333.95416 N17WMP 1988 Montana SUta SUE PAPER 3 0864 1003 0608 6 WILDLIFE MITIGATION PLANNING 88-10 NORTHWEST POWER PLANNING COUNCIL September 23, 1988 MORRIS L. BRUSETT CHAIRMAN Moniaiu Gcom ■ Vten< Tunxun ^TtdHaUock Oregon Nonm Paului Oregon NORTHWEST POWER PLANNING COUNCIL 851 S.W. SIXTH AVENUE • SUITE 1100 PORTLAND, OREGON 97204-1348 • (503) 222-5161 Toll free number for Idaho, Montana & Washington: 1-800-222-3355 ToU free number for Oregon: 1-800-452-2324 TOM TRLXOM MCE CHAIRMAN Wuhington R. Ted BonfCT Washington ; ALTERNATIVES Alternativs 1. Amend the wildlife mitigation proposals as submitted by the wildlife agencies and tribes into the fish and wildlife program. Approach The wildlife mitigation proposals for Grand Coulee, the Willamette Basin, Palisades, Anderson Ranch and Black Canyon dams were developed by the wildlife agencies and tribes consistent with the direction provided by the Council in Section 1003(b) of the Columbia River Basin Fish and Wildlife Program. The Council could approve the wildlife mitigation proposals in total and amend them into the fish and wildlife program. Summaries of the methods used to determine impacts (losses) and the protection and enhancement proposals to address those impacts were presented earlier in this paper. The proposed schedule for implementation and estimated costs are summarized in the following table. The cost figures for the proposals are the best estimates of the agencies and tribes at this time. The agencies and tribes have indicated they are flexible on extending these schedules, if necessary. State/Facility Washington Grand Coulee Oregon Willamette Basin Estimated Cost $41 .3 million ($1 .5 million annual operation and maintenance) $46.3 to $106.3 million (annual O&M costs after implementation are uncertain) Proposed Implementation Schedule 10 years for initial implementation plus annual operation and maintenance for the life of the project 20 years for initial implementation. Idaho Palisades $15.7 million ($326,900 annual O&M) 10 years for initial implementation plus annual O&M for the life of the project Anderson Ranch $4.5 million ($144,000 annual O&M) Same as Palisades. Blaci< Canyon $0.8 million ($30,000 annual O&M) Same as Palisades. -16- The agencies and tribes have provided the Council with a list of priority wildlife actions spread over various implementation periods in their respective mitigation proposals. This information could be incorporated into the Council's Rve-year Action Plan. Implementation could proceed in a manner similar to that used tor Hungry Horse and Libby dams, where the Action Plan sets up a schedule for advanced design (taking what are conceptual projects and designing them in greater detail), implementation and monitoring. Approving the full scope of the mitigation proposals obviously would be viewed positively by the agencies and tribes. It would provide the greatest level of mitigation to the wildlife and wildlife habitat impacted by the various dams. Approving the mitigation proposals also would reconfirm the Council's past actions that a project-by-project approach (i.e., developing wildlife mitigation proposals as set forth in Section l003(b)(2)-(4) of the program) is the correct method for developing future wildlife mitigation proposals. This would give Bonneville and the agencies and tribes the necessary direction to continue planning for the remaining hydroelectric facilities. Issues A decision to approve the mitigation proposals, as submitted by the agencies and tribes, raises a number of issues. The following are the most likely to arise: • Approval of the mitigation proposals would entail agreeing with the agencies' and tribes' determination of the mitigation levels that should be funded by the ratepayers. While the case made by the agencies and tribes deserves further discussion, some would argue that the method of allocating wildlife mitigation costs is not correct and places too large a financial obligation on the ratepayers. • The estimated costs of the mitigation proposals are high, especially in light of Bonneville's current wildlife budget To fully execute the pending mitigation proposals, as much as $10 million may be needed per year over the implementation period mentioned earlier. Currently, Bonneville's wildlife budget is $1.1 million. The budget is expected to grow to $4.4 million in Fiscal Year 1989 and is proposed at $5 million for Rscal Year 1990, or about 10 percent of the total fish and wildlife budget. These numbers are current estimates and could change. In addition to the costs for the new wildlife proposals, Bonneville will be funding wildlife planning for the remainder of the federal hydroelectric facilities and will be continuing to implement mitigation measures at Hungry Horse and Libby dams. • Qenerally, the pending wildlife proposals stress land acquisition (by fee title purchase or easemerrt) as the primary tool for achieving mitigation. While the agencies and tribes state that their proposals conform to the land acquisition criteria spelled out in the program, (Section 1003(d)(1)-(2)), large-scale land purchases raise a number of policy and institutional issues. In particular, concerns arise about the tax impact of acquisition (i.e., would land purchaas remove larxj from property tax rolls?). In addition, another issue likely to arise is the responsibility for operation and maintenance costs and the management arrangements for acquired lands (i.e., will the lands be dedicated for wildlife purposes only or will other practices, such as cattle grazing, be permitted?). -17- Alternative 2. Adjust the wildlife mitigation proposals so that only a specified portion of the mitigation is funded by the region's ratepayers. Amend the proposals into the program accordingly. Approach Section 4(h)(8)(B) of the Northwest Power Act states in part that "consumers of electric power shall bear the cost of measures designed to deal with adverse impacts caused by the development and operation of electric power facilities and programs only." Some argue that because most of the federal dams are multipurpose projects and most of the project features causing impacts to fish and wildlife serve all project purposes, hydroelectric power purchasers are not obligated to pay for all fish and wildlife impacts caused by the project but only for the hydroelectric share of those impacts. If the Council accepts this view and determines that the ratepayers should not be held accountable for 100 percent of the mitigation, it could adjust the mitigation proposals by some allocation method and amend that decision into the fish and wildlife program. This type of action would be similar to the decision made by the Council for the Hungry Horse and Libby dams wildlife mitigation plans. In its decision on the Hungry Horse and Libby mitigation plans, the Council used the Congressional repayment formula to determine the ratepayer obligation. The Council also has used this formula as one method to determine the oercentage of basinwide salmon and steelhead losses attributable to hydroelectric development Simply stated, the Congressional repayment formula shows how Congress determined the cost of a dam should be repaid (in percent of total returnable dollars from the plant investment). While several other methods for determining ratepayer responsibility are available, most discussions have centered around the Congressional repayment formula and the Corps/Bureau Joint Cost Allocation which uses the Separable Costs- Remaining Benefits (separable costs) method. This separable costs method assigns project costs to individual project purposes. The allocation is based on the costs directly attributable to an individual project purpose (e.g., a powerhouse, which is part of the dam only in order to generate power) plus a share of joint costs (e.g., the cost of the dam, which serves all project purposes). The joint costs are allocated in proportion to the planned benefits of each individual project purpose. ^8J In their estimates of salmon and steelhead losses, the Council estimated anadromous fish run size reduction due to "dam losses." The Council multiplied the dam loss figure by the average percent of hydropower purpose of dams to obtain a loss figure attributable to the hydropower system. While the Council looked at several allocation methods, it concluded that the repayment allocation method appeared appropriate as the estimate of the percentage of dam loss attributable to the hydropower for federal projects, because this represents the amount of the project that is being paid for by hydropower ratepayers. 197 The Allocation of Rsh and Wildlife Costs, Pacific Northwest Utilities Conference Committee, September 1987. -18- The following table shows the adjustment (percentage) tor hydropower allocation using these two methods. Congressional Separable Costs Project Repayment Method Grand Coulee 91.5% 43% Willamette Basin Cougar 31 23 Detroit/Big Cliff 61 40.5 Green Peter/Foster 55 -41,5 Hills Creek 36 24.5 Lookout Point/Dexter 48 31 Palisades 12 7.5 Anderson Ranch 33 5 Black Canyon 33 50 Should the Council choose one of these methods, it could adjust the proposed values in the five mitigation proposals, i.e., adjust the habitat types (acres) and/or the habitat units, which would reduce the number of proposed projects and the overall mitigation cost. Issues Limiting the ratepayer responsibility for wildlife mitigation proposals by use of any of these allocation methods would reduce significantly the overall cost of mitigation. The Council would be agreeing that the dams are multiple purpose facilities and that the ratepayers of the region should not be held responsible for paying 100 percent of the mitigation for losses to wildlife and wildlife habitat. The agencies and tribes are likely to oppose this alternative. Their position is that the mitigation proposals estimated losses and addressed mitigation for hydro-related losses. Therefore, the agencies and tnbes believe strongly that the ratepayers of the region should fund the mitigation they are proposing. Alternative 3. Defer action on the pending wildlife mitigation proposals until wildlife policy issues can be addressed or all wildlife mitigation planning under the program is complete. Approach There are two variations of ihis alternative. First, the Council coukJ defer entering rulemaking- on the pending wildlife mitigation proposals for a period of time, allowing more time for discussion of basinwide wildlife policy issues, perhaps through development of a wildlife policy issue paper. -19- A short-term deferral (less than one year) could give the Council more time to analyze the complex wildlife policy issues raised in this paper. During this time period, the Council could sponsor a series of regional workshops, round tables or consultations with the affected parties. The Council also could use its authority to establish a technical and/or policy-level advisory committee to discuss and forward wildlife recommendations to the Council. In the interim, the Council could approve priority wildlife projects identified in the mitigation proposals. Alternatively, current mitigation proposals could be held until the wildlife policy issues are resolved. Second, the Council could consider a longer-term deferral until all wildlife mitigation planning for the federal hydroelectric facilities in the basin are complete. This would allow the Council to review the full scope of the basin's wildlife proposals before taking action. issues Obviously, an advantage of deferring action would be to give the Council added time to deliberate on these issues. However, there are disadvantages. First, some of the wildlife mitigation proposals have been pending for nearly two years. Deferral of action may be interpreted as affording wildlife mitigation a low priority. Further, since a short-term deferral places the agencies and tribes in a holding pattern for implementing measures at Grand Coulee, the Willamette Basin, Palisades, Anderson Ranch and Black Canyon dams, the agencies and tribes are likely to oppose it. In addition, it is uncertain that deferral will result in consensus on wildlife issues, as many of the issues have been debated for some time. Waiting until all wildlife mitigation proposals are complete before making a decision on the pending proposals would result in a delay of at least two years. Several wildlife planning documents (loss statements/ mitigation proposals) for other hydroelectric projects in the basin are not scheduled to begin until late this fiscal year or next. It is possible that the time needed to complete these proposals fully could be as much as three years. Should the Council choose to defer action, it might be useful to provide additional guidance for the completion of the plans at the remaining hydroelectric facilities in the basin. Alternative 4. Define the boundaries of the wildlife program by a specified program level of effort and pace implementation for approved mitigation proposals over an appropriate time period. Approach The Council might decide to pace the implementation of wildlife mitigation projects through a program level of effort approach. That is, the Council could determine a level of wildlife funding that Bonneville or others "can be expected" to fund over a given number of years. Various alternatives could be used to implement this approach: -20- • Approvs sp«cif1c wildlife projects and control the pace of Implementation In the Action < Plan. ' Using this approach, the Council could approve specific wildlife projects (e.g., from the perxjing and future wildlife mitigation proposals) and amend them into the fish and wildlife program. Wildlife projects included in the program would have to meet the Act's general standards in section 4(h)(5)-(6), i.e., they: protect, mitigate and enhance wildlife affected by the development at the hydroelectric facilities; do not impact a reliable power supply; complement activities of fish and wildlife agencies and tribes; are based on the best available scientific knowledge; use the least expensive means of achieving a sound biological objective; and are consistent with Indian legal rights (see Section 4(h)(5)-(6) of the Northwest Power Act). To pace the implementation of these wildlife projects, the Council could estimate (i.e., based on judgment of proper funding levels comparing wildlife needs with fish needs) the levei of effort Bonneville can be expected to fund over the next five years. The Council would include in the Action Plan (for funding in coming five years) only those wildlife projects that it found consistent with the funding level of effort. The Action Plan list could be amended subsequently as needed to include new wildlife projects from future mitigation proposals or to alter the level of effort. • Limit the program level of effort to wildlife projects that address the greatest need for wildlife restoration or protection and pace the Implementation In the Action Plan. In this method, the pace of implementation and funding level of effort would remain the same (C as the preceding approach. However, the standard for approving wildlife mitigation projects would change. Rather than include all wildlife projects from the mitigation proposals (e.g., those that meet the Act's standards), the Council could limit or prioritize the program. It might address threatened or endangered species and their habitats or projects that address regional species of concern. Wildlife projects meeting these criteria either could be selected from the existing and future mitigation proposals or regionally prioritized by an advisory committee to focus mitigation in areas of greatest biological need. issues Should the Council wish to pursue this alternative, the following concerns may need further discussion. I of effbrt Obviously, choosing the right funding levei of effort will be difficult and would need to be discussed further with the agencies, tribes, utility interests, Bonneville and other affected parties. The dollar amount would need to tal- mitted to Council in 1987. Started 1987 Scheduled USFWS lead forFY89 agency. Boise Diversion Completed Completed The loss statement indicated only 60 acres of wildlife habitat were lost because of the project. Development of a mitigation plan was not pursued for that reason. Hydro Fadlity Status Report Loss Statement Mitigation Plan Additional Comments DworshaK Completed Started June 1987 Proposed forFY88 ... Albeni Falls Completed Started September 1987 Completed Fall 1988 One contract for loss statement & mitigation plan. Minidoka Completed Proposed forFYBS Proposed forFY89 ... Chief Joseph Completed Proposed forFY88 Proposed forFYBQ One contract for loss statement & mitigation plan. Lower Snake Projects Completed Started « Proposed forFYSQ Loss Statement being funded by Corps under F/W Coordination Act McNary/John Day/The Dalles Completed Proposed forFYSa Proposed forFY90 ... (( This mitigation plan has been completed and is currently being printed by Bonnevitie. ( Attachment 2 pGrand Coulee Project and Vicinity CAM*0* UNITED STATES Washington COLVILLE INDIAN RESERVATION • Huntaa Grand Coulee^ Dam SPOKANE INDIAN RESERVATION Willamette River Basin Federal Hydroelectric Proj Portland^0 Eugene DmtroJt/BI^ Cliff Attachment 2 Palisades Project Area Sand Cr««k| ^ ST. ANTHONY Mud Li Markat Laka* i/Hanry'* Fork Snaka Rivar \ South Fork Snaka Rivar ) ^^wiliow Craak fl V PaNaadaa Snaka Rivar) /OAMO FALLS ^ (^— '•s.^Ja* Craak C SWAN VALLEY /" X / 'BLACKFi Craak WILSON" Palisades Reservoir ALPME rOraya Laka Salt Rivar Blackfoot Raaarvoir Oroya RivarV -3- ( Black Canyon Reservoir and vicinity ■5- I Attachment 3 SUMMARY OF WILOUFE IMPACTS Project Grand Coulee Acres Inundated 70,000 Habitat Units (HU) Lost 111,171 HUs for 8 indicator species or indicator habitat plus 74 Canada Goose nest sites Willamette Basin Hills Creek Cougar Detroit Big Cliff Green Peter Foster Lookout Point Dexter 2,710 1,280 3,580 141 3,605 1,195 4,255 1,025 64,000 HUs for 12 target species Palisades Anderson Ranch 16,150 4,740 37,068 HUs for 9 target species 9,619 HUs for 7 target species Black Canyon 1.100 2,238 HUs for 8 target species