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19p.; ill.; Cover title; "June 1997"; "Reprint September 1998"; [Washington, D.C.]: Supt. of Docs., U.S. G.P.O., 1999
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Only portions of issues of The Water Report are available in the Klamath Waters Digital Library. See the full report at http://www.thewaterreport.com/
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A GUIDE TO PART I - ESTABLISHING COMMON BASINS A GUIDE TO PART II - THE FOUR ELEMENTS OF THE OREGON PLAN THE OREGON PLAN - BASIN BY BASIN KEY TO BASIN LAYOUTS BASIN REPORTS North Coast Umpqua South Coast ...
Citation Citation
- Title:
- Oregon Plan for Salmon and Watersheds biennial report, 2001-2003
- Author:
- Oregon Watershed Enhancement Board
- Year:
- 2003, 2005, 2004
A GUIDE TO PART I - ESTABLISHING COMMON BASINS A GUIDE TO PART II - THE FOUR ELEMENTS OF THE OREGON PLAN THE OREGON PLAN - BASIN BY BASIN KEY TO BASIN LAYOUTS BASIN REPORTS North Coast Umpqua South Coast Rogue Klamath Lakes Basin Owyhee-Malheur Powder Grande Ronde Umatilla John Day Deschutes Hood Lower Columbia Willamette FEDERAL CONSERVATION AND RESTORATION DATA THE OREGON PLAN - FOUR ELEMENTS AGENCY ACTIONS VOLUNTARY RESTORATION ACTIONS BY OREGONIANS MONITORING SCIENCE OVERSIGHT HI. THE OREGON PLAN-OBSERVATIONS and RECOMMENDATIONS OF THE OWEB BOARD DATA SOURCES and CREDITS
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44. [Image] Upper Klamath Basin : opportunities for conserving and sustaining natural resources on private lands
1 i California Oregon Cover Photo: Lower Klamath National Wildlife Refuge at sunset Tupper Ansel Blake/ USFWS Map Detail Area: Upper Klamath River Basin ii T he Klamath River Basin presents numerous ...Citation Citation
- Title:
- Upper Klamath Basin : opportunities for conserving and sustaining natural resources on private lands
- Author:
- United States. Natural Resources Conservation Service
- Year:
- 2004, 2005
1 i California Oregon Cover Photo: Lower Klamath National Wildlife Refuge at sunset Tupper Ansel Blake/ USFWS Map Detail Area: Upper Klamath River Basin ii T he Klamath River Basin presents numerous challenges as well as opportunities for its many water users. For years, farmers and ranchers in the basin have recognized the vital role they play in the health of their watershed. Working with conservation districts, the Natural Resources Conservation Service ( NRCS) and others, land managers continue to proactively find ways to enhance natural resources in the basin, benefiting wildlife and the environment. However, as it has across the western United States, drought hit home in the Klamath for those who depend on every drop of water to sustain their livelihood, culture and community. In the spring of 2001, the combination of drought and the impact of the Endangered Species Act triggered a shutdown of irrigation water during the growing season, drying up water resources to more than 2,000 farms and ranches. NRCS, in cooperation with local conservation districts, provided a quick infusion of technical assistance and $ 2 million in cost- share funding for cover crops through the Emergency Watershed Protection Program. As cover crops took hold, the seeds of a long- term solution took root in the NRCS/ conservation district partnership. The ability of the local office to receive funding, engage community members and other partners, plan resource improvements, implement actions, and monitor success proved to be an invaluable asset for the community. Helping private landowners develop and apply practical, common- sense solutions to complex resource issues will be the challenge of the conservation partnership well into the future. USDA, in concert with the locally led conservation districts, will continue to play a critical role by delivering technical and financial assistance to Klamath Basin farmers and ranchers. The Rapid Subbasin Assessments that follow are the first step in that process. The assessments are designed to help local decision- makers determine where investments in conservation will best benefit wildlife habitat, agriculture and other land uses in a compatible manner. It is our goal to provide a comprehensive overview of resource challenges and opportunities in the basin, and help decision- makers to prioritize their investments in areas that will best sustain multiple use of natural resources in the basin now and in the future. Sincerely, Robert J. Graham Charles W. Bell, State Conservationist State Conservationist Oregon NRCS California NRCS iii iv Table of Contents Map of the Upper Klamath Basin ................................ i Letter from OR and CA State Conservationists .......... ii Overview of the Upper Klamath Basin ........................ 1 Background ................................................................................... 1 Upper Klamath Basin Description ............................................ 2 The Role of Agriculture in the Basin ........................................ 3 Rapid Subbasin Assessments ...................................................... 4 Private Lands Conservation Accomplishments ...................... 6 Summary of Conservation Opportunities ............................... 7 Water Conservation ...................................................................... 8 Improving Water Quality ........................................................... 10 Increasing Water Storage/ Yield ............................................... 11 Enhancing Fish and Wildlife Habitat ...................................... 12 Overview of Conservation Effectiveness .............................. 13 Comparative Benefit: Water Demand ..................................... 15 Comparative Benefit: Water Quality ....................................... 15 Comparative Benefit: Water Storage/ Yield ............................ 16 Comparative Benefit: Habitat/ Fish Survival .......................... 16 Sprague River Subbasin .............................................. 18 Resource Concerns & Conservation Accomplishments ...... 19 Conservation Opportunities ..................................................... 20 Williamson River Subbasin ......................................... 22 Resource Concerns & Conservation Accomplishments ...... 23 Priority Conservation Opportunities ....................................... 24 Upper Klamath Lake Subbasin .................................. 26 Resource Concerns & Conservation Accomplishments ...... 27 Priority Conservation Opportunities ....................................... 28 Upper Lost River Subbasin ......................................... 30 Resource Concerns & Conservation Accomplishments ...... 31 Priority Conservation Opportunities ....................................... 32 Middle Lost River Subbasin ....................................... 34 Resource Concerns & Conservation Accomplishments ...... 35 Priority Conservation Opportunities ....................................... 36 Tulelake Subbasin ...................................................... 38 Resource Concerns & Conservation Accomplishments ...... 39 Priority Conservation Opportunities ....................................... 40 Butte Valley Subbasin ................................................. 42 Resource Concerns & Conservation Accomplishments ...... 43 Priority Conservation Opportunities ....................................... 44 Upper Klamath River East Subbasin .......................... 46 Resource Concerns & Conservation Accomplishments ...... 47 Priority Conservation Opportunities ....................................... 48 1 Overview of the Upper Klamath Basin Upper Klamath Basin Quick Facts • The Upper Klamath Basin includes the Klamath, Williamson, Sprague, Lost, and Wood rivers, among others • Several state and federal wildlife refuges are a part of the Upper Klamath Basin • Migratory birds like the American White Pelican and the Red- necked Grebe use croplands in the Klamath Basin as a stop on the Pacific Flyway • Deer and elk graze on wheat and barley fields and pheasants use both crop and rangelands for their nesting and feeding grounds Background In a landscape formed by seemingly endless cycles of drought and flood, it’s no wonder that for hundreds of years, competition for water has dominated the landscape of the West. Stretching across southern Oregon and northern California, the Klamath Basin has become synonymous with the water challenges that western water users face. As one example, agricultural commodities that need irrigation water to thrive – providing Americans with the cheapest domestic food supply in the world, face competition from the critical water needs of sucker fish, salmon and other threatened and endangered species. While that competition is understandable, more and more, conservation leaders in all industries have come to recognize that these water needs aren’t necessarily at odds with one another, and can in fact be compatible. While an example of the challenges today’s agricultural producers and conservationists face, the Klamath Basin has emerged as an example of how diverse interests can work together successfully. 2 Overview of the Upper Klamath Basin Upper Klamath Basin Description The Upper Klamath Basin is an area of high desert, wetlands, and the Klamath River. The river extends 250 miles from its headwaters at Upper Klamath Lake in south central Oregon to the west coast of northern California. The Upper Klamath Basin includes the US Bureau of Reclamation’s ( USBR) Klamath Project Area and the drainage area above Irongate Dam on the Klamath River. The basin’s lakes, marshes, and wetlands host an abundance of plant and animal species and include national wildlife refuges, parks, and forests. Agricultural production began around the turn of the 20th century, and with the creation of the Klamath Irrigation District in 1905, water diversions for irrigation began in earnest. A portion of these irrigated lands are in the USBR’s irrigation project. The ‘ project area,’ as it is commonly called, includes 188,000 of the 502,000 acres of private irrigated land in the basin. This includes lands leased from the various wildlife refuges that are supplied with water by the USBR. Privately irrigated acreages can vary from year to year, depending on USBR contracts and annual cropping cycles. In comparison, the majority of the private irrigated land - about 314,000 acres - in the basin is located outside the project area. Upper Klamath Basin Quick Facts: • Over 2.2 million acres are privately owned in the Upper Klamath Basin • 188,000 of the irrigated acres are in the US Bureau of Reclamation’s Irrigation Project • Approximately 502,000 acres of privately owned lands are irrigated • 314,000 acres of irrigated lands are outside the Project area 3 Overview of the Upper Klamath Basin The Role of Agriculture in the Basin Agricultural lands play a key role in a healthy ecosystem. Located on the Pacific Flyway, migratory birds like the American White Pelican and the Red- Necked Grebe use croplands in the Klamath Basin as an important feeding and resting stop. Deer graze on wheat and barley fields, and pheasants use both crop and rangelands for their nesting and feeding grounds. Progressive conservation leaders recognize that farming and fish and wildlife habitat are not mutually exclusive. Well- maintained farmland creates fish and wildlife habitat, contributing to a healthy watershed. They also recognize that opportunities will always exist to improve the condition of natural resources in the basin. To address those opportunities, conservation leaders in Oregon’s Klamath Falls Soil and Water Conservation District and California’s Lava Beds/ Butte Valley Resource Conservation District have proactively identified four key priorities tied to natural resource conservation. The districts asked experts at the USDA’s Natural Resources Conservation Service to help them develop a plan to determine what could be done on- farm to conserve water, increase water storage, improve water quality, and enhance fish and wildlife habitat. While so much of the attention to date in the Klamath Basin has been focused on water demand, these conservation leaders recognize demand is only one piece of the puzzle. Comprehensive solutions must also address water quality, storage and wildlife habitat. Conservation District Priorities 1) Conserve Water 2) Increase Water Storage 3) Improve Water Quality 4) Enhance Fish & Wildlife Habitat 4 Rapid Subbasin Assessments Conserving natural resources is the ultimate goal throughout the basin, and its success hinges on long- term solutions. At the request of local conservation districts, NRCS undertook an 18- month study of resource concerns, challenges and opportunities throughout the Upper Klamath Basin. The study was not intended to provide a detailed, quantitative analysis of the impacts of conservation work, but rather, to provide an initial estimate of where conservation investments would best address the districts’ four priority resource concerns. Beginning in the spring of 2002, NRCS planners collected information to enable the conservation districts, agencies, organizations, farmers, ranchers and others to make informed decisions in a timely manner about conservation and resource management in the basin. These Rapid Subbasin Assessments are intended to help leaders set priorities and determine the best actions to achieve their goals. As a part of the rapid subbasin assessment process, eight subbasins were delineated ( see map at left). A watershed planning team traveled through each subbasin, inventorying agricultural areas, identifying conservation opportunities and current levels of resource management, and estimating the impacts of these opportunities on the Conservation in the Upper Klamath Basin 5 Conservation in the Upper Klamath Basin conservation districts’ priority resource concerns. They focused their recommendations on areas that would provide the best benefit to the wide array of stakeholders in the Upper Klamath Basin. They also identified a number of socio- economic factors that must be taken into consideration when helping producers adapt to new management styles and conservation activities. Through NRCS, conservation districts and other federal, state and local entities, private land managers are working to identify ways they can more efficiently use – and share – the water they need. In the face of increasingly complex and politically polarized circumstances, a clear purpose and direction has arisen. The commitment of the local conservation partnership to identify the impacts of water shortages and to find solutions that will improve natural resource conservation will be key to the long- term viability of both endangered species and industries in the Upper Klamath Basin. The information that follows provides a summary of the conservation challenges and opportunities that NRCS staff found in their assessment. Recommendations for where financial and other resources can best be invested to improve natural resources, while sustaining the economy of the Upper Klamath Basin, are also identified. 6 Conservation in the Upper Klamath Basin Private Lands Conservation Accomplishments One component necessary to understanding future conservation opportunities in the basin is to recognize the current conservation work of private land managers. An indicator of these efforts is the work that has been undertaken in partnership with NRCS and the local conservation districts. In federal fiscal years 2002 and 2003, Upper Klamath Basin farmers and ranchers improved resource conditions on 18,877 acres of privately owned agricultural lands, with assistance from NRCS and the conservation districts. During this time, private land managers have worked with the conservation districts in the basin to: • improve the condition of 11,800 acres of grazing lands • conserve water and improve water quality on 13,656 acres • restore and establish 4,138 acres of wetlands and riparian areas • improve 281 acres of forest stands • establish resource management systems on 1,351 acres of cropland These conservation efforts were accomplished with a combination of private, state and federal funding. 7 Conservation in the Upper Klamath Basin Summary of Conservation Opportunities In addition to recognizing current conservation activities, the assessments define what can be accomplished with a strong conservation partnership in the Upper Klamath Basin. All too often, the debate about multi- use of water in the basin has focused on ways to reduce water demand. However, the basin’s many water users - including fish and wildlife - benefit just as much from improvements to water quality, water storage and wildlife habitat. Taken together, the recommendations that follow seek to utilize a comprehensive approach to all four resource priorities - with the goal of contributing to a sustainable, multi- use water system. While quantification of the results of conservation work in these four areas is difficult, there is no question that a comprehensive approach to natural resource improvement in the Upper Klamath Basin will result in accumulative long- term benefits for endangered fish species, wildlife habitat, agriculture, urban and other water uses. Agriculture cannot undertake these efforts alone. Private landowners and the general public both benefit from natural resources conservation in the Upper Klamath Basin. Because of this, public and private sources of funding from in and outside the region are necessary. Solutions of this magnitude also come with other social, political, and cultural costs. Upper Klamath Basin Quick Facts: • 1,400 farm families live in the Upper Klamath Basin • The Upper Klamath Basin is home to sucker fish, bull trout and redband trout 8 Conservation in the Upper Klamath Basin For example, all stakeholders in the Upper Klamath Basin need to identify and address social, economic, and cultural resource- based values they have historically enjoyed. Politically, there must be resolution and agreement on water rights, endangered species, and water quality. Water Conservation Because few water use measurements have been taken in the past, it is difficult to quantify where specific water efficiencies can be gained. Throughout the Upper Klamath Basin, water that leaves one irrigated field generally re- enters streams or enters the groundwater, providing the opportunity for it to be utilized again later. Because of this, water delivery systems both in and outside the USBR project area are generally efficient. As a result, the most significant benefit of reducing water demand on individual farms is an improvement in water quality and reduction in water temperatures, rather than an increase in available water. 9 Conservation in the Upper Klamath Basin Conservation measures that reduce water demand on private agricultural lands can be accomplished in a variety of ways. New technologies for managing when and where water is applied on crop and pasture lands will help to ensure that water is only applied when it is of the best benefit to the plant. Water conservation opportunities include improving irrigation water-use efficiency, retaining and conserving drainage water, and making use of new technologies that more accurately forecast the impacts of drought and floods. The subbasin assessments indicate an opportunity to conserve water and improve water quality on 130,000 acres of irrigated lands within the USBR project. Outside the project area there is an opportunity for water conservation on approximately 220,000 irrigated acres. If all potential conservation practices are implemented on all irrigated lands, on- farm water use efficiency could increase by up to 25 percent in the Upper Klamath Basin. A potential two to five percent increase in water yield could be achieved by increasing management in upland range and forestland areas. In all cases, these are preliminary estimates and require validation. This estimate does not account for evaporation, transpiration, seepage or other loses that may occur at the sites receiving conserved water nor does it evaluate irrigation delivery or conveyance efficiencies. Tupper Ansel Blake/ USFWS 10 Conservation in the Upper Klamath Basin This level of water conservation cannot be reached without a concerted federal/ state/ private partnership that works together to apply water conservation practices in targeted areas throughout the Upper Klamath Basin. Improving Water Quality Water quality has a direct impact on many fish and wildlife species. Within the Upper Klamath Basin, most rivers and lakes do not meet federally mandated Clean Water Act standards for temperature, dissolved oxygen, pH, or other pollutants. Water quality is affected by water temperature, low in- stream flows and the condition of adjacent land riparian areas, among other items. Private landowners are just one of many groups who have an opportunity to improve water quality throughout the basin. Water quality improvement opportunities on private agricultural lands in the basin range from improving the management of livestock near streams and rivers to utilizing new technologies that track pest and weed cycles to ensure that pesticides are only applied when they will be most effective. Water conservation practices that reduce tailwater runoff from irrigated fields can provide extensive improvements in water quality. 11 Conservation in the Upper Klamath Basin Increasing Water Storage/ Yield In recent years, drought has been a large contributing factor to reduced water levels in the Upper Klamath Basin. One solution to address low water flows would be to store water for times of water shortage. There are at least two challenges to this solution: finding a place to store water and finding water to store. To evaluate this option, potential storage values were calculated for 41 years of record from 1961 to 2002. This analysis reinforced the observation that, as has been seen in recent years, drought years normally occur in a multi- year cycle. Because of this, in the years where extra water is most needed, it is often not available from previous years to store. One promising, small- scale, water storage solution may lie in subsurface irrigation water storage in suitable locations, such as the Tulelake Subbasin. In this scenario, there exists a potential to store water in the soil profile and reduce irrigation water demand during the irrigation season. Another option for subsurface storage of water includes the restoration of streams and their surrounding wetlands and riparian areas. This can increase the “ sponge” effect allowing for the slow release of water through the long, dry summer months. Tupper Ansel Blake/ USFWS 12 Conservation in the Upper Klamath Basin Enhancing Fish and Wildlife Habitat The Upper Klamath Basin is home to a wide variety of aquatic and terrestrial species of wildlife and fish. Much of the water used in the Klamath wildlife refuges and associated marshes, ponds, streams and wetlands originates in the Upper Klamath Lake Subbasin. The Klamath Basin wildlife refuges provide a stopover for 85 percent of the ducks, geese, and other birds that migrate through the Pacific Flyway from Alaska to South America. Streams in the Upper Klamath Basin provide spawning and rearing habitat to threatened and endangered suckers and bull trout, as well as redband trout, which is listed as a species of concern by the US Fish and Wildlife Service. Several streams are highly valued “ catch and release” sport fisheries. There is high landowner and public interest in restoring and maintaining riparian habitat along these streams. Many of the conservation opportunities outlined under water conservation and water quality provide direct benefits to fish and wildlife as well. In addition, creating and restoring wetland areas, planting trees and developing wildlife habitat along the edges of crop fields all contribute to enhancing wildlife habitat in the basin. Tupper Ansel Blake/ USFWS 13 Conservation in the Upper Klamath Basin Overview of Conservation Effectiveness In order for the Upper Klamath Basin to successfully move forward with solutions, agriculturists, environmentalists, Tribes, government agencies, organizations, and others need to develop unified leadership to arrive at a common vision for the future. In addition, stakeholders and others must commit to a long- term investment of public and private funding as well as other resources. Based on the Upper Klamath Basin Rapid Subbasin Assessments, the Oregon and California NRCS planning staff rated the potential benefit of recommended conservation practices and resource management systems based on the conservation districts’ four resource priorities. Many state and federal agencies have invested in conservation work throughout the basin. While the recommendations in this document focus on private land and agriculture, the assessments can also be applied to help prioritize conservation practices on other land uses basin- wide. Overall, based on the planning team’s analysis, conservation activities in the Sprague River Subbasin would produce the greatest benefit, and conservation practices in the Upper Klamath River East Subbasin would yield the least Tupper Ansel Blake/ USFWS overall benefit based on the conservation district’s priorities. 14 Conservation in the Upper Klamath Basin While recognizing that any science- based conservation focus in the Upper Klamath Basin would be beneficial, the charts on pages 18- 19 specifically focus on work that can be accomplished on private lands. They provide a breakdown of recommended conservation practices on each of the conservation districts’ priorities by subbasin. For example, the water demand chart shows that investing in conservation practices in the Sprague River Subbasin has the greatest potential for reducing agriculture’s water demand by implementing improved irrigation practices. The Sprague also provides the best opportunity to address water quality and wildlife habitat. Investment in conservation activities in the Tulelake and the Upper Klamath Lake subbasins offers the greatest potential to address water storage/ yield. Investing in Conservation: Enabling farmers, ranchers and other private land managers to successfully address the four resource priorities will require: • The adoption of conservation on 350,000 acres of private farmland, range, and forests, • Financial resources estimated at $ 200 million for installation and another $ 27 million annually to operate, and • Twenty or more years to complete with the current financial and technical resources available. Tupper Ansel Blake/ USFWS 15 Water Demand Comparative Benefit of Applied Conservation Practices by Subbasin Upper Klamath River East Riparian/ Wetland Agronomic Forest & Range Grazing Irrigation Conservation Practices Williamson Upper Klamath Lake Upper Lost River Butte Valley Middle Lost River Tulelake Sprague Sprague Upper Klamath Lake Williamson Butte Valley Tulelake Middle Lost River Upper Lost River Upper Klamath River East Water Quality Comparative Benefit of Applied Conservation Practices by Subbasin Riparian/ Wetland Agronomic Forest & Range Grazing Irrigation Conservation Practices Comparative Benefit: Water Demand The chart at left provides an overview of the comparative benefit by subbasin of various conservation practices that reduce water demand. Based on research completed by NRCS planning staff, the greatest potential to reduce water demand exists by implementing irrigation and riparian/ wetland conservation practices in the Sprague Subbasin. This is followed by implementing agronomic and irrigation conservation practices in Tulelake. There is no measurable water demand benefit achieved by implementing conservation practices in the Upper Klamath River East Subbasin. Comparative Benefit: Water Quality The chart at left provides an overview of the comparative benefit by subbasin of various conservation practices that improve water quality. Based on research completed by NRCS planning staff, the greatest potential to improve water quality occurs when riparian/ wetland, grazing and irrigation conservation practices are implemented in the Sprague Subbasin. In comparison, no measurable water quality benefits are achieved by implementing conservation practices in Butte Valley or the Upper Klamath River East subbasins. Conservation in the Upper Klamath Basin 16 Wildlife Habitat Comparative Benefit of Applied Conservation Practices by Subbasin Riparian/ Wetland Agronomic Forest & Range Grazing Irrigation Conservation Practices Williamson Sprague Butte Valley Tulelake Middle Lost River Upper Lost River Upper Klamath Lake Upper Klamath River East Upper Klamath River East Williamson Sprague Upper Klamath Lake Tulelake Middle Lost River Upper Lost River Butte Valley Water Storage Comparative Benefit of Applied Conservation Practices by Subbasin Riparian/ Wetland Agronomic Forest & Range Grazing Irrigation Conservation Practices Comparative Benefit: Water Storage/ Yield The chart at right provides an overview of the comparative benefit by subbasin of various conservation practices that enhance water storage and yield. Based on research completed by NRCS planning staff, the greatest potential to enhance water storage and yield occurs by implementing riparian/ wetland, forest and range conservation practices in the Upper Klamath Lake Subbasin. In comparison, the Tulelake Subbasin gains water yield through agronomic practices like subsurface drains to allow for winter irrigation. Overall, implementing forest and range practices in most subbasins will result in greater water yield within the soil profile and water table. Comparative Benefit: Habitat/ Fish Survival The chart at right provides an overview of the comparative benefit by subbasin of various conservation practices that improve wildlife habitat and fish survival. Based on research completed by NRCS planning staff, the greatest potential to improve habitat is in the Sprague Subbasin, using wetland/ riparian, forest, range and irrigation practices. In comparison, no measurable habitat benefits are achieved by implementing additional conservation practices in the Middle Lost River, Tulelake, Butte Valley or Upper Klamath River subbasins. Conservation in the Upper Klamath Basin 17 Tim McCabe/ NRCS 18 The Sprague River Subbasin is located 25 miles northeast of Klamath Falls and covers approximately 1.02 million acres. Forested mountain ridges enclose the Sprague River Valley, which includes large marshes, meadows and irrigated pasture. Juniper and sagebrush steppes dominate rangeland. Irrigated Pasture is the predominant land use in the Sprague River Valley. Approximately 65 percent of the water used for irrigation is diverted from streams, and 35 percent is pumped from wells. Flooding is the most common form of irrigation. Most diversions do not have fish screens and lack devices to measure water deliveries. Overall irrigation application efficiencies are low. Private forest and rangelands in the Sprague River subbasin are generally used for livestock grazing. Most forest stands are significantly overstocked with trees, and rangeland has been heavily encroached by Western Juniper. Pasture condition is generally poor to fair. The riparian areas within pastures have little to no riparian vegetation and high, eroding banks. Wildlife habitat in most of the upper reaches of the Sprague River and its major tributaries appears to be fairly stable, indicating good watershed condition. However, there are considerable habitat improvements that can be made in the lower portion of the basin. Sprague River Subbasin Water & Wetlands: 2,949 Range: 137,869 Irrigated Pasture/ Grass Hay: 81,650 Forest/ Mixed: 240,050 Sprague River Subbasin Agricultural Land Use/ Cover 19 Resource Concerns Water quality is the major resource concern in the Sprague River Subbasin, directly impacting fish and wildlife habitat throughout the Upper Klamath Basin. Lost River and shortnose suckers, interior redband and bull trout are key fish species present in the subbasin. All species are listed as Endangered Species Act threatened, candidate, or species of concern. The Sprague River has been identified as an important stream for both spawning and rearing habitat for suckers. Loss of riparian habitat, fish entrapment and fish migration impediments have also been identified as resource concerns in the Sprague River Subbasin. Conservation Accomplishments In the Sprague River Subbasin during the last two years, significant conservation progress has been made. With assistance from NRCS and local conservation districts, land managers have improved the condition of 2,153 acres of grazing land, improved irrigation water management on 903 acres of irrigated land, and have restored 1,644 acres of riparian and wetlands areas. Fencing and riparian area restoration has been initiated or installed by private land managers with assistance from NRCS, US Fish & Wildlife Service and others on approximately 50 miles of stream and several thousand additional riparian and wetland acres. Sprague River Subbasin Land Ownership Private Lands 448,200 Public Lands 573,100 Total Land Area: 1,021,300 Irrigated Acres USBR Project: 0 Non- USBR: 61,600 Total: 61,600 20 Conservation Opportunities Water Quality & Wildlife Habitat: Riparian restoration can be accomplished by converting pastures to permanent riparian wildlife lands or establishing riparian vegetation. Riparian pasture units should be managed as a part of an overall grazing plan with cross- fencing and off- stream water for livestock. Forest stands should be managed to ensure optimum health of both the trees and grazed understory. Thinning overstocked trees and controlling juniper on rangelands are both effective management opportunities. Water Demand: Irrigation water management, including measuring water use and scheduling irrigation will help managers to maintain base river flows through late summer and early fall. Efficiencies can also be gained by leveling land, lining or piping irrigation ditches and incorporating tailwater recovery systems. Conversion from flood to sprinkler irrigation is also beneficial. Sprague River Subbasin Sprague River Subbasin Comparative Benefit of Applied Conservation Practices Water Demand Wildlife Habitat Water Storage Water Quality Riparian/ Wetland Agronomic Forest & Range Grazing Irrigation Conservation Practices Conservation Investment Projected Conservation Acres to be Treated* Irrigated Land ............ 34,500 Range & Forestland 164,400 Wildlife Habitat ........... 2,400 Estimated Installation Cost Irrigated Land .......................$ 10,948,000 Range & Forestland .......................$ 31,305,000 Wildlife Habitat .........................$ 4,779,000 Estimated Annual Operation, Maintenance & Management Cost Irrigated Land .........................$ 1,768,000 Range & Forestland .........................$ 1,665,000 Wildlife Habitat ............................$ 133,000 * Based on conservation need and projected participation rates. 21 Tim McCabe/ NRCS 22 Covering about 928,000 acres, the Williamson River Subbasin is the principal tributary for Upper Klamath Lake. Combined, the Williamson and Sprague River subbasins make up 79 percent of the lake’s total drainage area. The Winema National Forest and Klamath Falls National Wildlife Refuge account for most of the public land in the subbasin. Irrigated pasture is the dominant private agricultural land use. Pasture is almost entirely flood irrigated. Ninety percent is diverted from streams, while groundwater supplies ten percent. Most diversions do not have fish screens and lack devices to measure water deliveries. Although overall irrigation application efficiency is low, additional water in the water table helps to subirrigate pastures. In addition, the proximity of these pastures to rivers and streams allows most excess diverted water to return to the system for reuse. Private forest and rangelands make up most of the private land in the basin. Approximately 80 percent of forestlands are used for grazing. Private forestland is in poor to fair condition; over half of the stands are significantly overstocked with trees. Wildlife habitat has faced considerable degradation in the past. Of the 48 miles of stream that are degraded in the subbasin, restoration efforts have been initiated on approximately 23 miles. Williamson River Subbasin Water & Wetlands: 19,700 Range: 2,600 Irrigated Pasture/ Grass Hay: 81,650 Forest/ Mixed: 225,300 Williamson River Subbasin Agricultural Land Use/ Cover Irrigated Alfalfa: 1,100 23 Water quality relating to elevated stream temperatures is a major resource concern in the Williamson River Subbasin, directly impacting fish and wildlife habitat throughout the Upper Klamath Basin. In 1988, when the Lost River and Shortnose suckers were listed as endangered, the Williamson and Sprague River runs were estimated to have declined by as much as 95 percent during the previous twenty- year period. Important sucker habitat has diminished by nearly 50 percent in the lower reaches and near the mouth of the Williamson River. This has reduced the amount of larval sucker spawning and rearing habitat. Conservation Accomplishments Significant conservation progress has been made in this subbasin. Land managers have improved 500 acres of grazing lands, 1,000 acres of irrigated lands, 235 acres of forestlands and have restored 112 acres of riparian and wetland areas. Heightened landowner awareness of resource concerns and increasing agency, organization, and individual efforts will help this trend to continue. Of the 48 miles of stream that are degraded in the subbasin, private land managers are working with the US Fish and Wildlife Service and others to restore 23 miles. The Nature Conservancy is restoring approximately 3,200 acres of wetlands, and plans to restore another 3,411 acres at the mouth of the Williamson River. Williamson River Subbasin Resource Concerns Land Ownership Private Lands 309,400 Public Lands 618,800 Total Land Area: 928,200 Irrigated Acres USBR Project: 0 Non- USBR: 65,100 Total: 65,100 24 Williamson River Subbasin Williamson River Comparative Benefit of Applied Conservation Practices Water Demand Wildlife Habitat Water Storage Water Quality Riparian/ Wetland Agronomic Forest & Range Grazing Irrigation Conservation Practices Wildlife Habitat & Water Quality: Riparian area and wetland habitat restoration and management provide the best opportunity to improve water quality in the Williamson River Subbasin. This can be accomplished by converting lands from irrigated agriculture to wildlife habitat or creating riparian pasture systems. Wetland and riparian areas still utilize water. However, this work may reduce total water demand depending on how lands are managed. Water Demand: Thinning forest stands and managing grazing areas by adding cross fences and off- stream water for livestock can yield more water to meet downstream needs. This will also result in enhanced wildlife habitat and improved water quality in area streams. In addition, forest stand improvements reduce the potential for catastrophic fire. Priority Conservation Opportunities Conservation Investment Projected Conservation Acres to be Treated* Irrigated Land ............ 52,300 Range & Forestland ... 71,200 Wildlife Habitat .............. 200 Estimated Installation Cost Irrigated Land .......................$ 12,863,000 Range & Forestland .......................$ 17,290,000 Wildlife Habitat ............................$ 338,000 Estimated Annual Operation, Maintenance & Management Cost Irrigated Land .........................$ 2,663,000 Range & Forestland ............................$ 669,000 Wildlife Habitat ..............................$ 11,000 * Based on conservation need and projected participation rates. 25 Tupper Ansel Blake/ USFWS 26 The Upper Klamath Lake Subbasin covers 465,300 acres from Crater Lake to the outlet of Upper Klamath Lake into the Link River. Historically, some 43,000 acres of wetlands surrounded Agency and Upper Klamath Lake. Today, 17,000 acres have been preserved as part of the Upper Klamath Lake National Wildlife Refuge. Another 11,000 acres have been acquired for restoration. Irrigated agriculture is primarily pasture. Livestock are generally stocker cattle, who graze between April and November. Pasture condition is generally fair. Most livestock obtain water from streams and ditches. Irrigation water is diverted from streams or pumped from the lake. Most diversions do not have fish screens or devices to measure water. Although overall irrigation application efficiency is low, the additional water raises the water table and subirrigated pastures. Some acreages of hay and cereal crops are grown, and irrigation efficiencies are higher than for pasture. However, most require maintenance and re- leveling. Forestlands are primarily pine and mixed fir and hemlock. Most private lands in the subbasin are forest or rangelands, with approximately 80 percent used for grazing. More than half of the forest stands are significantly overstocked with trees. Wildlife habitat varies in condition. Of 70 total miles, 21 miles of streamside riparian areas are in good condition and another 12 miles are being restored. Upper Klamath Lake Subbasin Water & Wetlands: 76,568 Range: 2,404 Irrigated Pasture/ Grass Hay: 48,856 Forest/ Mixed: 100,311 Upper Klamath Lake Subbasin Agricultural Land Use/ Cover Irrigated Crop/ Alfalfa: 3,396 27 Resource Concerns Water quality in the Upper Klamath Lake is a major resource concern, affecting subbasin fish survival, with phosphorus loading as the greatest factor. The loss of wetland vegetation around the lake has also been linked to lower survival rates for endangered suckers. The lower reaches of the Wood River and Sevenmile Creek provide some rearing habitat for larval and juvenile suckers. The Wood River, Sevenmile Creek and their tributaries support populations of bull and interior redband trout. A highly valued “ catch and release” sport fishery occurs on the Wood River and several of its tributaries. There is significant interest in enhancing riparian habitat along these streams to protect and promote these fisheries. Conservation Accomplishments In the Upper Klamath Lake Subbasin during the last two years, some conservation progress has been made. With assistance from NRCS and local conservation districts, land managers have improved 12 acres of grazing lands and improved water quality and quantity on 12 acres of irrigated land. Several thousand more acres of wetland restoration are in the process of being planned or implemented around Upper Klamath Lake. Upper Klamath Lake Subbasin Land Ownership Private Lands 235,100 Public Lands 230,200 Total Land Area: 465,300 Irrigated Acres USBR Project: 0 Non- USBR: 52,300 Total: 52,300 28 Priority Conservation Opportunities Water Quality: The most effective conservation includes practices that restore riparian areas, improve grazing management and increase irrigation efficiency. This can be accomplished by either converting pastures to permanent wildlife habitat or by creating riparian pastures. While most pastures are being inefficiently irrigated, conditions do not warrant extensive changes from current flood irrigation systems since water is reused or enters the soil profile Water Storage: In the Upper Klamath Lake Subbasin, the potential for non- traditional water storage presents a unique conservation opportunity. Restoring drained wetlands, still farmed around Upper Klamath Lake, could produce positive benefits for all four resource concerns. By actively managing areas for both seasonal wetlands and farming, water can be both filtered to improve water quality and stored in wetland areas for future use. Upper Klamath Lake Subbasin Upper Klamath Lake Comparative Benefit of Applied Conservation Practices Water Demand Wildlife Habitat Water Storage Water Quality Riparian/ Wetland Agronomic Forest & Range Grazing Irrigation Conservation Practices Conservation Investment Projected Conservation Acres to be Treated* Irrigated Land ............ 42,500 Range & Forestland ... 36,300 Wildlife Habitat ........... 2,900 Estimated Installation Cost Irrigated Land .......................$ 10,462,000 Range & Forestland .........................$ 7,254,000 Wildlife Habitat .........................$ 4,113,000 Estimated Annual Operation, Maintenance & Management Cost Irrigated Land .........................$ 2,017,000 Range & Forestland ............................$ 308,000 Wildlife Habitat ............................$ 130,000 * Based on conservation need and projected participation rates. 29 Table of Contents Tupper Ansel Blake/ USFWS 30 Irrigated Crop 4,209 The Lost River Subbasin originates above Clear Lake and passes through several agricultural valleys, ending in Tulelake. The valley once supported a vast network of wet meadows and marshes. This subbasin covers approximately 1.2 million acres and is split from the Middle Lost River Subbasin near Olene. Irrigated agriculture generally occurs in the warmer valleys. Flood is the most common pasture irrigation method, with about 50 percent of the water coming from the USBR project. Pasture condition is fair, and most pastures have not been renovated or re- leveled for some time. Maintenance would increase the efficiencies of 60 to 80 percent of the systems. Alfalfa is customarily sprinkler- irrigated and well- managed. Although irrigation efficiencies are higher than for pasture, many sprinkler systems still need upgrading. Several irrigated crops are grown in the subbasin including cereal grains, potatoes, and strawberry plants. Forestland, range and pasture are grazed by livestock. Rangelands are comprised of juniper and sagebrush steppes. Forestlands are generally mixed conifer. Livestock operations include cow/ calf, stockers and dairies. Confined livestock operations are located throughout the subbasin. The location and duration of confinement may pose a potential risk to water quality. Seven dairies located within the subbasin have existing liquid and dry livestock waste storage facilities. Upper Lost River Subbasin Water & Wetlands 13,250 Range 72,630 Irrigated Pasture/ Grass Hay 41,352 Forest/ Mixed 204,420 Upper Lost River Subbasin Agricultural Land Use/ Cover Irrigated Alfalfa 38,943 31 Resource Concerns Wildlife habitat and water quality are two of the major resource concerns in the subbasin. High water temperatures are usually linked to lack of shade, irrigation return flow or other warm water inputs. As measured by total phosphorus, water quality appears to be gradually improving over the last 10 to 20 years. While agriculture is the dominant land use in this subbasin, other sources of phosphorus and other pollutants exist. Sewage treatment outfalls, on- site sewage disposal systems, wildlife, and natural inputs also contribute nutrients and other pollutants to the system. While historically the river had significant fish runs, it currently supports only a small population of Shortnose and Lost River suckers. Conservation Accomplishments In the Upper Lost River Subbasin during the last two years, significant conservation progress has been made. With assistance from NRCS and local conservation districts, land managers have improved resource conditions on 234 acres of croplands and 5,282 acres of grazing lands, and have improved their management of irrigation water on 5,596 acres of irrigated lands. In addition, 846 acres of riparian and wetland areas have been restored. Upper Lost River Subbasin Land Ownership Private Lands 407,500 Public Lands 771,300 Total Land Area: 1,178,800 Irrigated Acres USBR Project: 40,400 Non- USBR: 44,100 Total: 84,500 32 Priority Conservation Opportunities Water Quality: Rotating livestock through smaller pastures will increase forage production, reduce soil compaction and improve water quality. On cropland, integrated pest management, irrigation scheduling, increasing crop residue or installing filter strips will minimize risks associated with some pesticides used on cereal grains, potatoes, onions and other crops. Implementing practices like diverting clean water before it flows through livestock confinement areas near water sources, will reduce the risk of polluted runoff. Water Demand: On both surface-irrigated pastures and cropland areas, there are opportunities for land leveling or smoothing, lining or piping irrigation delivery ditches, upgrading irrigation systems and developing tailwater recovery systems to improve water use efficiency. Upper Lost River Subbasin Upper Lost River Comparative Benefit of Applied Conservation Practices Water Demand Wildlife Habitat Water Storage Water Quality Riparian/ Wetland Agronomic Forest & Range Grazing Irrigation Conservation Practices Conservation Investment Projected Conservation Acres to be Treated* Irrigated Land ............ 58,100 Range & Forestland 147,400 Wildlife Habitat ........... 1,200 Estimated Installation Cost Irrigated Land .......................$ 10,993,000 Range & Forestland .......................$ 20,397,000 Wildlife Habitat .........................$ 1,945,000 Estimated Annual Operation, Maintenance & Management Cost Irrigated Land .........................$ 3,667,000 Range & Forestland .........................$ 1,384,000 Wildlife Habitat ..............................$ 66,000 * Based on conservation need and projected participation rates. 33 Gary Kramer/ NRCS 34 The Middle Lost River Subbasin covers 454,500 acres and is the center of the USBR Klamath Project. Farms near Klamath Falls tend to be smaller, indicating part- time or hobby operations. The area includes 12 irrigation districts and leased lands on the Lower Klamath Wildlife Refuge that receive water supplied by the USBR Klamath Project. Public lands include the refuge, and parts of Modoc and Klamath national forests. Irrigated agriculture includes pasture, alfalfa, cereal grain, potatoes, onions and mint. Roughly 70 percent is irrigated with USBR- supplied water; the rest is obtained from groundwater, individual surface water rights or special USBR contracts. Many fields are either flood or sprinkler irrigated depending on the year and crop. Most farm irrigation diversions lack a means to measure water delivery. Livestock operations include several dairies and cattle feeding operations. Substantial range acreage is used for livestock grazing. Pasture condition is fair and most pastures have not been renovated or re- leveled for some time. Pastures associated with smaller livestock operations in and around Klamath Falls appear to be in the most need of improved pastures and irrigation systems. Wildlife habitat: Ten river miles are in relatively good riparian condition given the river is used for conveying irrigation water. Some 13 miles of stream lack adequate riparian vegetation and streambank protection. Middle Lost River Subbasin Water & Wetlands 10,766 Range 121,713 Irrigated Pasture/ Grass Hay 40,230 Middle Lost River Subbasin Agricultural Land Use/ Cover Irrigated Alfalfa 34,866 Irrigated Crop 41,837 35 Resource Concerns The primary concern is maintaining a reliable water supply that meets the needs of all users. Drought conditions and increased competition for available water have increased economic, social, political and environmental concerns and uncertainty over the future. Habitat and water quality are two additional major resource concerns in the subbasin. High water temperatures are usually linked to lack of shade, irrigation return flow or other warm water inputs. As measured by total phosphorus, water quality appears to be gradually improving. Agriculture is the dominant land use in this subbasin, but other pollutant sources exist. While the river had significant historic fish runs, it currently supports only a small sucker population. Conservation Accomplishments In the last two years, the Middle Lost River Subbasin has seen significant conservation progress. With assistance from NRCS and local conservation districts, land managers have improved the condition of natural resources on 489 acres of cropland and 3,521 grazing land acres. In addition, 564 acres of riparian and wetland areas have been restored, and water use efficiency has been increased on 3,731 acres of irrigated lands. Middle Lost River Subbasin Land Ownership Private Lands 272,900 Public Lands 181,600 Total Land Area: 454,500 Irrigated Acres USBR Project: 84,700 Non- USBR: 32,300 Total: 117,000 36 Priority Conservation Opportunities Water Demand: Providing irrigators with water measurement tools and training on irrigation scheduling would improve their ability to apply irrigation water more efficiently. Highly effective conservation measures on hay and cropland should focus on updating existing irrigation systems and improving irrigation water management. Water Quality: The use of grazing systems that rotate livestock through smaller pastures will increase forage production, reduce soil compaction and improve water quality. While fishery benefits from restoring riparian areas are minimal, streamside buffers will improve water quality and provide habitat for other wildlife. On cropland, integrated pest management, irrigation scheduling, increasing crop residue or installing filter strips will minimize risks associated with some pesticides used on cereal grains, potatoes, onions and other crops. Middle Lost River Subbasin Middle Lost River Subbasin Comparative Benefit of Applied Conservation Practices Water Demand Wildlife Habitat Water Storage Water Quality Riparian/ Wetland Agronomic Forest & Range Grazing Irrigation Conservation Practices Conservation Investment Projected Conservation Acres to be Treated* Irrigated Land ............ 80,400 Range & Forestland ... 85,200 Wildlife Habitat .............. 400 Estimated Installation Cost Irrigated Land .......................$ 18,859,000 Range & Forestland .........................$ 6,797,000 Wildlife Habitat ............................$ 195,000 Estimated Annual Operation, Maintenance & Management Cost Irrigated Land .........................$ 5,585,000 Range & Forestland ............................$ 902,000 Wildlife Habitat ................................$ 8,000 * Based on conservation need and projected participation rates. 37 38 The Tulelake Subbasin covers 296,600 acres, bordered by the J Canal and the Lava Beds National Monument. The Tulelake Irrigation District and the Tulelake National Wildlife Refuge receive water from the USBR Klamath Project. Tulelake is a remnant of historic Lake Modoc that once connected the subbasin with both Lower and Upper Klamath Lake. The Lost River watershed was once a closed basin. Runoff flowed into Tulelake and evaporated. Pumping plants and drains constructed as a part of the project have provided an outlet from Tulelake, which now functions as an open basin. Irrigated agriculture is generally supplied by the USBR. Alfalfa, grain, potatoes, onions, mint and pasture are the principal crops. Fields are flood or sprinkler irrigated depending on the year and crop. Often diversions lack devices to measure water delivery. Pasture condition is fair, and most have not been renovated for some time. Groundwater provides 40- 50 percent of water for irrigated pastures, and most excess water is reused. Rangeland is the other significant land use. Most ranches are cow/ calf operations that have winter holdings in the subbasin. Rangelands are generally encroached with juniper. Wildlife habitat along the Lost River has reeds and bullrush, providing some habitat for waterfowl and songbirds. Suckers have been located in the river and Tulelake; however, it is not known whether they are successfully reproducing. There are few opportunities to improve habitat along this heavily manipulated reach of the river. Tulelake Subbasin Water & Wetlands 13,285 Range 36,229 Irrigated Pasture/ Grass Hay 4,050 Tulelake Subbasin Agricultural Land Use/ Cover Irrigated Alfalfa 12,334 Irrigated Crop 48,481 Forest/ Mixed 4,492 39 Resource Concerns The Tulelake Subbasin is at the tail- end of the USBR Klamath Project. Irrigators depend on water- use decisions made by fellow irrigators and resource managers for their irrigation needs. Drought and increased competition for water leads to the primary resource concern in the basin - a reliable supply of water to meet agriculture, wildlife and other resource needs. Water quality deteriorates as it moves through the USBR project. As measured by total phosphorus, water quality appears to be gradually improving. Agriculture is the dominant land use in this subbasin, but other sources of phosphorus and other pollutants exist. The presence of ESA- listed suckers creates concerns for improving habitat and water quality. The two national wildlife refuges support large waterfowl populations. Farmland on the refuges is leased to farmers to supply grain for waterfowl and shorebirds. These populations depend on refuges, leased lands and adjacent farms during the fall and spring migratory periods. Both refuges depend upon tailwater from the USBR project to maintain their marshes and ponds. Conservation Accomplishments In the Tulelake Subbasin during the last two years, significant conservation progress has been made. With assistance from NRCS and local conservation districts, local land managers have improved the condition of natural resources on 72 cropland acres and 1,854 irrigated land acres, and have restored 21 acres of riparian and wetland areas. Tulelake Subbasin Land Ownership Private Lands 131,600 Public Lands 165,000 Total Land Area: 296,600 Irrigated Acres USBR Project: 62,600 Non- USBR: 2,200 Total: 64,800 40 Priority Conservation Opportunities Water Demand: On hay and croplands, upgrading existing irrigation systems and improving irrigation water management will decrease water demand. Subsurface drainage could be added before re- establishing alfalfa stands, permitting better control of water table and soil moisture levels. During years that alfalfa fields are rotated to grain, winter flooding or pre- season irrigation could be used to reduce water demand. Water Storage/ Yield: Adding subsurface drainage may be the most significant practice to implement on cropland acres. Subsurface drains would allow farmers to winter flood or pre-irrigate fields, thereby reducing their demand for water during the irrigation season. If pre- irrigated, farmers could grow a cereal crop even if water deliveries are cut off during drought years. In addition, juniper control on rangelands will yield additional water to meet downstream needs. Tulelake Subbasin Tulelake Comparative Benefit of Applied Conservation Practices Water Demand Wildlife Habitat Water Storage Water Quality Riparian/ Wetland Agronomic Forest & Range Grazing Irrigation Conservation Practices Conservation Investment Projected Conservation Acres to be Treated* Irrigated Land ............ 45,400 Range & Forestland ... 28,500 Wildlife Habitat ........... 1,700 Estimated Installation Cost Irrigated Land .......................$ 18,263,000 Range & Forestland .........................$ 1,741,000 Wildlife Habitat ............................$ 298,000 Estimated Annual Operation, Maintenance & Management Cost Irrigated Land .........................$ 2,590,000 Range & Forestland ............................$ 257,000 Wildlife Habitat ..............................$ 25,000 * Based on conservation need and projected participation rates. 41 Tupper Ansel Blake/ USFWS 42 The Butte Valley Subbasin lies southwest of Lower Klamath Lake. While part of the Upper Klamath Basin, it is an internal drainage basin with only an artificial outlet. Groundwater flows from west to east out of the subbasin under the Mahogany Mountains toward the lake. A channel and pump plant were built to remove floodwaters. This channel is used infrequently and for only short durations. The Klamath National Forest, Butte Valley National Grassland, and the Butte Valley Wildlife Area make up the majority of the public lands. Irrigated agriculture includes alfalfa hay as the predominate crop. Cereal grains, potatoes and strawberry plants are also grown. Crops are usually sprinkler irrigated, and sprinklers are well maintained. Few irrigators measure water applied or schedule irrigation. Cattle operations graze irrigated pastures and meadows scattered throughout the subbasin along with range and forestlands. Pastures are generally flood irrigated and are supplied by streams. Most farm irrigation diversions lack water measuring devices. Mixed conifer forests are found at higher elevations and are generally operated as industrial forests. Range sites are dominated by Western Juniper and are generally in poor condition. Wildlife habitat is generally wetlands in the state wildlife refuge or on national grasslands. Approximately 26 miles of streams on private lands have inadequate riparian vegetation. Butte Valley Subbasin Water & Wetlands 9,488 Range 73,891 Irrigated Pasture/ Grass Hay 10,355 Butte Valley Subbasin Agricultural Land Use/ Cover Irrigated Alfalfa 30,361 Irrigated Crop 11,490 Forest/ Mixed 52,031 43 Butte Valley Subbasin Resource Concerns The expense of deepening wells and pumping from deeper elevations for irrigation water is a major resource concern. Generally, streams in the upper portions of the subbasin support good populations of Brown and Rainbow trout. The Tulelake National Wildlife Refuge and Lower Klamath Lake National Wildlife Refuge support large populations of migratory and permanent waterfowl. Farmland on the refuges is leased to area farmers to supply grain for the waterfowl and shorebirds. The large bird populations depend on the refuges, leased lands and adjacent farms throughout the fall and spring migratory periods for habitat. Both refuges depend upon tailwater from the USBR project to maintain their marshes and ponds. Conservation Accomplishments In the Butte Valley Subbasin during the last two years, some conservation progress has been made. With assistance from NRCS and local conservation districts, local land managers have restored 27 acres of riparian and wetland areas in the last two years. Land Ownership Private Lands 188,400 Public Lands 199,700 Total Land Area: 388,100 Irrigated Acres USBR Project: 0 Non- USBR: 52,300 Total: 52,300 44 Butte Valley Subbasin Butte Valley Comparative Benefit of Applied Conservation Practices Water Demand Wildlife Habitat Water Storage Water Quality Riparian/ Wetland Agronomic Forest & Range Grazing Irrigation Conservation Practices Priority Conservation Opportunities Water Demand: Butte Valley is an internal drainage basin. Other than limited contributions to groundwater in the Upper Klamath Basin, reductions in water demand only benefit the subbasin. Sprinkler- irrigated hay, cereal crops and row crops dominate land use on the better soils. Highly effective conservation on hay and cropland should focus on improving the overall irrigation efficiency of existing systems. This can be accomplished by upgrading systems and scheduling irrigation. An estimated 40 percent of the existing systems would benefit from maintenance. On controlled flood irrigated pastures, there are opportunities for land leveling or smoothing, lining or piping delivery ditches, and recovering tailwater. Additional water savings and water quality benefits could be gained by converting existing surface irrigation to sprinklers if power is available and affordable. On rangelands, juniper control and improved grazing management are the primary conservation opportunities. Conservation Investment Projected Conservation Acres to be Treated* Irrigated Land ............ 35,000 Range & Forestland ... 49,400 Wildlife Habitat ................ 55 Estimated Installation Cost Irrigated Land .........................$ 6,652,000 Range & Forestland .........................$ 5,243,000 Wildlife Habitat ............................$ 109,000 Estimated Annual Operation, Maintenance & Management Cost Irrigated Land .........................$ 1,569,000 Range & Forestland ............................$ 625,000 Wildlife Habitat ................................$ 3,000 * Based on conservation need and projected participation rates. 45 46 The Upper Klamath River East Subbasin covers the Klamath River drainage between Iron Gate and Keno dams. Nearly half of the area is in public ownership. Iron Gate and Copco reservoirs are used extensively for recreational fishing, boating and camping. Whitewater rafting and kayaking are popular below the KC Boyle Dam. The KC Boyle, Copco and Iron Gate dams are used and regulated for power generation. Irrigated agriculture occurs on only 4,000 acres of pasture. Only a few isolated ranches are located in this subbasin. Cattle operations rotate grazing of irrigated pastures with significant acreage of grazed range and forest. Pastures are surface irrigated with a mix of controlled and flood irrigation. All irrigation water is diverted from the river or tributary streams. Most farm irrigation diversions lack devices to measure water. Even though overall irrigation application efficiency is low, the proximity of irrigated pastures to the river allows most excess water diverted to be reused downstream. Private forest and rangelands make up most of the private land, nearly all of which is used for livestock grazing. Much of the rangeland is in poor condition, with heavy juniper encroachment. More than half of the forest stands are overstocked with trees. Wildlife habitat along riparian areas is generally in good condition. Of the 12 miles of riparian areas surveyed, five would benefit from some restoration. Upper Klamath River East Subbasin Water & Wetlands 4,552 Forestlands 195,516 Irrigated Pasture/ Grass Hay 4,044 Upper Klamath River East Subbasin Agricultural Land Use/ Cover Range 52,366 47 Upper Klamath River East Subbasin Resource Concerns The need to increase water availability to downstream users is the main resource concern along this stretch of the river. Water withdrawals are insignificant along this stretch of the river. Salmon and steelhead are blocked at Iron Gate Dam from upstream passage. Several resident trout species exist, supporting a recreational fishery. Conservation Accomplishments In the Klamath River East Subbasin during the last two years, some conservation progress has been made. With assistance from NRCS and local conservation districts, land managers have improved the condition of natural resources on 56 acres of cropland, 332 acres of grazing land, and 560 acres of irrigated lands. They have also improved forestland health on 46 acres and have restored 924 acres of riparian and wetland areas. Land Ownership Private Lands 256,500 Public Lands 162,900 Total Land Area: 419,400 Irrigated Acres USBR Project: 0 Non- USBR: 4,000 Total: 4,000 48 Upper Klamath River East Subbasin Upper Klamath River East Comparative Benefit of Applied Conservation Practices Water Demand Wildlife Habitat Water Quality Riparian/ Wetland Agronomic Forest & Range Grazing Irrigation Conservation Practices Priority Conservation Opportunities Water Demand/ Yield: Juniper control, thinning forest stands, managing grazing lands by cross- fencing and providing off- stream water for livestock will improve hydrologic conditions, yielding more water to meet downstream needs. This will also improve forage production, habitat condition and water quality in area streams, as well as reduce the opportunity for a catastrophic fire. There are opportunities for land smoothing and tailwater recovery systems to improve overall irrigation efficiency and effectiveness. Additional water savings and water quality benefits would be gained by converting from surface irrigation to sprinklers if power is available and affordable. Conservation Investment Projected Conservation Acres to be Treated* Irrigated Land .............. 1,700 Range & Forestland ... 44,800 Wildlife Habitat .................. 5 Estimated Installation Cost Irrigated Land ............................$ 454,000 Range & Forestland .........................$ 4,769,000 Wildlife Habitat ..............................$ 13,000 Estimated Annual Operation, Maintenance & Management Cost Irrigated Land ..............................$ 86,000 Range & Forestland ............................$ 406,000 Wildlife Habitat .......................................$ 0 * Based on conservation need and projected participation rates. 49 USDA Nondiscrimination Statement “ The U. S. Department of Agriculture ( USDA) prohibits discrimination in all its programs and activities on the basis of race, color, national origin, sex, religion, age, disability, political beliefs, sexual orientation, and marital or family status. ( Not all prohibited bases apply to all programs.) Persons with disabilities who require alternative means for communication of program information ( Braille, large print, audiotape, etc.) should contact USDA’s TARGET Center at ( 202) 720- 2600 ( voice and TDD). To file a complaint of discrimination, write USDA, Director, Office of Civil Rights, Room 326- W, Whitten Building, 14th and Independence Avenue, SW, Washington, DC 20250- 9410, or call ( 202) 720- 5964 ( voice or TDD). USDA is an equal opportunity provider and employer.” 50 Upper Klamath Basin 51 Developed by the USDA Natural Resources Conservation Service September, 2004
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FINAL ECONOMIC ANALYSIS OF CRITICAL HABITAT DESIGNATION FOR THE BULL TROUT September 2004 FINAL ECONOMIC ANALYSIS OF CRITICAL HABITAT DESIGNATION FOR THE BULL TROUT Prepared for: Division of Economics U. ...
Citation Citation
- Title:
- Final economic analysis of critical habitat designation for the bull trout
- Author:
- U.S. Fish and Wildlife Service
- Year:
- 2004, 2005
FINAL ECONOMIC ANALYSIS OF CRITICAL HABITAT DESIGNATION FOR THE BULL TROUT September 2004 FINAL ECONOMIC ANALYSIS OF CRITICAL HABITAT DESIGNATION FOR THE BULL TROUT Prepared for: Division of Economics U. S. Fish and Wildlife Service 4401 N. Fairfax Drive Arlington, VA 22203 Prepared by: Bioeconomics, Inc. 315 S. 4th E. Missoula, MT 59801 TABLE OF CONTENTS EXECUTIVE SUMMARY ES- 1 1 INTRODUCTION AND BACKGROUND 1- 1 1.1 Description of Species and Habitat 1- 2 1.2 Proposed Critical Habitat 1- 5 1.3 Framework and Methodology 1- 6 1.3.1 Types of Economic Effects Considered 1- 6 1.3.2 Defining the Baseline 1- 9 1.3.3 Direct Compliance Costs 1- 10 1.3.4 Indirect Costs 1- 10 1.3.5 Benefits 1- 14 1.3.6 Analytic Time Frame 1- 15 1.3.7 General Analytic Steps 1- 15 1.4 Information Sources 1- 16 2 RELEVANT BASELINE INFORMATION 2- 1 2.1 Socioeconomic Profile of the Critical Habitat Areas 2- 1 2.1.1 Population 2- 1 2.1.2 Land Ownership and Major Uses 2- 2 2.1.3 Employment 2- 12 2.1.4 Economic and Demographic Characteristics of the 74 Counties Containing Bull Trout Critical Habitat 2- 15 2.1.5. Tribes of the Columbia and Klamath Basins 2- 18 2.2 Baseline Elements 2- 21 2.2.1 Recovery Plan 2- 21 2.2.2 Overlap with Other Listed Species 2- 22 2.2.3 Federal and State Statutes and Regulations 2- 25 2.2.4 Summary Discussion of Impacts of Baseline Regulations on Economic Analysis 2- 40 2.2.5 Discussion: Impacts of Existing Fisheries Policies on Timber and Grazing Activities 2- 43 3 FORECASTED ECONOMIC IMPACTS 3- 1 3.1 Categories of Economic Impacts 3- 1 3.1.1 Section 7 Consultations 3- 2 3.1.2 Technical Assistance 3- 4 3.1.3 Project Modifications 3- 5 3.1.4 Distributional and Regional Economic Effects 3- 5 3.2 Consultation History for Bull Trout Since Listing 3- 7 3.2.1 Action Agencies and Activities Involved in Past Bull Trout Consultations 3- 7 3.2.2 Formal Section 7 Consultations History on Bull Trout Since Listing . 3- 13 3.2.3 Informal Section 7 Consultations History on Bull Trout 3- 15 3.3 Project Modifications 3- 16 3.3.1 Modifications to FHWA Bridge Projects 3- 16 3.3.2 Modifications to Grazing Permits 3- 17 3.3.3 Modifications to Timber Harvest 3- 18 3.3.4 Modifications to Mining Operations 3- 20 3.3.5 Modifications to Agricultural Irrigation Projects 3- 21 3.3.6 Modifications to Dams and Hydroelectric Projects 3- 24 3.3.7 Modifications to Forest Management and Road Maintenance Projects 3- 29 3.3.8 Activities Unlikely to Involve Significant Modification 3- 29 3.4 Projected Future Section 7 Consultations Involving the Bull Trout 3- 29 3.4.1 Projected Future Formal Section 7 Consultations 3- 33 3.4.2 Projected Future Informal Section 7 Consultations 3- 36 ESTIMATING THE CO- EXTENSIVE COSTS OF THE DESIGNATION 4- 1 4.1 Summary of Estimated Impacts 4- 2 4.1.1 Annual Administrative Costs of Consultation 4- 2 4.1.2 Costs Associated with Development of HCPs Within Proposed Bull Trout Critical Habitat 4- 3 4.1.3 Annual Bull Trout Project Modification Costs 4- 4 4.1.4 Proposed Critical Habitat Units Expected to Generate the Greatest Economic Impacts 4- 5 4.2 Discussion of Impacts by Action Agency 4- 6 4.2.1 Army Corps of Engineers 4- 7 4.2.2 Bureau of Land Management 4- 9 4.2.3 Bonneville Power Administration 4- 10 4.2.4 Bureau of Reclamation 4- 25 4.2.5 Federal Highway Administration 4- 29 4.2.6 Federal Energy Regulatory Commission 4- 31 4.2.7 U. S. Forest Service 4- 52 4.2.8 Other Action Agencies 4- 79 4.3 Potential Impacts on Small Entities 4- 79 4.3.1 Identifying Activities That May Involve Small Entities 4- 81 4.3.2 Costs Associated with Agriculture Water Diversions 4- 83 4.3.3 Hydroelectric Facility Re- licensing 4- 84 4.3.4 Mining 4- 87 4.4 Potential Impacts on the Energy Industry 4- 88 4.4.1 Evaluation of Whether the Designation will Result in a Reduction in Electricity Production in Excess of One Billion Kilowatt- Hours Per Year or in Excess of 500 Megawatts of Installed Capacity 4- 89 4.4.2 Evaluation of Whether the Designation will Result in an Increase in the Cost of Energy Production in Excess of One Percent 4- 91 APPENDIX A: Detailed Description of Critical Habitat Units A- l APPENDIX B: Ownership of Lands Adjacent to Proposed Critical Habitat Unit and Subunit B- l APPENDIX C: Overlap of Proposed Bull Trout Critical Habitat and Salmon and Steelhead Habitat C- l APPENDIX D: Listing of All Suggested Project Modifications Found in Formal Biological Opinions: By Activity Type D- l APPENDIX E: Length ( stream) and area ( lakes) of proposed designated bull trout critical habitat that is within U. S. Forest Service Land and Forest Service Wilderness Areas E- l APPENDIX F: Breakdown of Total Annual Estimated Costs by Proposed Critical Habitat Unit F- l EXECUTIVE SUMMARY 1. The purpose of this report is to identify and analyze the potential economic impacts associated with the designation of critical habitat for the Columbia River and Klamath River Distinct Population Segments ( DPSs) of bull trout ( Salvelinus confluentus), hereafter " bull trout." This report was prepared by Bioeconomics, Inc. of Missoula, Montana, for the U. S. Fish and Wildlife Service's ( the Service) Division of Economics. 2. Section 4( b)( 2) of the Endangered Species Act ( the Act) requires the Service to designate critical habitat on the basis of the best scientific data available, after taking into consideration the economic impact, and any other relevant impact, of specifying any particular area as critical habitat. The Service may exclude areas from critical habitat designation when the benefits of exclusion outweigh the benefits of including the areas within critical habitat, provided the exclusion will not result in extinction of the species. KEY FINDINGS Total costs associated with both listing and critical habitat designation for the bull trout are forecast to be $ 200 million to $ 260 million over the next ten years. Total costs associated with both listing and critical habitat designation for the bull trout within the proposed Klamath Distinct Population Segment are forecast to be $ 5.3 million to $ 7.3 million over the next ten years. Total costs associated with both listing and critical habitat designation for the bull trout within the proposed Columbia Distinct Population Segment are forecast to be $ 195 million to $ 253 million over the next ten years. Federal agencies are expected to bear 70 to 75 percent of these costs; private entities will incur the remaining 25 to 30 percent. Project modification costs account for as much as 63 percent of forecast costs. Administrative cost represent the remaining 37 percent. U. S. Forest Service and Army Corps of Engineer- related activities account for approximately 70 percent of forecast project modification costs. Activities experiencing the greatest costs include timber harvesting, irrigation diversions, and dam and reservoir operations. Dam and reservoir- related consultations, including power facility re- licensing, account for 42 percent of forecast project modification costs ( excluding the cost associated with reduced irrigation diversions). Timber harvest, irrigation diversions, habitat conservation plans, and mining account for 29 percent, 12 percent, eight percent, and three percent of forecast costs, respectively. In terms of river miles, approximately 18 percent of the total forecast costs are associated with one percent of the proposed designation, 25 percent with five percent of the proposed designation, and 45 percent with ten percent of the proposed designation. When expressed in terms of the expected cost per river mile, the two most costly units are the Willamette River Basin ( Unit 4) and the Malheur River Basin ( Unit 13). ES- 1 Framework for the Analysis 3. The primary purpose of this analysis is to estimate the economic impact associated with the designation of critical habitat for the bull trout. This information is intended to assist the Secretary in making decisions about whether the benefits of excluding particular areas from the designation outweigh the benefits of including those areas in the designation. 1 This economic analysis considers the economic efficiency effects that may result from the designation, including habitat protections that may be co- extensive with the listing of the species. It also addresses distribution of impacts, including an assessment of the potential effects on small entities and the energy industry. This information can be used by decision- makers to assess whether the effects of the designation might unduly burden a particular group or economic sector. 4. This analysis focuses on the direct and indirect costs of the rule. However, economic impacts to land use activities can exist in the absence of critical habitat. These impacts may result from, for example, local zoning laws, State and natural resource laws, and enforceable management plans and best management practices ( BMPs) applied by other State and Federal agencies. For example, as discussed in detail in this report, regional management plans, such as the Northwest Forest Plan, PACFISH and INFISH provide significant protection to bull trout and its habitat while imposing significant costs within the region. Economic impacts that result from these types of protections are not included in this assessment as they are considered to be part of the regulatory and policy " baseline." 5. The measurement of direct compliance costs focuses on the implementation of section 7 of the Act. This section requires Federal agencies to consult with the Service to ensure that any action authorized, funded, or carried out will not likely jeopardize the continued existence of any endangered or threatened species or result in the destruction or adverse modification of critical habitat. The administrative costs of these consultations, along with the costs of project modifications resulting from these consultations, represent the direct compliance costs of designating critical habitat. Importantly, this analysis does not differentiate between consultations that result from the listing of the species ( i. e., the jeopardy standard) and consultations that result from the presence of critical habitat ( i. e., the adverse modification standard). 6. The analysis examines activities taking place both within and adjacent to the proposed designation. It estimates impacts based on activities that are " reasonably foreseeable," including, but not limited to, activities that are currently authorized, permitted, or funded, or for which proposed plans are currently available to the public. Accordingly, the analysis bases estimates on activities that are likely to occur within a ten- year time frame, beginning on the day that the current proposed rule became available to the public ( November 30, 2002). The ten- year time frame was chosen for the analysis because, as the time horizon for an economic analysis is expanded, the assumptions on which the projected number of projects and cost impacts associated with those projects becomes increasingly 1 16U. S. C. § 1533( b)( 2). ES- 2 speculative. An exception to the 10 year analysis time horizon used in this analysis is for Federal Energy Regulatory Commission ( FERC) licenses, which are renewed for up to 50 years. Accordingly, this analysis estimates the annualized costs of the expected impacts associated with section 7 bull trout consultations involving FERC re- licensing over a 50 year time horizon. 7. The analysis is based on a wide range of information sources. Numerous individuals were contacted from the Service, as well as from the U. S. Forest Service ( USFS), Federal Highway Administration ( FHWA), Bureau of Land Management ( BLM), Army Corps of Engineers ( ACOE), Bureau of Reclamation ( BOR), Bonneville Power Administration ( BPA), Natural Resources Conservation Service ( NRCS), U. S. Environmental Protection Agency ( EPA), National Oceanic and Atmospheric Administration ( NOAA) and other Federal agencies. The analysis of the hydroelectric facilities and other dam structures in the region also relied in information from the Northwest Power and Conservation Council ( NWPCC), the Pacific Northwest Utility Coordinating Council as well as information from utilities owning dams in bull trout proposed critical habitat ( e. g., Avista Corporation ( Avista), Eugene Water and Electric Board, Pacificorp and Portland General Electric ( PGE)). Native American Tribes ( e. g., Confederated Salish and Kootenai Tribes), State agencies ( e. g., State Departments of Environmental Quality ( DEQ) and State Departments of Transportation ( DOTs)) and industry organizations ( e. g., American Forest Resource Council, American Farm Bureau and Northwest Mining Association) were also contacted, as were numerous individuals in the private sector on topics ranging from irrigation to forestry to bull trout conservation. Census Bureau and other Department of Commerce data was relied on to characterize the regional economy. 8. The bull trout was listed as a threatened species in 1998.2 Since that time, numerous Action agencies have participated in well over 200 formal consultations and thousands of informal consultations involving bull trout. The past consultation record was used as a starting point from which to predict future consultation activity. Action agencies provided additional information on likely changes in future consultation activity following designation of critical habitat. In some cases these agencies saw little change in future consultation levels. For example, FHWA projects are planned for many years in advance and bridge or road- related bull trout consultations are generally quite certain and foreseeable. In some cases ( e. g., mining activity, irrigation diversions) it was determined that the historical consultation record understated the potential level of future consultation activity for the species and adjustments to future predicted consultation levels were made. For dam and reservoir operations, a wide spectrum of information from agency representatives, as well as the actual FERC re- licensing schedules for privately operated hydropower facilities were used to augment historical consultation rates and develop future annual cost estimates associated with bull trout consultations on dam, reservoir and power- related activities. 2 This economic analysis applies only to the Columbia River and Klamath River DPSs of bull trout and is not a rangewide analysis. The rangewide listing of the bull trout occurred in 1999 and critical habitat will be proposed for the remainder of the range at a later date. ES- 3 Exhibit ES. l provides a summary of the wide range of activities that may be impacted by bull trout- related consultations. Exhibit ES. l PROJECTED ACTIVITIES AFFECTED BY BULL TROUT Action Agency Army Corps of Engineers Bureau of Land Management Bonneville Power Administration Bureau of Reclamation Federal Highway Commission Federal Energy Regulatory Commission U. S. Forest Service Other agencies, including NPS, BIA, U. S. Department of Agriculture ( USDA), U. S. Geological Survey ( USGS), U. S. Fish and Wildlife Service and NOAA Fisheries Activities Consulted on Dam and reservoir operations, streambank stabilization, dredging, bridge replacement, stream restoration. Forest management, grazing, timber harvest, resource maintenance and road construction, weed management, streambank stabilization, flood control projects. Federal Columbia River Power System ( FCRPS)- dam operation, fisheries restoration and augmentation, agricultural practices and irrigation systems. Dam and reservoir operations, irrigation diversions. Highway bridge replacement. Dam re- licensing and removal. Timber harvest, grazing, mining, resource maintenance and road construction, weed management, streambank stabilization, recreation, special use permits, watershed restoration, road decommissioning, irrigation diversions, culvert replacement, and prescribed fuel reduction programs. Assorted activities, primarily fisheries and stream and wetland restoration. Results of the Analysis 9. The economic impacts associated with the designation of critical habitat for the bull trout are expected to range from $ 200 million to $ 260 million over the next ten years ($ 20 million to $ 26 million per year). Federal agencies are expected to bear approximately 70 to 75 percent of the total costs of this designation. A significant portion of the land adjacent to the proposed designation is Federally owned ( 58 percent), 36 percent is under private ownership and the remainder is comprised of Tribal, State or local interests. Of the Federal lands, the majority is managed by the USFS ( 85 percent) and the BLM ( 12 percent). The remaining 25 to 30 percent of costs are expected to be borne by private entities. Exhibit ES. 2 shows the location of USFS and BLM managed land within the proposed designation. ES- 4 Exhibit ES. 2 ES- 5 10. In some cases, the cost associated with consultation is not borne by the Action agency, but passed onto other parties. For example, while farmers and ranchers do not consult on the operation of Federal irrigation impoundments, irrigators could be impacted by potential reductions in water deliveries to maintain instream flow during dry years. While the unit location of USFS- related water diversions is uncertain, it is likely to occur in the Salmon River ( Unit 16), Clark Fork ( Unit 2), Southwest Idaho River and Clearwater River ( Unit 15) Basins, as these units contain the largest portion of USFS managed lands. 11. Consultations that may involve private entities include those related to timber harvest, grazing, mining and power facility re- licensing. Some of the costs associated with these consultations, however, are expected to be borne directly by or passed onto the Federal government ( e. g., increased logging and yarding costs passed onto the USFS through lower stumpage bids for timber). Most of the forecast project modification costs resulting from designation ( 42 percent) are dam and reservoir related ( excluding USFS water diversions). These costs result from consultations on ACOE and BOR dams and reservoirs, BPA consultations on the FCRPS, and FERC re- licensing consultations. Exhibit ES. 3 illustrates the location of major dams within the proposed critical habitat. The remaining project modification costs are associated with timber harvest ( 29 percent), USFS- related water diversions ( 12 percent), habitat conservation plans ( eight percent), and placer gold mining ( three percent). Grazing, forest management, road and bridge construction and maintenance and other activities each account for less than two percent of forecast project modification costs. Exhibit ES. 4 provides the distribution of total costs by activity. 12. Costs can be expressed in terms of unit or river mile; both of these metrics are useful in describing economic impacts. 3 On a cost per unit basis the largest portion of forecast costs are expected to occur in Unit 4, the Willamette River Basin ( 18 percent). These costs are attributable to fish passage and temperature control projects and annual operating and maintenance and fish study costs at ACOE's facilities in the Upper Willamette River System ( Dexter, Lookout Point, Hills Creek and Blue River Dams). The next most costly unit is Unit 16, the Salmon River Basin ( 12 percent). Because this is the largest unit in terms of river miles and proportion of USFS managed land, and because future USFS activities are expected to generate approximately 70 percent of the consultation activity, this unit bears the greatest number of future bull trout- related consultations. Therefore, the administrative costs account for a large portion of the costs in this unit. Together, these two units account for 30 percent ( approximately $ 8.2 million) of forecast costs. The next three most costly units, Hells Canyon complex ( Unit 12) and the Clark Fork River ( Unit 2) and Malheur River ( Unit 13) Basins, each account for eight percent ( a unit cost range of approximately $ 2.1 million to $ 2.3 million) of forecast costs. In total, these five units account for almost 55 percent of forecast costs ( approximately $ 14.8 million). 3 Twelve of the units also contain more than 500,000 lake acres of critical habitat. These units account for approximately 55 percent of the potential economic impacts associated with the proposed designation ($ 15.4 million). The Clark Fork River Basin ( Unit 2) contains almost 60 percent of the lake acres ( more than 300,000 acres) and accounts for eight percent of the cost ( approximately $ 3 million). Because all 25 units contain river miles, the costs are expressed in terms of dollars per river mile for comparison. ES- 6 ES- 7 ES- 8 13. Project modifications or other restrictions that engender cost and revenue impacts involving commercial enterprises can have a subsequent detrimental effect on other sectors of the local economy, especially when the affected industry is central to the local economy. Industries within a geographic area are interdependent in the sense that they purchase output from other industries and sectors, while also supplying inputs to other businesses. Therefore, direct economic effects on a particular enterprise can affect regional output and employment in multiple industries. The extent to which regional economic impacts are realized depends largely on whether a significant number of projects are stopped or fundamentally altered. For example, impacts to the timber or grazing industries depend on whether required project modifications substantially reduce output within economic sectors below that which would be seen in the absence of the trout consultation. 14. Examination of BOs involving timber harvest and grazing show only small and sporadic reductions in either grazing opportunity or available timber harvest. Therefore, this analysis assumes that regional economic impacts associated with these activities will be unpredictable ( in terms of geographic location and timing) and small in the context of the overall economy of the Columbia River Basin. In the case of agricultural water diversions on Forest Service lands, regional economic impacts are not modeled due to uncertainty about the magnitude and potential location of impacts. 15. Exhibit ES- 5 highlights the relative contributions of each unit to total forecast costs. Exhibit ES- 6 then presents the unit cost by river mile. Considering the cost per river mile, the Willamette River ( Unit 4) and Malheur River ( Unit 13) Basins are the most costly units. Together these two units account for 25 percent of the costs ( approximately $ 7.0 million, annualized) over two percent of the proposed miles of the designation ( 451 miles). Overall, 10 percent of the river miles ( 1,910 miles) in eight units account for approximately 45 percent of the total costs ( approximately $ 12.5 million, annualized). 4 4 In terms of cost per lake acre, the Willamette River Basin is the most expensive unit ( Unit 4), followed by the Northeast Washington River ( Unit 22) and Upper Columbia River ( Unit 21) Basins. These three units account for approximately 25 percent of the cost ($ 6.8 million) and five percent of the river miles ( 1,020 miles) in the proposed designation. ES- 9 tn m W GO 16. Consideration of the regulatory baseline is particularly pertinent in the context of estimating economic costs attributable to section 7 for bull trout. Specifically, existing regulations such as the Federal Power Act ( FPA) and Wilderness Act of 1964, fisheries management directives ( Northwest Forest Plan, INFISH and PACFISH) and the presence of other listed species ( especially anadromous fish) provide for the protection of areas that could contribute to the recovery of bull trout and improve riparian habitat and water quality throughout the proposed designation. Thus, the costs of this designation is limited by the extent to which existing regulations already impose requirements on land use and resource management within the proposed designation. In addition, the cost estimates developed in this report reflect various allocations made throughout the analysis for projects benefitting more than one listed species. Since these allocations are important to the analysis, Exhibit ES. 7 describes how forecasted costs were allocated among bull trout and other listed species. Exhibit ES. 7 ALLOCATION OF ESTIMATED FUTURE PROJECT MODIFICATION COSTS Agency / Project ACOE - Upper Willamette River Dams and Reservoirs BPA - Federal Columbia River Power System FERC - re- licensing hydroelectric facilities USFS activities Allocation NOAA Fisheries and the Service are currently consulting on salmon, steelhead and bull trout in this proposed area. No clear allocation of costs can be made between these species, as most of the projects modifications would be sought under both the NOAA and Service consultations. Therefore, one- third of estimated costs are allocated to each species. This is likely to overstate the cost of bull trout conservation rather than understate it, since the primary driving force behind these project modifications is the salmon. While there is extensive discussion of the relative magnitude of potential bull trout versus salmon mitigation actions, because of the relatively modest project modification costs ( up to $ 400,000 associated with fishery studies) there is no allocation of costs to salmon. The estimation of section 7 bull trout costs associated with FERC re- licensing includes allocation of mitigation costs for specific dams to salmon, as well as to other aquatic species. As a result, a little more than 40 percent of total fishery-related costs are allocated to bull trout, and five percent specifically to bull trout section 7 consultation. While certain costs in the sample of timber consultations were allocated to other listed species ( e. g. grizzlies and cutthroat trout), there is no allocation of costs to anadromous species. Summary of Costs 17. Exhibit ES. 8 provides a detailed summary of the co- extensive costs of designation of critical habitat for the bull trout. These costs are presented on an annualized basis. A map of the watersheds that encompass each unit is provided in Exhibit ES. 9 to assist the reader in understanding the location and distribution of estimated costs. A detailed discussion of the estimated administrative and project modification costs by critical habitat unit is presented in the unit- by- unit summary section following Exhibit ES. 8. ES- 12 Exhibit ES. 8 SUMMARY OF SECTION 7 COSTS FOR THE BULL TROUT ( Annualized) Unit Unit 1 - Klamath River Basin Unit 2 - Clark Fork River Basin Unit 3 - Kootenai River Basin Unit 4 - Willamette River Basin Unit 5 - Hood River Basin Unit 6 - Deschutes River Basin Unit 7 - Odell Lake Unit 8 - John Day River Basin Unit 9 - Umatilla- Walla Walla River Basins Unit 10 - Grande Ronde River Basin Unit 11 - Imaha/ Snake River Basins Unit 12 - Hells Canyon Complex Unit 13 - Malheur River Basin Unit 14 - Coeur d'Alene Lake Basin Unit 15 - Clearwater River Basin Unit 16 - Salmon River Basin Unit 17 - Southwest Idaho River Basins Unit 18 - Little Lost River Basin Unit 19 - Lower Columbia River Basin Unit 20 - Middle Columbia River Basin Unit 21 - Upper Columbia River Basin Unit 22 - Northwest Washington River Basins Unit 23 - Snake River Basin in Washington Unit 24 - Columbia River Basin Unit 25 - Snake River Basin Multiple unit or unknown a Estimated Range of Cost ($ l, 000fs) $ 529 to $ 733 $ 1,321 to $ 2,192 $ 328 to $ 402 $ 4,497 to $ 4,891 $ 328 to $ 413 $ 430 to $ 719 $ 51 to $ 56 $ 446 to $ 600 $ 98 to $ 211 $ 467 to $ 580 $ 559 to $ 605 $ 1,939 to $ 2,338 $ 2,006 to $ 2,095 $ 429 to $ 693 $ 995 to $ 1,676 $ 2,059 to $ 3,319 $ 1,004 to $ 1,867 $ 150 to $ 176 $ 385 to $ 494 $ 391 to $ 494 $ 196 to $ 505 $ 965 to $ 1,397 $ 230 to $ 287 $ 243 to $ 504 $ 135 $ 1,303 Notes: These estimates include all section 7 costs, including those co- extensive with the listing and designation of critical habitat for the bull trout. Costs are reported in 2003 dollars. A more detailed presentation of these costs is provided in Appendix F. a Miscellaneous costs ($ 213,000 annually) and the costs associated with development of habitat conservation Dlans ($ 1,090,000 annuallv) have not been allocated to the unit level due to uncertainty as to their location. ES- 13 Exhibit ES- 9 ES- 14 Unit- bv- Unit Summary 18. The following discussion presents a unit- by- unit synopsis of the co- extensive costs of designation of critical habitat for the bull trout. Details on how these cost estimates were developed is provided in Section 4 of this report. 19. From an aggregate perspective, forecast project modification costs are dominated by dam related activities, totaling about 42 percent of all estimated costs. Typical costs include fish passage, changes in operations, habitat protection or restoration, and fishery studies at 36 FERC- licensed hydroelectric facilities and at more than 30 major Federal hydropower, irrigation and flood projects. The second largest category of costs is associated with timber harvest on Federal lands, representing about 29 percent of all estimated costs. These costs include harvest reduction, fishery study and monitoring costs, costs related to roads and culverts, and changes to log yarding systems. The remaining costs are split among a large number of activities including the development of habitat conservation plans, mining, agriculture and irrigation diversions, grazing, bridge construction and maintenance, and general forest management. Accordingly, the primary factor driving the distribution of costs across units is the location of significant dam projects for power, irrigation, and flood control. This factor is highlighted in the following unit- by- unit discussion. The second most important factor is the occurrence of federally- owned acreage within a given unit, particularly the acreage of non- wilderness lands managed by the USFS. This factor drives both timber costs and administrative consultation costs. 20. A significant component of the total estimated cost of this designation are the administrative costs associated with conducting both formal and informal consultations on the species ( approximately 37 to 50 percent of total forecast bull trout- related costs). These costs accrue to the Service as well as to action agencies and the public. In some cases these administrative costs constitute a majority of the estimated costs for a unit, suggesting that there will be many activities consulted on but few resulting project modifications. 21. This discussion is presented on a unit by unit basis. A perspective on how the units compare, in both absolute terms and in terms of cost per river mile of proposed critical habitat, is provided in Exhibits ES- 6 and ES- 7. For purposes of this summary, proposed units with per mile costs ( after adjusting each unit's costs for its respective unoccupied habitat) forecast to be less than half of the proposed designation- wide average are described as having " relatively low costs." Units with per mile costs forecast to be between 50 percent and 200 percent ( i. e., twice) the designation- wide average costs are described as having " relatively moderate costs." Units with per- mile costs forecast to be greater than twice the designation- wide average costs are described as having " relatively high costs." Note that these descriptors are intended as a general guide, and refer to total cost only. Individual economic sectors and entities within a unit may bear disproportionate shares of these costs, as discussed in Section 4. 22. Unit 1: Klamath River Basin - The Klamath River Basin is located in south- central Oregon. Proposed critical habitat within this unit includes 475 km ( 295 mi) of streams and ES- 15 3,775 ha ( 9,327 ac) of lake habitat. The Klamath River Basin Unit is largely contained within Klamath County Oregon. The town of Klamath Falls is the largest community within the county. The Klamath River Basin Unit has a relatively high percentage of proposed critical habitat that is currently either unoccupied or of unknown occupancy ( 72 percent). Approximately 69 percent of the stream miles proposed for designation are within Federal land. 23. The Klamath River Basin Unit is a relatively moderate cost unit. Estimated total annual bull trout- related costs within this unit range between $ 529,000 and $ 733,000. These estimates include $ 425,000 per year in administrative costs. It is estimated that costs associated with consultations on timber harvest and agricultural irrigation withdrawals will constitute the large majority of potential future project modification costs in the unit ( estimated at between 73 percent and 87 percent of total annual project modification costs). These agricultural diversion- related costs are expected to result from reductions in available irrigation water. Other activities are individually estimated to each account for less than $ 15,000 dollars per year in project modification costs. 24. Unit 2: Clark Fork River Basin - The Clark Fork River Basin Unit is the largest unit within the proposed designation. This unit includes most of Western Montana and the Idaho panhandle. This Unit includes the Missoula and Bitterroot River Valleys in Western Montana, the Kalispell- Flathead Lake Region, and the Lake Pend Orielle Region of North Idaho. These areas contain many of the larger towns and communities within Western Montana and North Idaho. Approximately 54 percent of the proposed streams and 33 percent of proposed lakes in Clark Fork Unit are within Federal lands. There is no unoccupied habitat within the proposed Clark Fork Critical Habitat Unit. 25. Forecast total annual costs associated with the bull trout within this unit are between $ 1.3 million and $ 2.2 million. These estimates include $ 800,000 per year in administrative costs. In addition, a number of agencies and activities will incur significant annual project modification costs associated with the bull trout in this unit. Specifically, • Timber harvest activity is expected to generate the largest share of future project modification costs in this unit ($ 270,000 to $ 680,000 per year). These costs include harvest reduction, fishery study and monitoring costs, costs related to road and culverts, and changes to log yarding systems. • Costs associated with forecast project modifications to irrigation diversions within this unit range from zero to $ 280,000. These costs represent potential costs to agricultural producers associated with reductions in available irrigation water. 26. Other significant forecast project modification costs within this unit are associated with mining ( up to $ 100,000 annually, principally involving watershed assessment costs), FERC hydro re- licensing ($ 50,000 to $ 91,000 annually), and FHWA bridge and road work ($ 45,000 per year, generally involving constraints on in- stream work periods). Forecast FERC- related costs are associated with several major hydroelectric facilities within the unit, ES- 16 including Kerr Dam on the Flathead River and Thompson Falls Dam on the Clark Fork. Additionally, bull trout- related modifications on operation of the FCRPS have resulted in changes in operations at Hungry Horse Dam ( a BOR facility on the S. Fork of the Flathead) and Albeni Falls ( an ACOE facility that controls the level of Lake Pend Orielle). Bull trout study costs specific to the Clark Fork Unit and associated with FCRPS consultation are expected to cost up to $ 97,000 annually. 27. Although the proposed Clark Fork River Basin Critical Habitat Unit has significant forecast total annual costs, these costs should be viewed in light of the large size of this proposed unit. In fact, the Clark Fork Unit is forecast to be one of the lowest cost units, when expressed per river mile of habitat proposed for designation. 28. Unit 3: Kootenai River Basin - A short stretch of the Kootenai River lies in the U. S., looping down out of British Columbia. The Kootenai Unit thus comprises only the northwestern corner of Montana, including Libby Dam, and the northeastern tip of the Idaho panhandle. This unit is contained within two counties, Boundary County, Idaho and Lincoln County, Montana. Within this proposed critical habitat unit, approximately 53 percent of the rivers and streams proposed for designation are on Federal land. There is no unoccupied bull trout habitat within this unit. 29. The Kootenai River Unit is a relatively low- cost unit, in terms of forecast costs per river mile of habitat proposed for designation. Total forecast annual costs associated with the bull trout within this unit are between $ 328,000 and $ 402,000. Of this amount, the majority, approximately $ 290,000 annually, are forecast administrative costs. In addition, it is estimated that project modification costs within the Kootenai River Unit will total between $ 38,000 and $ 112,000 annually. Costs associated with timber harvest are expected to be the largest category of future project modification costs in this unit ($ 27,000 to $ 69,000 per year, including costs of harvest reduction, fishery study and monitoring costs, costs related to roads and culverts, and changes to log yarding systems). Costs resulting from modifications to agricultural irrigation diversions ( primarily reductions in irrigation withdrawals) could range from zero to $ 28,000. Other activities are individually estimated to each account for less than $ 5,000 per year in project modification costs. Bull trout- related modifications to operations of the FCRPS have resulted in changes in operations at Libby Dam. 30. Unit 4: Willamette River Basin - The Willamette River Basin Unit includes 337 km ( 209 mi) of stream and 1,600 ha ( 3,954 ac) of lake habitat in the McKenzie River and Middle Fork Willamette River subbasins of Western Oregon. The unit is located primarily within Lane County, but also extends into Linn County. The unit contains Eugene, Oregon and surrounding areas. Approximately 46 percent of the proposed waters within this unit are on Federal land and about 23 percent of the waters in the unit are currently either unoccupied by the bull trout or of unknown occupancy. 31. Forecast total annual costs associated with the bull trout within this unit are between $ 4.5 million and $ 4.9 million. Of this amount, approximately $ 125,000 are forecast ES- 17 administrative costs. Thus, most of the costs for this unit are associated with required project modifications. While project modification costs are forecast to be associated with timber harvest activities and agricultural diversions within this unit ( estimated between $ 22,000 and $ 55,000 annually), the vast majority of forecast costs are associated with dam and reservoir operations in the unit. 32. The ACOE is currently in consultation on 13 flood control facilities located in the Upper Willamette River system. Potential future costs of required modifications for bull trout will likely be driven by provisions for temperature control facilities at the Lookout Point, Hills Creek, and Blue River dams, and trap and haul passage at Lookout Point, Hills Creek, and possibly a fish ladder at Dexter Dam. It is estimated that these passage and temperature control modifications and operation at ACOE operated impoundments in the unit will cost between $ 4.3 and $ 4.5 million per year. It is further estimated that annual project modification costs associated with FERC re- licensing of hydroelectric facilities in the unit will cost between $ 70,000 and $ 144,000 annually. These costs are associated with several hydroelectric facilities operated by the City of Eugene: Trail Bridge and Carmen on the McKenzie River, and Blue River Dam. 33. The Willamette River Unit is the highest cost of the proposed units in terms of forecast cost per river mile of habitat proposed for designation ( greater than $ 20,000 per river mile, annually). These costs are associated with dam and reservoir modifications to ACOE projects. However, the ACOE is also consulting with NOAA Fisheries on the impacts of these facilities on chinook salmon and steelhead, these costs might occur even absent the bull trout. 34. Unit 5: Hood River Basin - The Hood River Unit lies entirely within Hood River County, Oregon and contains the communities of Hood River and The Dalles among a number of smaller towns. The Unit includes the mainstem Hood River and three major tributaries: the Clear Branch Hood River, West Fork Hood River, and East Fork Hood River. A relatively high 43 percent of the proposed habitat in the Hood River Unit is currently either unoccupied or of unknown occupancy. Overall, about 48 percent of the waters proposed for designation within this unit are located on Federal lands. 35. The Hood River Unit is a relatively moderate- cost unit, in terms of forecast costs per river mile of habitat proposed for designation. Forecast total annual costs associated with the bull trout within this unit are between $ 328,000 and $ 413,000. Of this amount, a substantial portion are forecast administrative costs ( approximately $ 282,000). The remainder of the forecast costs are associated with required project modifications. Costs associated with FERC re- licensing of hydroelectric facilities ($ 24,000 to $ 67,000) and timber harvest on USFS lands ($ 16,000 to $ 40,000 per year) are expected to be the most significant categories of future project modification costs in the unit. FERC licensed facilities include Powerdale on the Hood River. Agricultural irrigation diversions in the unit could experience up to $ 16,000 in annual project modification costs. Other activities are individually estimated to account for less than $ 5,000 per year in project modification costs. ES- 18 36. Unit 6: Deschutes River Basin - The Deschutes River Basin Unit in central Oregon contains two critical habitat subunits: the lower Deschutes and the upper Deschutes, separated by Big Falls, an impassible barrier on the Deschutes River. The Lower Deschutes critical habitat subunit is in Wasco, Sherman, Jefferson, Deschutes, and Crook Counties. The Upper Deschutes River critical habitat subunit is located in Deschutes, Crook, and Klamath counties. Approximately 801 km ( 498 mi) of stream habitat in the Deschutes River basin is proposed for critical habitat designation. Overall, a relatively high 37 percent of the proposed habitat within the Deschutes River Unit is unoccupied. The entire upper Deschutes River Critical Habitat subunit is currently unoccupied by the species. A relatively low portion ( 35 percent) of the waters proposed for designation within this unit are on Federal land. This unit also has a substantial amount of Tribal land ( 23 percent of proposed waters). 37. The Deschutes River Unit is a relatively low- cost unit, in terms of forecast costs per river mile of habitat proposed for designation. It is forecast that total annual costs associated with the bull trout within this unit will be between $ 431,000 and $ 719,000. A relatively small portion of this amount, approximately $ 102,000 annually, are forecast administrative costs. The vast majority of these costs are associated with required project modifications. Specifically, costs associated with operation of BOR irrigation impoundments ($ 159,000 annually, largely associated with fishery studies), FERC re- licensing of hydroelectric facilities, ($ 106,000 to $ 280,000) and timber harvest on USFS lands ($ 42,000 to $ 105,000 per year resulting from reduced harvest, fishery studies, road and culvert costs, and changes in yarding systems) are expected to be the most significant categories of future project modification costs in this unit. The BOR- related costs are for studies at Crane Prairie and Wickiup Reservoirs on the Upper Deschutes River. Since both of these reservoirs are in the currently unoccupied Upper Deschutes subunit, dam and reservoir modifications are not reasonably foreseeable. Projected FERC re- licensing costs are for bull trout studies and passage at the Pelton- Round Butte Project on the Deschutes River. Agricultural irrigation diversion project modification costs associated with potential reductions in irrigation water availability could range from zero to $ 43,000 annually. Other activities are individually estimated to account for less than $ 15,000 dollars per year in project modification costs. 38. Unit 7: Odell Lake - The Odell Lake Unit in central Oregon lies entirely within the Deschutes National Forest in Deschutes and Klamath counties. This unit is the smallest of the proposed units within the designation. Total proposed critical habitat includes approximately 2,675 ha ( 6,611 ac) of lake habitat and 18.1 km ( 11.3 mi) of streams. There is no unoccupied habitat within this unit. 39. Total annual costs associated with the bull trout within the unit are forecast to be between $ 51,000 and $ 56,000. Of this amount, almost all ( approximately $ 50,000 annually) will be associated with the administrative costs of the consultation process. It is estimated that project modification costs within the Odell Lake Unit will total less than $ 5,000 annually. These project modification costs are forecast to be largely associated with USFS activities. ES- 19 40. Unit 8: John Day River Basin - The John Day River Basin Unit in eastern Oregon includes the North Fork, the Middle Fork, and mainstem portions of the John Day River and their tributary streams in Wheeler, Grant, and Umatilla counties. A total of 1,080 km ( 671 mi) of stream habitat is proposed for designation as critical habitat. Overall, 19 percent of the proposed areas within the John Day River Unit are currently unoccupied by the species. Approximately 54 percent of the waters proposed for designation within the John Day Unit are located on Federal land. 41. The John Day River Unit is a relatively low cost unit, in terms of forecast costs per river mile of habitat proposed for designation. Total annual costs associated with the bull trout within this unit are forecast to be between $ 446,000 and $ 600,000. Of this amount, a large portion, approximately $ 278,000 annually, will be made up of administrative costs. The remainder of the forecast costs are associated with required project modifications. Specifically, project modifications associated with timber harvest on USFS lands ($ 57,000 to $ 143,000 per year from reductions in harvest, fisheries studies, road and culvert costs, and changes in yarding systems) and placer mining on USFS lands ( up to $ 88,000 per year associated with requirements for and limitations on allowed stream crossing activity) are expected to generate the greatest share of project modification costs in this unit. Costs associated with agricultural irrigation diversion reductions could range from zero to $ 58,000 annually. Other activities are individually estimated to each account for less than $ 10,000 dollars per year in project modification costs. The John Day River Basin is one of two units identified in this study as a setting where bull trout related project modifications could have a significant impact on a small placer mining business, the other is the Hells Canyon Complex ( Unit 12). 42. Unit 9: Umatilla- Walla Walla River Basins - The Umatilla and Walla Walla Rivers Unit is located in northeastern Oregon and southeastern Washington. The unit includes 636 km ( 395 mi) of streams extending across portions of Umatilla, Union, and Wallowa counties in Oregon, and Walla Walla and Columbia counties in Washington. Overall, 17 percent of the proposed critical habitat within this unit is currently unoccupied by the species. A relatively low portion ( 32 percent) of the waters proposed for designation within the Umatilla- Walla Walla Unit are located on Federal land. 43. The Umatilla- Walla Walla River Unit is among the lowest cost units, in terms of consultation- related cost per river mile of habitat proposed for designation. It is estimated that total annual costs associated with the bull trout within this unit will be between $ 98,000 and $ 211,000. Of this amount, approximately $ 59,000 annually will be associated with the administrative costs of the consultation process and the remainder with required project modifications. Specifically, fisheries studies associated with FCRPS consultations could cost up to $ 43,000 annually. Project modification associated with timber harvest on USFS lands is expected to be another significant category of future costs in this unit ($ 26,000 to $ 65,000 per year). Agricultural irrigation diversions could experience up to $ 26,000 in annual project modification costs within this unit. Other activities are individually estimated to each account for less than $ 10,000 dollars per year in project modification costs. In addition to the consultation and project modification costs, the Walla Walla Drainage is in ES- 20 the final stages of developing a basin- wide habitat conservation plan to protect bull trout, among other species. The plan has cost approximately $ 4 million to develop, and it is expected an additional $ 1 million will be spent to complete the plan during the next year or two. 44. Unit 10: Grande Ronde River Basin - The Grande Ronde Unit extends across Union, Wallowa, and Umatilla counties in northeastern Oregon, and Asotin, Columbia, and Garfield counties in southeastern Washington. This unit includes the Grande Ronde River from its headwaters to the confluence with the Snake River and a number of its tributaries, the largest being the Wallowa River. Approximately 1,030 km ( 640 mi) of stream habitat in the Grande Ronde River basin is proposed for critical habitat designation. Overall, seven percent of the proposed critical habitat within the Grand Ronde River Unit is currently unoccupied by the species. Approximately 52 percent of the waters proposed for designation within this unit are located on Federal land. 45. The Grand Ronde River Unit is a low- cost unit, in terms of forecast costs per river mile of habitat proposed for designation. Forecast total annual costs associated with the bull trout within this unit will be between $ 467,000 and $ 580,000. Of this amount, the vast majority, approximately $ 417,000 annually, are forecast to be administrative costs. The remainder of the forecast costs are associated with required project modifications. Specifically, fisheries studies within the unit associated with FCRPS consultations could cost up to $ 19,000 annually. Timber harvest on USFS lands is expected to be another significant source of future project modification costs in this unit ($ 34,000 to $ 87,000 per year resulting from reduced harvest, fisheries studies, and road and culvert costs, and changes in yarding systems). Agricultural irrigation diversion costs could be up to $ 35,000. Other activities are individually estimated to each account for less than $ 10,000 dollars per year in project modification costs. 46. Unit 11: Imnaha/ Snake River Basins - The Imnaha/ Snake Unit extends across Wallowa, Baker, and Union counties in northeastern Oregon and Adams and Idaho counties in western Idaho. The unit contains approximately 306 km ( 190 mi) of proposed critical habitat. All of the proposed habitat within the Imnaha- Snake River Unit is currently occupied by the species. Approximately 51 percent of the waters proposed for designation within this unit are located on Federal land. 47. The Imnaha/ Snake River Unit is a moderate- cost unit, in terms of forecast costs per river mile of habitat proposed for designation. Forecast total annual costs associated with the bull trout within this unit are between $ 559,000 and $ 605,000. Of this amount, the large majority are made up of administrative costs ( approximately $ 544,000, annually). The remainder of the forecast costs are associated with required project modifications. Specifically, fishery studies within the unit associated with FCRPS consultations could cost up to $ 18,000 annually. Timber harvest activities on USFS lands are expected to be another significant category of future project modification costs ($ 10,000 to $ 26,000 per year). Agricultural irrigation diversion related project modification costs could range from zero ES- 21 to $ 11,000. Other activities are individually estimated to each account for less than $ 5,000 dollars per year in project modification costs. 48. Unit 12: Hells Canyon Complex - The Hells Canyon Complex Unit encompasses basins in Idaho and Oregon draining into the Snake River and its associated reservoirs, from Hells Canyon Dam upstream to the confluence of the Weiser River. The Hells Canyon Complex unit includes a total of approximately 1,000 km ( 621 mi) of streams proposed as critical habitat. A relatively high portion ( about 48 percent) of the proposed critical habitat within the Hells Canyon Complex Unit is currently unoccupied by the species. Approximately 47 percent of the waters proposed for designation within this unit are located on Federal land. 49. The Hells Canyon Complex Unit is a relatively moderate- cost unit, in terms of forecast costs per river mile of habitat proposed for designation. It is forecast that total annual costs associated with the bull trout within this unit will be between $ 1.9 million and $ 2.3 million. Of this amount, a majority are expected to be made up of administrative costs ( approximately $ 1.4 million, annually). In addition, significant categories of forecast project modification costs within this unit are associated with timber harvest on USFS lands ($ 92,000 to $ 233,000 per year resulting from reduced harvest, fishery studies, road and culvert costs, and changes in yarding systems), placer mining on USFS land ($ 69,000 associated with requirements for and limitations on allowed stream crossing activity), FERC hydroelectric re- licensing ($ 111,000 to $ 259,000), and BOR reservoir activities ($ 192,000 annually, primarily for study related costs). The BOR reservoirs in the unit include Phillips Reservoir and Thief Valley Reservoir; projected costs are for bull trout related studies. Major FERC- licensed hydroelectric facilities in the unit include Hells Canyon, Brownlee and Oxbow. Agricultural irrigation diversions could experience up to $ 95,000 in annual project modification costs within this unit. Other activities are individually estimated to each account for less than 20,000 dollars per year in project modification costs. The Hells Canyon complex is one of two units identified in this study as a setting where bull trout related project modifications could have a significant impact on a small placer mining business, the other is the John Day River Basin ( Unit 8). 50. Unit 13: Malheur River Basin - The Malheur Unit is in the Malheur River Basin in eastern Oregon, in Grant, Baker, Harney, and Malheur counties. A total of 389 km ( 241 mi) of streams and two reservoirs are proposed for critical habitat. About 25 percent of the proposed critical habitat within the Malheur River Unit is currently unoccupied by the species. Approximately 63 percent of the waters proposed for designation within the Malheur River Unit are located on Federal land. 51. The Malheur River Unit is the second highest cost unit, in terms of forecast costs per river mile of habitat proposed for designation. Forecast total annual costs associated with the bull trout within this unit are between $ 2.0 million and $ 2.1 million. Project modification costs make up a small portion of these costs, between $ 179,000 and $ 268,000 annually. The rest of the forecast costs are associated with administrative requirements. Major categories of forecast project modification costs within this unit are associated with ES- 22 timber harvest on USFS lands ($ 33,000 to $ 83,000 per year) and BOR reservoir activities ($ 133,000 annually). The BOR costs are for research as well as trap and haul fish passage that is ongoing at Beulah Reservoir on the Malheur River, and estimated research costs at Warm Springs Reservoir, which is currently unoccupied by bull trout. Possible reductions in agricultural irrigation diversions could cost from zero to $ 34,000 annually . Other activities are individually estimated to each account for less than $ 5,000 per year in project modification costs. 52. Unit 14: Coeur d'Alene Lake Basin - The Coeur d'Alene Lake Basin Unit in Idaho is broken into two subunits. The Coeur d'Alene Lake subunit lies within Kootenai, Shoshone, Benewah and Bonner counties. The St. Joe River subunit includes streams in Shoshone, Benewah, and Latah counties, Idaho. Thirty stream reaches or tributaries ( 677 km ( 421 mi)) and lakes comprising 12,727 ha ( 31,450 ac) of surface area are proposed as critical habitat within this unit. Of this, a relatively high portion ( 46 percent) is currently unoccupied by the species. Approximately 58 percent of the waters proposed for designation within this Unit are located on Federal land. 53. The Coeur d'Alene Lake Unit is relatively low cost unit, in terms of forecast costs per river mile of habitat proposed for designation. Forecast total annual costs associated with the bull trout within this unit are between $ 429,000 and $ 693,000. A large share of this amount, approximately $ 287,000 annually, is forecast to be made up of administrative costs. In addition, major categories of forecast project modification costs within the unit are associated with timber harvest on USFS lands ($ 97,000 to $ 245,000 per year resulting from reduced harvest, fishery studies, road and culvert costs, and changes in yarding systems), and FHWA bridge and road work ($ 23,000 associated with limitations on in- stream work periods). Modifications to agricultural irrigation diversions could result in costs from zero to $ 100,000. Other activities are individually estimated to each account for less than $ 10,000 dollars per year in project modification costs. 54. Unit 15: Clearwater River Basin - The Clearwater River Unit includes 3,063 km ( 1,904 mi) of streams and 6,722 ha ( 16,611 ac) of lakes proposed as critical habitat for bull trout in north- central Idaho. This large unit extends from the Snake River confluence at Lewiston on the west to headwaters in the Bitterroot Mountains along the Idaho/ Montana border on the east. About 13 percent of the proposed critical habitat within the Clearwater River Unit is currently unoccupied by the species. Approximately 78 percent of the waters proposed for designation within the Unit are located on Federal land. 55. Total forecast costs associated with consultation on bull trout within this unit are between $ 1.0 million and $ 1.7 million annually. Of this amount, approximately $ 572,000 is associated with administrative costs. In addition, major categories of forecast project modification costs within this unit are associated with timber harvest on USFS lands ($ 252,000 to $ 635,000 per year resulting from reduced harvest, fishery studies, road and culvert costs and changes in yarding systems), recreational suction mining on USFS land ($ 115,000 associated with reduced availability of stream access due to seasonal closures), highway bridge and road work ($ 25,000), and USFS management activities ($ 35,000 ES- 23 annually). Agricultural irrigation diversion project modification costs could range from zero up to $ 259,000 annually. These costs may result from reductions in irrigation deliveries. Other activities are individually estimated to each account for less than $ 15,000 dollars per year in project modification costs. 56. Although the proposed Clearwater River Basin Critical Habitat Unit is forecast to experience significant costs associated with the bull trout, these costs should be viewed in light of the large size of the proposed unit. In fact, the Clearwater Unit is one of the lowest cost of the proposed units, in terms of forecast costs per river mile of habitat proposed for designation. 57. Unit 16: Salmon River Basin - The Salmon River basin is a geographically large unit that extends across central Idaho from the Snake River to the Montana border. The critical habitat unit includes 7,688 km ( 4,777 mi) of streams extending across portions of Adams, Blaine, Custer, Idaho, Lemhi, Nez Perce, and Valley counties in Idaho. About six percent of the proposed critical habitat within the Salmon River Unit is currently unoccupied by the species. Approximately 86 percent of the waters proposed for designation within the Unit are located on Federal land. 58. Forecast total annual costs associated with the bull trout within this unit are between $ 2.1 million and $ 3.3 million. Of this amount, approximately $ 1.3 million is associated with administrative costs, with the rest made up of project modification costs. Major categories of forecast project modification costs are associated with timber harvest on USFS lands ($ 465,000 to $ 1.2 million per year resulting from reduced harvest, fishery studies, road and culvert costs and changes in yarding systems), highway bridge and road work ($ 57,000), and USFS general forest management activities ($ 65,000 annually). The cost of modifications to agricultural irrigation water deliveries could range from zero up to $ 479,000 annually. Costs associated with mining activities at Hecla Mining Company's Grouse Creek and Thompson Creek mines are estimated at $ 132,000 annually. Other activities are individually estimated to each account for less than $ 25,000 dollars per year in project modification costs. 59. Although the proposed Salmon River Basin Critical Habitat Unit has significant forecast costs associated with the bull trout, these costs should be viewed in light of the large size of the proposed unit. In fact, the Salmon River Unit is also one of the lowest cost of the proposed units, in terms of forecast costs per river mile of habitat proposed for designation. 60. Unit 17: Southwest Idaho River Basins - The Southwest Idaho Unit includes a total of approximately 2,792 km ( 1,735 mi) of streams in the Boise, Payette, and Weiser River basins. A number of southern Idaho counties are wholly or partially within this unit, including Ada, Adams, Boise, Camas, Canyon, Elmore, Gem, Payette, Valley, and Washington counties. The counties within the southern Idaho unit include both a significant portion of productive agricultural land as well as the largest population center in the state ( the Boise Valley). About 24 percent of the proposed critical habitat within the Southwest ES- 24 Idaho Unit is currently unoccupied by the species. Approximately 78 percent of the proposed streams and 66 percent of proposed lakes and reservoirs within the Southwest Idaho River Basins Unit are located on Federal land. 61. The Southwest Idaho River Basins Unit is a relatively low- cost unit, in terms of forecast costs per river mile of habitat proposed for designation. Forecast total annual costs associated with the bull trout within this unit are between $ 1.0 million and $ 1.9 million. Total administrative costs are forecast to be a relatively small portion of this total ($ 328,000 annually). The remainder of the forecast costs are expected to result from forecast project modifications. Specifically, project modification costs within this unit are forecast to be associated with timber harvest on USFS lands ($ 309,000 to $ 781,000 per year resulting from reduced harvest, fishery studies, road and culvert costs and changes in yarding systems) and BOR reservoir activities ($ 263,000 annually). Major BOR reservoirs in this unit include Anderson Ranch and Arrowrock Reservoirs on the Boise River, Cascade Reservoir on the North Fork Payette, and Deadwood Reservoir on the Payette River. Forecast project modification costs include bull trout life- cycle studies and monitoring at all the reservoirs, and trap and haul passage around the Boise River reservoirs. Costs associated with FERC relicensing at the Lucky Peak facility on the Boise River, and power facilities at the Cascade impoundment, are expected to cost between $ 31,000 and $ 58,000 annually. Modifications to agricultural irrigation diversions could range from zero to $ 318,000 annually. These costs could potentially be associated with reductions in irrigation water withdrawals. Other activities are individually estimated to each account for less than $ 30,000 dollars per year in project modification costs. 62. Unit 18: Little Lost River Basin - The Little Lost River Unit is within Butte, Custer, and Lemhi counties in east- central Idaho. Approximately 184.6 km ( 115.4 mi) of stream habitat in the Little Lost River Basin is proposed for critical habitat designation. About eight percent of the proposed critical habitat within the Little Lost River Unit is currently unoccupied by the species. Approximately 76 percent of the proposed streams within the Little Lost River Basin Unit are located on Federal land. 63. The Little Lost River Unit is forecast to be a relatively inexpensive unit compared to others in the designation, and is a moderate- cost unit in terms of forecast costs per river mile of habitat proposed for designation. It is estimated that total annual costs associated with the bull trout within this unit will be between $ 150,000 and $ 176,000. Of this amount, a large share, approximately $ 136,000 annually, is forecast to be comprised of administrative costs, with the remainder made up of project modification costs. The largest category of project modification costs within this unit is forecast to be associated with timber harvest on USFS lands ($ 10,000 to $ 24,000 per year). Project modifications to agricultural irrigation diversions could result in costs from zero to $ 10,000 annually. Other activities are individually estimated to each account for less than $ 5,000 dollars per year in project modification costs. 64. Unit 19: Lower Columbia River Basin - The Lower Columbia Unit consists of portions of the Lewis, White Salmon, and Klickitat Rivers, and associated tributaries in ES- 25 southwestern and south- central Washington. The unit extends across Clark, Cowlitz, Klickitat, Skamania, and Yakima counties. Approximately 340 km ( 210 mi) of streams and three reservoirs covering 5,054 ha ( 12,488 ac) are proposed for critical habitat designation. About 20 percent of the proposed critical habitat within the Lower Columbia River Unit is currently unoccupied by the species. A low portion ( 18 percent) of the proposed streams and 29 percent of the proposed lakes and reservoirs within the Lower Columbia River Basin Unit are located on Federal land. 65. When forecast total costs for this unit are viewed in light of its size, the Lower Columbia River Basins Unit is a moderate- cost unit, in terms of forecast cost per river mile of habitat proposed for designation. It is estimated that total annual costs associated with the bull trout within the unit will be between $ 385,000 to $ 494,000. Total administrative costs associated with the consultation process are estimated to be a relatively large fraction of these costs ($ 304,000 annually). In addition, project modification costs are forecast to be associated with FERC hydroelectric facility re- licensing activities ($ 67,000 to $ 153,000 annually). These FERC re- licensing costs are for the significant hydroelectric developments on the Lewis River, including Yale, Merwin, Swift No. 1, and Swift No. 2. These costs are projected to include study costs, trap and haul passage, and habitat acquisition. Swift No, 2 is one of two hydroelectric projects identified in this study where bull trout- related project modifications could have a significant impact on a small business; the other is Box Canyon in the Northeast Washington River Basin ( Unit 22). Other activities are individually estimated to each account for less than $ 10,000 dollars per year in project modification costs. 66. Unit 20: Middle Columbia River Basin - The Middle Columbia River unit encompasses the entire Yakima River basin located in south central Washington, draining approximately 15,900 square km ( 6,155 square mi). The basin occupies most of Yakima and Kittitas counties, about half of Benton County, and a small portion of Klickitat County. Approximately 846 km ( 529 mi) of stream habitat and 6,066 ha ( 14,986 ac) of lake and reservoir surface area are proposed as critical habitat within this unit. About 13 percent of the proposed critical habitat within the Middle Columbia River Unit is currently unoccupied by the species. Approximately 44 percent of the waters proposed for designation within the Middle Columbia River Basin Unit are located on Federal land. 67. The Middle Columbia River Unit is a relatively low- cost unit in terms of cost per stream mile. Forecast costs associated with the bull trout within this unit are between $ 391,000 and $ 494,000 annually. Of this amount, a very small portion, approximately $ 50,000 annually, will be associated with the administrative costs of the consultation process, while the remainder will be associated with project modifications. While there are projected to be project modification costs associated with timber harvest activities ( through consultation with the USFS; estimated to be between $ 36,000 and $ 91,000 annually), the majority of forecast costs for this unit are associated with dam and reservoir operations. The BOR operates a system of five dams in this basin ( Cle Elum Lake, Kachess Lake, Keechelus Lake, Tieton Dam, and Bumping Lake) which provide power and irrigation for this agriculturally important region. It is estimated that project modification costs ( periodic trap- ES- 26 and- haul passage to allow genetic interchange between isolated bull trout populations) at the BOR operated impoundments in the unit will cost approximately $ 290,000 per year. Other activities are individually estimated to account for a small portion of forecast annual project modification costs. 68. TheMiddle Columbia River Unit is a relatively low- cost unit in terms of cost per stream mile. 69. Unit 21: Upper Columbia River Basin - The Upper Columbia River Basin includes three subunits in central and northern Washington: the Wenatchee River subunit in Chelan County; the Entiat River subunit in Chelan County; and the Methow River subunit in Okanogan County. A total of 909.7 km ( 565.4 mi) of streams and 1,010 ha ( 2,497 ac) of lake surface area are proposed for critical habitat. About nine percent of the proposed critical habitat within the Upper Columbia River Unit is currently unoccupied by the species. Approximately 58 percent of the proposed streams and 41 percent of the proposed lakes and reservoirs within the Upper Columbia River Basin Unit are located on Federal land. 70. The Upper Columbia River Basins Unit is a low- cost unit, in terms of forecast cost per river mile of habitat proposed for designation. Forecast costs associated with the bull trout within this unit are between $ 196,000 to $ 505,000 annually. Total administrative costs associated with the consultation process are estimated to be $ 122,000, with the remainder of the forecast costs made up of project modification requirements. Major categories of forecast project modification costs within this unit are associated with FCRPS fisheries studies ( zero to $ 155,000 per year), and USFS timber harvest activities ($ 57,000 to $ 144,000 annually resulting from reduced harvest, fishery studies, road and culvert costs and changes in yarding systems). The FCRPS fisheries studies are for bull trout radio telemetry, snorkel and general monitoring study costs in the Entiat, Methow, and Wenatchee Rivers. In addition, modifications to agricultural irrigation diversions could result in costs from zero to $ 59,000 annually. Other activities are individually estimated to each account for less than $ 10,000 dollars per year in project modification costs. 71. Unit 22: Northeast Washington River Basins - The Northeast Washington unit includes bull trout above Chief Joseph Dam on the Columbia River. A total of 373.1 km ( 231.9 mi) of streams and 1,166 ha ( 2,880 ac) of lake surface area are proposed as critical habitat within this unit. A high proportion ( 54 percent) of the proposed critical habitat within the Northeast Washington River Basins Unit is currently unoccupied by the species, and approximately 58 percent of the proposed streams and reservoirs within this unit are located on Federal land. 72. The Northeast Washington River Basins Unit is forecast to be a relatively high- cost unit, in terms of forecast cost per river mile of habitat proposed for designation. Forecast costs associated with the bull trout within this unit are between $ 965,000 to $ 1.4 million annually. Total annual administrative costs are estimated to be a large share of these costs ($ 676,000), with the remainder associated with project modifications. A major category of ES- 27 annual project modification costs within this unit involves FERC hydroelectric facility re-licensing activities ( up to $ 540,000 annually). The estimated FERC re- licensing costs are related to two major hydroelectric facilities on the Pend Orielle River: Box Canyon and Boundary. The Box Canyon re- licensing terms are currently in continuing settlement negotiations, and likely costs specific to this facility are not currently available. However, a recent FERC environmental impact statement ( EIS) estimates that the present value of bull trout related project modifications ( including habitat acquisition) could total upwards of $ 60 million for this relatively small ( 60 MW) facility. Box Canyon is one of two hydroelectric projects identified in this study where bull trout- related project modifications could have a significant impact on a small business; the other is Swift No. 2 in the Lower Columbia River Basin ( Unit 19). Modifications to agricultural irrigation diversions could impose costs from zero to $ 46,000 annually. Other activities are individually estimated to each account for less than $ 10,000 dollars per year in project modification costs. 73. Unit 23: Snake River Basin in Washington - The Snake River Washington Unit includes two critical habitat subunits located in southeast Washington: the Tucannon River subunit located in Columbia and Garfield counties, and the Asotin Creek subunit within Garfield and Asotin counties. A total of 326 km ( 203 mi) of stream reaches are proposed as critical habitat within this unit. About 23 percent of the proposed critical habitat within the Snake River Basin in Washington Unit is currently unoccupied by the species. Approximately 52 percent of the proposed streams within the Snake River Basin Unit are located on Federal land. 74. The Snake River Basin Unit is a relatively low- cost unit, in terms of forecast cost per river mile of habitat proposed for designation. Forecast costs associated with the bull trout within the unit will be between $ 230,000 to $ 287,000. Total annual administrative costs associated with the bull trout are estimated to be a large portion of this total ($ 201,000). The major category of project modification costs within this unit is forecast to be associated with USFS timber harvest activities ($ 21,000 to $ 53,000 annually). Agricultural irrigation diversions could see up to $ 22,000 in annual project modification costs within this unit. Other activities are estimated to each account for less than $ 5,000 dollars per year in project modification costs. 75. Unit 24: Columbia River - This unit is located in the states of Oregon and Washington and includes Clatsop, Columbia, Multnomah, Hood River, Wasco, Sherman, Gilliam, Morrow, and Umatilla counties in Oregon and Pacific, Wahkiakum, Cowlitz, Clark, Skamania, Klickitat, Benton, Walla Walla, Franklin, Yakima, Grant, Kittitas, Chelan, Douglas, and Okanogan counties in Washington. All of this stretch of the Columbia River is currently considered occupied by the bull trout. A relatively low share of the land adjacent to the river in this unit is made up of Federally managed lands ( approximately 39 percent). 76. The Columbia River Unit is a relatively low- cost unit, in terms of forecast cost per river mile of habitat proposed for designation. Forecast total costs associated with the bull trout within this unit will be between $ 243,000 to $ 504,000 annually. Total annual ES- 28 administrative costs associated with this unit are relatively low ($ 50,000). The major category of annual project modification costs within the unit are forecast to be associated FERC hydroelectric facility re- licensing activities ( up to $ 362,000 annually). Major FERC-licensed hydroelectric projects on the mainstem Columbia River include Priest Rapids, Rocky Reach, and Wells. These very large facilities are operated by PUD's. Other activities are individually forecast to account for less than $ 15,000 dollars per year in project modification costs. 77. Unit 25: Snake River - The lower Snake River is located in Washington ( Franklin, Walla Walla, Columbia, Whitman, and Asotin counties) from its mouth to the confluence with the Clearwater River at the cities of Clarkston, Washington and Lewiston, Idaho. The Snake River forms the border between Washington and Idaho from Clarkston/ Lewiston upstream to the Oregon border. The Snake River forms the boundary between Idaho and Oregon from that point upstream to the limit of this critical habitat unit. This portion of the Snake River is within Nez Perce, Idaho, Adams, and Washington counties in Idaho, and Wallowa, Baker, and Malheur counties in Oregon. About 20 percent of the proposed critical habitat within the Snake River Unit is currently unoccupied by the species. Approximately 50 percent of the habitat proposed for designation within the Snake River Unit is located on Federal land. 78. The Snake River Unit is a relatively low- cost unit, in terms of forecast cost per river mile of habitat proposed for designation. Forecast costs associated with the bull trout within this unit are approximately $ 135,000. Administrative costs associated with the consultation process are estimated to be nearly all of that amount, or $ 125,000 annually. Small Business Effects 79. Under the Regulatory Flexibility Act ( RFA) ( as amended by the Small Business Regulatory Enforcement Fairness Act ( SBREFA) of 1996), whenever a Federal agency is required to publish a notice of rulemaking for any proposed or final rule, it must prepare and make available for public comment a regulatory flexibility analysis that describes the effect of the rule on small entities ( i. e., small businesses, small organizations, and small government jurisdictions). The following summarizes the potential effects of critical habitat designation on small entities: Reductions in contractual USFS water deliveries could significantly impact five ranching/ farming operations annually. However, the location of the reduction in water deliveries within the critical habitat designation is uncertain. Small hydroelectric producers in Washington, Oregon, Idaho and Montana could be affected by project modification costs at the time of facility re- licensing. Specifically, the resulting project modifications could have a significant economic impact on the financial operations of Cowlitz County public utility district ( PUD) ( Unit 19 - Lower Columbia River) and Pend Orielle County PUD ( Unit 22 - Northeast Washington River). ES- 29 • Section 7- related costs associated with instream work is expected to affect approximately 15 placer mines annually in the John Day River Basin ( Unit 8) and Hells Canyon Complex ( Unit 12). While the financial characteristics of these mining operations are unknown, this analysis assumes the economic effect will be significant for those operations that are impacted. Energy Industry Impacts 80. Pursuant to Executive Order No. 13211, Federal agencies are required to submit a summary of the potential effects of regulatory actions on the supply, distribution and use of energy. Two criteria are relevant to this analysis: 1) reductions in electricity production in excess of 1 billion kilowatt- hours per year or in excess of 500 megawatts ( MWs) of installed capacity and 2) increases in the cost of energy production in excess of one percent. The constraints placed on energy production within the region from compliance with bull trout section 7 consultations will not result in significant decreases in production or increases in energy costs within the region. Changes From Draft Economic Analysis 81. Information supplied though public comments to the Draft Economic Analysis along with additional information from Action agency and Service personnel on issues raised through public comment led to several changes to the analysis. This Final Economic Analysis contains the following significant changes from the draft report. 1) Additional information on Habitat Conservation Plans ( HCPs) currently under development within the proposed designation has been incorporated. Additional costs on the order of one million dollars annually have been added to the estimated costs reported. 2) The BOR supplied extensive comments on current and potential costs associated with consultation on its impoundments. Costs associated with potential project modifications to Yakima Drainage dams ( as well as for other BOR impoundments within the proposed designation) have been reduced in response to the new BOR information. 3) Information from Hecla Mining Company identified additional consultation- related costs for the Hecla Grouse Creek and Thompson Creek mines. These costs have been included in the section 4 discussion of USFS mining activity. 4) Information from USFS personnel from the Wallowa/ Whitman National Forest identified impacts associated with limitations on in- stream work windows for placer mining operations as baseline State of Oregon regulations that are independent of bull trout section 7 consultation. Estimated impacts to Oregon placer mining have been adjusted accordingly. ES- 30 5) Additionally, corrections to minor errors within the report, not impacting final cost estimates, have been made in response to public comments. Caveats to Economic Analysis 82. Exhibit ES. 10 presents the key assumptions of this economic analysis, as well as the potential direction and relative scale of bias introduced by the assumptions. 83. These caveats below describe factors that introduce uncertainty into the results of this analysis. ES. 10 CAVEATS TO THE ECONOMIC ANALYSIS Key Assumption Projected USFS timber harvest activity is based on recent regional history and ignores the declining long- term trend of the industry. USFS water diversion reductions occur annually and representative water costs reflect the high- end of water lease rates in Washington. Cost of USFS water diversion reductions and timber harvest project modifications are distributed across the units in proportion to USFS non- wilderness acreage. While this may have no effect on the total cost estimate, it may have an effect on the unit cost estimate. Total costs of providing technical assistance is expected to be small relative to other economic impacts; therefore, this analysis does not quantify the instances and costs of technical assistance efforts. Project modifications incorporating measures suggested by the Service and voluntarily agreed to by the applicant during the informal consultation process in order to minimize impact to the bull trout and/ or its habitat are not quantified in this analysis. Amortization of fishery- related capital investments are based on the life of the project rather than a shorter revenue recovery period. Changes in hydroelectric power revenues attributable to reductions in operational flexibility at Libby and Hungry Horse dams is not quantified Most of the project modification costs will either be borne directly by or passed onto the Federal government. The FPA, the Pacific Northwest Electric Power Planning and Conservation Act, and fisheries management directives ( Northwest Forest Plan, INFISH and PACFISH) provide baseline protection. Project modification costs allocated between bull trout and other listed species. Limited consultation with the NRCS is anticipated and based on a the record of past formal and informal consultation activity on the bull trout Effect on Cost Estimate + + +/- - - - - +/- +/- +/- - -: This assumption may result in an underestimate of real costs. + : This assumption may result in an overestimate of real costs. +/-: This assumption has an unknown effect on estimates. ES- 31 Estimated Cost of the Final Designation 84. The analysis contained in this report is consistent with the designation as described in the proposed rule; 5 however, the Service is expected to exclude some proposed areas of habitat to arrive at a final designation. The purpose of this section is to detail the expected changes to the proposed designation and show the implication of these changes on estimated consultation and project modification costs. 85. Exhibit ES. ll compares the spatial extent of the proposed and expected final designations for bull trout critical habitat for both river and stream miles and lake and reservoir acres. Overall, 1,925 miles of rivers and streams and approximately 55,000 acres of lakes and reservoirs are expected to be excluded from critical habitat in the final designation. The greatest reductions in critical habitat stream miles are expected to occur in the Deschutes River Unit ( 60.5 percent reduction), Hood River Unit ( 33.2 percent), Southwest Idaho River Basins Unit ( 32.8 percent), and the Hells Canyon Complex Unit ( 21.3 percent). Most of the reductions in lake and reservoir critical habitat acres are expected to occur in the Deschutes River, Southwest Idaho River Basins and Malheur River Units, all with more than a 70 percent reduction in designated lake and reservoir critical habitat compared to the original proposed designation. ExhibitES. il SUMMARY OF CHANGES IN BULL TROUT CRITICAL HABITAT FROM PROPOSED TO FINAL DESIGNATION Unit Unit 1 - Klamath River Basin Unit 2 - Clark Fork River Basin Unit 3 - Kootenai River Basin Unit 4 - Willamette River Basin Unit 5 - Hood River Basin Unit 6 - Deschutes River Basin Unit 7 - Odell Lake Unit 8 - John Day River Basin Unit 9 - Umatilla- Walla Walla River Basins Unit 10 - Grande Ronde River Basin Unit 11 - Imaha/ Snake River Basins Unit 12 - Hells Canyon Complex Unit 13 - Malheur River Basin Unit 14 - Coeur d'Alene Lake Basin Proposed Designation Stream Miles 296 3,372 368 200 103 439 15 639 396 644 191 599 233 403 Lake and Reservoir Acres 33,939 304,226 30,094 8,899 91 23,314 6,439 0 0 0 0 0 5,926 27,296 Final Designation Stream Miles 280 3,368 368 200 69 173 13 563 348 625 191 471 214 403 Lake and Reservoir Acres 33,939 304,225 30,094 8,899 91 3,407 6,439 0 0 0 0 0 1,769 27,296 5 U. S. Fish and Wildlife Service, Proposed Designation of Critical Habitat for the Klamath River and Columbia River Distinct Population Segments of Bull Trout, November 29, 2002 ( 67 FR 71235- 71284). ES- 32 Exhibit ES. ll SUMMARY OF CHANGES IN BULL TROUT CRITICAL HABITAT FROM PROPOSED TO FINAL DESIGNATION Unit Unit 15 - Clearwater River Basin Unit 16 - Salmon River Basin Unit 17 - Southwest Idaho River Basins Unit 18 - Little Lost River Basin Unit 19 - Lower Columbia River Basin Unit 20 - Middle Columbia River Basin Unit 21 - Upper Columbia River Basin Unit 22 - Northwest Washington River Basins Unit 23 - Snake River Basin in Washington Unit 24 - Columbia River Basin Unit 25 - Snake River Basin Total Proposed Designation Stream Miles 1,904 4,296 1,657 113 171 523 591 232 204 537 343 18,468 Lake and Reservoir Acres 16,610 3,683 41,307 0 12,078 14,987 2,553 1,279 0 0 0 532.724 Final Designation Stream Miles 1,655 3,835 1,114 110 145 519 578 232 189 537 343 16,543 Lake and Reservoir Acres 16,610 3,487 10,651 0 12,000 15,548 2,553 1,279 0 0 0 478,188 86. As noted, the costs reported in the body of this report are consistent with the proposed designation. Expected changes to the proposed designation and the impact of these exclusions on costs are summarized in Exhibit ES. 12, where estimates of annual section 7- related consultation costs for both the proposed and expected final bull trout critical habitat designations are shown. The expected changes to the final designation impacts estimated costs in two ways. 87. First, where future consultation and project modification costs were estimated for dams and reservoirs located within stream reaches that are expected to be excluded from the final critical habitat designation, the costs associated with these anticipated consultations are removed. Three critical habitat units have dams and reservoirs located on waters expected to be excluded in the final designation. The previously quantified costs associated with consultations on Lucky Peak and Cascade Dams and Reservoirs, and Warm Springs, Crane Prairie, and Wickiup Reservoirs have therefore been removed from the forecast total costs associated with the final critical habitat designation. Costs associated with consultations on Lucky Peak and Cascade Dams and Reservoirs have been removed from estimates for the Southwest Idaho River Basins Units, costs associated with consultation on Warm Springs Reservoir have been removed from estimates for the Malheur River Unit, and costs associated with consultations on Crane Prairie and Wickiup Reservoirs have been removed from estimates for the Deschutes River Unit. 88. Second, because the Service is expected to exclude areas of unknown occupancy from the final designation, the spatial extent of unoccupied habitat in each critical habitat ES- 33 unit is adjusted to reflect the expected final designation ( see Appendix F, Exhibit F. 11), and the forecast costs of the expected final designation reflect these changes. 89. Exhibit ES. 12 presents a summary of the annualized forecast total costs, by unit, likely to be associated with the final critical habitat designation over the next ten years. Overall, the removal of waters from the proposed to the expected final bull trout designation is expected to lower forecast section 7- related consultation and project modification costs by approximately $ 18 to $ 24 million over the next ten years ( nine percent). In six units where no changes in the proposed designation were made, there is no change in forecast costs. As a percentage of unit costs, the greatest reduction in forecast costs resulting from the exclusions is expected to occur in the Deschutes River Basin Unit, where forecast costs of the expected final designation are 43 to 55 percent of the costs originally forecast for the proposed designation. 90. The economic impacts associated with the final designation, discounted to present value using a rate of seven percent, are forecast to range from approximately $ 180 to $ 245 million over the next ten years, or $ 18.0 to $ 24.5 million annually. Total costs associated with the final designation for the Klamath Distinct Population Segment of bull trout are forecast to range from approximately $ 5 million to $ 7 million over the next ten years ($ 0.5 to 0.7 million annually), while costs associated with the final designation for the Columbia Distinct Population Segment of bull trout are forecast to range from approximately $ 175 million $ 235 million ($ 17.5 to $ 23.5 million annually). 91. These costs will be incurred primarily by Federal agencies responsible for section 7 consultations ( approximately 65 percent of forecast costs) and the Service ( approximately five to ten percent of forecast costs); private entities will incur the remaining 25 to 30 percent. Project modification costs account for as much as 50 to 60 percent of forecast costs, and administrative costs the remaining 40 to 50 percent. Dam and reservoir- related consultations, including power facility re- licensing, account for approximately 42 percent of forecast project modification costs ( excluding the cost associated with reduced irrigation diversions). Timber harvest, irrigation diversions, habitat conservation plans, and mining account for 20 percent, 12 percent, nine percent, and three percent of forecast project modification costs, respectively. 92. The main text of the report discusses impacts to small businesses expected under the rulemaking as proposed. Impacts to small businesses are primarily related to potential reductions in USFS water deliveries to farmers/ ranchers, project modifications triggered during hydroelectric facility re- licensing, and costs associated with activity restrictions for placer mining. Under the final designation, the reduction in small business impacts would parallel the extent to which these activities occur in habitat removed from the final designation and losses related to these activities reduced. ES- 34 Exhibit ES. 12 SUMMARY COMPARISON OF PROPOSED AND FINAL CRITICAL HABITAT DESIGNATION SECTION 7 COSTS FOR THE BULL TROUT ( Annualized $ l, 000fs) Unit Unit 1 - Klamath River Basin Unit 2 - Clark Fork River Basin Unit 3 - Kootenai River Basin Unit 4 - Willamette River Basin Unit 5 - Hood River Basin Unit 6 - Deschutes River Basin Unit 7 - Odell Lake Unit 8 - John Day River Basin Unit 9 - Umatilla- Walla Walla River Basins Unit 10 - Grande Ronde River Basin Unit 11 - Imaha/ Snake River Basins Unit 12 - Hells Canyon Complex Unit 13 - Malheur River Basin Unit 14 - Coeur d'Alene Lake Basin Unit 15 - Clearwater River Basin Unit 16 - Salmon River Basin Unit 17 - Southwest Idaho River Basins Unit 18 - Little Lost River Basin Unit 19 - Lower Columbia River Basin Unit 20 - Middle Columbia River Basin Unit 21 - Upper Columbia River Basin Unit 22 - Northwest Washington River Basins Unit 23 - Snake River Basin in Washington Unit 24 - Columbia River Basin Estimated Range of Cost Proposed Critical Habitat Designation Low Estimate $ 529 1,321 328 4,497 328 430 51 446 98 467 559 1,939 2,006 429 995 2,059 1,004 150 385 391 196 965 230 243 High Estimate $ 733 2,192 402 4,891 413 719 56 600 211 580 605 2,338 2,095 693 1,676 3,319 1,867 176 494 494 505 1,397 287 504 Estimated Range of Cost Final Critical Habitat Designation Low Estimate $ 507 1,321 328 3,463 248 195 51 411 81 444 559 1,443 1,792 279 881 1,942 698 144 308 376 178 663 177 243 High Estimate $ 703 2,192 402 3,766 312 401 56 553 175 551 605 1,740 1,874 450 1,483 3,130 1,348 169 396 475 460 959 221 504 ES- 35 Exhibit ES. 12 SUMMARY COMPARISON OF PROPOSED AND FINAL CRITICAL HABITAT DESIGNATION SECTION 7 COSTS FOR THE BULL TROUT ( Annualized $ l, 000fs) Unit Unit 25 - Snake River Basin Multiple unit or unknown a Estimated Range of Cost Proposed Critical Habitat Designation Low Estimate 135 1,303 High Estimate 135 1,303 Estimated Range of Cost Final Critical Habitat Designation Low Estimate 135 1,303 High Estimate 135 1,303 Notes: These estimates include all section 7 costs, including those co- extensive with the listing and designation of critical habitat for the bull trout. Costs are reported in 2003 dollars. a Miscellaneous costs ($ 213,000 annually) and the costs associated with development of HCP's ($ 1,090,000 annually) have not been allocated to the unit level due to uncertainty as to their location. ES- 36 INTRODUCTION AND BACKGROUND SECTION 1 93. In November 2002, the Service proposed to designate critical habitat for the Columbia River and Klamath River DPSs of bull trout ( Salvelinus confluentus), hereafter " bull trout." 6 The purpose of this report is to identify and analyze potential economic impacts associated with the proposed critical habitat designation. This report was prepared by Bioeconomics, Inc. of Missoula, Montana. 94. Section 4( b)( 2) of the Act requires the Service to designate critical habitat on the basis of the best scientific data available, after taking into consideration the economic impact, and any other relevant impact, of specifying any particular area as critical habitat. The Service may exclude areas from critical habitat designation when the benefits of exclusion outweigh the benefits of including the areas within critical habitat, provided the exclusion will not result in extinction of the species. 95. Under the listing of a species, section 7( a)( 2) of the Act requires Federal agencies to consult with the Service in order to ensure that activities they fund, authorize, permit, or carry out are not likely to jeopardize the continued existence of the species. The Service defines jeopardy as any action that would appreciably reduce the likelihood of both the survival and recovery of the species. For designated critical habitat, section 7( a)( 2) also requires Federal agencies to consult with the Service to ensure that activities they fund, authorize, permit, or carry out do not result in destruction or adverse modification of critical habitat. Adverse modification of critical habitat is currently construed as any direct or indirect alteration that appreciably diminishes the value of critical habitat for conservation of a listed species. 6 On January 26,2001, the Alliance for the Wild Rockies, Inc. and Friends of the Wild Swan, Inc. filed a lawsuit in the U. S. District Court of Oregon challenging the Service's failure to designate critical habitat for bull trout. The Service entered into a settlement agreement on January 14, 2002, which stipulated that the Service would make critical habitat determinations for five populations of bull trout ( Civil Case No: CV 01- 127- JO). The Service has proposed critical habitat for the Columbia River and Klamath River populations, which are the subject of this analysis. 1- 1 1.1 Description of Species and Habitat7 96. Bull trout { Salvelinus confluentus, family Salmonidae) is a char native to waters of western North America. The historic range of bull trout includes major river basins in the Pacific Northwest from about 41° north to 60° north latitude, extending south to the McCloud River in northern California and the Jarbidge River in Nevada, and north to the headwaters of the Yukon River in Northwest Territories, Canada. To the west, bull trout range includes Puget Sound, various coastal rivers of British Columbia, Canada, and southeast Alaska. Bull trout occur in portions of the Columbia River and Snake River basins, extending east to headwater streams in Montana and Idaho, and into Canada. Bull trout also occur in the Klamath River basin of south- central Oregon. East of the Continental Divide in Canada, the bull trout's range includes the headwaters of the Saskatchewan River in Alberta, and the MacKenzie River system in Alberta and British Columbia. 97. Bull trout were first described as Salmo spectabilis by Girard in 1856 from a specimen collected on the lower Columbia River near The Dalles, Oregon, and subsequently described under a number of names such as Salmo confluentus and Salvelinus malma. Bull trout and Dolly Varden ( Salvelinus malma) were previously considered a single species. However, in 1980, the American Fisheries Society formally recognized bull trout and Dolly Varden as separate species. Two of the most useful characteristics in separating the two species are the shape and size of the head. The head of bull trout is more broad and flat on top, unlike Dolly Varden. Bull trout have an elongated body and large mouth, with the maxilla ( jaw) extending beyond the eye and with well- developed teeth on both jaws and head of the vomer ( a bone in teleost fishes that form the front part of the roof of the mouth and often bears teeth). Bull trout have 11 dorsal fin rays, nine anal fin rays, and the caudal fin is slightly forked. Although they are often olive green to brown with paler sides, color is variable with locality and habitat. 98. Bull trout exhibit both resident and migratory life history strategies. Resident bull trout complete their entire life cycle in the tributary streams where they spawn and rear. Migratory bull trout spawn in tributary streams where juvenile fish rear from one to four years before migrating to either a larger river or lake, where they spend their adult life, returning to the tributary stream only to spawn. These migratory forms occur in areas where conditions allow for movement from upper watershed spawning streams to larger downstream waters that contain greater foraging opportunities. Bull trout that migrate to a downstream river are referred to as " fluvial" fish, while the term " adfluvial" is used to describe fish that migrate to a lake or reservoir. Resident and migratory forms may spawn in the same areas and either form can produce resident or migratory offspring. 7 Information on the bull trout and its habitat is taken from the U. S. Fish and Wildlife Service, Proposed Designation of Critical Habitat for the Klamath River and Columbia River Distinct Population Segments of Bull Trout, November 29, 2002 ( 67 FR 71235- 71284). 1- 2 99. The Klamath River population segment consists of bull trout in the Upper Klamath Lake, Sprague River, and Sycan River watersheds in Oregon. Historical records suggest that bull trout were once widely distributed and exhibited diverse life- history traits in the Klamath River basin. Currently, bull trout in this basin are non- migratory fish that are confined to headwater streams. The local populations that remain reside in an estimated 21 percent of the historic range of bull trout in the Klamath River basin, and they are isolated from one another. 100. The Columbia River population segment includes bull trout residing in portions of Oregon, Washington, Idaho, and Montana. The Bull Trout Draft Recovery Plan ( Draft Recovery Plan) ( Service 2002) identifies 22 recovery units within the Columbia River basin: the Willamette River ( upper tributaries including the McKenzie River), Lower Columbia River ( principally the Lewis, White Salmon, and Klickitat Rivers), Hood River, Deschutes River, Odell Lake, John Day River, Umatilla and Walla Walla Rivers, Middle Columbia River ( principally the Yakima River), Snake River ( including Asotin Creek and Tucannon River), Grande Ronde River, Clearwater River, Salmon River, Little Lost River, Imnaha River, Hells Canyon ( including Powder River), Malheur River, Southwest Idaho, Upper Columbia River ( principally the Wenatchee, Entiat, and Methow Rivers), Northeast Washington, Clark Fork River, Kootenai River, and Coeur d'Alene Lake. Bull trout are estimated to have once occupied about 60 percent of the Columbia River basin; they presently occur in approximately 45 percent of their historic range. Although still somewhat widely distributed in the Columbia River basin, bull trout occur in low numbers in many areas and populations are considered depressed or declining across much of their range. 101. Many factors have contributed to the decline of bull trout in the Columbia and Klamath River basins. However, several appear to be particularly significant: ( 1) fragmentation and isolation of local populations due to dams and water diversions that have eliminated habitat, altered water flow and temperature regimes, and impeded migratory movements; ( 2) degradation of spawning and rearing habitat in upper watershed areas, particularly alterations in sedimentation rates and water temperature resulting from past forest and rangeland management practices and intensive development of roads; and ( 3) the introduction and spread of non- native species, particularly brook trout ( Salvelinusfontinalis) and lake trout ( Salvelinus namaycush), which compete with bull trout for limited resources and, in the case of brook trout, hybridize with bull trout. 102. Bull trout have more specific habitat requirements than most other salmonids. Habitat components that influence bull trout distribution and abundance include water temperature, cover, channel form and stability, spawning and rearing substrate conditions, and migratory corridors. 103. Bull trout are found primarily in cold streams; water temperatures above 15° Celsius ( C) ( 59° Fahrenheit ( F)) are believed to limit bull trout distribution. Adult bull trout have been observed in large rivers throughout the Columbia River basin in water temperatures up to 20° C ( 68° F); however, there are documented steady and substantial declines in 1- 3 abundance in stream reaches where water temperature ranged from 15° to 20° C ( 59° to 68° F). In large rivers, bull trout are often observed " dipping" into the lower reaches of tributary streams, and it is suspected that cooler waters in these tributary mouths may provide important thermal refugia, allowing them to forage, migrate, and overwinter in waters that would otherwise be, at least seasonally, too warm. 104. Preferred spawning habitat consists of low- gradient stream reaches with loose, clean gravel, and water temperatures that range from 4° to 10° C ( 39° to 51° F). Such areas are often associated with cold- water springs or groundwater up- welling. Because bull trout eggs incubate about seven months in the gravel, they are especially vulnerable to fine sediments and water quality degradation. Increases in fine sediment appear to reduce egg survival and emergence. Juveniles are likely similarly affected, as they also live on or within the stream bed cobble. 105. Throughout their lives, bull trout require complex forms of cover, including large woody debris, undercut banks, boulders, and pools. Bull trout are opportunistic feeders, with food habits that are primarily a function of size and life- history strategy. Resident and juvenile migratory bull trout prey on terrestrial and aquatic insects, macro- zooplankton, and small fish. Adult migratory bull trout feed almost exclusively on other fish. 106. The ability to migrate is important to the persistence of bull trout. Maintaining the full complement of bull trout life history forms appears to be important for long- term population persistence in a dynamic and unpredictable environment. Migratory bull trout become much larger than resident fish in the more productive waters of larger streams and lakes, leading to increased reproductive potential. Migration also results in increased dispersion of the population which facilitates gene flow among local populations when individuals from different local populations interbreed, stray, or return to non- natal streams. Local populations that are extirpated by catastrophic events may also become re- established by bull trout migrants. 107. Introduced brook trout threaten bull trout through hybridization, competition, and possibly predation. Hybridization between brook trout and bull trout has been reported in Montana, Oregon, Washington, and Idaho. In addition, brook trout mature at an earlier age and have a higher reproductive rate than bull trout. This difference appears to favor brook trout over bull trout when they occur together, often leading to the decline or extirpation of bull trout. Brook trout also appear to adapt better to degraded habitat than bull trout and are more tolerant of high water temperatures. Non- native lake trout also negatively affect bull trout. In a study of 34 lakes in Montana, Alberta, and British Columbia, lake trout appeared to limit foraging opportunities and reduce the distribution and abundance of migratory bull trout in mountain lakes. 108. The Service determined the primary constituent elements of bull trout habitat from studies of their habitat requirements, life history characteristics, and population biology, as outlined above. These primary constituent elements are: 1- 4 Permanent water and associated substrate having low levels of contaminants such that normal reproduction, growth and survival are not inhibited; Water temperatures ranging from 2° to 15° C ( 37° to 59° F). Adequate thermal refugia may be necessary for persistence of bull trout if water temperatures commonly exceed this range. Specific temperatures within this range will vary depending on bull trout life history stage and form, geography, elevation, diurnal and seasonal variation, shade, such as that provided by riparian habitat, and local groundwater influence; • Complex stream channels with features such as woody debris, side channels, pools, and undercut banks to provide a variety of depths, velocities, and instream structures; • Substrates of sufficient amount, size, and composition to ensure success of egg and embryo overwinter survival, fry emergence, and young- of- the- year and juvenile survival. A minimal amount of fines less than 0.63 cm ( 0.25 in) in diameter and minimal substrate embeddedness are characteristic of these conditions; • A natural hydrograph, including high, low, peak, and base flows within historic ranges or, if regulated, a hydrograph that demonstrates the ability to support bull trout populations; • Springs, seeps, groundwater sources, and subsurface water connectivity to contribute to water quality and quantity; • Migratory corridors with minimal physical, biological or chemical barriers between spawning, rearing, overwintering, and foraging habitats, including intermittent or seasonal barriers induced by high water temperatures or low flows; • An abundant food base including terrestrial organisms of riparian origin, aquatic macroinvertebrates, and forage fish; and • Few or no predatory, interbreeding, or competitive non- native species present. An area need not include all of these elements to qualify for designation as critical habitat. 1.2 Proposed Critical Habitat 109. The areas proposed for designation as critical habitat for the bull trout provide one or more of the primary constituent elements described above. All of the proposed areas require special management considerations to ensure their contribution to the conservation of the bull trout. The critical habitat area consists of 18,469 river miles and 532,721 acres of lake and reservoir habitat within 25 units. While the lateral extent of proposed riverine 1- 5 critical habitat is the width of the stream channel defined by its bankfull elevation, the designation of critical habitat is expected to impact inland activity. How far inland the designation's effects extend is a more or less a site specific issue. For example, with regards to land- based activities such as timber sales or grazing practices, it is a matter of site specific physical processes such as sediment transport, the local topography, and the size of the drainage basin. Descriptions of each critical habitat unit are provided in Appendix A. 1.3 Framework and Methodology 110. The primary purpose of this analysis is to estimate the economic impact associated with the designation of critical habitat for bull trout. 8 This information is intended to assist the Secretary in making decisions about whether the benefits of excluding particular areas from the designation outweigh the benefits of including those areas in the designation. 9 In addition, this information allows the Service to address the requirements of Executive Orders 12866 and 13211, the RFA, as amended by the SBREFA. 10 111. This chapter provides the framework for this analysis. First, it defines the economic effects considered in the analysis. Second, it establishes the baseline against which these effects are measured. Third, it describes the measurement of direct compliance costs, which include costs associated with, and generated as a result of, section 7 consultations. Fourth, it identifies potential indirect economic effects of the rule resulting from ( 1) compliance with other parts of the Act potentially triggered by critical habitat, ( 2) compliance with other laws, and ( 3) time delays and regulatory uncertainty. Fifth, it discusses the need for an economic assessment of the benefits of critical habitat designation. Finally, the section concludes by discussing the time frame for the analysis and the general steps followed in the analysis. 1.3.1 Types of Economic Effects Considered 112. This economic analysis considers both the economic efficiency and distributional effects. For the purpose of this analysis, economic efficiency effects generally reflect the " opportunity costs" associated with the commitment of resources required to comply with the Act. For example, if the activities that can take place on a parcel of private land are limited as a result of a designation, and thus the market value of the land reduced, this reduction in value represents one measure of opportunity cost or change in economic efficiency. Similarly, the costs incurred by a Federal Action agency to consult with the Service under section 7 represent economic opportunity costs. 8 This analysis considers the effects of the regulatory action as proposed in the Federal Register on November 29, 2002 ( 67 FR 71236). M6U. S. C. § 1533( b)( 2). 10 Executive Order 12866, " Regulatory Planning and Review," September 30, 1993; Executive Order 13211, " Actions Concerning Regulations That Significantly Affect Energy Supply, Distribution, or Use," May 18, 2001; 5 U. S. C. § § 601 etseq; and Pub Law No. 104- 121. 1- 6 113. This analysis also addresses how the impacts are distributed, including an assessment of any local or regional economic impacts and the potential effects on small entities and the energy industry. This information can be used by decision- makers to assess whether the effects might unduly burden a particular group or economic sector. 114. For example, while the designation may have a relatively small impact when measured in terms of changes in economic efficiency, individuals employed in a particular sector of the economy in the geographic area of the designation may experience relatively greater effects. The difference between economic efficiency effects and distributional effects, as well as their application in this analysis, are discussed in greater detail below. Efficiency Effects 115. At the guidance of the OMB and in compliance with Executive Order 12866 " Regulatory Planning and Review," Federal agencies measure changes in economic efficiency in order to understand how society, as a whole, will be affected by a regulatory action. 11 In the context of this regulatory action, these efficiency effects represent the opportunity cost of resources used or benefits foregone by society as a result of critical habitat designation and other co- extensive regulations. 12 Economists generally characterize opportunity costs in terms of changes in producer and consumer surpluses in affected markets. 13 116. In some instances, compliance costs may provide a reasonable approximation for the efficiency effects associated with a regulatory action. For example, a landowner or manager may need to enter into a consultation with the Service to ensure that a particular activity will not adversely modify critical habitat. The effort required for the consultation represents an economic opportunity cost, because the landowner or manager's time and effort would have been spent in an alternative activity had the parcel not been included in the designation. When compliance activity is not expected to significantly affect markets — that is, not result in a shift in the quantity of a good or service provided at a given price, or in the quantity of a good or service demanded given a change in price ~ the measurement of compliance costs can provide a reasonable estimate of the change in economic efficiency. 11 Executive Order 12866, " Regulatory Planning and Review," September 30,1993; U. S. Office of Management and Budget, " Circular A- 4," September 17, 2003. 12 The term " co- extensive" is discussed in greater detail in Section 1.3.3. 13 For additional information on the definition of " surplus" and an explanation of consumer and producer surplus in the context of regulatory analysis, see Gramlich, Edward M, A Guide to Benefit- Cost Analysis ( 2nd Ed.), Prospect Heights, Illinois: Waveland Press, Inc., 1990; and U. S. EPA, Guidelines for Preparing Economic Analyses, EPA 240- R- 00- 003, September 2000, available at http:// yosemite. epa. gov/ ee/ epa/ eed. nsf/ webpages/ Guidelines. html. 1- 7 117. Where a designation is expected to significantly impact a market, it may be necessary to estimate changes in producer and consumer surpluses. For example, a designation that precludes the development of large areas of land may shift the price and quantity of housing supplied in a region. In this case, changes in economic efficiency can be measured by considering changes in producer and consumer surplus in the real estate market. 118. This analysis begins by measuring reasonably foreseeable compliance costs. As noted above, in some cases, compliance costs can provide a reasonable estimate of changes in economic efficiency. However, if the designation is expected to significantly impact markets, the analysis will consider potential changes in consumer and/ or producer surplus in affected markets. Distributional and Regional Economic Effects 119. Measurements of changes in economic efficiency focus on the net impact of the regulation, without consideration for how certain economic sectors or groups of people are affected. Thus, a discussion of efficiency effects alone may miss important distributional considerations concerning groups that may be disproportionately affected. OMB encourages Federal agencies to consider distributional effects separately from efficiency effects. 14 This analysis considers the potential for several types of distributional effects, including impacts on small entities; impacts on energy supply distribution and use; and regional economic impacts. It is important to note that these are fundamentally different measures of economic impact than efficiency effects, and thus cannot be added to or compared with estimates of changes in economic efficiency. Impacts on Small Entities and Energy Supply, Distribution and Use 120. This analysis considers how small entities, including small businesses, organizations, and governments, as defined by the RFA, might be affected by critical habitat designation and other co- extensive regulatory actions. 15 In addition, in response to Executive Order 13211 " Actions Concerning Regulations That Significantly Affect Energy Supply, Distribution, or Use," this analysis considers the impacts of critical habitat on the energy industry and its customers. 16 14 U. S. Office of Management and Budget, " Circular A- 4," September 17, 2003. 155U. S. C. § 60\ etseq. 16 Executive Order 13211, " Actions Concerning Regulations That Significantly Affect Energy Supply, Distribution, or Use," May 18, 2001. 1- 8 Regional Economic Effects 121. Regional economic impact analysis provides an assessment of the potential localized effects of critical habitat designation and other co- extensive regulations. Specifically, regional economic impact analysis produces a quantitative estimate of the potential magnitude of the initial change in the regional economy resulting from a regulatory action. Regional economic impacts are commonly measured using regional input/ output models. These models rely on multipliers that mathematically represent the relationship between a change in one sector of the economy ( e. g., hydroelectric power generation) and the effect of that change on economic output, income, or employment in other local industries ( e. g., manufacturers relying on the electricity generated). These economic data provide a quantitative estimate of the magnitude of shifts of jobs and revenues in the local economy. 122. The use of regional input/ output models can overstate the long- term impacts of a regulatory change. Most importantly, these models provide a static view of the economy of a region. That is, they measure the initial impact of a regulatory change on an economy but do not consider long- term adjustments that the economy will make in response to this change. For example, these models provide estimates of the number of jobs lost as a result of a regulatory change, but do not consider re- employment of these individuals over time. In addition, the flow of goods and services across the regional boundaries defined in the model may change as a result of the designation, compensating for a potential decrease in economic activity within the region. 123. Despite these and other limitations, in certain circumstances regional economic impact analysis may provide useful information about the scale and scope of localized impacts. It is important to remember that measures of regional economic effects generally reflect shifts in resource use rather than efficiency losses. These types of distributional effects, therefore, should be reported separately from efficiency effects ( i. e., not summed). In addition, measures of regional economic impact cannot be compared with estimates of efficiency effects. 1.3.2 Defining the Baseline 124. The purpose of this analysis is to measure the economic impact of compliance with the protections derived from the designation of critical habitat, including habitat protections that may be " co- extensive" with the listing of the species ( the term " co- extensive" is described in greater detail in the following section). Economic impacts to land use activities may exist in the absence of co- extensive protections. These impacts may result from, for example: • Local zoning laws; • State and natural resource laws; and 1- 9 • Enforceable management plans and BMPs applied by other State and Federal agencies. 125. Economic impacts that result from these types of protections are not included in this assessment; they are considered to be part of the " baseline." Existing laws, regulations, and policies are described in greater detail in Section 2.3 of this analysis. 1.3.3 Direct Compliance Costs 126. The measurement of direct compliance costs focuses on the implementation of section 7 of the Act. This section requires Federal agencies to consult with the Service to ensure that any action authorized, funded, or carried out will not likely jeopardize the continued existence of any endangered or threatened species or result in the destruction or adverse modification of critical habitat. The administrative costs of these consultations, along with the costs of project modifications resulting from these consultations, represent the direct compliance costs of designating critical habitat. 127. This analysis does not differentiate between consultations that result from the listing of the species ( i. e., the jeopardy standard) and consultations that result from the presence of critical habitat ( i. e., the adverse modification standard). Consultations resulting from the listing of the species, or project modifications meant specifically to protect the species as opposed to its habitat, may occur even in the absence of critical habitat. However, in 2001, the U. S. 10th Circuit Court of Appeals instructed the Service to conduct a full analysis of all of the economic impacts of critical habitat designation, regardless of whether those impacts are attributable co- extensively to other causes. 17 Given the similarity in regulatory definitions between the terms " jeopardy" and " adverse modification," in practice it can be difficult to pre- determine the standard that drives a section 7 consultation. Consequently, in an effort to ensure that this economic analysis complies with the instructions of the 10th Circuit as well as to ensure that no costs of the proposed designation are omitted, the potential effects associated with all section 7 impacts in or near proposed critical habitat are fully considered. In doing so, the analysis ensures that any critical habitat impacts that are co- extensive with the listing of the species are not overlooked. 1.3.4 Indirect Costs 128. A designation may
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49. [Image] The Water Report - The Oregon Water Resources Department: an interview with director Paul Cleary
Only portions of issues of The Water Report are available in the Klamath Waters Digital Library. See the full report at http://www.thewaterreport.com/Citation Citation
- Title:
- The Water Report - The Oregon Water Resources Department: an interview with director Paul Cleary
- Author:
- Envirotech Publications
- Year:
- 2004, 2008, 2006
Only portions of issues of The Water Report are available in the Klamath Waters Digital Library. See the full report at http://www.thewaterreport.com/
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The Bureau of Reclamation (Reclamation) is the responsible Federal agency for operation of the Klamath Project (Project). Operation of the Project has been the subject of numerous previous consultations ...
Citation Citation
- Title:
- Biological assessment of the Klamath Project's continuing operations on southern Oregon/Northern California esu coho salmon and critical habitat for southern Oregon/northern California esu coho salmon
- Year:
- 2001, 2004
The Bureau of Reclamation (Reclamation) is the responsible Federal agency for operation of the Klamath Project (Project). Operation of the Project has been the subject of numerous previous consultations with the U.S. Fish and Wildlife Service (Service) and one with the National Marine Fisheries Service (NMFS) under Section 7 of the Endangered Species Act (ESA). Severe drought conditions in 1992 and 1994 and resultant associated shortages in project water supplies coupled with the 1997 listing of the southern Oregon/northern California (SONCC) coho salmon, Oncorhynchus kisutch, as threatened in the Klamath River downstream from the Project led to a review of Reclamation 19s operations. This biological assessment (BA) describes the effects on federally-listed species (i.e., coho salmon) and its designated critical habitat from on-going operation of the project based on historic operations, as described in this BA. The biological opinion (BO) addressing this BA and any subsequent BA amendments will be among the information that will inform the development of alternatives of the long-term operations plan and environmental impact statement (EIS). Reclamation is developing a long-term operations plan and EIS for the Project. The preferred alternative for implementation from the long-term operations plan would be the subject of a separate future ESA consultation. This BA describes the needs of anadromous fish with emphasis on SONCC coho salmon. It was developed using the best available scientific and commercial information on anadromous fish in the Klamath River. Coho salmon were listed as threatened on June 6, 1997 (NMFS 1997). The NMFS published a final rule designating critical habitat for SONCC coho salmon in May, 1999 (NMFS 1999a). Designated critical habitat for SONCC coho salmon encompasses accessible reaches of all rivers (including estuarine areas and tributaries) between the Mattole River in California and the Elk River in Oregon. Critical habitat includes all waterways, substrate, and adjacent riparian zones below longstanding, naturally impassable barriers. The areas upstream from Iron Gate Dam (IGD) (river mile 190) were not proposed critical habitat because areas downstream were considered sufficient for the conservation of the species. Reclamation has not evaluated whether the action that is the subject of this BA is consistent with its trust responsibility to Klamath Basin Indian Tribes. There are several important scientific reports and analyses (e.g., Phase II flow study) currently not available to Reclamation concerning threatened coho salmon, their habitat, and water quality as it relates to appropriate river flows that may be necessary to operate the Project consistent with the trust responsibility to Klamath Basin Indian Tribes. When this additional information becomes available, Reclamation intends to consider it during the development of the Project operations plans and include it in subsequent consultations with NMFS, as appropriate.