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Montana State Senator Debby Barrett (R-Dillon) wants to add hydro-power to the list of renewable energy resources.

Montana requires utility companies to purchase 15% of their energy from renewables by 2015. Currently wind and solar energy help utility companies meet the 15 by 15 initiative.

Barrett's Senate Bill 109 adds hydropower to the mix.

Northwestern Energy's John Fitzpatrick says the bill will create jobs.

"It improves the opportunity for the development of small scale hydro projects, particularly those that might be associated with irrigation systems, existing state dams and other kinds of impoundments that might be built off of the main stem rivers," Fitzpatrick adds.

The bill states only new hydro projects would qualify, and utility companies could not use exisiting dams to help meet the renewable energy standard.

Montana State Senator Alan Olson (R-Roundup) chairs the Senate Energy and Telecommunications committee. Barrett's bill was amended in his committee to exclude old dams.

"It is jobs. It is new development, not existing development. We would have a better chance of getting this across the Governor's desk. The Governor wants to talk about new development and jobs here it is," Olson told the House Energy Committee.

Northern Plains Resource Council Lobbyist Clayton Elliott says hydro is a clean form of energy, but Montana should be incentivizing less developed resources like wind.

"Let's remember what the purpose of the renewable energy standard was. I don't think it was as much about energy policy as it was about economic benefit and economic development in rural Montana," Elliott testified.

Critics asked the committee to increase the 15 by 15 initiative if they add hydro to the list.

Montana State Senator Kendall Van Dyk (D-Billings) was carrying a bill to increase the renewable energy standard to 25% by 2025. That bill died in Senator Olson's committee.