The Albany-Santiam Canal flows under the 12th Avenue bridge, as it does all the time, on Feb. 24, 2026.
Albany’s small hydropower turbine has not turned for almost two years and may never spin again, but the bureaucracy concerning it grinds on.
The Oregon Department of Environmental Quality has just invited public comment on a new “water quality certification” for the Albany hydroelectric project. The deadline for comment is April 6.
The city apparently needs this new state certification because two years ago, in January 2024, it applied to the Federal Energy Regulatory Commission (FERC) to change its federal license for the generator.
The city is trying to surrender the 50-year hydropower license it obtained in 1998 and get a different license, called a “small conduit exemption.”
The exemption would allow the city to keep operating the generator at the historic Vine Street treatment plant and powerhouse. But, as explained by various Albany public works officials over the past several years, the change would relieve the city of a ton of federal regulations that cover the entire 18-mile Santiam Canal from the diversion dam on the Santiam River to the power house on the Calapooia River.
Hoping to get the exemption for everything but the generator, the city negotiated an agreement with state and federal regulators. That agreement obligates the city to keep doing what it has been required to do to protect fish and water quality in the Santiam, Calapooia and Willamette rivers and in the canal itself.
Among other things the city must maintain the fishways at the Lebanon diversion dam on the South Santiam River. It also must shut the generator down when necessary to keep the river from falling below 1,100 cubic feet per second.
The flow requirement means the generator has been shut down each summer and fall. But since May 2024 it hasn’t run at all.
While the federal license change and the state DEQ certification are pending, Albany is weighing a recommendation by consultants to scrap the hydropower project altogether because it is not economical.
The generator needs repairs, and maybe the turbine does too. Those expenses alone would dwarf the city’s revenue from power sales, which used to average around $80,000 a year.
I wrote my first story about the “conduit exemption” idea in 2017. That’s how long this thing has worked its way through the government mills.
Restarting Albany’s 500-KW generator likely will no longer be an option by the time FERC issues a new license, if it ever does. (hh)
Albany’s red 500-KW generator in 2017, the last time I saw it. The antique on the right was built in the 1920s.
Nine years, no wonder we can’t get anything built and the cost continues to go up. The canal is but one example. Took them over 30 years to replace the Van Burien bridge. CRC has been talked about, planned, money spent and nothing has changed. We really need to streamline this process.
Methinks a bit kafkaesque perhaps…
How can you casually blame the bureaucracy (Kafkaesque? Do you use that word every day?) The federal government is minus over 317,000 workers thanks to Trump firing them. So, that sure as hell is not going to speed things up.
Too bad he didn’t fire a million federal workers. I think we’re taking about the Oregon DEQ.
There is a big difference between firing people in an agency where the job they do is not really needed and firing people work in an agency that is absolutely needed.
Hasso, I grew up in Albany and have spent the last 25 years developing hydropower projects all over the US. Projects include new 401 certs. for hydropower in Oregon. I am happy to help out here if Albany needs some support. This has been a great small asset for the city, one which should offset scarce tax dollars for another couple of generations…vs being idle Here is my LinkedIn profile: https://www.linkedin.com/in/erik-steimle-cep-44848738/
When this “project was decided on, it would have taken 60-80 years, with NO labor, maintenance etc. expenses just to pay for the equipment.
It was purchased in CHINA! Not for quality, but apparently they are the only ones that made low head turbines.
This was at a time when the FEDS were starting to get serious about regulating water flows etc. There isn’t anything to stop them from totally shutting it down if they want.
Expense? How much is spent on city employees to operate it? I would think a bunch had to “upgrade” their qualifications to operate an electrical plant vs the in place waterworks. How much more are they being paid for useless qualifications, padding their PERS retirement.
It’s a LOST CAUSE!
The gift that keeps on taking. Thanks Ray K!
Sounds like another “fee” in the works.
@Eric…. what a nice offer to the City and residents!! I first visited the Albany hydro plant and water treatment plant as a Cub Scout in about 1966. A LONGGGG time ago. What a shame if that public asset that retrieves useful electric energy from the Santiam River is not able to be salvaged. Shame on the US govt for making this such a challenge.
The thing is already worn out after just a small fraction of its “projected” lifespan. China isn’t known for quality!
Do they even make parts for such a PIG?