Klamath Hydroelectric Settlement Agreement - · PDF file2.0 Parties to the Klamath...

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  • KlamathHydroelectricSettlementAgreement

    ImplementationReport

    FERCProjectNo.2082

    June2013

    J.C. Boyle Reservoir

    KlamathHydroelectricProject

  • KlamathHydroelectricSettlementAgreement

    ImplementationReportJune2013 ES1

    ExecutiveSummaryThisreporthighlightstheaccomplishmentsandactivityrelatedtoimplementationoftheKlamathHydroelectricSettlementAgreementsincetheagreementwassignedonFebruary18,2010.ThisisthethirdannualimplementationreportandfocusesoneventsthatoccurredbetweenJune2012,whenthesecondreportwasissued,andJune2013.

    FederalLegislationOnNovember10,2011,legislationthatwouldimplementboththeKlamathHydroelectricSettlementAgreement(KHSA)andtheKlamathBasinRestorationAgreementwasintroducedintheU.S.SenateandtheU.S.HouseofRepresentatives.Althoughactiononthebillswasnottakeninthe112thCongress,theSenateCommitteeonEnergyandNaturalResourceshasscheduledahearingonKlamathRiverBasinwaterresourcesissuesforJune20,2013inWashington,D.C.ThishearingwillgathertestimonyfromstakeholdersregardingtheKlamathsettlements.

    SecretarialDeterminationandEnvironmentalReview

    TheDepartmentoftheInterioronApril4,2013releasedaFinalEnvironmentalImpactStatement(FinalEIS)andrelatedscientific/technicalreports.UnderthetermsoftheKHSA,thestudiesandenvironmentalreviewwillinformtheSecretarialDeterminationonwhethertoproceedwithfacilitiesremovalundertheagreement.

    TheInteriorDepartmenthadpreviouslyannouncedonFebruary27,2012thattheSecretarialDeterminationwouldbedelayedbecauseCongresshadyettoenactnecessarylegislationauthorizingaSecretarialDeterminationunderthetermsoftheKHSA.

    DamRemovalFundingTheCaliforniaandOregonpublicutilitycommissionshaveauthorizedcustomersurchargesdesignedtoprovidethefull$200millioncapped

    amountthatPacifiCorpcustomerswillcontributetowarddamremovalundertheKHSA.PacifiCorphascollecteddamremovalsurchargesfromOregoncustomerssinceMarch2010andbegancollectingsurchargesfromCaliforniacustomersinJanuary2012.

    TheOregoncustomersurcharge,withaccruedinterest,isdesignedtoprovideapproximately$184millionfordamremovalin2020.TheCaliforniasurcharge,withaccruedinterest,isdesignedtoprovideapproximately$16millioninfundingfordamremovalin2020.Together,thetrustaccountshadabalanceof$53.3millionasofMay31,2013.

    InterimMeasuresPacifiCorpcontinuestoimplementtheinterimmeasuresintheKHSAtoaddressenvironmentalconditionsandimprovefisheriesduringtheperiodpriortodamremoval.

    Thecompanyisfundingseveralwaterqualityrelatedinitiativesandstudies,includingbasinwidewaterqualitymonitoringandstudiesintendedtoreducenutrientlevelsintheKlamathRiverandimprovewaterqualityintheProjectreservoirs.OtherongoingactionsincludefishhabitatimprovementswithintheProjectandintheKlamathbasinbelowIronGatedam.Undertermsofthesettlement,PacifiCorpisalsonowfullyfundingtheongoingoperationsofIronGateHatcheryandaHatcheryandGeneticsManagementPlantoaidrecoveryofcohosalmon.

    PacifiCorpispleasedwiththeprogressmadeinimplementingtheKHSAandthevariousmeasuresthatareresultinginimprovementstowaterqualityandfishhabitat.PacifiCorpnotesthesignificantcontributionsofKHSAparties,tribes,andinvolvedstateandfederalagenciesintheseefforts.

  • KlamathHydroelectricSettlementAgreement

    ImplementationReportJune2013 i

    Contents1.0 Introduction...............................................................................................................................1

    1.1 Background..................................................................................................................2

    2.0 PartiestotheKlamathHydroelectricSettlementAgreement...................................................5

    3.0 Funding......................................................................................................................................6

    3.1 CustomerContributions...............................................................................................6

    3.1.1 OregonPublicUtilityCommissionProceedings..............................................6

    3.1.2 CaliforniaPublicUtilitiesCommissionProceedings........................................6

    3.1.3 TotalTrustAccountBalances..........................................................................7

    3.1.4 ManagementoftheTrustAccounts...............................................................7

    3.2 StateofCaliforniaFunding..........................................................................................7

    4.0 FederalLegislation.....................................................................................................................8

    5.0 Studies,EnvironmentalReview,andSecretarialDetermination...............................................9

    6.0 InterimOperations...................................................................................................................11

    6.1 LeaseofStateOwnedBedsandBanks......................................................................11

    6.2 KenoTransfer.............................................................................................................11

    6.3 LocalCommunityPower............................................................................................11

    6.4 AbeyanceofSection401WaterQualityCertificationProcess..................................12

    6.5 TMDLs........................................................................................................................12

    7.0 InterimMeasuresImplementation..........................................................................................14

    7.1 InterimMeasuresImplementationCommitteeMeetingDatesandMembers...............................................................................................................14

    7.1.1 PurposeandGoalofCommittee..................................................................14

    7.1.2 CommitteeMembers....................................................................................15

    7.2 InterimConservationPlanInterimMeasuresandEndangeredSpeciesActRegulatoryProcess................................................................................................16

    7.3 InterimMeasure2:CaliforniaKlamathRestorationFund/CohoEnhancementFund.......................................................................................................................17

    7.4 InterimMeasure3:IronGateTurbineVenting.........................................................18

    7.5 InterimMeasure4:HatcheryandGeneticsManagementPlan................................19

    7.6 InterimMeasure5:IronGateFlowVariability..........................................................19

    7.7 InterimMeasure6:FishDiseaseRelationshipandControlStudies..........................20

    7.8 InterimMeasure7:J.C.BoyleGravelPlacementand/orHabitatEnhancement......21

    7.9 InterimMeasure8:J.C.BoyleBypassBarrierRemoval.............................................22

    7.10 InterimMeasure9:J.C.BoylePowerhouseGage......................................................22

  • KlamathHydroelectricSettlementAgreement

    ii ImplementationReportJune2013

    7.11 InterimMeasure10:WaterQualityConference.......................................................22

    7.12 InterimMeasure11:InterimWaterQualityImprovements.....................................23

    7.12.1 EvaluationofTreatmentbyWetlands..........................................................24

    7.12.2 EvaluationofOrganicMatterRemovalforKenoReservoir.........................24

    7.12.3 EvaluationofJ.C.BoyleReservoirDissolvedOxygenImprovement............24

    7.12.4 TestingofIntakeCoverforWaterQualityControlinIronGateReservoir...25

    7.12.5 PilotStudyofAlgalConditionsManagementinCopcoReservoir................26

    7.12.6 KlamathTrackingandAccountingProgram.................................................26

    7.13 InterimMeasure12:J.C.BoyleBypassReachandSpencerCreekGaging................26

    7.14 InterimMeasure13:FlowReleasesandRampRates................................................27

    7.15 InterimMeasure14:3,000CfsPowerGeneration....................................................28

    7.16 InterimMeasure15:WaterQualityMonitoring.......................................................28

    7.17 InterimMeasure16:WaterDiversions.....................................................................29

    7.18 InterimMeasure17:FallCreekFlowReleases..........................................................30

    7.19 InterimMeasure18:HatcheryFunding.....................................................................30

    7.20 InterimMeasure19:HatcheryProductionContinuity..............................................31

    7.21 InterimMeasure20:HatcheryFundingafterRemovalofIronGateDam................32

    7.22 InterimMeasure21:BLMLandManagementProvisions.........................................32

    Figure

    1 KlamathBasinMap....................................................................................................................4

  • KlamathHydroelectricSettlementAgreement

    ImplementationReportJune2013 1

    1.0 IntroductionOnFebruary18,2010,PacifiCorp,alongwithrepresentativesofmorethan40organizations,includingFederalagencies,theStatesofCaliforniaandOregon,NativeAmericantribes,counties,irrigatorsandconservationandfishinggroupssignedthehistoricKlamathHydroelectricSettlementAgreement(KHSA).TheKHSAlaysouttheprocessforadditionalstudies,environmentalreview,andadecisionbytheSecretaryoftheInteriorregardingwhetherremovaloffourKlamathRiverdamsownedbyPacifiCorpshouldproceed.ThefourKlamathRiverdamsproposedtoberemovedareJ.C.Boyle,CopcoNo.1,CopcoNo.2andIronGate.TheKHSAincludesprovisionsfortheinterimoperationofthedamsuntiltheiranticipatedremovalin2020andspellsouttheprocesstotransfer,decommission,andremovethedams.TheKHSAalsoconta