Columbia-Snake River Irrigators Association
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Columbia-Snake River Irrigators Association
Policy Memorandum-ESA Litigation Economic Impacts
DATE : |
March 2018 |
TO : |
Pacific Northwest Electric Power Rate Payers |
SUBJECT : |
Columbia River Endangered Species Act Litigation Impacts |
The Endangered Species Act ( ESA ), Biological Opinion litigation for the Columbia- Snake River system has waged for about 25 years . The economic impact to electric power rate payers and other economic sectors is formidable :
• The Bonneville Power Administration ' s ( BPA ) Fish and Wildlife Program primarily funds the Biological Opinions ( BiOp ) created by the ESA actions and protracted litigation . Since 1992 , BPA has spent about $ 17 billion on the Program , most funding directed toward ESA actions . Other hydro utilities have spent additional tens-of-millions-of dollars .
• The BPA Fish & Wildlife Program costs now amount to about one-third of the power costs within the agency ' s wholesale rate to regional utilities . This amounts to about $ 700 million —$ l billion annually , depending on water conditions and replacement power costs .
• The BiOp actions forced a " no net loss " water policy on Washington State , where no new water rights have been issued for irrigation purposes , from the Columbia-Snake River system — even though new water withdrawals would be imperceptible . This amounts to tens-of-millions of dollars , of foregone capital investment and regional household income .
• U . S . District ( Oregon ) Judge Michael Simon has issued a new reversal order for the 2014 BiOp , based on legal pressure from Earth Justice and the state of Oregon . That order , alone , requires the federal agencies to prepare another Environmental Impact Statement ( EIS ) estimated to cost BPA $ 81 million .
• The Judge ’ s order for additional , 2018 , hydro project spill operations will cost the region ' s rate payers another $ 40 million .
• If the new EIS and BiOp litigation process leads to breaching / drawdowns for the Lower Snake River dams and other Columbia River Project pools , the capital cost would likely be $ l-2 billion , with additional power impacts exceeding $ 200 million annually .
• Under a new BiOp , the BPA will be directed to spend additional funds for undetermined " habitat projects ," costing hundreds-of-millions of dollars , above existing commitments .
3030 W . Clearwater , Suite 205-A , Kennewick , WA , 99336 509-783-1623 , DOIsenEcon @ AOL . com