 Welcome to our next panel. And on this panel, we're going to change directions a little bit. And in this session, we're going to be hearing about water power technologies. And there is enormous potential across this country with regard to water power. Many times, people think that, oh, our water resources, hydro power is perhaps tapped out. But they miss the huge resources that are really available in so many other technology applications with regard to water power. We're going to hear about a lot of those today. And people also forget the enormous potential in terms of how we can make our existing water power hydro facilities even more efficient. And so we're going to hear about a lot of that. And as with all of the technologies that we've been hearing about all day, I know that everyone would love to talk even a lot longer because there is so much to say. But we're going to start this afternoon with Linda Churchciacci, who is the executive director of the National Hydro Power Association. Thank you, Carol. Just by way of background, the National Hydro Power Association is the national or spokes organization or trade association that represents the water power technologies. Very diverse. We include conventional hydro pump storage, conduit energy. We work very closely with ORAC on some of the new hydro kinetic technologies that are emerging. So it's a rather large resource that Carol's referring to that has tremendous growth opportunities. So my remarks this afternoon really are going to focus pretty much on how to power the important role at place today, the critical role it can play, certainly, in meeting new energy demand, the growth that Carol mentioned, as well as to touch on the important role that we bring not only from a clean energy perspective, but for the fact that we bring new jobs in economic development to regions around the country. If you look at hydro power today, it's been a key part of our nation's energy portfolio for well over 100 years. We generate two-thirds of the renewable electricity in the United States, provide millions of Americans with access to clean sources of affordable and reliable power. And contrary to myth, as Carol mentioned, we have tremendous growth opportunities within the industry. A couple of years ago, we released the study by Navigant Consulting that found we could add another 60,000 megawatts of hydro power. This is brand new hydro capacity. In the next 20 years, if we put the right policies in place. For example, just by building on existing non-powered dams, we could add over 12,000 megawatts of new hydro power, which is about the equivalent of 12 nuclear power plants. And it would power an additional 3.9 million American households. Now, you need to think about the fact that hydro power is only on 3% of all the dams in the United States. And there are 80,000 dams in the United States. So we could have an awful lot of opportunities. We have a lot of opportunity to grow just by using more efficiently our existing infrastructure. And so this growth will mean not only new energy, but it means jobs and economic opportunity. Our jobs record is pretty impressive. We already employ 300,000 Americans. And if you look at the study that we did with Navigant several years ago that I just mentioned, that 60,000 megawatts of capacity would help create an additional 1.4 million cumulative jobs for the American workforce. It's a lot of jobs that we have an opportunity. Now, the hydro's impact to the economy is even greater than those direct jobs within industry itself. This year, we gleaned an even greater understanding of the economic impact that hydro has all over the country. At our conference in April, we rolled out the US hydro power supply chain snapshot, which is what I'm referring to here. This is not where hydro power projects are. This is a representation of only 20% right now of the industry's information on where their supply chain is and where their economic impact is. And if you go to www.hydro.org, you can find this map. It's an interactive map. You can actually go into each one of those individual data points and learn who the company is and go to the company and learn a little bit about them. It's fascinating because when you can see from many of these, these are companies in small town America that may be employing a large part of that community in towns and communities that may be no larger than 10,000 people or 5,000 people or 500 people. It's pretty amazing what the economic impact of this industry has from around the country. And this is only the beginning, as I said. This is only 20% right now of our industry that we have recorded. We're working on building that out and hope to, over the year, continue to add those data points and fill that map out as we get more information. Now, when you look at this map, there's a few things I think that really jump out at you. I think first is that hydro and its impacts in a lot of surprising places that a lot of people don't think about. There are 500 companies in the Rust Belt states in Ohio and Pennsylvania, 500 companies in southeastern states like Alabama and Georgia. And the other thing that really pops out is the diversity that the economic reach and job creation opportunities is pretty amazing. When you go into that map, you will see construction companies in Ohio, gear manufacturers in Washington, engineering firms in Massachusetts, pump manufacturers in California, hydraulic specialists in Pennsylvania, and machine parts manufacturers in Alabama. So if you go to www.hydro.org, you will see many of these companies have just named a few. I think what's most important though about this map is that it shows really what's at stake. The growth we've seen in the hydro industry will slow to a trickle if Congress fails to provide the certainty the industry needs to continue the growth path that we're on. We need legislation that provides incentives for project development, reduces the regulatory timeframe, and provides consistent support for research and development. It puts a face on the companies and communities that will likely be hurt if the tax credits for high depower, which expire in 2013, is not extended this year. And I'm sure you've heard throughout the day the importance of the production tax credit and the importance it plays for all the renewable technologies. I know we have another year left in with the production tax credit and many people feel there is an opportunity still with that one year to look at this whole issue at a later time in Congress. What you will find is because of the long lead time that the hydro power industry has, all water power technologies, and trying to get that permit in place that could be anywhere from three to five years or longer, it doesn't match up any longer to the production tax credit. And so we like WIND and others are really employing Congress to act soon for that extension because it's so critical. I know that some people feel, how do you know that the production tax credit has been so important to the growth of the industry? I can tell you that we didn't see the renaissance in the hydro power industry into hydro power until the 2005 E-PAC provisions were put into place. So my sense is that this certainly wasn't a coincidence that the production tax credit has really spurred a tremendous growth in renaissance in the industry. And that's why we're putting so much emphasis on it right now to see that it gets extended. A lot of this has to do, as I said, to the long development timeframe to our process, which is a multi-year federal and state licensing process, and the fact that these projects are pretty expensive to build. Looking into the future, we need that long-term certainty and predictability. We certainly think that it's very important in order to attract additional financing for the investment required. And if we don't do this, what we're seeing among our utility members is that they're driven by default to other resources with shorter time primes for development, such as gas, and resulting in certainly less of a diversity in our generation mix. And from our standpoint, we really believe that that's not good public policy and it puts a lot at risk. So what we're seeing among our industry, the consequences of this uncertainty is that members are already putting projects on hold. We're being forced to take projects off the table. We have one company's reported that out of 450 megawatts portfolio, potential new development, with only 23% of this is gonna actually get built if the incentives aren't put into place and put into place soon. Another reported they here currently have seven projects on the fence for construction. And each one of these projects, the PTC plays a vital role largely because again, the larger lead time and the cost of development. We know there are lots of solutions out there. Obviously, the extension is important. Dave, Representative A-Rocket and Ern Blumenhauer have taken the lead on this bipartisan effort. I'm sure you've already heard much about HR 3307 this year, this today, the Americans Renewable Energy Production Tax Credit Extension Act. This would extend the PTC for high to power in all renewables to 2016. That's certainly our policy position and something that we've been pushing and certainly support. We needed established accelerated regulatory process for minimal impact projects that will spur development and help us build out and continue to provide these job opportunities. And we're pleased that yesterday the Energy and Commerce Committee favorably reported out the High to Power Regulatory Efficiency Act of 2012. The work of Representative McMorris Rogers and Daggett to craft a strong bipartisan piece stands we think is a bright spot currently in the energy debate. We're very excited to work with Congress to see the final enactment of this legislation. We applaud Senator Mikowski's taking the lead on the Senate side. We believe there's a real opportunity here to get that legislation done before we go into the lame duck session. It's not just incentives or regulatory policies that's important to our industry, continuing to unlock the water power resources in this country requires investment we believe in research and development, reducing the cost of small high to power technologies, bringing new marine and hydrokinetic technologies to market readiness and maximizing the environmental and energy values of our existing fleet. We think are all very, very important part of the process moving forward and the Department of Energy, Water and Power Program is very important for those initiatives. So we had record appropriation numbers in the DOE water power program and we encourage Congress to continue the same level of support going into the new year. So in conclusion, we think that it is crucial that we now work together to unlock hydropowers potential for growth. The industry is ready to work with Congress and all stakeholders to maximize hydropowers potential and to move forward with the extensions of the incentives and the regulatory policies and the R&D policies that are so critical to see this growth and development occur. We believe in doing so will bring more affordable, reliable and sustainable electricity to American households and businesses and expand the economic opportunity for the supply chain companies and communities across the country. What we believe this means is continued economic health within those communities and regions, many of which experience major out migration and manufacturing and business opportunities. Finally, we believe as a country we can do better to spur renewable energy growth and NHA looks forward to work with Congress and others for a quick and necessary action to sustain the growth of the full suite of our renewable energy generation sources. So thank you, and I'm happy to answer any questions later. If we have any time at the end, we'll take questions, but I thank you for that comprehensive presentation because once again, in terms of the theme today, we've heard from any number of people in terms of Congress is important, policy is really important and in terms of thinking about how things do need to be addressed nationally in order to make everything kind of weave together. And I think that it really helps in terms of thinking about supply chains, which has come up in other things too, that there are so many components, so many pieces of what everyone's doing that are found everywhere across the country. So you don't have to have a project in order to be critical to jobs and to making a project happen somewhere else. So at this time, we'll now turn to Geos Schneider, who is the CEO of Nettle Energy. Thanks very much, it's a pleasure to be here. So my company is based out in California, we're in the Bay Area in Alameda, actually on the old Naval Air Station in Alameda, which is a kind of great, very big open space. We are developing a new kind of turbine, a new turbine specifically designed for low pressure, large volume flows, and you might ask yourself, why do we care about that specific aspect or that characteristic, those kinds of flows? Well, the reason is kind of to tie it back to some of the statistics that Linda mentioned, is that of the 80,000 or so existing dams in the US, roughly half of those, about 42,000, are less than 25 feet tall. And so if we are going to capture the resource at a very significant portion of the existing dams in the US, we need cost-effective and efficient low head or low pressure technology. And that's the specific niche that we set out to solve. So our particular turbine is designed specifically for drops that are less than 20 feet tall, five to 20 feet is the specific range. Where we are starting is actually a little bit before you even get into a river. And in particular, we're starting in what we call the constructed waterway space. So you might ask, well, what is a constructed waterway? Constructed waterway is an irrigation district or any other setting, which is a man-made conduit or channel, not a natural riverbed, where you have water moving. Irrigation districts are definitely the biggest chunk of that. Most of the Western US wouldn't exist today, were it not for a whole host, hundreds of thousands of miles of pipes and canals that move water, both for agricultural as well as for human consumption purposes across the West. So that's where we decided to start out and focus. And within that system, the opportunity is specifically at a whole series of what are called existing drops or checks, check structures in those canals. So we, our technology is not designed specifically to go in the velocity of the moving water, but we actually take energy where you do have a change in elevation or a change in drop or a change in pressure in the system. We've had a first project that has been grid connected and installed down in Arizona with an irrigation district. The power is being sold Arizona Public Service and it's been grid connected for about two years now. We have a couple more projects going in up in Oregon over the course of the next year. The first one of those should go to construction this winter and they'll be a bit larger in size. The one in Arizona uses our small system. It's only, it's a 50 kilowatt system. The ones up in Oregon will use our half megawatt system. And so this is another thing that we like to say when we talk about this space, hydro can be a little bit confusing because people talk about not just the size but the nature of the pressures involved or the water flows involved. And we like to say our specific focus is enabling truly distributed but utility scale hydro. So we don't really like to talk and nothing smaller doesn't really matter size is any size is particularly fine. But what we really want to focus on is the fact that the individual sites may be small but in aggregate, you can actually get to significant amounts of power. For the constructed waterway space, what this means is of the probably eight to 10,000 or so irrigation districts in the Western US were focused initially on those couple thousand or so that have pretty significant water flows and where you can aggregate 10, 20, 30 drops throughout a particular any given irrigation system and aggregate anywhere from a couple of megawatts up to maybe 20 or 30 megawatts on the higher end. So you can actually get to relatively substantial amounts of power. When it comes to talk about the supply chain issue, one thing that we find particularly exciting is the fact that at this point we make the entire all of the turbine that we produce is made here in the US. We're not a primary manufacturer. We don't actually make all of the parts of or almost any of the parts of the turbine that we assemble. We do final assembly and then we contract the manufacturer of the individual, the bearings, the bushings, the shafts, the blades, that kind of thing to a supply chain that is at this point entirely located in the US. And what's been particularly exciting is that even at relatively small scale production quantity and at the half megawatt turbine size, we're able to now hit, we just had a couple of projects that started to come in under five cents, delivered cost of energy on an unlevered, no incentive basis over a 20 year plant life. These are not large projects. These are a couple hundred kilowatts up to maybe about six, these are in the 200 to about 800 kilowatt range each of these projects right now. So we find that really exciting because what that says is we can already hit, we're starting to hit very cost effective energy. The goal is to be solidly within the three to five cent range from the majority of projects going forward and be able to do that largely, again, we think off of a US based supply chain. The opportunity for us as a technology company exists not just in the US of course, it exists internationally and we find we are starting to get a lot of inquiry from international developers who are working on projects in countries with similar irrigation settings initially. And in particular, there are a lot of places around the world, Chile, India, Pakistan, et cetera, who have a lot of extensive irrigation networks and a very kind of easily replicable deployment strategy to what has happened here or what is starting to happen here in the US. How do we, so that's interesting because it's kind of a, well, when we started in hydro, we had this vision of distributed utility scale hydro, really changing the impact footprint and going to a different kind of system and a different way of thinking about it. And so we have, I guess we would have been highly encouraged and definitely helped along the way by a number of actions that Linda already referred to, that we have done here in Congress and at the DOE, so both from the regulatory as well as the legislative side to help support the growth of this industry. We would certainly strongly encourage continued support for those efforts. For us, in particular, I would say that we had been fortunate to receive several grants from the Department of Energy, from the water power program. Those have been very helpful, not just from a monetary perspective, but also from the vetting and the rigor that comes with that process and working with the folks within the DOE with respect to achieving the goals that we've set out in those specific work efforts. And so continued funding for the DOE is a very important thing, I think, particularly for newer companies, companies who are innovating, who have new technology, coming into an industry that is very old, very established. And so that is a very important bridging mechanism and one which I think should not be overlooked. Further, the dollars involved are small. When you talk, I mean, we're not talking tens of millions or hundreds of millions of dollars here. We're talking a couple hundred thousand dollars up to a million dollars in an individual grant and it makes a huge, huge difference. So when you think about leveraging public dollars into private return, I would say from our experience, that has been a very specific area of where we've seen very good results. On the production tax credit side and in terms of incentives overall, I would certainly echo what Linda said. I think that the, and this is a theme which I'm sure is familiar for all of y'all, supporting on a continued rationalized and unified long-term basis, growth in this industry, that kind of long-term rationalized unified support is key and it goes not just, it goes to the heart of obviously supporting our economy and growing our competitiveness. It goes to the heart of leveraging innovation and our brain power here and supporting how we actually turn that into not just the kind of design jobs, right, but the actual build out of all of the necessary other parts of the economy to actually deliver product. And if we don't have good policies in place, we won't realize the full potential that we have coming off of the fact that we do have some really great ability to innovate and do design. And then when we go, when we think about deployment, obviously on the deployment side, spurring continued deployment of renewable energy to achieve a diversified energy supply is a very critical long-term goal. So I'll wrap up there and happy to take questions at the end. Thanks very much. Thanks so much and it is great to hear an update since the last time I talked to you a year ago. And I think one of the things that's so exciting here too is again, taking advantage of existing infrastructure and using that to really create a very, very important clean energy resource and it's just using everything in much more efficient way. So it's very, very cool. So anyway, we're now going to go to the third speaker in this panel on water power and that's Sean O'Neill who is with the Ocean Renewable Energy Coalition. Carol, thank you very much and thanks for all the work that you do. This is the 15th SEC Hill Day and the fact that they've been doing this for 15 years is just great. I'll get right to the horse race. What's happening in the world of ocean renewable energy and the Ocean Renewable Energy Coalition which was formed in 2005 with four member companies and a budget of 5,040 bucks. We now have about 38 members. It fluctuates a little bit but some of the big players are getting involved. Southern Company, Snohomish PUD, Chevron and a Darko Petroleum. But in terms of the horse race, the horse race is truly global. Scotland took the earliest lead. They have the European Marine Energy Center there that has been in operations for nine years now. Most of the European countries that have any ocean coastal regions are all doing great. Ireland, Spain, Portugal, you name it. And then also South Korea, Israel, India. They're all making very strong early moves into the global space for ocean renewable energy. In the US since 2008, we've been catching up but only because of consistent R&D funding from the Department of Energy and some funding from the Department of the Navy, NOAA and the Bureau of Ocean Energy Management. So now we've got an array of turbines that are scheduled to go into the East River of New York by verdant power over the next couple of years. We've got a full-scale tidal turbine going into Eastport, Maine, where the developers of that tidal energy project have just gotten from the Maine Public Utility Commission their term sheet approved, which sets their cost per kilowatt hour at 21.5 cents. The oceans contain 97% of all earth's water and they cover more than 70%. In fact, some people have said we shouldn't be called earth, we should be called ocean, at least this planet. When we look at world energy consumption, it's projected to grow 2.5% per year and grow from nearly 17,000 terawatt hours to 32,000 terawatt hours by the year 2035. It's hugely a global marketplace and for ocean renewable energy companies, that is the world view right now. The Electric Power Research Institute though in the United States because of funding from DOE was able to do a resource assessment showing about 6% of the 4,000 terawatt hours used in the United States could be produced by wave power alone in about 3% to 4% of that 4,000 terawatt hours Georgia Tech has estimated could come from tidal power. Now internationally, the International Energy Agency predicts 160,000 jobs by the year 2030. The Carbon Trust out of the UK has predicted $750 billion US from 2010 to 2050. In Canada, they're already looking at having a global benchmark where they would have a goal of 50% of all projects globally would be using some sort of Canadian technology in those projects. We're seeing that kind of global competition happening but we're also seeing a lot of global cooperation and we're learning a lot from our friends overseas. In fact, Ireland estimates 70,000 jobs and 120 billion euros invested by 2050. In the US, our goal is a bit more modest, 15 gigawatts by the year 2030 but that would create 36,000 jobs. And remember, because we live on this planet that's filled with oceans, we don't have to compete for precious land resources. Over 70% of our planet is covered. Now the difference between the US programs and the European programs are all about what Linda and Gia had talked about, production tax credits. In Europe, what they've got is they've got consistent R&D funding. They have testing infrastructure in place and they've got some sort of a market pull mechanism that is typically magnitudes more than what we pay here in the United States. Where we have a 1.1 or a 2.2 set production tax credit per kilowatt hour, you might find 29.5 cents per kilowatt hour up in Canada, 39.5 Euro cents in Portugal. It's amazing. These companies have strong commitments and we're starting to build those commitments and with the help of people like Senator Murkowski, Congressman Inslee, we've been making great strides. But we do need that kind of vertical integration of continued R&D funding, test center infrastructure. We've got the Department of the Navy that's putting in a test center. We've got Oregon State University, Florida Atlantic University, University of Washington, University of Hawaii. Funded by DOE and it's exciting. But we don't have test centers in yet. That's where we're gonna catch up. Now combined with all of this with the fact that the big players are starting to come into the game. We've got GDF Suez, which is the huge French utility. They just announced this morning that they're gonna develop two title projects. You've got Abingoa from Spain. You've got Blue Water Oil and Gas out of the Netherlands. You've got Scottish Power, Voith Siemens, Eon and Anadarko Petroleum, who has just been rolling out their new title turbines. But when we look at the global marketplace, which is where we can maximize our economic development, it's important that we look at diversity of supply here in the United States. Diversity is the key to a reliable system. Diversity is key to taking the risk out, the monetary risks out. In fact, when you invest in renewable energy, it's like getting a 30 year fixed mortgage as opposed to that temporary one to three year, what do you call those things? Variable rate mortgages, which is what we have when we look at our addiction to fossil fuel and low energy prices. So with the Department of the Navy and our Department of Defense, I wanted to leave you with one last thought and we've heard it from a lot of those folks and that is renewable energy saves lives. Great. And I must say, I am always so impressed in terms of thinking about the scale of the untapped potential that we're looking at and that it really is part of a huge global economy, global technology, global energy, competitiveness. Well, frankly, it's economic competitiveness in every sense of the word. And it's, how is it that we are going to play because certainly the potential is there? So I wanna thank you all for your presentations. I think that we are a little bit, we're running, we're right on time. So if you've got questions, why don't you talk to our speakers out in the hall. And I hope that you've made a point to stop by all of the booze. But anyway, thank you all very, very much. It's great stuff. Thank you.