EWEB options friendly to fish.

Byline: Jeff Wright The Register-Guard

The Eugene Water & Electric Board appears to have softened its stance on some environmental issues related to securing a new federal license to operate its Carmen-Smith Hydroelectric Project on the upper McKenzie River.

Earlier this year, EWEB officials agreed that improvements to the project should include a fish ladder for upstream fish, and a fish screen and bypass system for downstream fish at Trail Bridge Dam. The utility abandoned an earlier, cheaper plan to trap and haul threatened fish around the dam.

But in a recent letter to the Federal Energy Regulatory Commission, EWEB indicated it may agree to other environmental improvements at the project - most notably, another fish ladder at Carmen Diversion Dam, and increased stream flows in several McKenzie River bypass reaches.

The latter is important because more water diverted from two large water tunnels into bypassed riverbeds for the benefit of fish means less water available for electricity production. Added water flow in the reaches would provide habitat for chinook salmon, bull trout and other species.

EWEB spokesman Lance Robertson said the utility has agreed to increase stream flows, but the amount remains to be decided. Stream flows "have a pretty direct bearing on the viability of our project," he said.

In its letter to FERC, the utility asks for a six-month extension to file an environmental analysis notice. The extension, until May 31, 2008, has the blessing of all parties - including state and federal fish agencies and regional environmental groups - involved in settlement negotiations with EWEB.

The Carmen-Smith project consists of three dams and reservoirs, the two water tunnels and a pair of power plants near the McKenzie headwaters. The project culminates downstream at Trail Bridge Dam and reservoir.

The possibility of adding a fish ladder at Carmen Diversion Dam is related to helping cutthroat trout. A final decision could rest on determining the extent of existing fish populations for cutthroat and competing species near the dam. The parties have agreed that fish passage will not be provided at Smith River Dam.

Robertson said the application extension, if granted, actually could save EWEB time and money if it leads to a negotiated settlement among all the parties - and thus, presumably, quicker approval of a new license from FERC.

"Our intention is to reach an agreement as soon as possible because construction costs just go up the more the project is delayed," he said.

The parties have reached tentative agreement on a host of other improvements, according to EWEB's extension request. Fish-related improvements include ensuring that bull trout can migrate into Sweetwater Creek from Trail Bridge Reservoir through an existing culvert under state Highway 126, and adding wood and brush debris in Carmen Reservoir to benefit cutthroat trout.

Recreation improvements include making sure all boat ramps, docks and fishing platforms at Smith Reservoir can be used at winter water levels, and closing four campsites along Smith River Road for safety and ecological reasons.

Other improvements relate to vegetation and wildlife management, road maintenance, transmission lines and fire response.

EWEB in the past has said that costs related to securing a new 30- to 50-year license for the project could reach $100 million, much of it acquired through ratepayer-financed borrowing.

The utility has not revised its dollar estimate for the cost of license-related improvements, Robertson said.

EWEB's current federal license for the project expires in November 2008 - though FERC often grants annual renewal licenses to utilities until they're able to meet the requirements of a new license.

Participants in the settlement negotiations have been tight-lipped about what's been resolved and what's still on the table.

All agreements are considered conditional until the parties sign off on a final pact.

Kate Miller, legal analyst for the Oregon chapter of Trout Unlimited, said she is hopeful FERC will give the parties more time to hammer out their differences.

"We're trying to work collaboratively to come to the best result for the resource and the utility and the public," she said. "An extension of time would be appropriate for that."

Robertson said EWEB hopes to learn by mid-November whether its extension request will be granted. Mary O'Driscoll, press office director for FERC in Washington, D.C., declined to speculate on when or whether EWEB's request will be approved. "It depends on the specific case," she said.

Stephanie Barrow / The Register-Guard