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(Update: After overwhelming demand from PNW energy ratepayers calling for the White House "secret" deal to be made public and for their interests to be considered in these negotiations, a copy of the U.S. Government's Memorandum of Understanding has been made public. You can read that 92-page document here.)
For more than six months, the White House has been secretly negotiating a $1 billion agreement that stands to raise electricity rates and target the lower Snake River dams.
On Dec. 14, the White House proposed a five to 10-year stay on legal proceedings to implement a $1 billion plan aimed at boosting fish populations and potentially involving breaching the four lower Snake River dams — Ice Harbor, Lower Monumental, Little Goose and Lower Granite — all part of the Federal Columbia River Power System and located in Southeastern Washington.
3 million U.S. energy customers left in the dark
The White House had secretly negotiated the settlement over a period of at least six months, without the knowledge or input of the U.S. Congress, 120 electric utility companies, at least five impacted states, 38 federally recognized tribes and 3 million U.S. energy customers.
The Biden administration deal not only requires $1 billion in funding to be collected from energy ratepayers, it also gives the states and four tribes control — not the Bonneville Power Administration, which sells hydropower from Northwest dams — over how the money is spent. Under the new terms, Bonneville Power Administration's energy customers will spend $300 million for salmon programs, overseen by four tribes and the states of Oregon and Washington. Companies and families that buy power from Bonneville will pay the cost in the form of rate increases. That $300 million is in addition to $200 million in funds for a separate tribal plan to reintroduce salmon in the upper Columbia River Basin.
According to some industry estimates, the White House plan could drive up customers' electric rates by as much as 40%.
On top of the $1 billion in funding promised by the White House, the administration also said it plans to double total fish and wildlife spending, with the money coming from U.S. taxpayers via Congress.
The White House issued a memorandum of understanding between the U.S. government and the "six sovereigns" – the states of Washington and Oregon and four tribes: the Nez Perce, Umatilla, Warm Springs and Yakama. There is no mention of 38 other federally designated tribes in the Pacific Northwest region or five additional impact states, including Idaho, Montana, Utah, Wyoming or Nevada, all of which purchase power from the Bonneville Power Administration.
Although the White House plan doesn't explicitly pledge to breach the lower Snake River dams without an act of Congress, it mentions breaching them near six-dozen times in its previously secret agreement.
The lower Snake River dams produce about as much annual energy (1,000 average megawatts) as a large nuclear power plant. But they can produce up to three times that amount during periods of high demand. As many as 750,000 homes rely on the carbon-free power generated by the four dams. During times of extreme need, the dams can power up to 2.25 million homes.
The White House's proposed agreement was filed in U.S. District Court in Oregon. Judge Michael H. Simon set a deadline for responses to the proposal by Dec. 29, followed by rebuttals until Jan. 14 before there will be a ruling. The lawsuit originated in 2001 when the National Wildlife Federation and Oregon sued the National Marine Fisheries Service, claiming federal officials neglected measures to protect endangered salmon in the Columbia and Snake rivers. There have been more than 70 parties and 100 attorneys involved in the ongoing dispute. Plaintiffs argued that operation of the dams violates the Endangered Species Act and treaties dating to the mid-19th century ensuring tribal rights to harvest fish.
The lower Snake River dams all meet and even exceed federal and state standards for safe fish passage. In July, the U.S. Army Corps of Engineers tested an improved fish passage turbine at Ice Harbor Lock and Dam. Testing showed a 98.25% direct survival rate for balloon tagged juvenile Chinook salmon.
On Dec. 1, the state of Idaho joined the long-standing lawsuit, filing a complaint that argues dam breaching is "unavailable as a remedy" since the four dams predate the federal designation of salmon as endangered.
"The State of Idaho has direct and substantial interests in the existence of the LSR dams … (which) provide a navigable channel enabling commodities from Idaho to flow from the Port of Lewiston to global markets," the filing states.
Idaho's filing notes that the dams generate electricity for thousands of Idaho households, while the reservoirs offer recreational amenities and economic advantages to the state and its residents.
White House mentions 'breaching the dams' 68 times
U.S. Reps. Cathy McMorris Rodgers and Dan Newhouse, Republicans whose Washington districts include the dams, expressed serious concerns following the White House's announcement of its Columbia Basin Restoration Initiative.
“This final package, which would make our region’s dams effectively defunct, confirms what we’ve all known for years,” Rep. Newhouse said. “The Biden administration is catering to the wishes of extreme environmental activists that do not understand both the importance of the dams to our region, and the consequences of their proposed actions.”
Newhouse noted that only Congress has authority to breach the dams.
“Given that ‘breaching the dams’ is mentioned 68 times total in the package, it is abundantly clear what the goal of this administration is,” he said.
Northwest RiverPartners, a member-driven organization that serves not-for-profit, community-owned electric utilities in Oregon, Washington, Idaho, Montana, Utah, Nevada and Wyoming, warned that the White House agreement could lead to higher electricity costs and other consequences for salmon. “This settlement undermines the future of achieving clean energy goals and will raise the rates of electricity customers across the region while exacerbating the greatest threat to salmon that NOAA scientists have identified – the warming, acidifying ocean,” the organization said in a news release.
Washington Gov. Jay Inslee and Oregon Gov. Tina Kotek praised the White House initiative.
U.S. Sen. Patty Murray highlighted the foundational role of salmon in the region's economy, culture and environment. But Murray added: "I recognize there are so many other people – growers and producers, public utilities, river users, ports, and others – who rely on the benefits the river provides; it's important their voices are heard in these conversations, and I will continue to engage with them and work to ensure their perspectives and concerns are taken into account."
In 2022, Gov. Inslee and Sen. Murray, both Democrats, released a report saying the dams simply cannot be breached unless and until the carbon-free electricity they produce can be replaced.
There has been no independent engineering and cost-benefit and fish-benefit analysis, but recent studies concluded that breaching the four lower Snake River dams could cost taxpayers between $10.3 billion and $77 billion.
On the other hand, preserving the lower Snake River dams will help keep Washingtonians' energy costs low. Hydropower is the reason Pacific Northwest utilities have the lowest clean energy rates in America. That low-cost, reliable energy is not just a privilege; it's a life-saving necessity, particularly to heat homes during bitter cold winter months or to prevent blackouts from threatening public safety and human lives.
In a letter addressed to President Joe Biden, four Northwest lawmakers — U.S. Reps. Dan Newhouse, R-WA, Cathy McMorris Rodgers, R-WA, Russ Fulcher, R-ID, and Cliff Bentz, R-Ore. — published the U.S. government’s elusive “package of commitments,” which had been labeled in red, “CONFIDENTIAL MEDIATION DOCUMENT — NOT FOR DISTRIBUTION.”
The previously secret White House agreement appears to rely exclusively on a Sept. 23, 2022, report by the National Oceanic and Atmospheric Administration (NOAA) and the Aug. 25, 2022, Lower Snake River Dams Benefit Replacement Report by U.S. Sen. Patty Murray and Washington Gov. Jay Inslee as the basis for the initiative. It seeks to establish a “Pacific Northwest Tribal Energy Program” and “explore” breaching of the lower Snake River dams.
The plan reveals that the U.S. Department of Energy and the U.S. Department of Agriculture “will provide targeted technical assistance, planning, and funding” to the Nez Perce, Yakama, Warm Springs and Umatilla Tribes “to develop and deploy clean, renewable, socially-just energy resources” in the region.
“This new, clean Tribally-sponsored energy will be planned as ‘replacement’ power for the lower Snake River dams if Congress authorizes the breach of those dams,” the agreement states.
The document also tasks the U.S. government and Department of Energy with developing a “means of ‘accounting’ for the region’s development of resources available to serve as ‘replacement’ energy services for the lower Snake River dams,” in the event that breaching of the dams is authorized. The deadline for development of that accounting process is set for Feb. 1, 2024.
‘Clarity on implications of this agreement is imperative’
As Modern Electric Water Company reported, the four lawmakers had drafted a Nov. 20 letter demanding transparency, labeling the White House negotiations a “secret plan” concealed from public scrutiny.
In a Nov. 29 letter to President Biden, they wrote:
“As best we can tell, this document reflects the negotiating positions of the U.S. Government (USG) in the long-standing mediation concerning the Columbia River System Operations (CRSO). Due to the document’s use of vague and imprecise language, it appears susceptible to misinterpretation. …
“It is imperative that our constituents, whose livelihoods depend on the Columbia River System, have a comprehensive understanding of this document’s contents so they can anticipate and prepare for the wide-ranging impacts that will inevitably be felt across the region should the commitments detailed in this document be realized. Additionally, as Members of Congress representing the Pacific Northwest and tasked with oversight of the Executive Branch, it is our duty to ensure any actions committed to as part of this agreement do not circumvent by any means the congressional authorization that would be required to execute certain proposed provisions, such as the removal of certain dams.
“Our constituents’ livelihoods are intricately tied to the Columbia River System’s operations. Clarity on the implications of this agreement is imperative for them to anticipate and prepare for the impending effects.”
The members of Congress raised several questions about the document, including the following, and demanded clarification from the Biden administration:
- Why does this program apply to only four of the more than 40 federally recognized Tribes in the Pacific Northwest?
- Does the U.S. government seek to advance efforts to breach the Lower Snake River dams after securing this “replacement” power?
- Will these actions reduce the independence of the Bonneville Power Administration (BPA) in effectuating ratemaking decisions, assessing its statutory responsibilities, and setting its rates? If so, what will be the impact to ratepayers in the region?
- Did the U.S. government rely on any additional scientific reports or studies, other than the NOAA report, which show categorically the science on salmon recovery in the Columbia River basin is clear? If so, why is this the only report cited by the U.S. government in this document?
- Is your administration hoping the studies and actions funded by this report will substantiate enough “evidence” to undermine the economic viability of the hydroelectric system?
- Is there any scenario that would lead your administration to proceed with breaching without express authorization from Congress?
- Is it your official position at this point in time that these dams should ultimately be breached?
- Are appropriations from Congress being relied upon to fund any of the commitments contained in these Actions and Commitments, and if so, what specific commitments will appropriated funds be sought for?
- Have there been consultations with any Members of Congress in drafting either this section or any of the other commitments made in the document? If so, have written assurances of authorizing appropriations of these funds been made?
- What happens should the necessary “authorizations and appropriations” not be secured?
The Public Power Council — a coalition of nonprofit, community-owned electric utilities in seven Western states — said some parties in the litigation were working secretly with the federal government for more than six months on the proposal.
Why do these 4 dams matter?
The White House’s CEQ has repeatedly made overtures about breaching the lower Snake River dams. However, if the four dams are breached, Pacific Northwest residents stand to face potentially significant price increases and power outages due to energy shortages in the region.
Washington state’s own Commerce Department has predicted that its energy demand will double by 2050, and studies show that demand for electricity will outpace supply, putting the power grid under unsustainable pressure. This means Americans living in the Pacific Northwest would face growing risk of blackouts.
A 2020 Columbia River System Operations Environmental Impact Statement found that breaching the lower Snake River dams could:
- Double the risk of region-wide blackouts
- Add 3 million metric tons of carbon to the atmosphere every year from fossil-fueled electricity
- Increase the region’s electricity costs by $800 million a year and the Bonneville Power Administration’s power costs by 50%, which could increase energy costs at home by up to 25% or more
- Result in the loss of $540 million per year in regional economic productivity
- Result in the loss of 4,900 jobs as a result of higher electricity costs
- Reduce social welfare by $458 million annually from the loss of irrigated land and farm laborers
- Add 79,000 more semi-trucks to the road each year
Washington had some of America’s worst power outages in 2021, according to data from the U.S. Energy Information Administration. In that year, the average Washington state electricity customer experienced 8.8 hours of power outages, up from 4.4 hours in 2020 and more than triple the average from 2013. That was the eighth worst average across all 50 states.
But what about the salmon?
The lower Snake River dams all meet and even exceed federal and state standards for safe fish passage.
Thanks to hydropower technologies such as fish ladders, turbine pass systems, fish screens, spillway weirs and other technology, fish survival rates at dams are now between 93% and 99%. These rates are comparable to those of free-flowing rivers.
Washington has seen three consecutive years of improving salmon returns. In 2023, the numbers of fall Chinook coming back to the Columbia River tributaries have been the best since 2015. In September, the Snake River fall Chinook run was 44% higher than the 10-year average.
Pacific Northwest energy ratepayers (customers of the Bonneville Power Administration) have funded more than $7.6 billion in fish and wildlife protection since 1981.