As Congress turns its attention to a budget reconciliation bill that could shape the nation’s energy future, it is essential not to overlook one of our most reliable and time-tested sources of baseload electricity: hydropower.
My company has been fortunate to contribute to this critical industry for more than 40 years. But much of the budget reconciliation process in Washington has ignored hydropower. The House-passed bill is missing big opportunities to support this technology. Without continued investment in our hydroelectric infrastructure, we could face dire consequences.
Our nation is currently focused on increasing domestic energy output, supporting technological innovation and creating jobs. Hydropower offers a compelling and often underappreciated value proposition. It is a foundation for emission-free grid reliability, economic development, job creation and energy independence.
Unlike other renewable sources of electricity, hydropower delivers energy around the clock, making it an essential source of baseload power. Without hydropower’s steady and reliable output, keeping the grid stable would become much harder and more expensive. Those rising costs don’t disappear; they ultimately show up in consumers’ energy bills.
What’s more, hydropower’s flexibility allows it to ramp up quickly when demand spikes or when intermittent renewables like wind and solar dip unexpectedly. It’s one of the few energy sources that can respond to grid needs in seconds. This makes it a vital partner in a grid increasingly dominated by variable demand and resources.
Beyond its value to the grid, hydropower is a direct economic engine for America’s communities. Hydropower facilities provide local jobs that are often high-paying technical positions, forging long-term career pathways for residents.
Many hydropower projects also create and maintain reservoirs and waterways that support flood protection, agriculture, water storage, tourism, fishing, and outdoor recreation, contributing millions of dollars annually to local economies. In our decades of work in this field, we have seen these benefits drive prosperity for generations.
Historically, hydropower hasn’t received the same level of federal support as other energy sources, despite its strong track record. That needs to change. Through the reconciliation process, Congress has a pivotal chance to correct that imbalance and invest in one of our most dependable forms of U.S. energy.
The bill text just released by the Senate is a step in the right direction, but there remains a host of critical priorities to strengthen our hydropower resources, such as extending the investment tax credits to dam safety and environmental upgrades at existing facilities and streamlining licensing and relicensing processes.
America’s hydropower fleet is aging, — most facilities are more than 65 years old. This longevity is a testament to hydropower’s durability and value, but it also signals an urgent need for reinvestment. We see this firsthand as we work to repair aging and deteriorated dam structures.
These facilities have the potential to serve our communities for decades to come as “forever assets,” but only if we modernize them. This requires updated tax incentives, streamlined licensing processes and policies that reflect the crucial role of hydropower in our energy mix.
If we let these critical assets deteriorate, the costs will fall directly onto consumers in the form of higher rates and lost services. We cannot let that happen. It is imperative that we act now.
This is a defining moment. The next four years in Washington will be decisive for hydropower, as about 40 percent of the non-federal fleet is facing license expiration in the next decade. Many facilities could voluntarily shut down if the support they need isn’t there.
If hydropower isn’t fully valued, our communities will pay the price with higher bills, fewer jobs and a less stable grid. I strongly urge lawmakers in Washington, D.C., to back hydropower and value it in the current budget bill and future legislative efforts. An investment in hydropower is an investment in the future of America’s communities.
Walter Rabe, PE, is the president and CEO of Schnabel Engineering, a national civil engineering firm specializing in dam and levee safety, geotechnical engineering, geostructural design, tunnel and underground engineering, and construction-phase engineering support.
