Key Takeaways
- •Sen. Hoeven (R-ND) and Sen. Wyden (D-OR) examined bipartisan legislation to address Western drought, including a $1 billion reauthorization of the Dakota Water Resources Act.
- •Terry Turpin (Director, Office of Energy Projects, Federal Energy Regulatory Commission) testified that 410 hydropower projects will begin relicensing over the next decade, requiring clearer congressional direction on national interests.
- •Sen. Hickenlooper (D-CO) questioned David Palumbo (Deputy Commissioner for Operations, Bureau of Reclamation) on Colorado River contingencies, with Palumbo affirming federal intervention if states fail to reach consensus.
- •Sen. Murkowski (R-AK) and Sen. Wyden (D-OR) advocated for "technological neutrality" and reducing regulatory red tape for small-scale, innovative hydrokinetic energy projects in rural communities.
- •Palumbo confirmed the Bureau of Reclamation aims to obligate $1 billion in remaining drought mitigation funding for the Colorado River Basin before the end of 2026.
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Hearing Analysis
Overview
The Senate Energy and Natural Resources Subcommittee on Water and Power convened on March 17, 2026, to examine a suite of legislative proposals, including S.1034, the Dakota Water Resources Act. Chaired by Sen. John Hoeven (R-ND) with Ranking Member Sen. Ron Wyden (D-OR), the hearing focused on addressing the "one-two punch" of historic drought and low snowpack across the Western United States. The subcommittee evaluated nearly twenty bills aimed at improving water infrastructure, enhancing agricultural efficiency, and streamlining the federal licensing process for hydropower and marine energy projects.
Key Testimony
HEARING PURPOSE The primary objective was to review legislative solutions for water management and power generation in the West. The committee sought testimony on bills that would reauthorize major water projects, create new grant programs for drought resilience, and modernize the Federal Energy Regulatory Commission (FERC) permitting process. The hearing comes at a critical time as Western states face dwindling reservoir levels and aging infrastructure that complicates reliable water delivery for municipal, tribal, and agricultural use.
KEY TESTIMONY David Palumbo, Deputy Commissioner for Operations at the Bureau of Reclamation (BOR), testified on the agency's efforts to manage water in a "responsible and nimble" manner. He expressed support for the goals of several bills but suggested that new initiatives, such as the GROW SMART Act and the Watershed Results Act, be integrated into existing programs like WaterSMART to avoid redundancy. Palumbo highlighted the importance of the Dakota Water Resources Act, noting it would authorize over $1 billion for rural and tribal water projects. He also addressed the Colorado River crisis, stating that while the BOR prefers a seven-state consensus, the agency is prepared to use its "water master" authorities under the 1922 Compact and subsequent Supreme Court decrees to implement mandatory reductions if necessary.
Organizations & Entities
Terry Turpin, Director of the Office of Energy Projects at the Federal Energy Regulatory Commission (FERC), detailed the agency's massive regulatory workload. He noted that FERC oversees over 1,600 non-federal hydropower projects and expects more than 410 projects to begin relicensing in the next decade. Turpin emphasized that the current "plethora of permitting decisions" often involves conflicting federal and state mandates. He urged Congress to provide clearer "national interest" direction to help FERC align these disparate statutory requirements and streamline the licensing of new technologies.
Policy Proposals
POLICY PROPOSALS Several significant bills were discussed: - S.1034 (Dakota Water Resources Act): Sponsored by Sen. Hoeven (R-ND), this bill provides over $1 billion for North Dakota water projects, including the Eastern North Dakota Alternate Water Supply (ENDAWS) and the Northwest Area Water Supply (NAWS). - Watershed Results Act: Introduced by Sen. Wyden (D-OR), this pilot program proposes a "pay-for-performance" model, leveraging private sector innovation to achieve measurable watershed health results. - FLOWS Act (S.3518): Sponsored by Sen. Lisa Murkowski (R-AK), this bill seeks to exempt routine maintenance and in-kind replacements from formal FERC license amendments and creates a modernized pathway for micro-hydrokinetic projects. - GROW SMART Act: Introduced by Sen. Alex Padilla (D-CA), this bill authorizes federal funding for voluntary, farmer-led demonstration projects to improve agricultural water use efficiency. - Water Power Research and Development Reauthorization (S.3684): A bipartisan bill from Senators Wyden and Murkowski to reauthorize the Department of Energy’s (DOE) Water Power Technologies Office (WPTO).
INDUSTRY & SECTOR IMPACT The proposed legislation would significantly impact the agricultural sector by providing funding for irrigation efficiency and drought-resilient infrastructure. The utility and renewable energy sectors would benefit from streamlined FERC permitting, particularly for small-scale hydropower and marine energy developers. Rural and tribal communities in North Dakota, Montana, and South Dakota would see increased federal investment in safe drinking water systems.
Industry Impact
ORGANIZATIONS & ENTITIES - Bureau of Reclamation (BOR): Discussed as the lead agency for Western water management; praised for its partnership on North Dakota projects but questioned regarding the delay in $4 billion of Inflation Reduction Act (IRA) drought funding. - Federal Energy Regulatory Commission (FERC): Referenced regarding its role in hydropower licensing; criticized for "red tape" affecting small operators but recognized for its heavy relicensing workload. - United States Department of Energy (DOE): Mentioned in the context of the Water Power Technologies Office (WPTO) and its role in advancing marine energy research. - Oregon State University (OSU): Praised by Sen. Wyden for its PacWave project, which tests wave energy technologies. - PacWave: Identified as a critical test bed for private sector innovation in ocean energy. - Ocean Renewable Power Company (ORPC): Cited by Sen. Murkowski for its successful in-river turbine project in Igiugig, Alaska, which reduced diesel reliance. - Lower Yellowstone Irrigation Project: Mentioned by Sen. Steve Daines (R-MT) regarding the financial burden of maintaining a fish bypass channel for the pallid sturgeon. - Garrison Diversion Conservancy District: Referenced as a key partner in North Dakota’s water distribution infrastructure. - Supreme Court of the United States: Mentioned regarding the Arizona v. California decree governing Colorado River apportionments.
Overview
PARTISAN DYNAMICS The hearing was notably bipartisan, with members from both parties emphasizing the shared threat of Western drought. A coalition emerged between Senators Wyden and Murkowski on water power technology, and between Senators Hoeven and Padilla on the Dakota Water Resources Act. Disagreements were minimal, though Sen. Wyden pushed for more private-sector involvement, a move he jokingly described as an "out-of-body experience" for a Democrat.
Policy Proposals
NOTABLE EXCHANGES Sen. John W. Hickenlooper (D-CO) engaged in a detailed exchange with Mr. Palumbo regarding the $4 billion in IRA drought mitigation funding. Hickenlooper expressed frustration that while $3 billion has been obligated, the remaining $1 billion—specifically for "bucket two" projects in the Upper Basin—has been delayed for over a year. Palumbo committed to obligating the remaining funds by the end of fiscal year 2026. Additionally, Sen. Murkowski highlighted the absurdity of small dam operators needing FERC approval for "repainting" or routine maintenance, calling for the regulatory relief provided in her FLOWS Act.
Overview
NEXT STEPS Chairman Hoeven announced that questions for the record and official statements are due by 6:00 p.m. on Tuesday, March 24, 2026. The subcommittee will continue to work with the BOR and FERC to refine the language of the discussed bills before moving them to a full committee markup.
Transcript
Okay, the subcommittee will come to order. Today we're holding our first hearing of the subcommittee on Water and Power. I want to thank the ranking member, Senator Wyden, for joining me and for the members that are here now and will be joining us. I want to begin by saying that Senator Wyden and I have worked together on a number of things related to energy. So and he might even comment on that. I had him out in North Dakota, but I'll let him mention that. Today obviously we're talking about water and power. Water access is fundamental to quality of life. For families, it means safe drinking water when they turn on the tap. For farmers and ranchers, it means the ability to grow crops and raise livestock. For communities, it means the opportunity to attract businesses and grow. Western states face unique challenges in reliable access and delivery of water. I'm going to be intrigued here to see if my staff put in what we all know, and that is that whiskey's for drinking and water is for fighting. But we'll see if they got it in there. Just in case I wanted to reference it. But it does, it's an old saying, but it does have real meaning and that is, you know, water is so important to everyone across the country. So incredibly important issue and a challenging issue. And these challenges include all regions of the country and rural population center, areas that are very wet, areas that have drought. It affects all of us. In North Dakota, we understand these challenges very well. Our state has long worked to manage both floods and drought, sometimes in the same year, which requires a close relationship with our federal partners, including the Bureau of Reclamation on critical water supply projects in our state. Today we'll be hearing testimony from the Bureau of Reclamation and the Federal Energy Regulatory Commission on a number of bills, including a priority for my home state to reauthorize the Dakota Water Resources Act, which I want to thank Senator Padilla for joining me on. Appreciate very much. This bill provides much needed authorizations to provide more reliable drought resilient water supplies for North Dakota and the five tribal nations located in our state. Also, it will support completion of two key regional water supply projects, the Northwest Area Water Supply Project serving Minot and surrounding communities, and the Eastern North Dakota Alternate Water Supply Project helping to serve communities in the Red River Valley of the North. North Dakota has yet to fully realize the promise of over a million acres of irrigation as compensation for the loss of approximately 550,000 acres of prime farmland permanently flooded by federal water projects under the Pick-Sloan Flood Control Act of 1944. Access to clean, reliable, and affordable water supplies is a quality of life issue and our legislation is consistent with historical federal promise to the state and tribes upon construction of the Garrison Dam and Lake Oahe. Senator Wyden did get to the Williston Basin, but he did not get to Lake Sakakawea, which is a 100 mile long man-made lake which competes with some of the other reservoirs to hold the most water of any reservoir in the United States. And of course is incredibly important not just to our state, but to states downstream all the way down to the end of the Missouri River, which of course joins the Mississippi in St. Louis or just south of there. So with that, I look forward to hearing from our witnesses this morning and I would like to turn the microphone over to Senator Wyden for his opening comments.
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