drop1 Oregon Water Resources Congress

 

TO:      Chair Dingfelder and
           Members of the House Committee on Energy and Environment

FR:       Kristina McNitt
            for the Oregon Water Resources Congress

RE:       HB 2785 – small hydro projects

_________________________________________________________  March 19, 2007

For the record, I am Kristina McNitt representing the Oregon Water Resources Congress, a trade association made up of a variety of non-potable water suppliers such as irrigation districts, water control (flood) districts, and private ditch companies.             

HB 2785 is a bill that is fully and enthusiastically supported by the Water Congress and was developed in concert with the Oregon Farm Bureau Federation.  The concept is to create a simplified, faster process to get small hydroelectric projects up and on line. 

The qualifying conditions to participate in the simplified process set forth in HB 2785 are that 1)  the applicant must already have an underlying water right within a delivery system; and 2) the proposed hydro project qualifies for a FERC exemption.  

In the event that both of these conditions are met, an application could then be made which would include the following items:

  • the certificate number of the underlying water right;
  • a copy of the FERC exemption;
  • a proposed schedule of water use and estimated maximum power generation;
  • a statement that the project’s water use will not exceed the underlying water right;
  • a statement about ownership and/or control of the conveyance system;
  • an application fee;
  • a map and other data detailing the location of the POD and location of hydro facility; and
  • a statement from the delivery entity (if not the applicant) that the district is able to deliver the water as described in the application statement.

After receipt of the information contained in the application, the Water Resources Department must issue a public notice and allow for a 30 day comment period, after which a certificate may be issued if the proposed project is determined to not impair or is not detrimental to the public interest.

An important off-ramp contemplated in HB 2785 is found in Section (4) where the Department is given the authority to re-examine the application if issues related to the public interest have been identified.

Although HB 2785 expedites the process, it does not make light of resource protections, namely every certificate that is issued would be required to meet the following conditions:

  • any fish screening, by-pass and fish passage conditions as required by ODFW;
  • that water use be limited to the beneficial use described under its existing, underlying water right;
  • the water use is also limited to the rate, duty, season and any other limitation of the existing, underlying water right;
  • any condition deemed necessary by the Department to protect the public interest; and
  • a statement that if the underlying right is “adjusted in any way” the Department shall conduct a review and issue a superceding certificate.

HB 2785 remains a work in progress, with many interested parties working on amendments to bring forward at a future work session.

The Water Congress strongly supports this bill due to its potential to assist districts getting hydro projects up and running.  As more and more pressure develops on our over-appropriated water across this state, conservation measures are the only way to create “new” water. 

In some districts, piping the delivery of existing water diversions can conserve up to 40% of lost water.  This “new” water is statutorily directed, in part, to be put to in-stream uses for fish protection.  The balance of the “new” water can then be put to beneficial use on new lands under agricultural production.  There is no other tool under Oregon statute that creates such a powerful win-win outcome.  However, the downside is tremendous costs to districts - and ultimately the farmers who pay the fees -  for piping projects.  Small hydro power projects enable the districts to generate power and revenue in a non-consumptive use that benefits both their patrons and their environmental communities.  

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