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Scoping for Feasibility of Columbia River Mainstem Passage
Cost-Effectiveness Analysis
November 2004 | document IEAB 2004-2
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Executive Summary
The Independent Economic Analysis Board (IEAB) has been asked to review
current information about Columbia River mainstem bypass spill and
alternative juvenile passage strategies to determine if the information
base can support a formal cost-effectiveness analysis (CEA) of any passage
options, and if so, how the information can be characterized to represent
the range of opinions about the effectiveness and costs of bypass spill
and passage alternatives.
For purposes of this analysis the IEAB defines a cost-effective
scenario as one that reduces net costs (power revenue losses plus
costs of passage actions) and increases juvenile survival relative to the
status quo scenario. Therefore, our scoping is concerned with quantitative
information about power revenues, passage costs and juvenile survival.
In early 2004, Bonneville Power Agency (BPA) and the U.S. Army Corps of
Engineers (USACE), the ?Action Agencies? proposed to modify bypass
spill operations at the Federal Columbia River Power System (FCRPS) dams
while providing ?offsets? to compensate for the reduced juvenile
survival caused by the reduced bypass spill. The scope of the review
includes analysis, comments, and response to comments in relation to the
?Preliminary Proposal for FCRPS Summer Juvenile Bypass Spill Operations?
(BPA and USACE, 2004a) released March 30, and the ?Amended Proposal for
FCRPS Summer Juvenile Bypass Operations? (BPA and USACE 2004b), released
June 8. We also describe the proposed revised BiOp as provided by the
Amendment to the 2004/2004-2008 Implementation Plan, (USDC 2004c).[1]For
the purposes of this paper, the status quo for spill requirements is
defined by NOAA Fisheries? 2000 Biological Opinion for FCRPS Operations.
Our descriptions of the proposals and comments include text related to
cost-effectiveness taken verbatim from the documents. This body of
information provides a current and detailed information base that reveals
the range of opinions about the cost-effectiveness of summer spill as
compared to other actions to increase salmon and steelhead runs.
Our review finds that
- Conclusive and complete CEA of the modified spill proposals and
offsets is currently not feasible because of a large amount of
uncertainty regarding their survival effects, because survival effects
of some offsets have not been estimated, and because some offsets were
not well-defined. Still, we are able to provide some CEA that reflects
the range of uncertainty.
- Our review highlights areas of uncertainty most important to the
feasibility and cost-effectiveness of actions intended to improve
juvenile survival. These are: passage timing, smolt-to-adult survival
rates, effects of spill on pool survival, delayed mortality of
transported juveniles, and water quality factors (primarily
temperature and dissolved gas).
- More advance planning might increase the acceptability of a spill
reduction/offset package. It is difficult to propose offsetting
actions for a migration season that will begin within months, because
most actions take time to implement. Some of the most promising
offsets, Removable Spillway Wiers (RSWs) for example, could not be
considered for the 2004 migration season.
- Some stakeholders might have been more supportive if more time had
been allowed for comments, and if stakeholder proposals had been more
directly included in the modified proposals.
- Some offsets were criticized because stakeholders felt they should
be regarded as BiOp actions. There needs to be a clear distinction
between actions included in the BiOp baseline, and actions above and
beyond the BiOp.
If it can be assumed that the Action Agencies? proposals and analysis
are correct, then a number of cost-effectiveness implications follow.
- The Preliminary Proposal suggests that reduced bypass spill and
proposed offsets would be cost-effective for Hanford Reach fall run
chinook stocks. However, the package is not shown to be cost-effective
for other non-listed stocks or for the ESA-listed Snake River fall run
stock because quantified survival losses are larger than quantified
survival increases from offsets.
- The Amended Proposal includes actions intended to fully compensate
for reduced survival of ESA-listed Snake River wild stocks. The key
action is increased outflow from Brownlee Reservoir. For this ESA-listed
stock, the Amended Proposal judges this action to be adequate for
offsetting reduced spill. Survival benefits from augmenting the
pikeminnow program are shown, but because of an issue involving BiOp
requirements, the pikeminnow program augmentation is not counted as an
offset.
- The Amended Proposal suggests that reduced bypass spill and proposed
offsets would be cost-effective for the Snake River fall chinook wild
and hatchery stocks, for the Hanford Reach natural stock, and for all
non-listed stocks (including Hanford Reach) taken as a group. The cost
of all proposed offsets ($10 million annually) is forecast to be less
than the increased revenue from reduced bypass spill ($33 to $44
million annually).
- The pikeminnow program augmentation is not counted as an offset.
However, an analysis is presented in an appendix to the Amended
Proposal (BPA and USACE 2004d)showing that, for most non-listed
stocks, the amount of survival increase from pikeminnow program
augmentation is less than the survival reduction from reduced spill.
For these stocks, survival benefits from other offsets (habitat
improvements for natural fish and hatchery actions) are not
quantified. Therefore, for these non-listed stocks, the analysis
provided by the Amended Proposal does not show that proposed offsets
can increase survival enough to compensate for reduced spill, even if
the pikeminnow augmentation program is counted as an offset.
- The Amendment to the 2004/2004-2008 Implementation Plan for the
FCRPS Biological Opinion Remand (the Revised BiOp) issued in June 2004
proposed relatively small changes to the Amended Proposal. At Ice
Harbor and John Day, BiOp spill would end on August 25 instead of
August 21. NOAA Fisheries (USDC 2004) finds that survival increases
for Snake River fall chinook salmon from increased Brownlee releases
are adequate to offset survival reductions from reduced bypass spill.
Based on this opinion and likely power benefits and costs, the Action
Agencies argued that this change is likely to be a cost-effective
change for management of the Snake River fall chinook stocks. Again,
increased net survival and cost-effectiveness were not demonstrated
for the majority of the affected Columbia River stocks
There is substantial controversy about many factors affecting the cost
effectiveness of mainstem actions.
- Tribal interests, environmental groups and fish and wildlife
agencies raised many issues with the biological analysis used to
support the Preliminary Proposal. Taken at face value, the juvenile
survival issues raised by the comments imply much uncertainty
regarding the cost-effectiveness of the Preliminary Proposal. An
alternative analysis provided by CRITFC suggests negative effects on
ESA-listed adults about 10 to 15 times as large as the Action Agencies?
analysis. An analysis provided by the Fish Passage Center (FPC)
suggests negative effects about 10 to 20 times as large.
- Most controversy is associated with juvenile survival and
smolt-to-adult returns. Some important areas of controversy involve
passage timing, smolt-to-adult survival rates, effects of spill on
pool survival, delayed mortality of transported juveniles, and water
quality factors, primarily temperature and dissolved gas.
- There is much less debate about changes in power production and
revenue savings from bypass spill reductions, and about the costs of
the offsets.
Table ES-1 shows the range of estimated effects on adult fish based on
analysis provided by the Action Agencies and selected commenters.
Alternative estimates were selected because they represent different
opinions, not because the opinions have any more or less scientific merit.[2]
Table ES-1 reveals the range of impacts suggested by the Preliminary
Proposal and comments, and it shows that, for some stocks, estimated
survival benefits of offsets were not large enough to compensate for
losses from spill reduction.
Table ES-1. Estimated Change in Adult Returns Under Preliminary
Proposal.
Action Agencies? Estimates, and Alternative Estimates
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Change in Number of Adults Caused by Action
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Losses from Preliminary Spill Proposal 1.
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Gains from Hanford Reach Anti-Stranding 2.
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Gains from Pikeminnow Augmentation 3.
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Net Effect of All Actions
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Agencies
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FPC
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CRITFC
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Agencies
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WDFW
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Agencies
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Alternate
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Agencies
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FPC
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ESA-listed Snake River Fall Chinook
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-2 to -20
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-46 to -192
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-28 to
-180
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0
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0
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1 to 11
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0
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-1 to -10
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-46 to -192
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Non-listed Hanford Reach Fall Chinook
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-885 to -7,080
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3,916 to 80,662
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218 to 4,481
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250 to 8,000
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0
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2,591 to 76,062
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Other Non-listed Chinook
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-690 to -5,520
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0
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0
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- For Agency analysis, the range in adults affected is caused by
a range of smolt-to-adult survival rates (SARs) of 0.5 to 4.0
percent. For FPC, the range is caused by a range of SARs and
passage timing. For the CRITFC analysis, the range is caused by
a range in pool survival and passage timing.
- For Agency analysis, the range in adults affected is caused by
a range of smolt-to-adult survival rates of 0.2 to 4.0 percent.
Only half of the biological benefit is assigned to the
preliminary proposal. Alternate analysis is based on comment by
State, Federal and Tribal agencies that SAR should be 0.2%, not
4%.
- For Agency analysis, the range in adults affected is caused by
a range of increase in pikeminnow catch of 5% to 11%, and
Smolt-to-Adult survival rates of 0.2 to 4.0 percent. The
Alternate viewpoint is that additional Pikeminnow funding would
have an imperceptible effect on juvenile survival.
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- In the comments provided for the Preliminary Proposal, many
alternative offsets were proposed for reduced spill, and some data on
effectiveness and costs were provided. For Columbia River stocks, many
of these offsets might be reasonable and cost-effective alternatives
to bypass spill. Quite possibly, some of these may be cost-effective
alternatives to the offset actions proposed by the Action Agencies.
- In the Preliminary Proposal and comments to it, there was no
analysis of any offset or combination of offsets that would compensate
for reduced spill impacts on ESA-listed Snake River wild stocks (see
first row and last two columns of Table ES-1). The Amended Proposal
includes increased outflow from Brownlee Reservoir, but it is not
clear that this offset would have the intended benefits, and because
of water temperature effects, could actually be counterproductive.
The IEAB is unable to make an unambiguous statement about
cost-effectiveness of spill reductions because 1) some of the necessary
biological information has not been provided, and 2) where information is
disputed, we are not qualified to judge and resolve the disputes. To
obtain more definitive results, new information about some of the offsets
is required, and judgments regarding the disputed information are
required. The IEAB's role simply does not include such judgments.
Clearly, there is a need for a process that can include offsets such as
RSWs that can only be implemented in the long run. The 2004 process for
proposing spill reductions and offsets was simply too short to consider
all forms of potential offsets. A long-term process would also be better
able to involve stakeholders, conduct the necessary research, resolve key
issues, and recommend changes in a fully inclusive and scientific way. The
Council should continue to encourage research and processes that might
reduce the biological uncertainties, evaluate alternatives to spill, and
identify cost-effective outcomes.
[1] On July 28, Judge Redden
in the District Court of Oregon ruled in favor of a motion for a
preliminary injunction to stop implementation of a modified summer spill
proposal. As of September, bypass spill in 2004 conformed to the 2000
BiOp.
[2] The IEAB is not
qualified to evaluate biological information and arguments.
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