Settlement Agreements

In July 2020, FERC approved the partial transfer of the license to KRRC but required PacifiCorp to stay on as co-licensee. FERC found in its Order that KRRC had the technical and legal capacity to perform dam removal and that KRRC funds were likely sufficient to complete the project. However, the FERC Order required PacifiCorp to remain a co-licensee to serve as a financial backstop for any unexpected costs that might exceed the $450 million available for the project under the KHSA. PacifiCorp viewed the terms set by FERC as inconsistent with the KHSA and immediately entered into discussions with other signatories to the KHSA.

The November 2020 MOA described how the Parties would implement the Amended KHSA and address FERC’s concern for additional protection against potential cost overruns, while respecting PacifiCorp’s commitment to transferring ownership before dam removal started. The MOA called for Oregon and California to serve as co-licensees with KRRC, allowing PacifiCorp to transfer ownership and responsibility for dam removal to the “dam removal entity” as called for in the KHSA.

Parties signed the original Klamath Hydroelectric Settlement Agreement in 2010. The KHSA details the removal of four PacifiCorp hydroelectric dams: Iron Gate, Copco No. 1, Copco No. 2, and J.C. Boyle. The 2010 agreement was linked to the KBRA, an agreement to guide restoration and resolve resource conflicts in the Klamath Basin (see below). After the KBRA expired, parties signed an amended KHSA in April 2016. This new agreement provided for decommissioning the hydroelectric dams through the traditional Federal Energy Regulatory Commission (FERC) approval process.

Parties signed the Klamath Power and Facilities Agreement in April 2016. Distinct from the KHSA, the KPFA addresses the continued operations of other PacifiCorp facilities that will be transferred to Bureau of Reclamation. The agreement also commits parties to protect Klamath Basin irrigators from financial and regulatory burdens associated with fish returning to the Upper Klamath Basin and also commits parties to continue efforts to resolve water disputes.

Parties signed the Klamath Basin Restoration Agreement in conjunction with the KHSA in 2010. The KBRA was designed to balance water use between environment and agriculture, fund fisheries restoration, improve irrigation infrastructure, and provide economic development programs for local communities. It also provided funding for the UKBCA (see below). The KBRA expired in 2015 due to inaction in the U.S. Congress.

The Upper Klamath Basin Comprehensive Agreement, signed by parties in 2014, was designed to resolve competing water claims in the Upper Basin, by balancing environmental flows and certainty for irrigated agriculture. It provided for habitat restoration programs as a mechanism for landowners to receive permits under the Endangered Species Act and created economic development opportunities for the Klamath Tribes. The agreement is no longer active due to lack of funding, a result of the KBRA’s expiration.