organisation since 1999. I wanted to ask them a few questions and
get their sense on how successful the institute has been since its cre-
ation and their hopes for the future.
Ayer: As one of the founders of LIHI, you were very involved in
creating the organization. Has it turned out the way you had orig-
inally envisioned? If not, do you have any sense why?
Roos-Collins: Foolish plans of mice and men, right? LIHI has large-
ly met my original expectations. Let me explain what th ey were.
The founders intended our programme to enhance environmental
quality at existing hydro power projects by encouraging licensees
to exceed the regulatory min imums which the Fede ral Energy
R
egulatory Commission ( FERC) would otherwise impose in
licences. Specifically, our criteria ask wh eth er a given project fol-
lows the recommendations for flow releases, fish passage, and other
environme ntal enhancements as proposed by resource agencies
under Federal Power Act section 10(j).
In 1999, FERC frequently rejected such recommendations on its
own initiative, and licensees rarely reached settlements with other
stakeholders. Our programme was intended to help chan ge tha t
reality. We beli eved that FERC was more likely to incorporate
enhancement measures into a projec t licence if the licensee affir -
matively said that it accepted them as a business decision. Why
would a licensee do that? We expected that our certification would
increase project revenue – indeed, more than the cost of accepting
such measures – since many electricity customers would pay a pre-
mium for such green power.
So, how has the world turned? Today, just nine years later, most
licences are based on settlements between licensees, resource agen-
cies, and other stakeholders. Such settlements typically incorporate
agency recommendations under Federal Power Act section 10(j).
That positive trend mostly reflects a widespread recognition in this
regulatory community of the comparative benefits of settlement
versus litigation in relicensing proceeding. For some licensees, our
certification pro gramme provided the extra benef it necessary for
them to accept that new approach.
Malloch: When we started this e ffort more than ten y ears ago it
looked like we would have robust retail competition for electricity.
Deregulation and breaking the utilities up was a foregone conclu-
sion. We saw an opportunity to differentiate power in a way that
furthered our goals of improving river health. We wanted to make
certified hydro power like organic food – good for you and good
for the environment.
In addition, we wanted to provide an incentive for accepting pos-
itive pu blic benefit and environmental health term s in the FERC
relicensing process and support settlement.
We got up and running, with our first few certifications under-
way, when the electricity system went crazy, undercutting our strat-
egy. Deregulation and retail competition went out. But it turned out
that hydro power owners st ill wa nted recogni tion for the good
things they were doing, espe cially as a result of relicensin g. That
got us through a few lean years.
Now there is increasing institutional and corporate demand for
green power as part of a drive for corporate responsibility and sus-
tainability. That is driving many hydro power owners to seek cer-
tification – some are getting real premiums by selling certified power
to institutional buyers. There is also a growing interest in including
certified hydro power as part of renewable portfolio st andards
(RPS).
LIHI’s story is similar to many startups. The initial market target
turned out to be wrong, for reasons we could not foresee. But by
staying alive and continuing to work at developing a niche, we final-
ly found a real opening. From here, we think we can grow the busi-
ness, and continue to seek improvements to the way hydro power
projects are operated.
Swanson: I envisioned that the creation of LIHI would quickly iden-
tify t he hydro power faciliti es that meet minimum standards for
WWW.WATERPOWERMAGAZINE.COM FEBRUARY 2009 27
their environmental quality and the impa cts they have on key
ecosystem attributes. I envisioned that this certification programme
would help the public understand that some hydro power has rel-
atively few adverse impacts and that some pose very significant
problems. I think LIHI is fulfilling this vision but it is taking longer
to accomplish this than I anticipated at the start. With LIHI we
wanted to make sure that hydro power marketed as green power
or clean power really was power generated by hydro power facili-
ties that did not cause serious environmental problems.
When we started there was a disturbing trend by policy makers
toward distinguishing low impact hydro power on the basis of the
size of the unit, not the specific impacts on local fisheries or water
quality or other attributes that relate to local conditions. LIHI has
h
elped people understand that not all small hydro power facilities
are benign and that not all large hydro power facilities produce
severe impacts. Nevertheless I find many people continue to assume
that small hydro facilities pose few risks and that large ones are
problematic.
Ayer: How much has the climate change debate altered the wa y
environmental organisations think about hydro power’s role in the
future?
Roos-Coll ins: A sea change is underway. For many decades, a
debate has occurred about whether hydro power is renewable.
Licensees argued that their projects use a renewable source, water,
to generate power, while environmental groups focused on the sig-
nificant impairments of renewable resources, the fish and wildlife
species which depend on natural flows. In my view, that debate is
stale. It focuses on existing projects. That ignore s the imperati ve
that we develop new renewable power to replace existing coal and
other t hermal generation, in order to lessen the rate of cl imate
change and increase energy independence. LIHI now certifies retro-
fits of non-hydro power dams to add such renewable capacity. That
reflects the principle that new renewable power must be designed,
built, and operated to protect the local aquatic ecosystem, not just
the global commons.
Malloch: There has always been a tension between the notions that
‘dams are bad’ and th at ‘hydro power is good’ in both environ-
mental organizations and the broader population. Climate change
heightens that tension, but I have not seen a major shift in thinking
about hydro power.
In most organisations the thinking is that we need new non-hydro
power renewables. Hydro power is seen as a mature resource, with
little new generation potential from new traditional projects because
the best sites are used or off limits. However, there is interest in
retrofitting existing non-power dams with generators and uncon-
ventional hydro power. Other resources, especially wind, solar and
non-food based biofuels are seen as having the most promise.
When we get a carbon-constrained economy, and have to run an
electricity grid with more intermittent generation sources, we might
see renewed appreciation of hydro power.
Swanson: The climate change crisis has had the effect of elevating
the concern about power sources that contribute to climate change,
and consequently reducing the priority to other ecosystem impacts.
I endor se this focus because the inatten tion given to the climate
crisis for the las t two decades has reduced the time available and
increased the difficulty of addressing this.
Nevertheless, I believe the ecosystem impacts that LIHI focuses
on in its certification programme remain important and are crucial
to long term efforts to find sustainable paths to meet our local and
global energy needs. The LIHI plays an important role in offering
science-based criteria for identifying and mitigating the important
impacts caused by hydro power construction and operati on. All
energy production sources pose varying environmental risks. LIHI
plays an important role in encouraging facility owners to take steps
to reduce impacts that are not addressed in the hydro power licens-
ing process.
ENVIRONMENT