Lower Snake River Fish & Wildlife Compensation Plan

Lower Snake River Fish & Wildlife Compensation Plan

Scott Marshall LSRCP Program ManagerUS Fish & Wildlife Service

Topics Legislative History Goals & Benefits Conservation

Actions Operational

Overview Budget

Operations Non-recurring

maintenance Equipment HRT/HSRG/BiOp/US v

OR Summary

Legislative History Public Law 85-264(1958): Required the

U.S. Army Corps of Engineers (COE) to develop a plan to compensate for fish & wildlife losses caused by construction & operation of the four Lower Snake River dams.

Public Law 94-587 (1976): Authorized construction & operation of the LSRCP in accordance with the COE plan.

Public Law 103-672 (1995): Authorized construction of fall Chinook acclimation facilities to support conservation efforts.

LSRCP funding is “a Power Related Expenses” i.e. an inherent cost of operating the four dams.

Goals Locating hatcheries guided by desire to

replace lost salmon, steelhead & trout “in place and in kind”.

Goals for adult returns above Lower Granite Dam Fall Chinook Salmon – 18,300 Spring Chinook – 58,700 Steelhead – 55,100 Rainbow Trout: 86,000 lbs (about 215,000

fish) Anticipated benefits (COE cost/benefit study):

817,000 days of recreational fishing (150,000 fish harvest),

260,000 coast-wide commercial harvest.

LSRCP Conservation Activities

Integrated programs to support conservation Spring Chinook – NE Oregon, Tucannon,

McCall, Sawtooth Snake River Fall Chinook Steelhead – Clearwater, Tucannon, Touchet, E.

Fork Salmon Juvenile supplementation strategies –

increase natural stock abundance & distribution: Released in locations where returning adults can spawn naturally, 47% of fall Chinook (2.1 million fish) 31% of steelhead (1.7 million fish) 34% of spring Chinook. (2.8 million fish)

Adult outplanting - increase abundance & distribution.

Operational Overview COE constructed facilities. FWS owns facilities & administers

program. States, tribes & FWS operate

facilities & evaluate program. BPA funds LSRCP through

Memoranda of Agreement.

FY 12 – FY 13 Budget

LSRCP Budget Components Operations Non-Recurring Maintenance

Real Property Equipment

HRT/HSRG/BiOp

Ongoing Operational Budget

FY 12 -13 Includes Hatchery Operations & M&E Generally stable program. FWS will continue aggressive cost

containment. High inflation rate of 6% seen in

previous rate case period for fish food, energy, commodities, heath insurance and salaries will moderate to near long term average of 3.5%

Assume that 75% expenses accrue in current year and 25% in following year.

Request is $18.0 m/yr average expense

Nonrecurring Maintenance

Real Property Assets (not including land)

Equipment

Real Property Assets Budget

LSRCP assets How Needs are Assessed How Projects are Prioritized What is Included Budget

LSRCP Hatcheries & Labs

11 Hatcheries, 15 Satellites & 2 Labs Oregon

Lookingglass (Imnaha) Wallowa (LSC,BC) Irrigon

Washington Lyons Ferry (Cottonwood &

DP) Tucannon (Curl Lk) Snake River Lab

Idaho Clearwater (CR, Red R. , Powell) Magic Valley Hagerman NFH McCall (S. Fork) Sawtooth (E. Fork) Capt J. , Pitt. & Big Canyon

(with BPA) Dworshak (joint with COE) Idaho Fish Health Lab

28 Facilities located in three states Present value of assets (less land) is $322.1

million. Most (65%) built in 1980’s now 25 + years old. Maintenance is an inherent cost of ownership

and public trust

$0$20,000,000$40,000,000$60,000,000$80,000,000

$100,000,000$120,000,000$140,000,000

Construction History & Replacement Costs of Real Property Assets (excluding land)

Total value $322.1 million

A Structured Approachto Assessing Needs

Annual Condition Assessments Safety Inspections Seismic Surveys Bridge Inspections Environmental Compliance Audits ADA Inspections ESA Consultations (fish passage,

screening) Mission Requirements & Programmatic

Review Other State & Federal Legal Compliance

Audits

Prioritizing Projects All projects ranked through a formal process:

Importance of asset Substitutability of asset Human safety Fish Security ADA compliance ESA compliance Environmental compliance Risk of further deterioration Energy efficiency Mission requirements Scientific defensibility Visitor services

General application is to ensure mission requirements, human safety, fish security and legal obligations are met first.

Program Components Deferred – fix broken items Preventative – minimize untimely

failures of mission critical assets Corrective – meet current standards

(e.g. ESA) Programmatic – meet mission needs Routine Maintenance – LSRCP

purchase to save agency overhead.

Forecasted FY 12 -13 Nonrecurring Maintenance Budget

Needs (less Equipment) Currently Identified Projects …….

$ 11.47 m Minus FY 10– 11 Projects ………. - $

5.57 m Estimated FY 12 – 13 Backlog …

$ 5.90 m Amount Needed to Cover Untimely

Breakdowns & Newly Identified Needs During FY 12 -13 is Uncertain - but historically it has been substantial

Plan is to Prioritize Needs & Allocate $2.2 m/yr

Projected FY 12 - 13 Backlog by Category

Deferred Maintenance $2.30 million

Corrective Maintenance $0.67 million

Preventative Maintenance $1.17 million

Programmatic $1.61 million

Routine Maintenance $0.15 million

Total $ 5.90 million

EQUIPMENT

LSRCP Equipment (review in FY 09 extended useful life span of most

items) Category Useful Life Cost

(Replace) Rearing Equipment

25 -35 Years $ 0.56 million

Vehicles 7 - 15 Years $ 3.32 millionHeavy Equipment

20 - 40 Years $ 5.64 million

Scientific Equip. 15 Years $ 1.17 millionOffice Electronics

5 – 10 Years $ 0.26 million

Small Equipment

15 Years $1.93 million

Total $ 12.88 million

Estimated deferred replacement of $3.48 million by FY 12

Substantial costs to replace aging equipment will occur over next 10 years.

$0

$250,000

$500,000

$750,000

$1,000,000

$1,250,000

$1,500,000

Acquisition History and Projected Replacement Cost ($12.8 million) of LSRCP Personal Property by Year

Aqusition cost Replacement Cost

Replacement Decisions Current Needs Assessment Actual Condition Consequence of Failure (human &

fish Safety) Maintenance vs. Replacement Cost

Comparison Substitutability Facility Sharing New vs. Used vs. Surplus

FY 12 -13 Forecasted Equipment Needs

Estimated Backlog Beginning FY 12 = $3.48 m

Est. Replacements in FY 12 – 13 = +$0.76 m

Total Need $4.24 m

Plan is to Prioritize Needs & Allocate $0.75/yr

Summary FY 12 - 13 Nonrecurring Maintenance

Request Request

To Provide for Progressive Improvement but Require Prioritization of Needs

Cap Annual Request at about 1% of Asset Value

Real Property Assets………………… $4.4 m

Equipment ………………………… $1.5 m

Total ……………………………… $5.9 m

(average of $2.95 / yr)

FY 12 -13 Request ………………. $5.91 m

Summary of Ongoing Program Expenses

Ongoing Operational ExpensesFY 12 -13

Category FY 12 FY 13

Operations $17.64 m $18.39 m

Evaluation $ 4.83 m $ 5.03 m

Non-recurring maintenance & equipment

$ 2.89 m $ 3.02 m

Total $ 25.36 m

$ 26.44 m

FWS Has Tried to be a Good Steward

of Rate Payer Funds. Annual Savings from Aggressive Cost

Containment Waiver of full FWS overhead - $1.06

million / yr Aggressive cost containment by

purchasing items for state & tribal agencies to save overhead & sales taxes. Tags, fish Food & utilities – $ 0.66 million /yr

Construction & Equipment - $0.53 Million / yr

Total annual Savings – $ 2.25 Million/yr

BiOp/HRT/HSRG/US v Oregon

Hatchery Reform Drivers

Specific Projects in Hydro System Biological Opinion

Tucannon & Touchet Steelhead (RPA 40) East Fork Salmon River Steelhead (RPA

42)

• HSRG – NOAA/Congress Hatchery Review • U.S.F.W.S. Hatchery Scientific Review• RPA 39 & 40 – Utilize BPS in Section 7 Consultations to not Impede Recovery & Reduce Genetic/Ecological Risks

Summary of Recommendations

•499 HRT recommendations•69 HSRG recommendations•Many reflect US. v OR Agreement• LSRCP staff have reviewed – and provided initial response – some no cost, some rejected or unlikely to get co-manager support only 94 were assigned a cost estimate •Final List Awaits Comanager Review & NOAA Review & Approval

Classification of Expenses

Four Classes of Expenses Large Capital > $1.0 m & 15 yrs Small Capital < $1.0 m Annual Hatchery Operations Annual M&E

Eleven Categories of Expenses within Each Class:

ESA, Fish heath, Fish security, Human safety, Legal obligation, Production reform, Facility security, Pollution abatement, Facility maintenance, I & E, Production evaluation

Forecasted Summary Actual Amounts may Differ once

HGMPs Approved, Designs Finalized, & Projects Peer Reviewed

Large Capital all ESA Related Small Capital - Dominated by Fish

Health, ESA Production Reforms & Fish Security

Annual O&M Costs are Relatively Minor

Annual RM&E Costs Dominated by ESA to Evaluate Conservation Programs

Costs by Category & TypeCategory Large

CapitalSmall Capital

Annual

ESA $ 29.0 $ 0.77 $ 1.07Fish Health $ 1.69 $ 0.10Fish Security $ 0.37Human Safety $ 0.26Production Reform $ 0.40 $ 0.04Information & Education

$ 0.22

Pollution Abatement

$ 0.20

Facility Maintenance

$ 0.10

Production Evaluation

$ 0.21

Legal & Facility Security

$ 0.03

Total $ 29.0 $ 4.04 $ 1.42