MANAGER’S REPORT

13 April. 2010

Over five feet of late winter season snowfall in the Cascades has moderately improved the water outlook for this coming summer taking a 55% of snowpack to over 76% on a moisture content basis.  This will obviously help with flows in the Deschutes this coming summer but is still below average and water management will be key for all irrigation districts.  In addition, the recent and mostly continuing cool wet weather has allowed several districts to start a week or so later than expected.

The Juniper Ridge Project completed a major milestone this past week with a formal substantial completion notice executed with COID and Slayden Construction.  Water will be flowing on the Pilot Butte Canal for the irrigation season on April 9th as scheduled.  Construction continues on the powerhouse and is scheduled for completion in early September with full commissioning and generation expected in late September or early October before the irrigation season finishes.  Work continues on schedule and on budget.

The entire Oregon Delegation in Washington, DC on behalf of the irrigation districts in Central Oregon and the City of Prineville signed a letter to Jane Lubchenco, the head of the National Oceanic and Atmospheric Administration (NOAA), expressing their support for NOAA to issue a draft 10j rule.  Ms. Lubchenco responded back to the Delegation confirming a July 2010 submittal for the Federal Register.  The 10j rule, if finalized, would designate the reintroduced steelhead above Lake Billy Chinook as “experimental, non-essential” and provide a release from full ESA enforcement for a period of time for the basin.  The 10j designation would provide the Basin some needed time for additional water conservation projects for instream flow restoration and enable most entities to plan and change any practices that may threaten or harm the species.

The US Fish & Wildlife Service (USFWS) issued a revised Bull Trout Critical Habitat Plan (CHP) covering the entire western United States a few months ago and solicited public comments.  The Deschutes Basin Board of Control (DBBC) submitted comments in support of the proposed CHP pertaining to our Basin and are available along with hundreds of other comments on the USFWS website under Bull Trout.  The CHP proposes the same stretches of the Deschutes River up to Big Falls and on the Crooked River up to Hwy 97 as in 2005.  In addition to the comments of support, the DBBC also provided a definitive study and report on the excellent health and population numbers of the Bull Trout in our basin.  This study had been conducted for the DBBC’s comments on the CHP proposed by USFWS in 2005.  It should be noted that the Bull Trout are doing so well in the Deschutes Basin that the USFWS is planning on taking Bull Trout out of the Deschutes Basin and reintroducing them over in the Clackamas Basin.

 

The new statutes passed by the Oregon State Legislature involves changes to the State’s Business Energy Tax Credit Program and rules hearings are underway to establish the new rules. COID is involved with these hearings and has provided comments to the Oregon Department of Energy.  While the pre-certification tax credit amount and status of the Juniper Ridge Project is intact, there will be possible changes influencing any new hydro plants that COID pursues into the future.

In other renewable energy news, the California Public Utilities Commission passed a new rule allowing California entities required to comply with the State of California’s Renewable Portfolio Standard can now buy Renewable Energy Credits (RECs) from outside the State.  This may provide an opportunity for Oregon certified renewable energy projects to sell RECs into California.  COID is strongly pursuing this option with the credits that will be generated from the Juniper Ridge Project.  It is expected that the price of RECs will also go up in Oregon as well.

The Deschutes Water Alliance (DWA) has submitted a letter of interest to the US Bureau of Reclamation for the funding of a Basin Study to update the work done by the DWA in 2005.  This will provide the Basin a better picture of how much stream flow restoration has been accomplished as well as update the demand forecast for future urban and rural water demands.  The third meeting of the DWA is scheduled for April 22 from 8am – 10am at the Redmond Firehall.

 Opportunities

·        The DBBC submitted appropriation requests to the Congressional Delegation for additional federal funding of the Bureau of Reclamation’s Deschutes Project line item.  Funding has successfully been increased by several hundred thousand dollars in each of the last two years and utilized by COID and the other irrigation districts in the DBBC for conserved water projects.

·        COID along with NUID and Swalley are conducting negotiations with two energy companies interested in implementing small scale hydro at the North Canal Dam in Bend.  This process will be ongoing over the next few years.

·        The Habitat Conservation Plan is continuing under an extension of its existing grant from the US Fish & Wildlife Service through Oregon Dept of Fish & Wildlife.  A grant application for roughly $400,000 of HCP funding was filed and an announcement of award is expected in the spring of 2010.

·        Deschutes County has begun the official review of their Comprehensive Plan.  The initial hearings have been conducted by the Planning Commission and upon their completion will forward a recommended plan to the County Commissioners.  The process will likely take up most of 2010 and beyond.

·        COID and BLM have begun the anticipated two year process to complete the land swap authorized by Congress in the public lands bill passed this year in Badlands area east of Bend.

·        COID has re-engaged Pacific Power in conversations over termination of their lease and hydro facility at Cline Falls.  COID is still evaluating pursuit of licensing thru FERC and the State of Oregon if it wishes to generate hydroelectricity at that site.  Analysis and evaluation of the costs of licensing are currently under review and contact has been positive with DEQ and ODFW for the project.  There has been a private company that has filed a preliminary permit application with FERC for the COID Cline Falls site.  COID is evaluating the options on how to deal with this filing and will be addressed as a separate Board agenda item.

·        Arnold Irrigation, NUID and COID objected to a DRC proposed conserved water project to be done in Lone Pine.  Members of the Lone Pine Board informed the other districts that they were not in favor of the proposed project either.

·        The Oregon Department of Environmental Quality (DEQ) will be embarking on a Watershed Assessment and Action Plan (WAAP) in the coming year.  There are stakeholder meetings to be scheduled.  COID will be engaged in this process and will be monitoring how it develops.  The WAAP will be used to establish environmental quality baselines for planning purposes of DEQ and is part of the developing federal Clean Water Act requirements for the Basin.  While separate from the TMDL process, the WAAP is part of the overall documentation and understanding that will come before the TMDLs.

Challenges

  • Issues continue to arise with patrons and the delivery of water to parcels past the District’s Point of Delivery.  The District is evaluating its existing statutory authorities and reviewing policies to assist in resolving these issues.
  • Persistence of patrons failing to beneficially use their water either due to economics, absentee ownership, or mismanagement resulting in potential confiscation by the District as the only viable option to prevent forfeiture.

 

STATUS REPORT

Juniper Ridge Piping & Hydroelectric Project

·        See separate Project Update report

Real Estate

·      One 20 acre parcel near Deschutes Market Road and Hwy 97 was listed for sale through Steve Scott Realtors.  Listing, as per District policies, was at the recently updated appraised value.  No offers have been received to date.  The remaining 20 acre parcel was not listed.

Status – In Process with no change in last month

 

·        COID and the Redmond School District filed and received approval of a partition plat to the City of Redmond.  Traffic issues in Redmond are affecting the timing of the zoning change possibility and execution of a sale to Desertscape. 

Status – Paused.  No joint meetings have been conducted with City of Redmond, Deschutes County, COID, Division of State Lands, Oregon Department of Transportation and the Oregon Transportation Commission for several months.

·        A Conditional Use permit was received for COID owned lands along Teal Road pending county road improvements.  Once completed the Board will evaluate for declaring surplus depending on market conditions and financial requirements of the District.

Status – In Process with no change in last month

Development 

·       Direct communication with City of Bend and Redmond public works and planning staff on resolving issues of canal safety and impacts of development that will require piping.  Successful coordination and planning on Odem-Medo improvements most recent example of effort.

Status – Ongoing.