Klamath dam deal draws big support

SALEM -- High-level state and federal officials joined tribal, agricultural, fisheries and environmental leaders in Oregon's Capitol last week in a show of support for two Klamath Basin agreements five years in the making.

California Gov. Arnold Schwarzenegger, Oregon Gov. Ted Kulongoski and U.S. Secretary of the Interior Ken Salazar on Feb. 18 signed onto what Salazar called "the largest river restoration effort that America has ever seen" and the world's largest-ever dam removal project.

"This agreement brings together dozens of groups that for years and years have stood toe to toe, but now stand side by side in this cause," Schwarzenegger said.

"The word historic is often overused, but today we are going to sign two agreements that by everyone's definition are historic," Kulongoski said.

The basin's two state legislators, meanwhile, oppose the agreements, along with some Klamath Basin farmers and ranchers. Opponents say the agreements fall short of ensuring that farmers and ranchers have adequate access to water.

PacifiCorp, which owns the four dams earmarked for removal, was among 30 parties that signed the pacts.

The agreements include a basin restoration pact, which stipulates stakeholder responsibilities, and a hydroelectric settlement, which will guide whether officials move on plans to remove four upper Klamath River dams.

Removing the dams is seen as a low-cost and environmentally friendly alternative to relicensing the dams. The Federal Energy Regulatory Commission has informed PacifiCorp it must relicense the dams to continue to operate them. Included in extensive relicensing costs are the installation of fish ladders.

Under the agreements signed last week, PacifiCorp ratepayers are on the hook for $200 million of the projected $450 million decommissioning costs. California lawmakers recently approved floating a bond measure to cover the remaining $250 million.

The $250 million is part of an $11 billion bond measure lawmakers are putting to voters in November to rebuild California's crumbling water system.

PacifiCorp plans to generate its share through a monthly surcharge over 10 years. About $180 million of the $200 million is expected to come from Oregon ratepayers, who make up the majority of PacifiCorp's customers.

Also under the agreements, the federal government is expected to provide as much as $1 billion in restoration funds, with the bulk coming from Interior Department appropriations.

The secretary of the Interior in March 2012 is scheduled to make a final determination on whether to go forward with removing the dams. The decommissioning would start in 2020.

The agreements are contingent upon several factors, including whether Congress funds the plans and whether preliminary cost estimates are in line with actual costs. The secretary is expected to determine whether to proceed based in part on findings from a comprehensive study of the environmental impacts of removing the dams.

Salazar and others who spoke Feb 18 in Salem downplayed possibilities the agreements ultimately could derail.

"Failure is not an option," Salazar said. "We will succeed in the days and months and years ahead as we move forward."

"Today is a great time for celebration," Schwarzenegger said. "Just 15 months ago we were all promising each other that we are going to do everything we can to go through our differences and to finalize an agreement to tear down those dams, and to say hasta la vista to the dams on the Klamath River."