In a bipartisan effort, U.S. Senators Lisa Murkowski and Dan Sullivan, both representing Alaska and members of the Republican Party, have introduced legislation designed to support the sustainability and enhancement of existing hydroelectric facilities. The legislation, known as the “Maintaining and Enhancing Hydroelectricity and River Restoration Act of 2023,” seeks to ensure that these facilities can continue providing emissions-free, adaptable, and cost-effective electricity to Alaskan consumers.
The proposed legislation introduces a novel federal tax incentive of 30%, which would be accessible not only to for-profit entities but also to not-for-profit organizations. The primary aim of this incentive is to stimulate investments in the safety and security of existing dams, promote the expansion of fish passage infrastructure, enhance water quality, and create opportunities for recreational use at hydropower sites. Additionally, the bill includes provisions for the federal government to share costs, encouraging the removal of outdated river obstructions that have a detrimental impact on river ecosystems and hinder outdoor recreational activities.
One key aspect addressed by the legislation is the existing federal Investment Tax Credit (ITC), which currently only applies to investments leading to a marginal increase in power generation. Notably, investments aimed at environmental and maintenance improvements, such as the construction of fish-friendly turbines, the installation of fish ladders, the management of river sediments to improve habitats, and the upgrading of dam safety measures, have not been eligible for this credit. The “Maintaining and Enhancing Hydroelectricity and River Restoration Act of 2023” bridges this gap by encompassing such initiatives, acknowledging their importance in maintaining the sustainability and resilience of hydropower operations.
Furthermore, the bipartisan bill extends support to local initiatives seeking to remove non-power-producing river barriers, including obsolete dams, dikes, or embankments. Under this legislation, private entities, state and local governments, and non-profit groups can utilize the 30% federal tax incentive, which includes a direct pay option, to facilitate the demolition and removal of unnecessary barriers, subject to the owner's consent. This initiative has the potential to open up new opportunities for outdoor recreation, create habitats for fish and wildlife, spur local economic development, and enhance river resilience in the face of climate change.
Senator Lisa Murkowski emphasized the significance of hydropower in Alaska's energy portfolio, particularly in addressing energy prices affecting both consumers and businesses. She highlighted the innovative technologies employed by small hydropower projects in the state, which contribute to clean, affordable baseload power. Senator Murkowski expressed that the legislation incentivizes hydropower development, leveraging Alaska's abundant renewable resources while reducing emissions and investing in the state's future.
Senator Dan Sullivan echoed the importance of hydropower in Alaska, accounting for nearly 30% of the state's electrical energy supply, with untapped potential for further growth. He underscored the bill's role in expanding clean hydroelectricity, reducing energy costs, and fostering economic opportunities for Alaskans.
The legislation has garnered support from both local and national power organizations, as well as bipartisan policy groups, reinforcing its significance in promoting sustainable energy practices. These endorsements include organizations such as the Alaska Energy Authority, Alaska Independent Power Producers Association, Juneau Hydropower, Southeast Alaska Power Agency, and Ketchikan Public Utilities.
