Overview of LIHI Certification Process
Presentation to UNIDO Expert Group Meeting on Sustainable Small Hydro
Philip Raphals Chair, Renewable Markets Advisory Commi ee Low Impact Hydropower Ins tute
November 20, 2014 [email protected] “The Low Impact Hydropower Ins tute (LIHI) is a non-profit organiza on dedicated to reducing the impacts of hydropower genera on through the voluntary cer fica on of hydropower projects that have avoided or reduced their environmental impacts.” – LIHI mission statement www.lowimpacthydro.org
Project Size is Not a Considera on (% of cer fica ons to date) > 100 MW; <1 MW; 9% 20%
30-100 MW; 12%
5-30 MW; 1-5 MW; 24% 35% LIHI was conceived in 1998
• Ini al leadership from American Rivers, Center for Resource Solu ons and Green Mountain Power* • LIHI’s Goal -- create an independent, objec ve and transparent source of informa on about hydropower to inform consumer choices in green energy markets • LIHI’s Strategy -- provide a market incen ve to reduce the impacts of hydropower genera on • LIHI’s Vision -- – Improve environmental quality and favor investment in rivers – Provide recogni on and economic benefits to suppliers of low- impact preferable renewable electricity
* Cer fying Hydropower for “Green” Energy Markets: The Development and Implementa on of the LIHI Cer fica on Program, Lydia T. Grimm (2002) h p://alturl.com/cxrc4 Why was this new approach needed for hydropower? • Hydropower has a long, successful history of electricity genera on BUT…. It has had a mixed history of environmental performance: – Flow modifica on below dams – Blockage and mortality of migra ng fish and wildlife – Adverse changes in water quality – Flooding of riparian ecosystems • All hydropower issues are site-specific • There are real opportuni es for avoiding adverse impacts • MW size is not an adequate indicator of impacts – Some low-MW projects involve large dams and impoundments – Small projects can cause significant environmental harm – More informa on is need to dis nguish among projects LIHI governance includes a diversity of perspectives
Richard Roos-Collins, Water & Power Law Group Steve Malloch, Independent Consultant Dana Hall, A orney Mike Sale, Independent Consultant Ken Kimball, Appalachian Mountain Club John Seebach, American Rivers Vicki Taylor, Catawba-Wateree Relicensing Coali on Laura Wisland, Union of Concerned Scien sts Pierre Bull, Natural Resources Defense Council GOVERNING BOARD Jack Palmer, Kleinschmidt Consultants (re red) > 50% environmental NGOs Glenn Cada, Oak Ridge Na onal Laboratory (re red) Tara Moberg, The Nature Conservancy
LIHI structure
LIHI Governing Board President, Secretary, Treasurer, members
Industry LIHI Staff Advisory Mike Sale, ED Committee Dana Hall, DD Renewable subcontractors Markets Advisory Committee
Management Revenue Technical Commi ee Commi ee Commi ee
7/20/2014 LIHI presenta on to NHA Board 6 The current certification approach • Eligibility: Exis ng facili es* and incremental new development at exis ng dams in the US *unless formal recommenda on for dam removal • Seven criteria must be sa sfied: – Flows – Water quality – Fish passage and protec on – Watershed protec on – Protec on of threatened and endangered species – Cultural resource protec on – Recrea onal resource protec on • Rely heavily on Resource Agency Recommenda ons Resource Agency Recommendations • Formal recommenda ons of state resource agencies mandated to protect resources • Prepared as part of federal licensing proceedings – regulator (FERC) not required to retain them – FERC must give « equal considera on » to environmental and economic concerns • Even if FERC chose to ignore recommenda on, LIHI does not Example: Flows
• Goal: ensure that the river has healthy flows for fish, wildlife and water quality, including, where appropriate, seasonal flow fluctua ons characteris c of a natural system. • Standard: comply with recent Resource Agency Recommenda ons for flows, or meet one of two alterna ve standards (Aqua c Base Flow or Montanta-Tennant) to demonstrate that flows are appropriately protec ve of water quality, fish and wildlife Proposed changes to LIHI certification critera • Principles and goals – reduce reliance on Resource Agency Recommenda ons – base criteria on observable physical and biological features • Process – Technical Commi ee proposal to Board – Public consulta on (over 60 comments received) – Review by Board and Technical Commi ee – Results to be announced shortly Steps in LIHI certification process
• Intake Review – informal consulta on to assist in prepara on of the full applica on • Formal Applica on Review – reviewer evalua on of Ques onnaire, public comment period, and recommenda on to Board • Cer fica on Decision – Governing Board ac on or delegated to Execu ve Director/Technical Commi ee • Annual Repor ng – status check on any special condi ons, plus annual fee payment • Recer fica on – re-examina on of all criteria a er 5 to 8 years (including public comment) LIHI is now a nationwide program
To date, we have: 113 facili es cer fied, at ~170 dams, in 28 states.
The total capacity of LIHI-cer fied hydropower projects is 4.4 GW. Renewable Energy Policy In the US today… • Renewable Por olio Standards • Voluntary Green Power Purchasing • Public Benefit Funds • Net Metering • Federal Tax Credit Programs Renewable Por olio Standard
• The leading policy tool in the US to promote renewables • U li es required to include growing percentage of renewables in the energy distributed to customers – Percentages and defini ons of eligible resources determined on a state-by-state basis • Objec ves: – Reduce carbon emissions – Facilitate development of new renewable technologies that are not currently compe ve with conven onal genera on Renewable Energy Cer ficates (Green A ributes)
Source: Clean Power Markets h p://www.cleanpowermarkets.com/green_cer ficates.php Renewable Portfolio Standard Policies Database of State Incentives for Renewables and Efficiency
www.dsireusa.org / March 2013.
29 states,+ Washington DC and 2 territories,have Renewable Portfolio Standards (8 states and 2 territories have renewable portfolio goals). Renewable Por olio Standards and Hydropower • Most RPS – Limit eligibility to new facili es – allow only “small” hydro (usually <30MW) • Four states currently require LIHI cer fica on for hydro to be eligible for premium er • Unusual for governments to rely on NGO cer fica on – But no real alterna ve for dis nguishing low impact hydropower h p://www.cleanenergystates.org/assets/2013-Files/RPS/Environmental-Rules-for- Hydropower-in-State-RPS-April-2013-final.pdf
RPS and Hydropower AZ, CA, CT, DE, ME, MA, NH, NJ, NY, OH, OR, and PA impose environmental criteria for hydroelectric eligibility
h p://www.cleanenergystates.org/assets/2013-Files/RPS/Environmental-Rules-for- Hydropower-in-State-RPS-April-2013-final.pdf
RPS and LIHI Cer fica on DE, MA, OR, and PA require LIHI cer fica on in at least one RPS er. UT requires LIHI cer fica on for its voluntary Renewable Por olio Goal.
h p://www.cleanenergystates.org/assets/2013-Files/RPS/Environmental-Rules-for- Hydropower-in-State-RPS-April-2013-final.pdf
Class I REC prices in New England
Source: h p://www.renewableenergyworld.com/rea/blog/post/2013/08/nepool-rec-market-q1-2013-update Markets for LIHI-Cer fied Hydro RECs
• The principal market – RPS Compliance Markets: sell RECs to distributors with RPS obliga on ($10-$60/MWh) – Green Power Markets: sell RECs to green power marketers or project developers ($1-$5/MWh) • Other possible markets – U lity Green Power Pricing programs • sell power to a u lity to include in a green pricing program – Community Aggrega on • respond to RFPs for aggrega on groups looking for green power
Green Power Purchasing
• Green-e: Leading US cer fica on program for renewable energy • Provides oversight for voluntary renewable energy transac ons • Prevents double coun ng • Code of Conduct and Customer Disclosure Requirements Green-e Na onal Standard – Hydro Defini on LIHI Value Statement
LIHI offers value to all stakeholders: ü Cer ficate holders: new revenue streams ü NGOs: Incen ves to reduce environmental impacts on rivers ü Green Power Purchasers: Verifiability ü RPS administrators: Accountability Philip Raphals, Chair, LIHI Renewable Markets Advisory Commi ee [email protected] +1-514-849-7091
Mike Sale, LIHI Director [email protected] +1-865-719-4794
Dana Hall , LIHI Deputy Director [email protected] +1 -201-906-2189