CSRIA Unveils Risk Mitigation Response Alternative Relating to Direct Economic Impacts on Irrigation under Lower Snake River Dam Breaching-Drawdown Actions

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Columbia-Snake River Irrigators Association

Nov 20, 2019, 07:49 ET

KENNEWICK, Wash., Nov. 20, 2019 /PRNewswire/ -- The circumstances created by the Columbia-Snake River ESA litigation compel the Columbia-Snake River Irrigators Association (CSRIA) to development a Risk Mitigation Response Alternative to protect Irrigation Sector assets from the adverse economic impacts that would be caused by Lower Snake River dam breaching and project pool drawdowns. The Irrigation Sector assets are real, and dam breaching or pool drawdown actions would critically impair pump station capabilities, agricultural production, and on-site processing operations. All of these direct economic impacts would have to be addressed under a responsible and market-based mitigation strategy.

The Columbia River System Operation agencies' EIS is required to identify appropriate mitigation measures, taking into account associated risks and liability. Per Washington Governor Jay Inslee's direction and legislative funding, the state study addressing dam breaching impacts should fully consider all Irrigation Sector impacts and viable mitigation strategies.

Mitigation measures incorporate direct net value changes to water distribution and land assets, predicated on observable, market-based determinations for willingness-to pay.

The direct economic impacts must be defined based on market asset values for the irrigated land impacts. The dam breaching-pool drawdown actions would create a "distressed asset value" that must be the foundation for EIS/State study impacts and mitigation compensation.

The primary Irrigation Sector impacts can be measured through recent asset-based market transactions and the market perception toward risks associated with "distressed asset values." The asset market reflects the private, corporate, and institutional entities that have made recent market purchases, and those who have an ability to expand farming asset operations.

The distressed asset capital value amounts to about $446 to $622 million for Ice Harbor/Upper McNary Pool Irrigation Sector impacts (90,640 acres).

The risk mitigation response alternative includes obligations by the Irrigation Sector and a capital repayment structure that equitably assigns mitigation costs. The Bonneville Power Administration (BPA) and Washington State will be responsible for up-front mitigation payments. Using long-term debt instruments:

The combined BPA and WA State annual debt service would be about $24-$37 Million; for Ice Harbor/Upper McNary Pool, not including John Day Pool impacts.

Receiving the Risk Mitigation compensation, the Irrigation Sector will be responsible for impacts.

The CSRIA is prepared to discuss the Risk Mitigation Response Alternative (CSRIA White Paper) with the Columbia River System Operations agency leadership, and Governor Inslee's Office.

For more information, contact Darryll Olsen of the Columbia-Snake River Irrigators Association at 509-783-1623 or [email protected].

SOURCE Columbia-Snake River Irrigators Association