NHA Statement on Passage of Inflation Reduction Act
Washington, D.C. (August 16, 2022) – In response to President Joe Biden signing the Inflation Reduction Act of 2022 into law, National Hydropower Association CEO Malcolm Woolf issued the following statement:
“The Inflation Reduction Act, signed by President Biden today, will transform the U.S. electricity landscape. As the nation’s most significant climate legislation to date, it will help to accelerate the development of new pumped storage hydropower projects and hydropower generation on existing dams.
“Hydropower development is capital intensive. And for over a decade, our industry has been advocating for long-term extension of renewable tax credits at a rate that puts us on par with wind and solar. This law rightfully provides hydropower with tax parity, and, by moving to a technology-neutral approach, ensures that it is never left behind again.
“Flexible, carbon-free generation like reservoir hydropower and long-duration energy storage are essential to firm up our increased reliance on variable resources like wind and solar. Hopefully, the new 30% investment tax credit for energy storage will jumpstart development of new pumped storage for the first time in a generation.
“This bill recognizes that new hydropower generation is essential to a reliable, clean energy grid. However, we are disappointed that the existing hydropower fleet, which currently serves an estimated 30 million Americans, may have been overlooked. The provisions to encourage environmental improvements at the existing hydropower fleet, championed by Sen. Cantwell and Murkowski in S.2306, were not included in the bill that reached the President’s desk. We look forward to working with Congress to preserve our nation’s fleet as we cannot address climate and ensure a reliable grid without the nation’s second largest renewable electricity resource.”