MANAGER’S REPORT

14 June. 2011

A lot of action on the legislative, regulatory and irrigation fronts this past month.

The National Oceanographic and Atmospheric Administration (NOAA) issued their draft 10(j) rule proposing designation of the reintroduced Steelhead to be experimental and non-essential in the Federal Register this past month.  Next steps are for comments to the proposed rule to be filed within 60 days.  NOAA has proposed that the 10(j) designation be in place for four generations of returning steelhead placed above the Pelton – Round Butte Complex which translates into 12-14 years.  After the fourth returning generation the 10(j) designation expires.  This rule, when it becomes final, will enable the Basin to continue its restoration efforts without the threat of federal prosecution or third-party litigation which should enable continued funding from restoration partners at the state and federal levels.

Congressman Greg Walden formally introduced HR 2060 into the House of Representatives.  The official name of the bill is the "Central Oregon Jobs and Water Security Act" and will deliver needed water to Prineville for job creation, clears the way for carbon-free energy at Bowman Dam and creates new water conservation opportunities in Central Oregon while protecting existing users.  Ochoco Irrigation District, the City of Prineville and Crook County are very active in this legislative effort and the Deschutes Basin Board of Control has and will be supportive.  Rep. Walden held a field meeting in Prineville to discuss the particular details of the bill in Prineville on Saturday June 11th.  Significant efforts are planned for enabling this bill to be supported by most of the basin and is supported by the Confederated Tribes of Warm Springs and others.

A field team from the US Department of Energy, Bureau of Reclamation and the Army Corps of Engineers for the basin scale hydroelectric assessment conducted a basin tour in Central Oregon in early June.  This visit served as the unofficial “kick-off” for the basin study efforts that will continue thru 2012.  The Deschutes Basin was the only basin in the western U.S. selected for this study and represents a considerable opportunity for additional funding and recognition for potential additional development of hydroelectric generation. The purpose of the study is to evaluate maximizing hydro development on the existing federal dams of Wickiup, Crane and Bowman along with the irrigation district canals while at the same time evaluating mitigating any potential environmental impacts.

The Business Energy Tax Credit (BETC) for Juniper Ridge is being actively promoted to the investment and business community in Oregon. The amount of funds that will be realized to COID from the BETC is $4,198,000. These amounts will be used to buy-down the existing obligation to ODOE under the terms of our Small Energy Loan agreement.

Natel Energy partnered with COID in filing a hydroelectric development grant application with the US Department of Energy (DOE) on June 6th.  The filing requested  approximately $1 MM in funding to be matched with predominantly funds and equipment from Natel Energy along with a small commitment from COID for the pursuit of a hydro facility at the NC-2 Falls on the Pilot Butte Canal in Bend.  Results of the grant application will be known in late summer/early fall of this year.  The Energy Trust of Oregon along with the Oregon Department of Energy provided letters of support.

The Low Impact Hydroelectric Institute (LIHI) certified the Siphon Power Project (SPP) at their May 26th Board meeting. LIHI certification of SPP now entitles all power generated from SPP to qualify for the Oregon Renewable Portfolio Standard and therefore the certification of the Renewable Energy Credits (RECs) from this facility.  While of no immediate financial impact, this status will enable COID to actively market and sell RECs from the SPP going forward.  This status is related to the next item below.

HB 3571 passed both chambers of the Oregon Legislature and was signed by Governor Kitzhaber on June 8th.  This bill now clearly establishes ownership of the RECs from qualified renewable energy facilities built prior to 2005 to the owners of the facilities.  This clarification, now in Oregon Statute, will strengthen COID’s REC marketing and sales.  COID provided testimony and was very active in this bill at Salem.  Certficiation with the California Energy Commission for being able to sell RECs from the SPP and Juniper Ridge is still pending.

Opportunities

  • COID, NUID, Swalley and ODFW received notice that the application to the Oregon Watershed Enhancement Board (OWEB) for funding of the fish ladder design was approved and funded for $39,000 plus match from the applying partners. Funding should become available to begin the design work by mid-summer 2011.
  • COID and BLM are proceeding with land appraisals and environmental inspections on the parcels included in the land swap authorized by Congress in the public lands bill passed this year in Badlands area east of Bend. 
  • COID is engaging in discussion with PacifiCorp with the Cline Falls facility on next steps to clarify the conditions for the lease termination on that site for March 2013. COID is evaluating the costs for retrofitting and upgrading the facility to potentially pursue FERC licensing for a hydro project at this location.
  • The DBBC has been a member of a group of stakeholders formed to evaluate options for dealing with the building sedimentation in Mirror Pond located in Bend. A smaller group of these stakeholders including Bend Parks, City of Bend and PacifiCorp has hired a project manager to assist in the effort of developing a community based plan to develop options and gather funding for this Mirror Pond issue. This effort will take place during 2011 and likely beyond. The DBBC is active and regularly participates in these discussions.

 

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

State of Oregon Legislation

There are a number of bills involving COID’s interests or irrigation districts in general during the current legislative session. A few of the bills are described in detail below with their status.

  • HB 2873 - Relating to fish supportive measures for hydroelectric projects located within artificial delivery systems; declaring an emergency. Proposed by OWRC and passed the House and is now with the Senate.

Ayes, 40; Nays, 19-Excused, 1.

5-5 Referred to Environment and Natural Resources

Bill died in Senate Committee

Governor’s Office pledged after session workgroup

  • HB 3623 - Relating to the Deschutes Basin ground water study area; declaring an emergency.
4-6(H) First reading. Referred to the desks of the Co-Speakers.

4-7 Referred to Energy, Environment and Water.

4-14 Public Hearing held.

4-21 Work Session held.

4-27 Recommendation: Do pass with amendments, be printed A-Engrossed, and be referred to Ways and Means.

Referred to Ways and Means by order of Speaker.

5-6 Assigned to Subcommittee On Natural Resources.

5-17 Public Hearing held.

6-2 Work Session held.

Returned to Full Committee.

6-10 Work Session scheduled.

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 – No Change

  • 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 therefore any potential sale to an interested buyer. 

Status – Paused.  ODOT and the City of Bend have executed an agreement this past month that may facilitate movement of a similar agreement for Redmond. Legislation has been filed in Salem that may further produce positive effects for potential development.

  • Occasional inquiries on various District owned parcels are directed to Real Estate Agent of Record – Steve Scott Realtors.

Development 

  • COID, Arnold, Swalley and Tumalo are in active discussions with the City of Bend to implement the recently executed MOU and pursue an Inter-Governmental Agreement by the end of 2011.  NUID will be joining the efforts already underway.

Status – Ongoing. 

 

ON THE RADAR SCREEN

  • Federal legislation and regulation of renewable energy projects
  • Federal regulation of wetlands and jurisdiction of irrigation canals