FY 2002 Columbia Plateau proposal 25074
Contents
Section 1. General administrative information
Section 2. Past accomplishments
Section 3. Relationships to other projects
Section 4. Budgets for planning/design phase
Section 5. Budgets for construction/implementation phase
Section 6. Budgets for operations/maintenance phase
Section 7. Budgets for monitoring/evaluation phase
Section 8. Budget summary
Reviews and Recommendations
Additional documents
Title | Type |
---|---|
25074 Narrative | Narrative |
25074 Sponsor Response to the ISRP | Response |
Section 1. Administrative
Proposal title | Deschutes Water Exchange |
Proposal ID | 25074 |
Organization | Deschutes Resources Conservancy (www.dbrc.org) (DRC) |
Proposal contact person or principal investigator | |
Name | Gail Achterman |
Mailing address | PO Box 1560 Bend, OR 97709-1560 |
Phone / email | 5414800694 / gailachterman@dbrc.org |
Manager authorizing this project | Gail Achterman |
Review cycle | Columbia Plateau |
Province / Subbasin | Columbia Plateau / Deschutes |
Short description | Develop an active water market in the Deschutes Basin to reallocate water cost effectively from out-of-stream to instream use in order to improve stream flows and water quality. |
Target species | See Deschutes River Subbasin Summary Table 2, page 186. Priority will be placed on restoring streamflows for Deschutes River Summer/Fall Chinook, Mid-Columbia Spring Chinook, Middle Columbia River Steelhead, Redband Trout, Pacific Lamprey and Bull Trout. |
Project location
Latitude | Longitude | Description |
---|---|---|
Headwaters of the Deschutes Basin | ||
Mouth of the Deschutes River at the Columbia River | ||
Entire Deschutes Basin Hydrological Unit | ||
45.6389 | -120.9151 | Deschutes River |
Reasonable and Prudent Alternatives (RPAs)
Sponsor-reported:
RPA |
---|
Action 28 |
Action 151 |
Relevant RPAs based on NMFS/BPA review:
Reviewing agency | Action # | BiOp Agency | Description |
---|---|---|---|
NMFS | Action 151 | NMFS | BPA shall, in coordination with NMFS, experiment with innovative ways to increase tributary flows by, for example, establishing a water brokerage. BPA will begin these experiments as soon as possible and submit a report evaluating their efficacy at the end of 5 years. |
Section 2. Past accomplishments
Year | Accomplishment |
---|---|
1998 | Conserved water for instream flows = .82 cfs |
North Unit Irrigation District Piping Project installs 20,235 feet of pipe to replace an open ditch. Instream right is .82cfs | |
1998 | Annual Water Leasing Program = 5.53 cfs |
Irrigators donated water rights of 5.53 cfs to improve instream flows | |
1999 | Conserved water for instream flows = 8.73 cfs |
Squaw Creek Irrigation District Thompson Ditch Project returns water to 6 miles of Squaw Creek, eliminating the Thompson Ditch and replacing flood irrigation with a sprinkler system to conserve .61 cfs | |
Tumalo Irrigation District pipes a section of the Bend Feed Canal to conserve 5.8 cfs senior water rights | |
Central Oregon Irrigation District replace 15,860 feet of ditch with pipe to conserve 2.32 cfs | |
1999 | Water Rights Acquisition = 1.81 cfs |
Purchased 1.81 cfs in the Smith-Barclay Ditch for instream flows | |
1999 | Annual Water Leasing Program = 5 cfs |
Irrigators donated water rights for 5 cfs to improve instream flows | |
2000 | Conserved water for instream flows = 19.8 cfs |
Squaw Creek Irrigation District Cloverdale Piping Project replaces 15,840 feet of open ditch with pipe saving 3 cfs | |
Tumalo Irrigation District Phase II of Bend Feed Canal piping saves 16.8 cfs junior water rights | |
2000 | Water Rights Acquisition = .99 cfs |
Purchased Camp Polk Water Right of .99 cfs to be returned instream | |
2000 | Annual Water Leasing Program = 4.38 cfs |
Irrigators donated water rights for 4.38 cfs to improve instream flows | |
2001 | Conserved water for instream flows projected savings = XXX cfs |
2001 | Water Rights Acquisition estimate = XXX cfs |
2001 | Annual Water Leasing Program anticipated flow contribution =22 cfs |
Total permanent instream flow improvements = 32.15 cfs |
Section 3. Relationships to other projects
Project ID | Title | Description |
---|---|---|
199908800 | Oregon Water Trust Water Acquisition | The Water Trust project is systemwide. This project is limited to the Deschutes and will create market institutions that the Water Trust and others can use. It will work cooperatively with the Water Trust on all Deschutes acquisitions. |
28 | 2000 FCRPS Action 28: BOR shall pursue water conservation improvements at its projects and shall use all mechanisms available to it under state and Federal law to ensure that a reasonable portion of any water conserved will benefit listed species | The DRC is funded through the BOR. The Deschutes Water Exchange will assist federal and private irrigation districts in implementing their conservation plans with at least 50 percent of conserved water going to instream flows. |
151 | 2000 FCRPS Action 151: BPA shall, in coordination with NMFS, experiment with innovative ways to increase tributary flows by, for example, establishing a water brokerage. | The Deschutes Water Exchange will establish a water brokerage to develop and implement transactional strategies for securing tributary and mainstem flows and improving water quality in the Deschutes River Basin. |
Section 4. Budget for Planning and Design phase
Task-based budget
Objective | Task | Duration in FYs | Estimated 2002 cost | Subcontractor |
---|---|---|---|---|
1. Establish Market: create an active, organized exchange to allow water rights holders to buy and sell water rights within the basin to improve instream flows. | Task 1a: Develop a framework for the exchange based on general theories of creating markets, research water markets. Develop product and services. Develop operating procedures, recordkeeping, transactional agreements, operating procedures. | January - June 2002 | $75,400 | Yes |
Task 1b. Design and construct information database. Develop a means of accessing the database on-line. Collect price information for inclusion in database. | January-June 2002 | $40,000 | Yes | |
Task 1c: Design, develop, install and test a website to be the primary vehicle for exchange activities. Market and promote website use. | January-April 2002 | $38,000 | Yes | |
Task 1d: Develop and market water brokerage service. Draft consulting contracts. Prepare marketing plan and fee schedule. Meet prospective clients. | January-April 2002 | $55,000 | ||
2. Acquire water rights for instream flow restoration. | Task 2a: Meet with ODFW and OWRD to refine streamflow acquisition priorities. | January- April 2002 | $9,000 |
Outyear objectives-based budget
Objective | Starting FY | Ending FY | Estimated cost |
---|---|---|---|
Establish Market | 2003 | 2006 | $297,000 |
Aquire water rights | 2003 | 2006 | $30,000 |
Outyear budgets for Planning and Design phase
FY 2003 | FY 2004 | FY 2005 | FY 2006 |
---|---|---|---|
$81,000 | $80,500 | $82,000 | $83,500 |
Section 5. Budget for Construction and Implementation phase
Task-based budget
Objective | Task | Duration in FYs | Estimated 2002 cost | Subcontractor |
---|---|---|---|---|
1. Establish market | Task 1a-Market Framework: Undertake appropriate transactions; evaluate and revise products, services, documentation, processes, systems as needed. | June-December 2002 | $22,000 | |
Task 1b-Information Database: Install manual or automated systems and load data to begin operation. Test and launch | June-December 2002 | $71,000 | Yes | |
Task 1c-Website: Install system developed, test and launch and observe usage | April-December 2002 | $10,000 | Yes | |
Task 1d-Water brokerage: Seek a role in transactions identified and begin deal negotiations. | April-December 2002 | $28,000 | ||
2. Acquire water rights for instream flows. | Task 2b. Promote and expand water leasing program to add 2,860 acres @ $35 per acre. | January-April 2002 | $120,100 | |
Task 2c. Acquire 10 cfs of water rights for instream flows through conservation or purchase @ $50,000 per cfs | January-December 2002 | $531,500 |
Outyear objectives-based budget
Objective | Starting FY | Ending FY | Estimated cost |
---|---|---|---|
1. Exchange operations | 2003 | 2006 | $352,000 |
2b. Continue to expand water leasing program | 2003 | 2006 | $815,000 |
2c. Increase instream flows by acquiring 10 cfs per year | 2003 | 2006 | $2,205,000 |
Outyear budgets for Construction and Implementation phase
FY 2003 | FY 2004 | FY 2005 | FY 2006 |
---|---|---|---|
$779,000 | $823,000 | $867,000 | $903,000 |
Section 6. Budget for Operations and Maintenance phase
Task-based budget
Objective | Task | Duration in FYs | Estimated 2002 cost | Subcontractor |
---|
Outyear objectives-based budget
Objective | Starting FY | Ending FY | Estimated cost |
---|
Outyear budgets for Operations and Maintenance phase
Section 7. Budget for Monitoring and Evaluation phase
Task-based budget
Objective | Task | Duration in FYs | Estimated 2002 cost | Subcontractor |
---|---|---|---|---|
1. Establish Market | Task 1a-Market Framework. Evaluate and revise as experience dictates | 2003-2006 | $0 | Yes |
Task 1b-Information Database. Evaluate performance according to outcomes desired and revise as indicated | 2003-2006 | $0 | Yes | |
Task 1c-Website. Evaluate function and productivity of site regularly and revise as indicated | 2003-2006 | $0 | Yes | |
Task 1d-Water Brokerage. Evaluate transactions completed in terms of outcomes desired. Revise processes, documentation and fees as appropriate. Design new programs consistent with original objectives that meet emerging needs | 2003-2006 | $0 | ||
2. Water rights acquisition. | Tasks 2b & 2c. Water leasing and acquisition. Evaluate effectiveness and costs of various acquisition methods. | 2003-2006 | $0 |
Outyear objectives-based budget
Objective | Starting FY | Ending FY | Estimated cost |
---|---|---|---|
1. Establish instream water rights | 2003 | 2006 | $124,600 |
2. Water acquisition | 2003 | 2006 | $31,000 |
Outyear budgets for Monitoring and Evaluation phase
FY 2003 | FY 2004 | FY 2005 | FY 2006 |
---|---|---|---|
$34,800 | $36,800 | $37,000 | $47,000 |
Section 8. Estimated budget summary
Itemized budget
Item | Note | FY 2002 cost |
---|---|---|
Personnel | FTE: staff hours 2760 @ $50 per hour | $138,000 |
Fringe | calculated at 25 percent | $34,500 |
Supplies | 2 computers, laptop, software, printing, advertising and promotion | $35,000 |
Travel | 12,000 miles per year @$.32 | $3,840 |
Indirect | $36,660 | |
Capital | Water rights leasing and acquisition | $600,100 |
NEPA | Provided by BOR and other agencies | $0 |
PIT tags | # of tags: NA | $0 |
Subcontractor | website design and construction; financial and business planning services | $146,500 |
Other | Audit | $5,400 |
$1,000,000 |
Total estimated budget
Total FY 2002 cost | $1,000,000 |
Amount anticipated from previously committed BPA funds | $0 |
Total FY 2002 budget request | $1,000,000 |
FY 2002 forecast from 2001 | $0 |
% change from forecast | 0.0% |
Cost sharing
Organization | Item or service provided | Amount | Cash or in-kind |
---|---|---|---|
OWEB | funding for water bank | $55,000 | cash |
Irrigation districts | funds for conservation projects | $0 | cash |
OWRD | support for database development | $0 | in-kind |
DRC | funding for water acquisitions | $500,000 | cash |
BOR | $200,000 | cash | |
OWEB | funding for water acquisition | $100,000 | cash |
Other budget explanation
Any contribution by the DRC to this project is contingent upon continued federal appropriations to the BOR for the DRC. No funds have been committed yet by irrigation districts or OWEB for further water acquisitions. The estimated cost shares are based upon the DRC's past experience.
Reviews and recommendations
This information was not provided on the original proposals, but was generated during the review process.
Fundable only if response is adequate
Jun 15, 2001
Comment:
Fundable if adequate responses are given to ISRP concerns. This proposal uses the opportunity to develop markets for water rights as a means to converting water to in-stream flow use. The project is directed toward the goal of reallocating water in the Deschutes Basin from out-of-stream to instream use to improve stream flows and water quality. Trout Creek is only major tributary with private rights below Pelton Dam. The project would conduct two major activities: create the market infrastructure for exchanging water rights; 2. purchase water rights. Market infrastructure would be developed through a water brokerage that provides market information and assistance in conducting exchange transactions. Purchased water rights will be converted to in-stream flows directed at a quantitative objective of 1000 cfs. The water exchange would require the hiring of a project manager. Major budget items are for the purchase of water rights, which would be permanently converted to in-stream flows.
More detail should be provided on the following:
- What are the major factors limiting the development of private water markets? Why is public funding for market infrastructure necessary? If it is necessary, does this project have endorsement from OR Water Trust or other potential user?
- Would you anticipate that private brokerages would eventually take over this function? How will this transition be made, and at what point?
- What are the existing mechanisms used to permanently transfer water to in-stream flow?
- How will the alternatives of lease, conservation or direct purchase be prioritized to obtain in stream flow? In general, long-term leases or direct purchases would seem to be more appropriate than conservation. Purchases should also include riparian habitat protections when possible.
- What is the current source of information on water transactions? Will this project duplicate existing services?
- What is meant by a "non-profit" water market?
- How is the current water shortage likely to affect voluntary donations?
Comment:
Project addresses a bi-op recommendation (I.e., establishing water banks). This project addresses RPA 151.Comment:
Fundable. This proposal uses the opportunity to develop markets for water rights as a means to converting water to instream flow use. The project is directed toward the goal of reallocating water in the Deschutes Basin from out-of-stream to instream use to improve stream flows and water quality. Trout Creek is the only major tributary with private rights below Pelton Dam. The project would conduct two major activities: 1. create the market infrastructure for exchanging water rights; 2. purchase water rights. Market infrastructure would be developed through a water brokerage that provides market information and assistance in conducting exchange transactions. Purchased water rights will be converted to in-stream flows directed at a quantitative objective of 1000 cfs. The water exchange would require the hiring of a project manager. Major budget items are for the purchase of water rights, which would be permanently converted to in-stream flows. The response was adequate, detailed, and thoughtful. The response indicates that all information on water rights transfers will be made available to interested parties. It will be particularly useful to have the information on water rights transfers made available to research economists so that information gained from this effort can be transferred to potential efforts elsewhere.Comment:
Statement of Potential Biological Benefit to ESUDevelop an active water market in the Deschutes Basin to reallocate water cost effectively from out-of-stream to instream use in order to improve stream flows and water quality.
Comments
Project addresses BiOp RPA #151 -- This proposal correctly interprets 151 to include the opportunity to develop markets for water rights as a means to converting water to instream flow use.
Already ESA Req? no
Biop? yes
Comment:
This proposal addresses an important topic of water use throughout the Columbia River Basin. If successful, this concept could and should be expanded to many other critical water sub-basins. However, this proposal should be deferred for consideration by the Regional Water Entity that is created in response to RPA 151. The Exchange could seek local entity status under the Water Entity RFQ. Some aspects of the proposal, not directly dealing with water transactions, could be considered for separate funding within the Provincial Review process.Comment:
Staff Recommendation: Council staff believes that proposal 25074 (Deschutes water exchange) will meet BiOp needs by responding to RPA action item 151. This new project would appear a prime candidate for funding under the Regional Water Entity. Bonneville also believes the Deschutes Resources Conservancy project should be funded under the Regional Entity and the Council would encourage Bonneville to consider the DRC project for funding under that process. Because it is unclear how or when the Regional Water Entity will be funded at this time, the project funding recommendation is not shown to have an effect on the base Columbia Plateau budget.Budget effect on base program (Project 25074):
FY 2002 | FY 2003 | FY 2004 |
---|---|---|
No effect | No effect | No effect |