05 and 15 MW to 25MW or less (the working
definition for the CE), the resulting amount of small-scale hydroelectric
power (existing, incremental, and undeveloped) would be about 28,981 MW (see

Appendix B which is attached to printed copy only). This figure, however,
omits sites with less than .05 MW and those in the range of 25 to. 30 MW of

generating capacity covered under the Energy Security Act of 1980. Appendix
B also indicates potential small-scale (.05 to 25 MW) development.  

Sites generating between .05 to 15 MW are, thus, equivalent to 56.7%

(16,422 MW) of (the total‘ small-scale -hydro generation under the new,

definition. ODViOL1S.lY, the alteration in definition has had a signif.icant
impact on statements Cf hOW much small-scale hydropower exists.

Advantages of Small Scale Hydroelectric Development

Hydroelectric projects are attractive because they utilize ea renewable
resource and produce electric power over long service lives without consuming
fuel resources or-creating air pollution. They are especially suited to

provide peak-load  and reserve generating capacity. ‘In addition, theirs

efficiency is high (about 85%). There are, however, environmental (laws),
social (aesthetics), and institutional (assistance programs) constraints that
may preclude.the development of some potential sites. ‘

Existing hydroelectric facilities can often be modified at low cost. to

produce additional. energy. Where water supplies are tight, .increased

capacity can be obtained by adding water control and conduction structures,
turbine generators, and related electrical apparatus. Existing projects
constructed ‘without *hydroelectric facilities may also be modified 9 by
installation of generating equipment. -

Disadvantages to Small Scale Development

Many factors, however, can limit (development, such as the cost of
financing a feasibility study, which is a prohibitively expensive procedure
for local and municipal governments and small industries. The fee can soar
as high as $100,000 (1979), but generally fluctuates between $30,000 and
$40,000. DOE has attempted to address this problem through  its Feasibility
Study Loan Program under Title IV of PURPA. - DOE reported that investment
costs for a new plant were dependent on the size and type of project and the
amount of land needed or relocations required due to land acquisitions. An
important factor to bear in mind is that it will take a few years (after a
project is online before a return of investment can be realized.

other economic factors influencing the costs of small scale hydro
construction and/or retrofitting are: A
-- centralized versus decentralized power systems;

-- condition and useability of existing facilities;

CRS-ll IB78035 UPDATE-O5/10/82
-— cost of safety and deficiency corrections;
-- size and number of existing or potential units;
-- operation as a base- or peak-load facility;
-- marketability of the generated energy: and
-- environmental constraints for fish handling.
A report entitled Small Hydro, by author John Stuart Gladwell, cites other
factors that may financially constrain development. These are the tcosts- of
transmission facilities, substations, and monitoring equipment, utility rates

for the power generated machinery, and the site availability prelative to
adequate streamflows. ;   r T

In general, safeguarding of hydropower is an important factor,

particularly with retrofitting, since many of the older dams were built
during a period when safety codes were non-existent.

Gladwell notes that although environmental and/or social impacts Of

small-scale hydro are expected to be minimal, certain inquiries should be
made and should be made thoroughly. These assessments should include:

‘” thé effects Of impoundment on tailwater areas and
particularly in regard t0 water quality;

-- potential effects within the reservoir or
downstream of flow and/or water level fluctuations
due to daily and seasonal operations of the hydro
facility; .

-- the anticipated effect on known resident and
migrating fish in the vicinity, and height Of
potential fish passage facilities;

-- the effect and extent of any dredging that might
be required during development;

—- review of previous environmental studies
completed in the vicinity of the site;

-- any anticipated changes in environmental conditions
resulting from retrofitting or rehabilitating
existing hydro plants; and g

-- known or potential environmental issues at the site,
such as past, present or planned designation as a
wild or Scenic River or existence of any threatened
or endangered species.

Laws Impacting on Hydroelectric Development 
Among Federal statutes impacting on hydropower development are the

) Colorado River Basin Project Act (P.L. 90-357) and the Wild and Scenic Rivers
Act (P.L. 90-542). The former prohibits the; Federal Energy Regulatory

CRS-12 IB78035 UPDATE-05/10/82
commission from issuing licenses for projects on the Colorado River  between
the Glen Canyon and Hoover Dam projects. This preempts a power potential of
about 3,500 megawatts. P.L. 90-542 prohibits the Commission from licensing
the construction of power facilities affecting rivers included in‘ the
national wild and scenic rivers system. A 5 - A 3

other laws which might affect the licensing of small scale~ hydro
development are: » A ’ “

-- National Environmental Policy Act (P.L. 91-190)
V -- Fish and Wildlifa Coordination Act (P.L. 85-624)
-- Endangered Species Act (P.L. 93-205) is
-- Historic Preservation Act (P.L. 89-665)
-- Water Pollution Control Act (P.L. 92-500)
T-- Water Quality Improvement Act (P-L. 91-241)
-- Wilderness Act (P.L. 88-577) 0
‘-- Coastal Zone Management Act (P.L. 93-612)
-- Federal Land Policy and Management Act of 1976
(P.L. 94-579)
-- National Trails Act (P.L. 543)
-- Act of May 24, 1974 (P.L. 93-291; the
i preservation of historical and archeological
data) ,
-- Act of May 28, 1963 (P.L. 88-29; assures
adequate outdoor recreation resources)
-- Clean Water Act of l977 (P.L. 95-217)

~ CONCLUSIONS

Based on the available reports, the CE is the only agencywith a ~detailed
inventory of small-scale sites and installed capacity. It appears to be. the
agency most responsive to definition changes of the term "small-scalefi hydro,
which in turn affects the determination of the available installed capacity.
Agreement seems to be growing as to the. definition of small-scale Aamong

governmental agencies -- i.e., a 30 MW or less or a 25 MW For less ~capacity)’

definition of small-scale hydro. .The definition battle will ‘probably
continue. To the extent that small-scale hydro becomes more politically,
socially, and economically attractive, proponents will urge redefinition of
allowable ,megawattl capacity upwards, thereby increasing the number of
candidates eligible for Federal assistance. 4 » ’ 3

As prices for fuel-generated energy supplies (oil, gas, thermal,t nuclear,
solar, yetc.) continue to soar, the attractiveness of small-scale
hydroelectric power utilizing a renewable resource, rwater, becomes more

apparent. Compared to other energy supplies, additions to existing sites and

abandoned small-scale hydroelectric dams reportedly pose (among all means. Of

‘ generating electricity) the least harmful side effects t0 the environment,

though new developments COUld run more

environmental,
institutional risks. 0 ~ *

social,“ and

\

Under the Reagan Administration, it has been proposed that the  entire
hydropower demonstration and feasibility study loan program will be disbanded
by the close of FY82. In FY82 there was a reduction of $20 million in the
feasibility study loan program towards that end, of which $3 million was

appropriated for small hydropower demonstrations and $14 million was the FY80

unauthorized balance. '

CRS-l3 J IB78035 UPDATE-O5/10/82

These actions would leave intact the credit programs and” the investment

tax credit but would terminate the funding under the appropriations bill,’

P.L. 96-367.

LEGISLATION

H.R. 1333 (Lewis)/S. 875 (Hayakawa).

L Companion legislation was passed as P.L. 97-41 in August. 1981- The* law

. permits the Palo Verde Irrigation District, California to generate electrical t

power at Palo Verde Irrigation District Diversion Dam. H ~
H.R. 2216 (Pursell et al.)

National Energy Trust Fundt Act. iEncouragest a comprehensive inational

program of alternative energy sources, gwhich would include. hydroelectricpe
' energy use. Introduced Feb. 21, 1981; referred to Committee on Sciencep and

Technology.
H.R. 2971 (Schneider et al.)/S. 957 (Chafee)

Establishes a New England Regional Power Planning Authority to assessi the
energy power demand for the New England Region and to purchase and sell gas

or electric energy to electric: utilities for resale within the Region. :

Introduced Apr. 1, 1982: referred to more than one committee.

H.R.~3l46.(Fuqua)i

tIn the authorization bill for the Department of Energy‘ thatf includede $3?
million for hydro power. The bill was reported from the House. Committee on

Science and Technology (H.Rept. 97-94) May 1981, but was never passed. (Note

that DOE authorization eventually came from budget reconciliation billI for.

FY82.)
H.R. 4485 (Moorhead)i

would reform the Federal Power, Act to. encourage conduit hydroelectric
facilities by exempting hydroelectric generating facilities added to an
already existing manmade conduit operated for distribution oigwater or other
purposes. Note: 16 U.S.C.A. 824 exempts such facilities that have capacity
less that l5MW. Introduced September 1981; referred to Committee on Energy
and Commerce. ~ E if ‘

S. 306 (Hatfield), Senate Amendments 406 and 407

would authorize the Secretary of the Interior to construct,  operate and
maintain hydroelectric generating facilities at ten existing Water and Power
Resource service projects. rsimilar legislation was introduced in the 95th
and 96th Congress and passed by the Senate. but gnot passed .by the House.
Refer to Senate Report no. 97-61.   ii V P‘. r it

s. 420 (Stafford et al.)
Directst the Corps "of Engineers to. provide technical assistance in

converting former industrial sites to hydroelectric facilities and calls for
streamlining and simplifying application procedures for facilities with less

CRS—l4 IB78035 UPDATE-O5/10/82

than ZSMW installed‘ capacity. Introduced referred to

Committee on Environment and Public Works.

February 1981;

s. 1299 (ncclure)

burdens and
respect t0 certain

Reduces regulatory
requirements with

authorizes‘ the
non-Federal

waiver of licensing
hydroelectric power

projects. Introduced June 2, 1981; referred to Committee [on Energy and
Natural Resources. t 1 A

S. 1918 (Specter)

Establishes the Northeast-Midweststates Hydropower Financing Authority

and authorizes it to make loans guarantees for
States and organizations engaged in retail electric service.
8, 1981; referred to Committee on Energy and Natural Resources.

HEARINGS

U.S. Congress. House- Committee on Interstate and Foreign
Commerce. .Nationa1 Energy Act- Hearings, 95th Congress,
lst session. Part B, v. 1. May 19 and 20, 1977.

Washington, U.S.Govt. Print. Off., l977.- 735 p.
"Serial no. 95-24a" ~
----- westcoast electric supply problems. Hearings, 95th.

Congress, lst session. Char. 31, 1977.
U.S. Govt. Print. Off., 1977. 152 p.
"Serial no. 95514" ° ”

Washington,

fU.S. Pcongress. SEnate. Committee on energy and Natural
Resources, Subcommittee on Energy Conservation and Supply.
Small-scal hydroelectric power in New Eng1and.[ Hearings,
96th Congress, lst session. June 15, 1979.’ Publ. No.
96-72. iwashington, U.S. Govt. Print. Off., 1979.

REPORTSAND CONGRESSIONAL DOCUMENTS
Durkin, John A. Remarks in the Senate. Hydroelectric power‘
generation. Congressional record [daily ed.] v. 126,

Mar. 28: 1980: S3260-S3261.

”9"' Hydroelectric POWEI. Congressional RECOIG.

Remarks in the Senate. [daily ed.] v. 125, July 21, 1979:
310246-S1024? ’  « »   N
----- S. 2047 -- Small Hydroelectric Power Projects Act of 1977.

Congressional record [daily ed.}
Sl3978'Sl3979.

Remarks in the Senate.
v. 123, Aug. 5, 1977:

The Encyclopedia Britannica highlights energy waste. In  
Remarks of Charles H. Percy. Congressional record [daily ed.]~ %‘
v. 124- [Mar. 7, 1979: S3144-S3145. -

Energy. Think small.‘ In Extension of Remarks of Martha Keys.
pcongressional record [daily ed.] V. 123, Aug. 1, 1977:

hydropower [development t0.
[Introduced DEC.

cns-15 IB78035 UPDATE-05/10/82
E5004.  

Equipping existing dams to generate power. In Remarks of John A.
Durkin- Congressional record [daily ed.] v. 123, June 8, 1977:
S9l52'S9l53. I ‘

Hydroelectric Power Generation. In Remarks of Sen. Durkin.
Congressional record [daily ed.] v. l26, Mar. 28, 1980:
S3260-S326l., .» A

Hydropower from small dams- In Remarks of W-R. Anderson. Congressional r_‘

record [daily ed.] v. 123, Aug. 2, 1977: s1333o.

 Jeffords, James M. Stonewall Jackson Project Receives Funding.

Remarks in the House. Congressional record [daily ed.]
‘V. 125, June l9, 1979: E3040-E3042

Percy, Charles H. small-scale hydroelectricity. Remarks in
the Senate. Congressional record [daily ed.] v. 123,
Mar. 17, 1977: S40l8‘S40l9. A '

Small hydroelectric power project.7 Chapter 6 of H.R- 8444..
8 Congressional record [daily ed.} v. 123, Aug. 3, 1977:’.
H8428-H8429. ’ ‘ V A A

Small Hydroelectric Power ProjectsAct of 1977, H.R. 7417. In
Remarks Of Richard L._ Ottinger. Congressional record
[daily ed;] v. 123, May 24,.1977: Hsoqs-H5009.

 ‘U.s. Congress- Anouse. Committee on Agriculture. soil and

lwater Resources Conservation Act of 1977: ‘report on
H.R. 75 together with Congressional Budget Office cost
estimates.. (95th Congress, lst session.i House.
Report no. 95-344) «

U.S- Congress. House. Committee on Interior and Insular
Affairs. Report to accompany H.R. 9333, including the
Congressional Budget Office cost estimates. Washington,
U.S. Govt. Print. 0ff., Sept. 6, 1978. 9 p. (95th,
Congress, 2d session-‘ House. Report no. 95-1542).

U.S. Congress. House. Committee on Interstate and Foreign
Commerce. Subcommittee on Energy and Power. Project
ilnterdependence: U.S. and world energy outlook through
1990. November 1977. Washington, U.S. Govt. Print.
Off., 1977. 939 p. <7 . 1
At head of title: 95th Congress, lst session. Committee
print no. 95-33. 6 I ‘ 1

U.S. congress. House. Conference Report on H.R. 438 (To
accompany H.R. 4388). Energy and Water Development
Appropriation Bill, 1980. July 25, 1979. (96th
Congress, 1st session. H.Rept. 96-388)

U.S.7 congress. -Committee on Science and Technology. Authorizing
.appropriations for the Department of Energy for FY79.
Washington, U.S. Govt. Print. Off., Apr. 20, 1978:

120-124. (95th Congress, 2d session. House. fieport

CRS-16 . IB78035 UPDATE-O5/10/82
no. 95-1078, Part 1.)

U.S. Congress. Senate. Committee on Agriculture and Forestry.
Land and Water Conservation Act of 1977. Washington, U.S.
Govt. Print. off., Mar. 18 (legislative day February 21),
1977. 14 p. ((95th Congress, lst session. Senate.

Report no. 95-59)

U.S. Congress. Senate. Committee on Energy and Natural

0 Resources. Authorizing additional hydroelectric

_facilities at existing water and power resources service
projects. Report to accompany S. 1420. June 20, 1980.
Washington, U.S. Govt. Print. off., 1980. 21 p. (96th Congress,
2d session. Senate. Report no. 96-828) 7 4 ~ .

----- Emergency drought authority. Washington, U.S. Govt. Print.
off., Mar. 11 (legislative day February 21), 1977. 7 p.
(95th Congress, lst session. senate. Report no. 95-50)

----- Utility Regulatory Policies Act of 1978.“ (To accompany
S. 948) June 8, 1979. (96th Congress, lst session.
S.Rept. 96-204)

U.S. Congress. senate. Committee on Environment and Public Works.
National small hydroelectric power development. Report to
accompany S- 1641. May 15, 1980. Washington, U.S. Govt. Print.
off.,.l980.  13 p. (96th Congress, 2d session. Senate.

Report no. 96-774)   ‘

U.S- ‘Congress. Senate.‘ Committee on Interior and Insular
Affairs. Water and energy self-sufficiency. staff
analysis. July 1974. Washington, U.S. Govt. Print. off.,
1974. 115 p. (93d Congress, 2d session. Senate.)

“Serial no. 93-5l(92-87)" '

U.S. Congress. Senate. Select Committee on Small Business. Small
(Business Energy Loan Act. Report to accompany H.R. 11713. 8
Washington, U.S. Govt. Print. off., 1978. 14 p. (95th Congress,
2d session. Senate. Report no. 95-828)

CHRONOLOGY OF EVENTS

ll/09/78 -- H.R. 4018 became law (P.L. 95-617).

ADDITIONAL REFERENCE SOURCES‘

Bentley, Geoffrey K. New England rural energy sources -- wood,
small-scale hydro, direct solar and wind -- an assessment of
near-term potential. Washington, New England Congressional
Caucus.’ 1979. 163 p. ~ ’ ’ 4 1

LRS79-3566

Brown, Peter W., and Anthony W. Buxton. Preliminary analysis of
legal obstacles and incentives to the development of low-head
hydroelectric power in the northeastern United States.
Washington, U.S. Department of Energy. Available from NTIS.

CRS-l7 IB78035 UPDATE-05/lo/82

1979. 75 p. t
"DOE/RA-23-2l6.00.0-01"’
LRS79-8162

DOE to forego small hydro construction as private. Electrical
week. Feb. 12, 1979: 7.

Energy Law Institute. Fundamental economic issues in the
development of small scale hydro. Revised. Washington,
U.s. Department of Energy. :For sale by the Supt. of Docs.,
U.s. Govt. Print. off., 1980. 25 p. I
"DOE/RA/04934-02"  
LRS80-10565

—---- Legal obstacles and incentives to the development of small
scale hydroelectric power in [various States]. Washington,
U.S. Department of Energy. Distribution category UC-97e.
"DOE/RA/04934" series 8 9 .
Many available from NTIS
LRS80-10281

Generating a better life for future generations.» Lawrence Eagle
Tribune- June 16, 1979: A2—Al6. 8 i 8

Gladwell, John Stuart. Small hydro: some practical planning and
design CCnSideratiOnSo IdahO Water ReSCUrCeS,ReSearCh
Institute. April 1980. i ‘ ‘J  

Gladwell, John s. and Calvin c. warrick. iLow-head hydro: an
I examination Of an alternative energy source. Idaho Water
Resources Research Institute. 1978. 7 I

Hayes, William C. Low-head hydro has potential. Electric world.
Mar- 15, 1979: .. ~ “

Hydro project attracts EG&G- New England business. v. 1., July
916, 1979: 22. I ' W‘ I

Lanouette,,William J. Rising oil and gas prices are making .
hydropower look better every day. National journal, v. 12,
Apr. 26: 1980: 685-689. 9
LRS80-3432.

MacDonald, David V. Energy recovery on high pressure wate
conduits. Public works. 9January 1981. . ,~

Micro-hydro power: reviewing an old concept., National Center for
Appropriate Technology. U.S. Department of Energy. Idaho
Operations Office, Butte, Montana, January 1979. 1

"DOE/ET/01752-l" I

Munro, Sterling. Thinking small may be helping big. Presented“
before the Small-scale Hydro Regional Conference of the
National Conference of State Legislators. Portland, Oregon.
dJuly 12, 1979. J 1 7

1980 summary of projected peak demand, generating capability, and
fossil fuel requirements for the Regional Reliability

CRS-18 IB78035 UPDATE-O5/10/82

Councils of NERC. National Electric Reliability Council.l
July 1980, Princeton, N.J.

Oregon's environment. Small Hydroelectric Projects. January
1979, no. 36: 142. I ‘

Power. Low-head hydro to ‘produce’ hydrogen. April 1979: 20.

Schwartz, Larry. Briefing on small hydropower development at the
South Columbia Basin Irrigation District. Presented at the
National Conference of State Legislatures‘ small Scale
Hydroelectric Power seminar. Portland, Oregon. July 13, 1979.

Shaw, Charles L. Canada debates hydro vs. nuclear. christian
Science monitor. June 26, 1979: 1.

Small-scale hydroelectric power demonstration projects. U.S.
Department of Energy. Idaho Operations Office, Idaho Falls.
June 22, 1979.,
"DOE/PN/O7-79-ID-12043"

Smock, Robert [ed.] can low-head hydro make a comeback? Electric
light and power. July 1979, v. 5: 20-23.

‘U.S. Army Corps of Engineers. National hydroelectric power

resources study. ‘Preliminary inventory of hydropower
resources. July 1979, volumes 1-6. Fort Belvoir, Virginia.

U.S. Department of Energy. Small-scale low hydro commercialization
Phase III planning. Environmental readiness document.
September 1978. Washington, U.S. Govt. Print. Off., 1978.

U.S. Department of the Interior. Water and Power Resources
- Services. Report on assessment of small hydroelectric
development at existing facilities. yJuly 1980. Washington,
U.S. Govt. Print. Off., 1980.

U.S. Energy Information Administration. Office of Energy Data.
Hydroelectric plant construction cost and annual production
expenses 1977; twenty-first annual supplement. Washington,
U.S. Govt. Print. 0ff., 1978/1979. For sale by the Supt. of
Docs. 126 p. I

"DOE/EIA-0171"
LRS78-21416

U.S. General Accounting Office. Hydropower -- an energy source
whose time has come again; report to the Congress by the
Comptroller General of the United States. Washington, 1980.
85 p. D p ~ . A

"sun-so-3o, Jan. 11, 1980"
LRS80-570 ‘ ’ 7

U.S. Library of Congress. Congressional Research Service.
Small-scale water power. LC science tracer bullet [by] Jane
Collins. November 1975. Washington, 1975. I

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