Mojave Water Agency conduit hydropower project qualifies

A California wholesale water provider has received a written determination from federal regulators that its proposed hydroelectric power project qualifies for easier regulatory treatment under federal law.  The project entails replacing a pressure reducing valve on an existing water supply pipeline with a hydropower turbine and generator, to create renewable electric energy.  Crucially, its qualification as a conduit hydropower project under a 2013 federal law enables its construction without a license under the Federal Power Act.

Under the Federal Power Act, most hydropower projects must be licensed by the Federal Energy Regulatory Commission.  But the Hydropower Regulatory Efficiency Act of 2013 amended the Federal Power Act to ease the regulatory burden on certain projects described as "conduit hydropower" -- those generating electricity using only the hydroelectric potential of a non-federally owned conduit, such as a tunnel, canal, pipeline, aqueduct, flume, ditch, or similar manmade water conveyance that is operated for the distribution of water for agricultural, municipal, or industrial consumption, and is not primarily for the generation of electricity.  The 2013 reform law exempted qualifying conduit hydropower facilities from needing licensure, and created an expedited process for soliciting public comment and determining whether the exemption applies.

This reform has led to a resurgence of interest in developing in-conduit hydroelectric projects.  For projects meeting the qualifying criteria, the FERC can act swiftly in issuing a determination that no licensure is required.  In some cases, this determination can come less than 60 days after an applicant files its notice of intent.

FERC's first conduit hydro docket in fiscal year 2016, CD16-1, illustrates this pace.  In that docket, the Mojave Water Agency was able to secure a written determination that the project it proposed meets the qualifying criteria under section 30(a) of the Federal Power Act, and thus is not required to be licensed under Part I of the FPA.

Among other operations, the Mojave Water Agency stores and distributes water in California's High Desert region.  An existing 48-inch pipeline conveys raw water sourced from the State Water Project to the Mojave River Basin for groundwater recharge.  Currently, pressure is reduced through a sleeve valve before discharging the SWP water to the Mojave River Basin by gravity flow.  But under the proposed Deep Creek Hydroelectric project, a hydroelectric turbine will perform the pressure reducing function while powering a generator capable of producing renewable electric energy.  According to the Mojave Water Agency, the hydroelectric station capacity will be 800 kW, with annual estimated power generation of 5,424 MWh.

On October 13, 2015, the MWA applied to the FERC for a determination that the Deep Creek project is a Qualifying Conduit Hydropower Facility, meeting the requirements of section 30(a) of the Federal Power Act (FPA), as amended by section 4 of the Hydropower Regulatory Efficiency Act of 2013 (HREA).

On October 15, 2015, Commission staff issued a public notice that preliminarily determined that the project met the statutory criteria for a qualifying conduit hydropower facility, and thus was not required to be licensed under Part I of the FPA. The notice established a 45-day period for entities to contest whether the project met the criteria. No comments or interventions were filed in response to the notice.

As a result, on December 3 the FERC issued a letter constituting a written determination that the Deep Creek Hydroelectric Project meets the qualifying criteria under FPA section 30(a), and is not required to be licensed under Part I of the FPA.

Other proposed conduit projects have benefited from this quick timeline and relatively streamlined process.  Qualifying conduit hydropower facilities remain subject to other applicable federal, state, and local laws and regulations.

June 14, 2011 - tortoise threat to California solar project lifted

Concerns about environmental impacts play a big role in energy policy decisions.  Concerns over the impacts of running traditional fossil-fueled generation helped create a market for renewable power.  At the same time, concerns about the local impacts to wildlife of siting a particular renewable project can make the project cost-prohibitive or even impossible.

BrightSource Energy has been building a large solar power project in California's Mojave Desert.  Construction of Phase I of the 392 MW Ivanpah solar project broke ground in October 2010, with two subsequent phases slated for development shortly thereafter.  As construction progressed, the developer ran into tortoises at the site -- more tortoises than were assumed when the project got a key approval from the federal Fish and Wildlife Service.  In April 2011, BrightSource was advised by the U.S. Bureau of Land Management that BrightSource needed a revised biological opinion from the Fish and Wildlife Service that the project development wouldn't harm the threatened desert tortoise.  BrightSource stopped construction of units 2 and 3 of the project.

Now, BrightSource is back to work.  Last week, the Fish and Wildlife Service issued a biological opinion that the project will not endanger tortoises, provided that a list of stipulations are followed: ranging from relocating tortoises and predator protections, to fencing and an employee environmental awareness program.
 

This story illustrates an example of how concerns over environmental quality shape energy policy.  For project developers and wildlife defenders alike, it also suggests that we have ways to balance competing environmental concerns such as tortoises and clean renewable energy.

April 26, 2011 - Ivanpah solar deals with tortoise impacts

Two weeks ago, I noted Google's investment in the 392 MW Ivanpah solar project in California's Mojave Desert, and how it benefited from $1.6 billion in Department of Energy loan guarantees.  Developer BrightSource Energy started construction on Phase I of the Ivanpah project in October 2010, with two subsequent phases slated for development shortly thereafter.  BrightSource's business plan also includes an initial public offering, which led the company to file an S-1 securities registration with the U.S. Securities and Exchange Commission.

Solar photovoltaic panels above Beaver Mountain ski area near Logan, Utah.

The Ivanpah project has now hit a speedbump in the form of a tortoise.  The desert tortoise (Gopherus agassizii) lives in the Mojave desert, including in the area where the Ivanpah project is proposed.  As a result, BrightSource has apparently stopped work on the construction of Ivanpah's second and third phases.

BrightSource noted in its S-1 filing that "in April 2011, the U.S. Bureau of Land Management, or BLM, advised us that it will require the issuance of a revised biological opinion by the U.S. Fish & Wildlife Service, or FWS, prior to providing permission to proceed with the construction of Ivanpah’s second and third phases".

The Fish and Wildlife Service is reportedly developing that opinion now, which should be finalized over the summer.