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Using Financial Contracts to Facilitate Informal Leases Within a Western United States Water Market Based on Prior Appropriation

The ability to reallocate water to higher-value uses during drought is an increasingly important “soft-path” tool for managing water resources in an uncertain future. In most of the Western United States, state-level water market institutions that enable reallocation also impose substantial transaction costs on market participants related to regulatory approval and litigation. These transaction costs can be prohibitive for many participants in terms of both costs and lengthy approval periods, limiting transfers and reducing allocation efficiency, particularly during drought crises periods. This manuscript describes a mechanism to reduce transaction costs by adapting an existing form of informal leases to facilitate quicker and less expensive transfers among market participants. Instead of navigating the formal approval process to lease a water right, informal leases are financial contracts for conservation that enable more junior holders of existing rights to divert water during drought, thereby allowing the formal transfer approval process to be bypassed. The informal leasing approach is tested in the Upper Colorado River Basin, where drought and institutional barriers to transfers lead to frequent shortages for urban rights holders along Colorado's Front Range. Informal leases are facilitated via option contracts that include adaptive triggers and that define volumes of additional, compensatory, releases designed to mitigate impacts to instream flows and third parties. Results suggest that more rapid reallocation of water via informal leases could have resulted in up to $222 million in additional benefits for urban rights holders during the historical period 1950–2013.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

2020 Idaho National Laboratory Water Use Report and Comprehensive Well Inventory (Rev. 29)

This 2020 Idaho National Laboratory Water Use Report and Comprehensive Well Inventory (Revision 29) provides water use information for production and potable water wells at the Idaho National Laboratory (INL) Site for calendar year 2020. It also provides detailed information for new, modified, and decommissioned wells Two new wells (TRA-2317 and USGS-150) were drilled in 2019 and are included in this report. One well (USGS-147) was modified in 2020. The location maps and detailed construction diagrams are provided.in the appendix. Fifty-six monitoring wells and boreholes were abandoned (decommissioned) in calendar year 2020. The location maps and construction diagrams, if available, for the decommissioned monitoring wells and boreholes are provided in the appendix. This report is being submitted in accordance with the Water Rights Agreement between the State of Idaho and the United States, for the United States Department of Energy (dated 1990), the subsequent Partial Decree for Water Right 34-10901 issued June 20, 2003, and the Final Unified Decree issued August 26, 2014.

99 GENERAL AND MISCELLANEOUS↗

Data for Grogan et al. "Bringing Hydrologic Realism to Water Markets"

This data set provides model output and post-processing files required to reproduce the results, tables, and figures in the paper "Bringing Hydrologic Realism to Water Markets" by Grogan et al. (in review). Other input data used in this study includes: Lisk, M., Grogan, D., Zuidema, S., Caccese, R., Peklak, D., Zheng, J., Fisher-Vanden, K., Lammers, R., Olmstead, S., & Fowler, L. (2023). Harmonized Database of Western U.S. Water Rights (HarDWR) (Version v1) [Data set]. MSD-LIVE Data Repository. https://doi.org/10.57931/2205619 Two models were used in this study: (1) The University of New Hampshire Water Balance Model WBM, and (2) a Water Market Model. Market model code and model output post-processing code that make use of these data can be found here Model output files are: 1. WBM output files: scenario[x]_wbm_output.zip Where [x] is one of 1, 2, 2a, 3, and 3a Each zipped directory contains 7 gridded NetCDF files, each reporting the 10-year annual average value of a given variable, in units of average mm/day: File Name: wbm_indUseGross_yc.nc; Description: Water withdrawals by industry (part of the urban sector) File Name: wbm_domUseGross_yc.nc; Description: Water withdrawals by the domestic sector (part of the urban sector) File Name: wbm_irrigationGross_yc.nc; Description: Water withdrawals for agriculture File Name: wbm_irrigationExtra_yc.nc; Description: Water withdrawals from unsustainable groundwater for agriculture File Name: wbm_indUseEvap_yc.nc; Description: Consumptive water use by industry File Name: wbm_domUseEvap_yc.nc; Description: Consumptive water use by the domestic sector File Name: wbm_irrigationNet_yc.nc; Description: Consumptive water use by agriculture The file full_cell_area.nc gives the area of each grid cell in km2, which is used for converting water depth to water volume. 2. Water market model output & post processing output Folder: marketTrdSummaries/ Description: Files in this folder are used as input to code 1_WelfareCalculation_actual_trades.R. They summarize historical water right trade transactions in each state. File Name: welfare_gain_by_state_sector.csv; Description: Welfare gains by state and sector, as shown in Figure 3F. Used in code Figure3.R and produced (as a .xlsx file) by code 2_DemandCurves_simulated_trades.R File Name: welfare_data_actual.rdata; Description: welfare gains by WMA from actual historical trades, as shown in Figure 3A. This data is the output of code 1_WelfareCalculation_actual_trades.R File Name: welfare_summary_simulated.xlsx; Description: Welfare gains by state as simulated by the market model in Scenario 1. Produced by code 2_DemandCurves_simulated_trades.R, and used in code 4_WelfareCalculation.R. File Name: welfare_summary_cutoffs.xlsx; Description: Welfare gains by state as simulated by the market model in Scenario 2. Produced by code 3_DemandCurves_simulated_trades_cutoffs.R, and used in code 4_WelfareCalculation.R. File Name: welfare_summary_cutoffs_SGMS.xlsx; Description: Welfare gains by state as simulated by the market model in Scenario 2a. Produced by code 3_DemandCurves_simulated_trades_cutoffs.R, and used in code 4_WelfareCalculation.R. File Name: welfare_data_actual.rdata; Description: Spatial data, actual historical welfare gains by WMA as shown in Figure 3A. Produced by code 4_WelfareCalculation.R and used by code Figure3.R. File Name: welfare_data_simulated.rdata; Description: Spatial data, simulated Scenario 1 welfare gains by WMA as shown in Figure 3B. Produced by code 4_WelfareCalculation.R and used by code Figure3.R. File Name: welfare_data_simulated_cutoffs.rdata; Description: Spatial data, simulated Scenario 2 welfare gains by WMA. Produced by code 4_WelfareCalculation.R and used by code Figure3.R. File Name: welfare_data_simulated_cutoffs_SGMA.rdata; Description: Spatial data, simulated Scenario 2a welfare gains by WMA. Produced by code 4_WelfareCalculation.R and used by code Figure3.R. Additional files are provided for efficient reproduction of tables and figures. These include: File Name: wma_thresold_dates_Scenario2(a).csv; Description: Wet vs. paper right threshold dates for each WMA. Shown in Figure 2A,B. Produced and used by code calculate_thresolds_Figure2.R File Name: WWRTradeBounds (directory); Description: Trade boundary shapefile required to reproduce Figure 3A-D. Used in code Figure3.R File Name: welfare_region_totals.csv; Description: Welfare gains for the entire study region, as shown in Figure 3E. Used in code Figure3.R File Name: Welfare_gain_by_state_sector.csv; Description: Welfare gains by state and sector, as shown in Figure 3F. Used in code Figure3.R and produced (as a .xlsx file) by code 2_DemandCurves_simulated_trades.R File Name: WECC_MERIT_5min_v3b_mask.nc; Description: Gridded file that identified which land grid cells are in the WBM model domain, used for processing in code Figure4.py File Name: Table_1.csv; Description: All data in Table 1, reproducible from WBM output files using code table_1.R

Economics↗

Exploring Water System Vulnerabilities in California's Central Valley Under the Late Renaissance Megadrought and Climate Change

Abstract California faces cycles of drought and flooding that are projected to intensify, but these extremes may impact water users across the state differently due to the region's natural hydroclimate variability and complex institutional framework governing water deliveries. To assess these risks, this study introduces a novel exploratory modeling framework informed by paleo and climate‐change based scenarios to better understand how impacts propagate through the Central Valley's complex water system. A stochastic weather generator, conditioned on tree‐ring data, produces a large ensemble of daily weather sequences conditioned on drought and flood conditions under the Late Renaissance Megadrought period (1550–1580 CE). Regional climate changes are applied to this weather data and drive hydrologic projections for the Sacramento, San Joaquin, and Tulare Basins. The resulting streamflow ensembles are used in an exploratory stress test using the California Food‐Energy‐Water System model, a highly resolved, daily model of water storage and conveyance throughout California's Central Valley. Results show that megadrought conditions lead to unprecedented reductions in inflows and storage at major California reservoirs. Both junior and senior water rights holders experience multi‐year periods of curtailed water deliveries and complete drawdowns of groundwater assets. When megadrought dynamics are combined with climate change, risks for unprecedented depletion of reservoir storage and sustained curtailment of water deliveries across multiple years increase. Asymmetries in risk emerge depending on water source, rights, and access to groundwater banks.

Gupta, Rohini S. [School of Civil and Environmenta↗

Conus-Wide Mapping of Water Availability and Cost

Background: New demands for water can be satisfied through a variety of source options. In some basins surface and/or groundwater may be available through permitting with the state water management agency (termed unappropriated water), alternatively water might be purchased and transferred out of its current use to another (termed appropriated water), or non-traditional water sources can be captured and treated (e.g., wastewater). The relative availability and cost of each source are key factors in the development decision. Unfortunately, these measures are location dependent with no consistent or comparable set of data available for evaluating competing water sources. With the help of water managers, water availability was mapped for over 2500 watersheds throughout CONUS. These values are unique in that they account for institutional factors (i.e., water rights, compacts, treaties, instream flows) that locally limit water use. Five water sources were individually examined, including unappropriated surface water, unappropriated groundwater, appropriated water, municipal wastewater and brackish groundwater. Associated costs to acquire, convey and treat the water, as necessary, for each of the five sources were estimated. These metrics were developed to support regional water planning and policy analysis with initial application to electric transmission planning in the western US. Problem: These data were originally developed in 20141 and updated in 20182. New datasets on which these data depend have been published. As such, there is need to update the water availability and cost data. There is also need to map this same data to a county resolution and to publish the data in a more accessible place. Organization of the dataset: Data are organized according to five primary water sources: • Unappropriated fresh surface water • Unappropriated fresh groundwater • Appropriated water • Recycled wastewater, and • Brackish water

Tidwell, Vincent [Pacific Northwest National Labor↗

Updated Assessment of Water-Energy Issues for Nuclear Power

There is significant ongoing need for understanding the water-energy nexus issues in the U.S. commercial nuclear energy industry. The water-energy nexus is a dynamic, ever evolving conundrum involving technological changes, regulatory concerns, economic constraints, environmental issues, and political attributes. This report provides a brief update on the water-energy nexus challenges facing the U.S. commercial industry since the 2010 report titled “Cooling Water Issues and Opportunities at the U.S. Nuclear Power Plants”. Since the 2010 report, nuclear power has experienced significant curtailments due to drought, intake and discharge temperatures, and flooding. These events will be exacerbated by global climate and resource competition. Water and energy regulation changes have accelerated and pose a particular risk to the commercial nuclear fleet compliance. The definition of Water of the United States continues to be litigated as water rights are being evaluated for fair and equitable allocation. The ability to maintain compliance with state and federal water regulations offers a substantial risk to the commercial nuclear industry, and therefore understanding the energy-water nexus is necessary for maintaining success of the current fleet.

54 ENVIRONMENTAL SCIENCES↗

Analysis of Water-Energy Issues for Nuclear Power with Industry Perspective

The water-energy nexus is a dynamic, ever evolving challenge involving technological changes, regulatory updates, economic constraints, environmental issues, and political attributes. This report expands on a previous report that gave an initial assessment of the water-energy nexus challenges facing the U.S. commercial industry. This follow-up report provides analysis and insights from stakeholder interviews focusing on the issues faced by the U.S. commercial nuclear energy industry within the water-energy nexus space. This report updates and expand the “Cooling Water Issues and Opportunities at U.S. Nuclear Power Plants” This report includes analysis on water withdrawal and consumption by operating nuclear reactors, evolving policy risks that could impact the operation of the existing commercial nuclear fleet, implications of water markets, trading and water rights, the changing energy grid, progressing environmental risks (including analysis on the possible impact of climate change on water availability and nuclear power plant performance), and opportunities to reduce water related risk. The feedback from the stakeholders’ interviews helps incorporate viewpoints from within the nuclear and related industry that can lack representation in other research areas, without constituting a comprehensive opinion survey. Stakeholders interviewed include nuclear power plants operators, water treatment providers, developers, and vendors of reactor technologies.

99 GENERAL AND MISCELLANEOUS↗

Estimating Future Surface Water Availability Through an Integrated Climate‐Hydrology‐Management Modeling Framework at a Basin Scale Under CMIP6 Scenarios

Abstract Climate change and increasing water demand due to population growth pose serious threats to surface water availability. The biggest challenge in addressing these threats is the gap between climate science and water management practices. Local water planning often lacks the integration of climate change information, especially with regard to its impacts on surface water storage and evaporation as well as the associated uncertainties. Using Texas as an example, state and regional water planning relies on the use of reservoir “Firm Yield” (FY)—an important metric that quantifies surface water availability. However, this existing planning methodology does not account for the impacts of climate change on future inflows and on reservoir evaporation. To bridge this knowledge gap, an integrated climate‐hydrology‐management (CHM) modeling framework was developed, which is generally applicable to river basins with geographical, hydrological, and water right settings similar to those in Texas. The framework leverages the advantages of two modeling approaches—the Distributed Hydrology Soil Vegetation Model (DHSVM) and Water Availability Modeling (WAM). Additionally, the Double Bias Correction Constructed Analogues method is utilized to downscale and incorporate Coupled Model Intercomparison Project Phase 6 GCMs. Finally, the DHSVM simulated naturalized streamflow and reservoir evaporation rate are input to WAM to simulate reservoir FY. A new term—“Ratio of Firm Yield” (RFY)—is created to compare how much FY changes under different climate scenarios. The results indicate that climate change has a significant impact on surface water availability by increasing reservoir evaporation, altering the seasonal pattern of naturalized streamflow, and reducing FY.

54 ENVIRONMENTAL SCIENCES↗

HarDWR - Water Management Area (WMA) Shapefiles

A dataset within the Harmonized Database of Western U.S. Water Rights (HarDWR). For a detailed description of the database, please see the meta-record v2.0. Changelog v2.0 - No changes v1.0 - Initial public release Description Borders of all Water Management Areas (WMAs) across the 11 western-most states of the coterminous United States are available filtered through a single source. The legal name for this set of boundaries varies state-by-state. The data is provided as two compressed shapefiles. One, stateWMAs, contains data for all 11 states. For 10 of those states, Arizona being the exception, the polygons represent the legal management boundaries used by those states to manage their surface and groundwater resources respectively. WMAs refer to the set of boundaries a particular state uses to manage its water resources. Each set of boundaries was collected from the states individually, and then merged into one spatial layer. The merging process included renaming some columns to enable merging with all other source layers, as well as removing columns deemed not required for followup analysis. The retained columns for each boundary are: basinNum - the state provided unique numerical ID; basinName - the state provided English name of the area, where applicable; state - the state name; and uniID - a unique identifier we created by concatenating the state name, and underscore, and the state numerical ID. Arizona is unique within this collection of states in that surface and groundwater resources are managed using two separate sets of boundaries. During our followup analysis (Grogan et al., in review) we decided to focus on one set of boundaries, those for surface water. This is due to the recommendation of our hydrologists that the surface water boundary set is a more realist representation of how water moves across the landscape, as a few of the groundwater boundaries are based on political and/or economic considerations. Therefore, the Arizona surface WMAs are included within stateWMAs. The Arizona groundwater WMAs are provided as a separate file, azGroundWMAs, as a companion to the first file for completeness and general reference. WMA spatial boundary data sources by state: Arizona: Arizona Surface Water Watersheds; Collected February, 2020; https://gisdata2016-11-18t150447874z-azwater.opendata.arcgis.com/datasets/surface-watershed/explore?location=34.158174%2C-111.970823%2C7.50 Arizona: Arizona Ground Water Basins; Collected February, 2020; https://gisdata2016-11-18t150447874z-azwater.opendata.arcgis.com/datasets/groundwater-basin-2/explore?location=34.158174%2C-111.970823%2C7.50 California: California CalWater 2.2.1; Collected February, 2020; https://www.mlml.calstate.edu/mpsl-mlml/data-center/data-entry-tools/data-tools/gis-shapefile-layers/ Colorado: Colorado Water District Boundaries; Collected February, 2020; https://www.colorado.gov/pacific/cdss/gis-data-category Idaho: Idaho Department of Water Resources (IDWR) Administrative Basins; Collected November, 2015; https://data-idwr.opendata.arcgis.com/datasets/fb0df7d688a04074bad92ca8ef74cc26_4/explore?location=45.018686%2C-113.862284%2C6.93 Montana: Collected June, 2019; Directly contacted Montana Department of Natural Resources and Conservation (DNRC) Office of Information Technology (OIT) Nevada: Nevada State Engineer Admin Basin Boundaries; Collected April, 2020 https://ndwr.maps.arcgis.com/apps/mapviewer/index.html?layers=1364d0c3a0284fa1bcd90f952b2b9f1c New Mexico: New Mexico Office of the State Engineer (OSE) Declared Groundwater Basins; Collected April, 2020 https://geospatialdata-ose.opendata.arcgis.com/datasets/ose-declared-groundwater-basins/explore?location=34.179783%2C-105.996542%2C7.51 Oregon: Oregon Water Resources Department (OWRD) Administrative Basins; Collected February, 2020; https://www.oregon.gov/OWRD/access_Data/Pages/Data.aspx Utah: Utah Adjudication Books; Collected April, 2020; https://opendata.gis.utah.gov/datasets/utahDNR::utah-adjudication-books/explore?location=39.497165%2C-111.587782%2C-1.00 Washington: Washington Water Resource Inventory Areas (WRIA); Collected June, 2017; https://ecology.wa.gov/Research-Data/Data-resources/Geographic-Information-Systems-GIS/Data Wyoming: Wyoming State Engineer's Office Board of Control Water Districts; Collected June, 2019; Directly contacted Wyoming State Engineer's Office

Economics↗

Infrastructure and resource development needs to support a significant expansion of US nuclear capacity

In December 2023, the United States pledged at a United Nations conference to triple nuclear energy by 2050. In May of 2025 a new administration announced plans to quadruple nuclear energy by 2025, setting a new target that requires understanding the key infrastructure and resources needed to achieve large-scale deployment. This study attempts to quantify “what it takes” to deploy an additional 200 GWe of nuclear capacity. It projects demand levels for workforce, fuel, uranium mining and enrichment, waste management, supply chain, land, licensing, and water. Demand growth is also contextualized. For example, the peak number of construction workers required is approximately 215,000, a 37 % increase in the current US utility construction workforce. Up to 80,000 MT/year of mined uranium will be needed, necessitating a 60-fold increase in US mining production or a doubling of global mining if sourced externally. Advanced reactor fuels, uranium mining, and nuclear-grade equipment production would need substantial expansion. Operational workforce, enrichment needs, and licensing submissions also face significant increases. Although water consumption may see relatively lower increases, securing water rights poses unique challenges. This study consolidates various demand metrics in a broad context, highlighting the necessity of early preparations, such as workforce training, to support a tripling of nuclear energy. While it outlines the demand-side requirements, it does not assess the difficulties of ramping up or other supply-side issues. The findings also shed light on the impact of reactor size and reactor technology on various demand metrics.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Advancing Diagnostic Model Evaluation to Better Understand Water Shortage Mechanisms in Institutionally Complex River Basins

Abstract Water resources systems models enable valuable inferences on consequential system stressors by representing both the geophysical processes determining the movement of water and the human elements distributing it to its various competing uses. This study contributes a diagnostic evaluation framework that pairs exploratory modeling with global sensitivity analysis to enhance our ability to make inferences on water scarcity vulnerabilities in institutionally complex river basins. Diagnostic evaluation of models representing institutionally complex river basins with many stakeholders poses significant challenges. First, it needs to exploit a large and diverse suite of simulations to capture important human‐natural system interactions as well as institutionally aware behavioral mechanisms. Second, it needs to have performance metrics that are consequential and draw on decision‐relevant model outputs that adequately capture the multisector concerns that emerge from diverse basin stakeholders. We demonstrate the proposed model diagnostic framework by evaluating how potential interactions between changing hydrologic conditions and human demands influence the frequencies and durations of water shortages of varying magnitudes experienced by hundreds of users in a subbasin of the Colorado River. We show that the dominant factors shaping these effects vary both across users and, for an individual user, across percentiles of shortage magnitude. These differences hold even for users sharing diversion locations, demand levels or water right seniority. Our findings underline the importance of detailed institutional representation for such basins, as institutions strongly shape how dominant factors of stakeholder vulnerabilities propagate through the complex network of users.

Hadjimichael, Antonia↗

Is Clean Hydrogen Production a Good Fit for Questa? (Final Economic Impact Results) [Slides]

The Village of Questa, New Mexico is aiming to become a regional clean energy hub with robust and diverse employment opportunities for the local community supported by the energy sector and by other businesses inspired or attracted by abundant clean energy, outdoor recreation, and cultural opportunities. A coalition of stakeholders in the Village of Questa, comprising the Village, Kit Carson Electric Cooperative (KCEC), Questa Economic Development Fund, and Chevron, is exploring options to develop hydrogen production facilities as an opportunity to create jobs, provide reliable clean energy, and utilize former mine resources. Questa is home to a molybdenum mine owned by Chevron that closed in 2014. Several residents in Questa and surrounding communities lost their jobs when the mine closed and transitioned from active operations into environmental remediation. Although remediation efforts have been ongoing since 2014 and are expected to continue for at least 16 more years, the number of jobs with Chevron is much smaller now than it was before the closure. Between available workforce, brownfield land, and water rights formerly supporting mine operations but now in a transition period, there are considerable local resources that could be directed toward clean energy generation. Questa's electricity supply is already 100% solar during daylight hours thanks to Kit Carson Electric Cooperative's (KCEC's) strategic decision-making and partnering over the last decade. Now, Questa, KCEC, and Chevron are exploring the potential costs and benefits of siting an electrolytic hydrogen production facility and additional solar photovoltaic (PV) capacity in Questa to further advance the region's clean energy economy. In this report, we estimated the potential economic impacts (i.e., jobs, value added, gross output, tax revenue) of constructing and operating a combined hydrogen (32 MW polymer electrolyte membrane electrolizer + 7.5 MW fuel cell) and solar facility (22.5 MW) in the Village of Questa, as well as the resulting economic spillovers to Taos County and the state of New Mexico. We employ an input-output model that leverages IMPLAN's economic data for the region complemented by construction and operating expenses estimated by NREL and feedback from the local coalition to evaluate the direct, indirect and induced effects of the project construction (transient impacts) and operation (more permanent impacts). Based on the area's average trade profile, feedback from the coalition and current market conditions, these projects are expected to support 487 full-time equivalent jobs during construction, generating $\$24$ million in income for those workers and $\$82$ million in local economic activity in the state. Of those jobs, 106 are expected to be construction sector jobs. These investments are also estimated to add $\$36.5$ million to New Mexico's gross state product (GSP). In the Village of Questa, we estimate 16 jobs will be supported in construction and transportation industries, generating $\$0.9$ million in earnings. In Taos County, the construction phase is expected to support 285 jobs primarily in construction and professional services, while manufacturing jobs dominate the results for the Rest of New Mexico. The Village is also estimated to receive $\$0.9$ million in tax revenue from the construction phase alone. Once in operation, the project continues to impact the state and Questa. Around 20 jobs (full-time equivalent for each year of operation) are supported across New Mexico, with approximately 11 directly employed in Questa by both facilities. The total annual local economic activity supported by ongoing operations is just over $\$1.3$ million/yr, generating $\$1.6$ million/yr in additional income in the state. Annual operations are estimated to add $\$2.1$ million to the state's GSP. The Village is expected to receive around $\$43,000$/yr in tax revenue. Impacts vary significantly depending on which businesses are supplying materials, equipment and services, and where construction workers reside. Choosing local suppliers will most benefit Questa and the New Mexico economy, adding up to 500 jobs during construction and 13 long-term jobs. Local and state governments may consider ways to incentivize local businesses in order to maximize economic benefits.

08 HYDROGEN↗

Is Clean Hydrogen Production a Good Fit for Questa? Final Economic Impact Results

The Village of Questa, New Mexico is aiming to become a regional clean energy hub with robust and diverse employment opportunities for the local community supported by the energy sector and by other businesses inspired or attracted by abundant clean energy, outdoor recreation, and cultural opportunities. A coalition of stakeholders in the Village of Questa, comprising the Village, Kit Carson Electric Cooperative (KCEC), Questa Economic Development Fund, and Chevron, is exploring options to develop hydrogen production facilities as an opportunity to create jobs, provide reliable clean energy, and utilize former mine resources. Questa is home to a molybdenum mine owned by Chevron that closed in 2014. Several residents in Questa and surrounding communities lost their jobs when the mine closed and transitioned from active operations into environmental remediation. Although remediation efforts have been ongoing since 2014 and are expected to continue for at least 16 more years, the number of jobs with Chevron is much smaller now than it was before the closure. Between available workforce, brownfield land, and water rights formerly supporting mine operations but now in a transition period, there are considerable local resources that could be directed toward clean energy generation. Questa's electricity supply is already 100% solar during daylight hours thanks to Kit Carson Electric Cooperative's (KCEC's) strategic decision-making and partnering over the last decade. Now, Questa, KCEC, and Chevron are exploring the potential costs and benefits of siting an electrolytic hydrogen production facility and additional solar photovoltaic (PV) capacity in Questa to further advance the region's clean energy economy. In this report, we estimated the potential economic impacts (i.e., jobs, value added, gross output, tax revenue) of constructing and operating a combined hydrogen (32 MW polymer electrolyte membrane electrolizer + 7.5 MW fuel cell) and solar facility (22.5 MW) in the Village of Questa, as well as the resulting economic spillovers to Taos County and the state of New Mexico. We employ an input-output model that leverages IMPLAN's economic data for the region complemented by construction and operating expenses estimated by NREL and feedback from the local coalition to evaluate the direct, indirect and induced effects of the project construction (transient impacts) and operation (more permanent impacts). Based on the area's average trade profile, feedback from the coalition and current market conditions, these projects are expected to support 487 full-time equivalent jobs during construction, generating $\$24$ million in income for those workers and $\$82$ million in local economic activity in the state. Of those jobs, 106 are expected to be construction sector jobs. These investments are also estimated to add $\$36.5$ million to New Mexico's gross state product (GSP). In the Village of Questa, we estimate 16 jobs will be supported in construction and transportation industries, generating $\$0.9$ million in earnings. In Taos County, the construction phase is expected to support 285 jobs primarily in construction and professional services, while manufacturing jobs dominate the results for the Rest of New Mexico. The Village is also estimated to receive $\$0.9$ million in tax revenue from the construction phase alone. Once in operation, the project continues to impact the state and Questa. Around 20 jobs (full-time equivalent for each year of operation) are supported across New Mexico, with approximately 11 directly employed in Questa by both facilities. The total annual local economic activity supported by ongoing operations is just over $\$1.3$ million/yr, generating $\$1.6$ million/yr in additional income in the state. Annual operations are estimated to add $\$2.1$ million to the state's GSP. The Village is expected to receive around $\$43,000$/yr in tax revenue. Impacts vary significantly depending on which businesses are supplying materials, equipment and services, and where construction workers reside. Choosing local suppliers will most benefit Questa and the New Mexico economy, adding up to 500 jobs during construction and 13 long-term jobs. Local and state governments may consider ways to incentivize local businesses in order to maximize economic benefits.

08 HYDROGEN↗

Environmental Impacts of Closed-Loop Pumped Storage Hydropower

The goal of this report is to help license applicants, resource agencies, and other members of the hydropower community involved in closed-loop pumped storage hydropower permitting and licensing process, focus the scope of environmental reviews, and more quickly identify impacts with project nexus and potential mitigation measures for these impacts. Pumped storage hydropower (PSH) is an energy storage technology that uses energy to pump water up from a lower reservoir to an upper reservoir where water is stored until electricity is needed and the water is released to a lower reservoir passing through turbines. Closed-loop PSH—PSH that is not continuously connected to a naturally flowing water feature—is one of the lowest greenhouse gas emitting energy storage technologies and is therefore a critical part of the transition to renewable energy (Simon et al. 2023). Proposals for closed-loop PSH facilities in the United States currently account for more than 40% of original licenses and 99% of potential generation capacity in the Federal Energy Regulatory Commission (FERC) hydropower licensing pipeline (Johnson et al. 2023). While closed-loop PSH facilities can have lower environmental impacts than open-loop PSH facilities, no closed-loop facilities have been constructed in the United States to enable direct accounting of project impacts and efficacy of mitigations. Many proposals for closed-loop PSH submitted to FERC are abandoned early in the permitting and licensing process prior to license applications and environmental assessments, so there is little documentation describing potential project impacts and proposed mitigations. The newness of closed-loop PSH proposals in the United States may mean that tribal, federal, and state agencies with authorities for cultural and natural resources protection and management involved in the FERC licensing process may not have experience with closed-loop PSH regulation. Moreover, many proposed closed-loop PSH facilities are in areas that do not have high concentrations of conventional hydropower, so these agencies may also be unfamiliar with the FERC hydropower licensing process. The goal of this report is to help license applicants, resource agencies, and other members of the hydropower community focus the scope of environmental review for the closed-loop PSH development, licensing, and federal authorization process enabling quicker identification of potential impacts, mitigations, and situations where mitigation may not be possible. We found that environmental impacts of closed-loop PSH are highly site-specific, and generalizations about the types of environmental impacts across closed-loop PSH projects are difficult to make. Environmental impacts of closed-loop PSH are like those for open-loop PSH with a few exceptions including water sourcing, which can lead to delays and contention due to potential complexities with water rights, impacts to aquatic resources, and greenhouse gas emission potential. Cultural resource impacts were commonly reported in National Environmental Policy Act (NEPA) documents reviewed and discussed in interviews, but in many cases such impacts cannot be mitigated.

13 HYDRO ENERGY↗

Corral Summit Pumped Storage Hydropower Hybrid: Site Suitability Assessment

In 2024, Idaho National Laboratory (INL) and Pacific Northwest National Laboratory (PNNL) initiated a technical-assistance project to support Cat Creek Energy, LLC, (CCE) in evaluating site suitability for the proposed Corral Summit Pumped Storage Hydropower (PSH) project in south-central Idaho near Mackay Reservoir. The Corral Summit facility incorporates battery storage and photovoltaic (PV) solar arrays in a Trybrid configuration to deliver large-volume long-duration (LVLD) storage solutions for rural electric cooperatives in eastern Idaho. The evaluation process focused on determining the most-suitable location for the upper reservoir of the PSH system, guided by a comprehensive assessment framework spanning multiple categories, including physical characteristics, environmental constraints, building infrastructure, regulatory constraints, cultural resources and sensitivity, social factors, and power market and grid integration. Each site was analyzed based on a ranking scale (0–1), which scores ranging from “severely disfavored” to “highly favored,” allowing detailed comparisons of site-specific conditions. Categories such as hydraulic head, utilities corridor, land ownership, and transmission-grid limitations emerged as key contributors to the overall assessment. Site 2 (Idaho Trust) demonstrated a slight advantage over Site 1 (Bureau of Land Management) primarily due to favorable outcomes in regulatory constraints, building infrastructure, and power-market integration. However, Site 1 outperformed Site 2 in factors related to physical characteristics and social factors. The report emphasizes the need for further evaluation of both sites before clear determination of which site is preferred, due to the limited information available on either site at the time of this report. Key areas of evaluation to clearly define the preferred site are ecological impacts, cultural-resource surveys, and economic-feasibility assessments. For successful project execution, recommended follow-up actions include seismic and geotechnical surveys, groundwater and habitat monitoring, regulatory reviews of water rights and right-of-way agreements, cultural engagement with local tribal governments, and enhanced stakeholder strategies. These efforts will ensure the Corral Summit Trybrid facility meets local energy needs while balancing environmental, social, and regulatory responsibilities.

13 - HYDRO ENERGY↗

Corral Summit Pumped Storage Hydropower Hybrid Site Suitability Assessment (Rev.1)

In 2024, Idaho National Laboratory (INL) and Pacific Northwest National Laboratory (PNNL) initiated a technical-assistance project to support Cat Creek Energy, LLC, (CCE) in evaluating site suitability for the proposed Corral Summit Pumped Storage Hydropower (PSH) project in south-central Idaho near Mackay Reservoir. The Corral Summit facility incorporates battery storage and photovoltaic (PV) solar arrays in a Trybrid configuration to deliver large-volume long-duration (LVLD) storage solutions for rural electric cooperatives in eastern Idaho. The evaluation process focused on determining the most-suitable location for the upper reservoir of the PSH system, guided by a comprehensive assessment framework spanning multiple categories, including physical characteristics, environmental constraints, building infrastructure, regulatory constraints, cultural resources and sensitivity, social factors, and power market and grid integration. Each site was analyzed based on a ranking scale (0–1), which scores ranging from “severely disfavored” to “highly favored,” allowing detailed comparisons of site-specific conditions. Categories such as hydraulic head, utilities corridor, land ownership, and transmission-grid limitations emerged as key contributors to the overall assessment. Site 2 (Idaho Trust) demonstrated a slight advantage over Site 1 (Bureau of Land Management) primarily due to favorable outcomes in regulatory constraints, building infrastructure, and power-market integration. However, Site 1 outperformed Site 2 in factors related to physical characteristics and social factors. The report emphasizes the need for further evaluation of both sites before clear determination of which site is preferred, due to the limited information available on either site at the time of this report. Key areas of evaluation to clearly define the preferred site are ecological impacts, cultural-resource surveys, and economic-feasibility assessments. For successful project execution, recommended follow-up actions include seismic and geotechnical surveys, groundwater and habitat monitoring, regulatory reviews of water rights and right-of-way agreements, cultural engagement with local tribal governments, and enhanced stakeholder strategies. These efforts will ensure the Corral Summit Trybrid facility meets local energy needs while balancing environmental, social, and regulatory responsibilities.

13 - HYDRO ENERGY↗

Advanced Modeling and Simulation to Characterize Advanced Boiling Water Reactor Source Terms to Support a Regulatory Approval Pathway for Right-Sized Emergency Planning Zone. Advanced Boiling Water Reactor (A-BWR) Project Phase 2

The United States Department of Energy (US DOE) is currently supporting the development of various small modular reactor (SMR), microreactor and advanced reactor designs. These reactors have improved safety features as compared to conventional Large Light Water Reactors (LLWRs), which include features that improve potential reduction of radiological source terms in the event of design and beyond-design basis accidents. Specifically, some reactors feature a relatively smaller containment volume with respect to the available surface area for fission product deposition; these include Integrated Pressurized Water Reactors (iPWRs), such as the NuScale SMR and SMR-type Boiling Water Reactors (BWRs) such as General Electric-Hitachi’s BWRX-300 design.

21 SPECIFIC NUCLEAR REACTORS AND ASSOCIATED PLANTS↗

Field Study of Grid-connected Heat Pump Water Heaters in the Southeast U.S.: The Next Right Thing

The integration of grid-connected functionality and advanced control algorithms into heat pump water heaters (HPWH) offers the capability to shift load with minimal customer impact. This capability provides a flexible grid resource to utilities, while the increased energy efficiency of HPWHs offers customers a lower electric bill. The combined utility/customer value from grid-connected HPWHs is compelling in the Southeast U.S. where residential electric water heating is prevalent and utility load management is common. This paper presents the results of a HPWH load shifting study conducted in Central Florida using the CTA-2045 standard. Building upon previous research in the Pacific Northwest, this study consisted of approximately 45 occupied homes equipped with HPWHs undergoing load shifting strategies weekly for over a year. Curtailment durations ranged from three to five hours in the morning, and four to five hours in the evening to coincide with high-value periods for utility coincident load for system-wide electric demand reductions. During the morning and afternoon, a one- or two-hour load-up event preceded curtailment. Baseline data were collected across varied Florida weather in which no load shifting events were implemented. Results from traditional load shifting strategies were analyzed across seasons and used to devise unique load shifting approaches to increase renewable energy use during periods of high solar energy generation. Regional impacts are forecasted for large-scale implementation of strategies. Lessons learned and recommendations are also provided for how utilities, manufacturers, and regional planners can maximize load shifting benefits from grid-connected HPWHs.

Heat pump water heaters, residential building, loa↗