Feds, California, Oregon and PacifiCorp Announce Klamath Pact

Feds, California, Oregon and PacifiCorp Announce Klamath Pact

by Dan Bacher

Secretary of the Interior Dirk Kempthorne, along with Oregon Governor Ted Kulongoski, California Governor Arnold Schwarzenegger, and PacifiCorp Chairman and CEO Greg Abel, today announced the signing of a non-binding agreement that provides a plan for the removal of four dams on the Klamath River.

Federal officials yesterday in Sacramento briefed Klamath Basin Indian Tribes, recreational anglers, commercial fishermen and farmers on the Agreement In Principle (AIP) for PacifiCorp, a subsidiary of Warren Buffett's Berkshire Hathaway Corporation, to turn over control of the dams so they can be removed to restore declining runs of salmon and steelhead.

”This is a historic announcement and the culmination of years of hard work from the numerous negotiators from the federal government and the states of California and Oregon, and PacifiCorp representatives who have worked toward a common goal of how best to protect the uniqueness of this region,” said Secretary of the Interior Dirk Kempthorne. “We have agreed to a path forward that will protect fish, PacifiCorp customers and the local cultures and communities in the two-state Klamath River basin.”

“Today's announcement is the first step in what would be the largest dam removal project ever in history that California, Oregon and our federal and private partners are undertaking to improve water quality, water supply and fish populations in the Klamath region," California Governor Arnold Schwarzenegger said. "The health of the Klamath River is critical to the livelihood of numerous Northern California communities, and with this groundbreaking agreement we have established a framework for restoring an important natural resource for future generations.”

The Agreement In Principle (AIP) compels the federal government to scientifically assess the costs and benefits of dam removal. The United States will make a final determination by March 31, 2012, whether the benefits of dam removal will justify the costs-- informed by scientific and engineering studies conducted in the interim, and in consultation with state, local, and tribal governments and other stakeholders, as appropriate, according to a news release from the Department of Interior.

At that point, the United States shall designate a non-federal dam removal entity (DRE) to remove the dams or decline to remove the dams at which point PacifiCorp will return to the Federal Energy Regulatory Commission for relicensing.

“While many months of work lay ahead, this historic agreement provides a path forward to achieve the largest river and salmon restoration effort ever undertaken in a way that’s good for fish, PacifiCorp customers, and local communities and our sovereign tribes,” Oregon Governor Ted Kulongoski stated. “With Oregon’s best interests in mind, it is with great pride that I will be taking the first step in implementing this agreement by offering legislation to support the dam decommissioning and removal process.”

“This careful effort to balance the complex needs of numerous interests within the community is exactly the type of approach PacifiCorp takes every time we sit down to the settlement table," said Greg Abel, PacifiCorp Chairman & CEO. “This flexible framework ensures that our customers will be protected at every step along the way, while remaining consistent with our strong commitment to respecting the environment. We will continue to work diligently with everyone at the table, including the irrigators, environmentalists, the Tribes and local elected officials with the goal of reaching a final dam removal agreement that is in the economic interests of PacifiCorp customers."

Representatives of the Karuk, Yurok and Klamath Tribes, farming groups, environmental organizations and fishing groups also lauded the agreement.

"It's an agreement in principle with strong language supporting dam removal," said Craig Tucker, spokesman for the Karuk Indian Tribe. "We still have a long way to go until dam removal takes place, including the passing of legislation."

However, repeating the campaign phrase of the incoming administration, Tucker said, "Yes we can!" in reference to dam removal. "We have a new relationship with PacifiCorp," added Tucker.

Tucker said the deadline for the final agreement will be in June 2009. The target for the beginning of dam removal is 2020.

"The signing of the AIP is welcome news to the Tribes, conservationists, commercial fishermen, farmers and ranchers who see dam removal as the missing element of the more comprehensive Klamath Basin Restoration Agreement (KBRA) released earlier this year," according to a joint release by Klamath Basin Indian Tribes, farmers, fishing groups and conservation organizations.

The KBRA includes a plan to reintroduce salmon to the Upper Basin, provide dependable irrigation deliveries to project farmers, a means to reconcile water rights disputes, and ensure affordable renewable power for farm and ranching communities, according to the groups.

“We can remove dams, restore the fishery, and have prosperous farm communities all in the same basin,” asserted Yurok Chair person Maria Tripp. “We are proud to see PacifiCorp joining our effort to provide long term stability to all of the Klamath Basin’s diverse communities.”'

“PacifiCorp is making a private property rights decision,” explained Luther Horsley of the Klamath Water Users’ Association. “We support this agreement as part of a larger plan to provide water and power security to local irrigators.”

In a statement issued today, Malena Marvin of the Klamath Riverkeeper said the organization is "cautiously optimistic" about a tentative, non-binding Agreement in Principle to remove four of PacifiCorp’s Klamath dams. "While the Agreement in Principle does provide a path toward dam removal, a Final Agreement has not yet been signed and several important issues have not been resolved," said Marvin.

Klamath Riverkeeper has served as a watchdog over PacifiCorp’s water quality and environmental justice issues over the last several years, and will continue pressuring PacifiCorp to comply with clean water laws until the dams are removed.

“After all the work we’ve put in advocating for removal of these dams, it feels good to hear the words ‘dam removal’ come out of PacifiCorp headquarters, and we applaud the bold stance stakeholders and policy makers have taken," Marvin said. "However, we won’t throw our party until we see the Final Agreement, and we’re satisfied the terms of that agreement will keep fish alive until 2020 on the Klamath River."

“Tribal members, fishermen, conservationists, and local people have logged a lot of miles fighting for this river. We’re not about to stop until we see the water flowing free again,” added Marvin.

California Trout, a conservation organization that has been involved in talks among conservationists, farmers, Tribes, and other stakeholders for several years over the potential removal of the PacifiCorp dams, also praised the agreement.

"Today's announcement of an Agreement in Principle among the federal government, the California and Oregon state governments, and PacifiCorp lays the groundwork for the eventual removal of these dams and the return of the fish to their historic spawning and rearing grounds," said Brian Stranko, CEO of California Trout. "California Trout is very pleased to see that an Agreement in Principle has been reached between the governments and PacifiCorp. PacifiCorp acknowledgement that dam removal is in the best interest of their shareholders and ratepayers makes this a win-win situation for the fish and the company."

Not all environmental groups and Indian Tribes are supporting the agreement. Oregon Wild is opposing the deal because they believes it shifts away the responsibility from PacifiCorp and provides no guarantees for dam removal. Other conservation organizations are now also reviewing the document.

"Everyone wants dam removal, but why are we letting the Bush administration dictate Klamath Basin policy?" said Sean Stevens, spokesman for Oregon Wild, a group that was kicked out of settlement negotiations. "This is the same administration that caused the worst fish kill in U.S. history. Now the administration is setting up a deal with all sorts of 'off ramps' and lets PacifiCorp off the hook. We already have processes like the 401 Clean Water Permit process and the FERC licensing that have found that removing the dams would be less expensive than installing fish ladders."

Clifford Lyle Marshall, Chairperson of the Hoopa Valley Tribe, criticized the agreement for its non-binding status - and questioned why there was a rush to sign the pact in the final days of the Bush administration.

"While many are applauding the AIP as a first step towards dam removal, it's essentially a gentleman's agreement that doesn't bind any of the parties and provides lots of 'off ramps' for PacifiCorp," said Marshall. "It is not an agreement to take down the dams.

Marshall was also concerned about the timelines in the agreement. The pact states that the federal government will not have to finish their analysis of whether the dams should be removed until March 31, 2012 - and then wouldn't initiate dam removal until 2020. Although there are some interim measures to help fish in the agreement, he feels that they are probably insufficient for fish survival through the time dam removal is completed.

In addition, he criticized the agreement for circumventing the FERC relicensing process, as well as the Clean Water Act 401 permitting process required for relicensing dams.

"How will requiring no change on the Klamath Dam's operations until 2020 impact the salmon?" asked Marshall. "Keeping the water in the current quality and quantity on the river will have a severe impact upon Klamath salmon."

He also noted that the agreement will require legislation by the state and federal governments authorizing the money to remove the dams, as well as legislative approval by the state of Oregon to set the power rates to offset the costs of dam removal to PacifiCorp.

"This agreement is turning into a billion dollar bailout by the taxpayers without really addressing salmon restoration," Marshall concluded. "This whole process is a manipulation of what is now a lame duck administration and I would as soon wait until the next administration takes a fresh look at the Klamath issue."

During October, hundreds of members of Klamath River Indian Tribes, commercial fishing organizations, recreational fishing groups and conservation organizations testified in favor of dam removal at a series of meetings held by the State Water Resources Control Board in Klamath, Orleans, Eureka, Yreka and Sacramento. They spoke in favor of denying PacifiCorp a 401 clean water permit because of toxic algae blooms fostered by Iron Gate and Copco dams on the Klamath River.