1. C OLORADO S MALL H YDRO U PDATE Kurt Johnson Colorado Small Hydro Association CREA Energy Innovations Summit October 14, 2011

2. Topics for Discussion About COSHA Why Small Hydro Colorado Overview Recent Projects Project Site Screening Incentives and Financing Contact

3. Colorado Small Hydro Association Volunteer, sponsor-supported organization promoting development of small hydro in Colorado Annual conference to highlight statewide progress – Tentative date for 2012 conference: Friday, May 18 in Denver 2011 conference sponsors and cosponsors

4. Why Small Hydro Small hydro typically takes advantage of existing infrastructure: dams, pipelines, irrigation canals etc. Colorado has approximately 1,000 MW of untapped small hydro potential – capable of providing distributed, renewable, baseload generation

5. Hydro in Colorado Source: Colorado Governor’s Energy Office

6. Hydro in Colorado Electricity Source: Colorado Governor’s Energy Office

7. Recent Colorado Hydro Projects Creede, Ridgway, Cortez, Delta, Montrose, Silverton, Ouray

8. Project Site Screening Criteria Property ownership, water rights Head and flow Hydrology Permitting/FERC requirements Environmental impacts Utility interconnection and road access Value of energy and renewable energy credits Political and community issues

9. Incentives and Financing Federal – Investment tax credits/Production tax credit/Treasury grants – In order to qualify for 30% Treasury grant, project must “start construction” (spend 5%) by December 31, 2011 – USDA grants and loans for hydro – 2009 USDA projects funded in Colorado: Creede, Silverton, Delta State – Colorado Water Conservation Board 2% hydro loans – Tri-County Water 7MW project recently approved for $9M loan – Colorado Water Resources and Power Development Authority Feasibility assessment grants up to $15K 2% loans up to $2M

10. Contact Kurt Johnson Colorado Small Hydro Association PO Box 1646 Telluride, CO 81435 Email: coloradosmallhydro@gmail.comcoloradosmallhydro@gmail.com Phone: 970-729-5051