In a call for more investment in hydropower across the West, an expert witness from Wyoming kicked off a hearing chaired by Wyoming Republican U.S. Rep. Harriet Hageman to discuss, in her words, “The backbone of our region's energy future.”
Jim Webb, CEO of Lower Valley Energy in Afton, was the first witness to testify Wednesday forthe U.S. House Water, Wildlife and Fisheries Subcommittee hearing. He underscored the importance of hydropower to the electric utility he leads.
“As we integrate more variable resources like wind and solar, while demand continues to soar for electricity, hydropower's role as a flexible backbone becomes even more critical,” said Webb.
“Hydro plants can quickly ramp up or down, provide critical grid services like frequency regulation and have black start capabilities, meaning that they can restore power independently after a major outage,” added Webb.
“In our small cooperative, we tried to do things,” Webb told the subcommittee. “We put in our own facility on a dam that was existing on a creek, and we produce power there.”
In fact, Lower Valley Energy generates power at two hydro facilities: Strawberry and Swift Creek in Bedford.
Most of the power distributed by Lower Valley Energy comes from the Bonneville Power Administration, which draws power from 31 federal dams in the Columbia River Basin.
BPA falls under the U.S. Department of Energy. Staff retirements and cuts by the Department of Government Efficiency have reduced BPA’s workforce, and Webb said that’s impacted his cooperative.
“I personally had a project that I've been working on, to partner with BPA that would have saved BPA about $300 million a year,” said Webb. Then came scrutiny from DOGE and the BPA lost key staff.
“The key staff that was working with me, top staff, they took the early retirement, basically put my project on hold or possibly killed it,” added Webb, referring to a potential electricity generating opportunity using natural gas.
Rep. Val Hoyle, D-Oregon, said she’s heard the BPA cuts have left Central Oregon with just one lineman responsible for keeping the lights on, “who would not be able to handle any kind of a disaster or downed power line.”
“This chaos is preventing the federal government from supporting reliable waterpower deliveries across the West, and also leaving contractors and workers in limbo,” said Hoyle.
Streamlining Permits
In the next 10 years, nearly 300 hydropower projects will need to be relicensed by the Federal Energy Regulatory Commission. FERC, along with state agencies, reassess operations based on current environmental, social, and scientific standards, and this process needs to be streamlined, argued Rep. Adam Gray, D-California.
Gray asked Webb to share his insights from Western Wyoming and Eastern Idaho.
“What impacts can regulatory uncertainty have on production and management of hydropower facilities, and what actions could this committee take, to streamline this process and avoid these?,” asked Gray.
“I'm involved in a relicensing project right now for a small project that we built in 1942. I wasn't there,” joked Webb. “This is our third license. It takes about five years. And each time there's things added. We're asked to do things that don't actually have anything to do with the project.”
“We're required to do expensive studies that, on a small project, that's a big bite,” said Webb.
Hageman then chimed in, quoting a former colleague who she said always used to say we have to be either “champions of abundance or lords of scarcity.”
“I'm tired of the lords of scarcity. I'm tired of the people who believe that we have to try to find some way to prevent us from using, building, operating and using these resources that we have,” said Hageman, asking witnesses how to best move forward with streamlining the regulatory process for hydropower projects.
“I'm not talking about endless studies. I'm not talking about going out and studying the smelt for the 17,000th time,” said Hageman. “I'm talking about what do we do to streamline the permitting process so we can build infrastructure to meet the demands of the citizens of this country?”
Witnesses suggested simultaneous environmental reviews by federal and state agencies.
“It seems like personal agendas and mission creep come into play,” Webb told the subcommittee. “And so it's kind of a moving target. So from my perspective on our small projects being very clear upfront, what's required would help us.”
Discussion during the hearing turned to energy economics and Webb told the subcommittee he’s not seeing any pullback when it comes to investments in energy projects. But the tariffs have slowed the supply chain.
“We've seen the lead time on a lot of our equipment, transformers, wire, other things has been pushed out a little bit,” said Webb. “We have to do a little bit better planning to make sure the equipment is going to be here on time. And I think it does make the supply chain a little bit stretched.”
Hageman Hydro Champion
When it comes to future investment in hydropower and other water-related infrastructure, Hageman used her chair position at the hearing to drive home a couple of points.
“Our rivers, lakes, reservoirs, dams, canals, laterals, siphons, head gates and tunnels are key to ensuring that we have an adequate water supply to meet the demands and needs of our citizens, ag producers, energy producers, small business owners and manufacturers that operate across our state,” said Hageman.
She also mentioned an irrigation tunnel collapse in Wyoming, “That cut off water to tens of thousands of acres of productive farmland during the height of the irrigation season.”
This appears to reference the 2019 Goshen-Gering-Ft. Laramie tunnel accident.
The 102-year-old concrete tunnel collapsed due to excessive rainfall weakening surrounding soil and creating an air gap that failed due to the saturated soil.
“We must do more to prevent critical failures in our infrastructure, because those failures not only risk industries like farming, but also risks surrounding lands and the lives of our families,” said Hageman.
In his testimony, Lower Valley’s Webb summed up his pro-hydropower message to the subcommittee, stating, “Hydropower is America's oldest and largest renewable resource, providing nearly 30% of all renewable generation.”
“At Lower Valley Energy, about 85% of our power supply comes from hydropower,” added Webb, including the two small facilities Lower Valley operates. “We are also exploring the opportunity to install a third system on an existing federal dam that does not have generation now.”
In a follow up interview after the hearing, Lower Valley Communications Director Brian Tanabe told Cowboy State Daily, "There are several federal projects we have been invited to explore. As part of our due diligence as a cooperative, we are always open to exploring low-cost alternatives to energy procurement."
David Madison can be reached at david@cowboystatedaily.com.
