Climate change may also result in changes in local  precipitation and water availability, as well as more and longer droughts in  some areas of the country. Advanced Cooling Technologies and Alternative Water Sources Can Reduce the Use of Freshwater at Power Plants, but Their Adoption Poses Certain Drawbacks

Advanced cooling technologies and alternative water sources can reduce  freshwater use by thermoelectric power plants, leading to a number of  benefits for plant developers; however, incorporating each of these  options for reducing freshwater use into thermoelectric power plants also  poses certain drawbacks. Benefits of reducing freshwater use may include  social and environmental benefits, minimizing water-related costs, as well  as increasing a developer’s flexibility in determining where to locate a new  plant. Regulatory Compliance Issues

Power plant developers using alternative water sources may face  additional regulatory challenges. States We Contacted Have Other Regulatory Policies That Influence the Extent of Water Use Oversight for Proposed Power Plants

Oversight of water use by proposed power plants in the selected states  may be influenced by regulatory policies and requirements that formally  emphasize minimizing freshwater use by power plants and other new  industrial users. In contrast to California and Arizona, water supply and public utility  commission officials in the other 5 selected states told us their states had  not developed official state policies regarding water use by power plants. In contrast, state water regulators do not routinely rely on federal  data on water use when evaluating power plant applications, although  these data are used by water and industry experts, federal agencies, and  others to analyze trends in the industry. Water Experts, Federal Agencies, and Others Value Federal Data on Water Use for Analyzing Industry Trends but Identified Limitations In These Data

Unlike federal data on water availability, federal data on water use is not  routinely relied upon by state officials we spoke with to make regulatory  decisions; but, instead is used by a variety of data users to identify trends  in the industry. Currently, EIA does not systematically collect information on power  plants’ use of advanced cooling technologies. Lack of comprehensive data on the use of alternative water sources. According to data users we spoke with, this is a significant  limitation in the federal data on water use and makes it more difficult for  them to monitor trends in the industry. Discontinued distribution of thermoelectric power plant water  consumption data. Specifically, to improve the  usefulness of the data collected by EIA and better inform the nation’s  understanding of power plant water use and how it affects water  availability, we recommend that the Administrator of EIA consider taking  the following four actions as part of its ongoing review of the data it  collects about power plants:    add cooling technology reporting codes for alternative cooling  technologies, such as dry and hybrid cooling, or take equivalent steps  to ensure these cooling technologies can be identified in EIA’s  database;    expand reporting of water use and cooling technology data to include  all significant types of thermoelectric power plants, particularly by  reinstating data collection for nuclear plants and initiating collection of  data for all combined cycle natural gas plants;    collect and report data on the use of alternative water sources, such as  treated effluent and groundwater that is not suitable for drinking or  irrigation, by individual power plants; and  include USGS and other key users of power plant water use and  cooling system data as part of EIA’s triennial review process. Appendix I: Objectives, Scope and Methodology

At the request of the Chairman of the House Committee on Science and  Technology, we reviewed (1) technologies and other approaches that can  help reduce freshwater use by power plants and what, if any, drawbacks  there are to implementation; (2) the extent to which selected states  consider water impacts of power plants when reviewing power plant  development proposals; and (3) the usefulness of federal water data to  experts and state regulators who evaluate power plant development  proposals. California imports  27 percent of its electricity from other states. Other data sources include their own and U.S.  Geological Survey (USGS) groundwater data, USGS streamflow data, and  existing water use permits.
Why GAO Did This Study

In 2000, thermoelectric power plants accounted for 39 percent of total U.S. freshwater withdrawals. Traditionally, power plants have withdrawn water from rivers and other water sources to cool the steam used to produce electricity, so that it may be reused to produce more electricity. Some of this water is consumed, and some is discharged back to a water source. In the context of growing demands for both water and electricity, this report discusses (1) approaches to reduce freshwater use by power plants and their drawbacks, (2) states' consideration of water use when reviewing proposals to build power plants, and (3) the usefulness of federal water data to experts and state regulators. GAO reviewed federal water data and studies on cooling technologies. GAO interviewed federal officials, as well as officials from seven selected states.

What GAO Found

Advanced cooling technologies that rely on air to cool part or all of the steam used in generating electricity and alternative water sources such as treated effluent can reduce freshwater use by thermoelectric power plants. Use of such approaches may lead to environmental benefits from reduced freshwater use, as well as increase developer flexibility in locating a plant. However, these approaches also present certain drawbacks. For example, the use of advanced cooling technologies may result in energy production penalties and higher costs. Similarly, the use of alternative water sources may result in adverse effects on cooling equipment or regulatory compliance issues. Power plant developers must weigh these drawbacks with the benefits of reduced freshwater use when determining which approaches to pursue. Consideration of water use by proposed power plants varies in the states GAO contacted, but the extent of state oversight is influenced by state water laws, related state regulatory policies, and additional layers of state regulatory review. For example, California and Arizona--states that historically faced constrained water supplies, have taken formal steps aimed at minimizing freshwater use at power plants. In contrast, officials in five other states GAO contacted said that their states had not developed official policies regarding water use by power plants and, in some cases, did not require a state permit for water use by new power plants. Federal agencies collect national data on water availability and water use; however, of these data, state water agencies rely on federal water availability data when evaluating power plants' proposals to use freshwater more than federal water use data. Water availability data are collected by the U.S. Geological Survey (USGS) through stream flow gauges, groundwater studies, and monitoring stations. In contrast, federal data on water use are primarily used by experts, federal agencies, and others to identify industry trends. However, these data users identified limitations with the federal water use data that make them less useful for conducting trend analyses and tracking industry changes. For example, the Department of Energy's (DOE) Energy Information Administration (EIA) does not systematically collect information on the use of advanced cooling technologies and other data it collects are incomplete. Similarly, USGS discontinued distribution of data on water consumption by power plants and now only provides information on water withdrawals. Finally, neither EIA nor USGS collect data on power plant developers' use of alternative water sources, which some experts believe is a growing trend in the industry. Because federal data sources are a primary source of national data on water use by various sectors, data users told GAO that without improvements to these data, it becomes more difficult for them to conduct comprehensive analyses of industry trends and limits understanding of changes in the industry.