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Future of the Columbia River TreatyA British Columbia Perspective

2014 PNWA Summer ConferenceCoeur d’Alene

June 23, 2014

Kathy Eichenberger B.C. Ministry of Energy and Mines

Objectives

• Treaty overview

• BC’ s role

• Key elements of BC decision

• Next steps

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Columbia River Treaty• Significant flooding around the Columbia in 1948 and growing

US power demand after WWII led to the desire for a water management agreement between Canada and the US

• Main objective: power and flood control in both countries

• Treaty was signed in 1961 and ratified in 1964

Diefenbaker and Eisenhower signing the Treaty in 1961

Treaty and Protocol ratified and proclaimed by Pearson

and Johnson in 1964

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BC Treaty Mandate• Under Canadian Constitution: • Federal treaty-making power• Provincial jurisdiction of natural

resources, including hydroelectric development

• 1963 Canada/BC Agreement transferred most of the Treaty obligations and benefits to BC

•BC Hydro is Canadian Entity to implement the Treaty• Province of BC is the Canadian Entity for the disposal

of the Canadian Entitlement

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Key Provisions of the Columbia River Treaty

Canada to construct 3 dams to provide 15.5M acre-feet of water storage Duncan 1967 Hugh Keenleyside 1968 Mica 1973

US had the option to construct Libby dam in Montana –Canada made land available (42 miles) for the reservoir

The Treaty continues indefinitely but can be terminated with at least 10 years notice (earliest in Sept 2024)

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Treaty Power Provisions• Canada operates 15.5 Maf for

optimum power generation in Canada and US

• US delivers to Canada one-half the estimated US power benefits (Canadian Entitlement - CE)

• First 30 years of CE sold to a consortium of US utilities for US $254.4 M

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Treaty Flood Control Provisions prior to 2024• The US bought 8.45 Maf of

primary flood control up to 2024 for US$ 64.4 M

• Regardless of Treaty continuation or termination, assured flood control ends in 2024, changes to “Called Upon”

• Called Upon not well defined in the Treaty

Ministry of Energy and Mines led CRT Review for BC• Coordination of provincial ministries and federal

agencies

• Consultation with First Nations

• Engagement of Basin residents and local governments

• Technical studies and discussion papers

• Recommendations to BC Cabinet for decision8

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Current Benefits of the Treaty to the U.S.

• Prevents of significant floods, loss of life, damage to property and infrastructure

• Increases power production• Manages flows for fisheries enhancement, ESA• Ensures relief during low flow periods and dry

years• Provides seasonal availability of water supply

for irrigation, municipal, industrial uses• Prolongs recreation season

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Current Benefits of the Treaty to the U.S. Favorable Commercial Navigation Conditions• Predictable minimum flows to prevent grounding• late summer releases in Canada for U.S. power• supplemented by increased flows during dry

years • Limiting upper flows to prevent• channel siltation and expensive dredging • minimize transit delays due to high currents • facilitates docking operations• Minimizes impacts top navigation infrastructure

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Current Benefits of the Treaty to BC

Canadian EntitlementSold on the marketCurrently worth 100-200M/year

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Provincial Decision• Released March 13, 2014

• Generally reflects input from First Nations, local governments and public

• Decision to continue the Treaty and seek improvements within its existing framework

• 14 principles to guide BC in discussion of any potential Treaty changes

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Provincial Decision - Principles

High level themes in principles:• Goal is to create and share benefits equitably• There is a lot of value from upstream regulation

provided by Canada to a broad range of U.S. interests

• Treaty operations continue to impact Canadian basin residents and regional interests

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Provincial Decision - Principles• Changing flood control in 2024 is a step

backwards• Risks and impacts of effective use of U.S.

reservoirs• Disagreement on interpretation of Called Upon

Flood Control:at what flood riskwhich reservoirswhen to call

• BC is open to discussing alternatives

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Provincial Decision - Principles• Treaty should be adaptable to changing

conditions• Treaty already has flexibility to incorporate

ecosystems - further improvements can be explored

• Climate change will make collaboration even more important

• BC is committed to continued engagement with First Nations and the public

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Next Steps• Conduct valuation of full suite of U.S. benefits• Pursue further modeling of potential BC

ecosystem option(s)• Collaborate with Canada on approach to any

future negotiations • Gain a further understanding of U.S.

perspectives and next steps in U.S. process• Explore options to increase benefits to both

countries

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Questions ?