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