First Small Hydro Project in Colorado Moves Forward Thanks to Regulatory Efficiency Act

Mayflower Mill
Mayflower Mill

Here’s the release from US Senator Michael Bennet’s office:

Colorado U.S. Senator Michael Bennet today announced that the Silverton-based San Juan County Historical Society’s small hydro project would be allowed to move forward without undergoing the burdensome and expensive federal permitting process thanks to the Hydropower Regulator Efficiency Act. The bill, which Bennet cosponsored, cuts red tape for noncontroversial hydro projects that are less than 5 megawatts.

The Federal Energy Regulatory Commission officially announced last night that the project would not be subject to the federal permitting process, thanks to the bill, which passed Congress unanimously in August. As a result, the 11-kilowatt Silverton project will be the first small hydro project in the state, and one of the first in the nation to take advantage of this streamlined system.

“The Hydropower industry has tremendous potential to stimulate economic growth and job creation in Colorado,” Bennet said. “This common-sense bipartisan bill removes unnecessary regulations to help small projects like this one get up and running in communities across the state. We should continue to look for ways to cut through red tape and promote these types of clean, cost-effective energy sources.”

“The Feds had previously said that our project needed to apply for a hydropower license, but requiring a federal license for a tiny, non-controversial hydro project on an existing pipeline didn’t make sense,” Beverly Rich, Chair of the San Juan County Historical Society, said. The Historical Society operates the Mayflower Mill site where the new hydropower project is being built. “We’re grateful to Senator Bennet for helping us cut through this red tape.”

In addition to Silverton, projects in Telluride and Orchard City are working to take advantage of this reform under the new law.

The Hydropower Improvement Act was a companion bill to H.R. 267, the Hydropower Regulatory Efficiency Act of 2013, sponsored by Reps. Diana DeGette (D-CO) and Cathy McMorris-Rogers (R-WA).

Background Info on the Hydropower Regulatory Efficiency Act:

Prior to the new law, the costly federal permitting requirements had been a barrier to entry for small hydropower developments. In many cases, the cost of federal permitting exceeded the cost of the hydro equipment.

The Hydropower Regulatory Efficiency Act solves this problem by creating a “regulatory off-ramp” from permitting requirements for small, non-controversial hydro projects on existing conduits, such as pipelines and canals. It doesn’t change any underlying federal or state environmental statute, it simply streamlines the federal approval process.

The Colorado Small Hydro Association estimates that 100 MW of new hydro development in the state could mean 500 new jobs in various fields including developers, engineers, plumbers, carpenters, and others.

For more details on the Silverton hydro project, feel free to call Beverly Rich, Chair of the San Juan County Historical Society, at 970-387-5488.

More San Juan Historical Society coverage here. More H.R. 267 coverage here. More hydroelectric coverage here.

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