Two of the four intake towers sit in the Lake Mead reservoir at Hoover Dam this month. Photo: Jim Watson/AFP via Getty Images
Expect a lame-duck push to get hydropower licensing legislation across the finish line.
Why it matters: A big environmental permitting deal looks unlikely right now. But hydro is a logical next step in the piecemeal approach to energy policy this Congress has taken.
- Whether or not Congress acts soon may shape hydro's role in the energy transition.
Driving the news: Sen. Steve Daines told Axios he's "cautiously optimistic" about passing his licensing overhaul by the end of this year.
- "Realistically, you probably won't see substantive action being taken in terms of movement until after the election, but I think when we get to the lame duck, there will be an opportunity," he said.
- House Energy and Commerce advanced Cathy McMorris Rodgers' hydro bill in December.
- Daines' bipartisan bill, introduced with Commerce Chair Maria Cantwell, has been on the markup agenda for Senate Energy and Natural Resources multiple times, but the committee never actually considered it.
Inside the room: A hydro industry source said discussions are going on behind the scenes to get it back on ENR's calendar.
- In the meantime, Daines' and Rodgers' staffs are discussing next steps to potentially get a compromise onto a year-end legislative package, a Senate GOP aide told Axios.
- Possibilities include the NDAA, the Water Resources Development Act or a December spending omnibus.
Between the lines: The House and Senate proposals are broadly similar, but supporters are managing a delicate coalition that'll be tough to keep in check.
- The Senate bill has been in the works for years, having emerged from Stanford's "Uncommon Dialogue," which brought together industry, tribes and environmental groups.
- But the bill is going to have a procedural hurdle because it would require the government to consult tribes and let them offer recommendations on protecting culturally significant fish and wildlife.
- That's a significant attempt to address community concerns — but multiple Hill aides have told us the tribal language will have to get the OK from House Natural Resources.
CMR's bill also has provisions that green groups and some Democrats don't like.
- They include expedited licensing for a broad suite of "next-generation" hydro technologies and waiving requirements for certain small projects.
- Still, the Senate GOP aide said they don't see "any serious hang-ups" for negotiators.
Our thought bubble: Despite a big coalition of industry, environmental groups and powerful lawmakers behind this, there are still real hurdles to getting the bill done.
