Lower Snake River Fish Wildlife Compensation Plan Scott

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Lower Snake River Fish & Wildlife Compensation Plan Scott Marshall LSRCP Program Manager US

Lower Snake River Fish & Wildlife Compensation Plan Scott Marshall LSRCP Program Manager US Fish & Wildlife Service

Topics n n n Legislative History Goals & Benefits Conservation Actions Operational Overview Budget

Topics n n n Legislative History Goals & Benefits Conservation Actions Operational Overview Budget n n n Operations Non-recurring maintenance Equipment HRT/HSRG/Bi. Op/US v OR Summary

Legislative History n n Public Law 85 -264(1958): Required the U. S. Army Corps

Legislative History n n 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 n n Locating hatcheries guided by desire to replace lost salmon, steelhead &

Goals n n Locating hatcheries guided by desire to replace lost salmon, steelhead & trout “in place and in kind”. Goals for adult returns above Lower Granite Dam n n n 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): n n 817, 000 days of recreational fishing (150, 000 fish harvest), 260, 000 coast-wide commercial harvest.

LSRCP Conservation Activities n Integrated programs to support conservation n n Spring Chinook –

LSRCP Conservation Activities n Integrated programs to support conservation n n Spring Chinook – NE Oregon, Tucannon, Mc. Call, 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, n 47% of fall Chinook (2. 1 million fish) n 31% of steelhead (1. 7 million fish) n 34% of spring Chinook. (2. 8 million fish) n Adult outplanting - increase abundance & distribution.

Operational Overview COE constructed facilities. n FWS owns facilities & administers program. n States,

Operational Overview COE constructed facilities. n FWS owns facilities & administers program. n States, tribes & FWS operate facilities & evaluate program. n BPA funds LSRCP through Memoranda of Agreement. n

FY 12 – FY 13 Budget

FY 12 – FY 13 Budget

LSRCP Budget Components Operations n Non-Recurring Maintenance n Real Property n Equipment n n

LSRCP Budget Components Operations n Non-Recurring Maintenance n Real Property n Equipment n n HRT/HSRG/Bi. Op

Ongoing Operational Budget FY 12 -13 n n n Includes Hatchery Operations & M&E

Ongoing Operational Budget FY 12 -13 n n n 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) n Equipment n

Nonrecurring Maintenance Real Property Assets (not including land) n Equipment n

Real Property Assets Budget LSRCP assets n How Needs are Assessed n How Projects

Real Property Assets Budget LSRCP assets n How Needs are Assessed n How Projects are Prioritized n What is Included n Budget n

LSRCP Hatcheries & Labs 11 Hatcheries, 15 Satellites & 2 Labs n Oregon n

LSRCP Hatcheries & Labs 11 Hatcheries, 15 Satellites & 2 Labs n Oregon n n Washington n n Lookingglass (Imnaha) Wallowa (LSC, BC) Irrigon Lyons Ferry (Cottonwood & DP) Tucannon (Curl Lk) Snake River Lab Idaho n n n n n Clearwater (CR, Red R. , Powell) Magic Valley Hagerman NFH Mc. Call (S. Fork) Sawtooth (E. Fork) Capt J. , Pitt. & Big Canyon (with BPA) Dworshak (joint with COE) Idaho Fish Health Lab

Construction History & Replacement Costs of Real Property Assets (excluding land) $140, 000 $120,

Construction History & Replacement Costs of Real Property Assets (excluding land) $140, 000 $120, 000 $100, 000 Total value $322. 1 million $80, 000 $60, 000 $40, 000 $0 n n 1932 1940 1951 1954 1955 1957 1963 1965 1974 1979 1980 1981 1982 1983 1984 1985 1986 1987 1989 1990 1991 1992 1993 1995 1997 1998 1999 2000 2002 2003 2004 2005 2006 2007 2008 $20, 000 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

A Structured Approach to Assessing Needs n n n n n Annual Condition Assessments

A Structured Approach to Assessing Needs n n n n n 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 n All projects ranked through a formal process: n n n n

Prioritizing Projects n All projects ranked through a formal process: n n n n 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 n Preventative – minimize untimely failures of

Program Components Deferred – fix broken items n Preventative – minimize untimely failures of mission critical assets n Corrective – meet current standards (e. g. ESA) n Programmatic – meet mission needs n Routine Maintenance – LSRCP purchase to save agency overhead. n

Forecasted FY 12 -13 Nonrecurring Maintenance Budget Needs (less Equipment) n Currently Identified Projects

Forecasted FY 12 -13 Nonrecurring Maintenance Budget Needs (less Equipment) n Currently Identified Projects ……. $ 11. 47 m n Minus FY 10– 11 Projects ………. - $ 5. 57 m n Estimated FY 12 – 13 Backlog … $ 5. 90 m n Amount Needed to Cover Untimely Breakdowns & Newly Identified Needs During FY 12 -13 is Uncertain - but historically it has been substantial

Projected FY 12 - 13 Backlog by Category Deferred Maintenance $2. 30 million Corrective

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

EQUIPMENT

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

LSRCP Equipment (review in FY 09 extended useful life span of most items) Category Rearing Equipment Vehicles Heavy Equipment Useful Life 25 -35 Years 7 - 15 Years 20 - 40 Years Cost (Replace) $ 0. 56 million $ 3. 32 million $ 5. 64 million Scientific Equip. Office Electronics Small Equipment Total 15 Years 5 – 10 Years 15 Years $ 1. 17 million $ 0. 26 million $1. 93 million $ 12. 88 million

Acquisition History and Projected Replacement Cost ($12. 8 million) of LSRCP Personal Property by

Acquisition History and Projected Replacement Cost ($12. 8 million) of LSRCP Personal Property by Year $1, 500, 000 $1, 250, 000 $1, 000 $750, 000 $500, 000 $250, 000 $0 6/2/1905 6/7/1905 6/12/190 6/17/190 6/22/190 6/27/190 7/2/1905 7/7/1905 7/12/190 7/17/190 7/22/190 7/27/190 8/1/1905 8/6/1905 12: 00: 00 5 5 5 5 12: 00: 00 AM AM 12: 00: 00 12: 00: 00 AM AM Aqusition cost Replacement Cost. AM AM Estimated deferred replacement of $3. 48 million by FY 12 n Substantial costs to replace aging equipment will occur over next 10 years. n

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

Replacement Decisions Current Needs Assessment n Actual Condition n Consequence of Failure (human & fish Safety) n Maintenance vs. Replacement Cost Comparison n Substitutability n Facility Sharing n New vs. Used vs. Surplus n

FY 12 -13 Forecasted Equipment Needs Estimated Backlog Beginning FY 12 = $3. 48

FY 12 -13 Forecasted Equipment Needs Estimated Backlog Beginning FY 12 = $3. 48 m n Est. Replacements in FY 12 – 13 = +$0. 76 m n Total Need $4. 24 m n n Plan is to Prioritize Needs & Allocate $0. 75/yr

Summary FY 12 - 13 Nonrecurring Maintenance Request n Request To Provide for Progressive

Summary FY 12 - 13 Nonrecurring Maintenance Request n Request To Provide for Progressive Improvement but Require Prioritization of Needs n Cap Annual Request at about 1% of Asset Value n Real Property Assets………………… $4. 4 m n Equipment …………… $1. 5 m n Total ……………… $5. 9 m n

Summary of Ongoing Program Expenses

Summary of Ongoing Program Expenses

Ongoing Operational Expenses FY 12 -13 Category FY 12 FY 13 Operations $17. 64

Ongoing Operational Expenses FY 12 -13 Category FY 12 FY 13 Operations $17. 64 m $18. 39 m Evaluation $ 4. 83 m $ 5. 03 m Non-recurring maintenance $ 2. 89 m & equipment Total $ 25. 36 m $ 3. 02 m $ 26. 44 m

FWS Has Tried to be a Good Steward of Rate Payer Funds. n Annual

FWS Has Tried to be a Good Steward of Rate Payer Funds. n Annual Savings from Aggressive Cost Containment n Waiver of full FWS overhead - $1. 06 million / yr n Aggressive cost containment by purchasing items for state & tribal agencies to save overhead & sales taxes. n Tags, fish Food & utilities – $ 0. 66 million /yr n Construction & Equipment - $0. 53 Million / yr n Total annual Savings – $ 2. 25 Million/yr

Bi. Op/HRT/HSRG/US v Oregon

Bi. Op/HRT/HSRG/US v Oregon

§ Hatchery Reform Drivers Specific Projects in Hydro System Biological Opinion n Tucannon &

§ Hatchery Reform Drivers Specific Projects in Hydro System Biological Opinion n Tucannon & Touchet Steelhead (RPA 40) n 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

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 n Four Classes of Expenses Large Capital > $1. 0 m

Classification of Expenses n Four Classes of Expenses Large Capital > $1. 0 m & 15 yrs n Small Capital < $1. 0 m n Annual Hatchery Operations n Annual M&E n n 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

Forecasted Summary Actual Amounts may Differ once HGMPs Approved, Designs Finalized, & Projects Peer

Forecasted Summary Actual Amounts may Differ once HGMPs Approved, Designs Finalized, & Projects Peer Reviewed n Large Capital all ESA Related n Small Capital - Dominated by Fish Health, ESA Production Reforms & Fish Security n Annual O&M Costs are Relatively Minor n Annual RM&E Costs Dominated by ESA to Evaluate Conservation Programs n

Costs by Category & Type Category Large Capital Small Capital Annual ESA $ 29.

Costs by Category & Type Category Large Capital Small Capital Annual ESA $ 29. 0 $ 0. 77 $ 1. 07 Fish Health $ 1. 69 $ 0. 10 Fish Security $ 0. 37 Human Safety $ 0. 26 Production Reform $ 0. 40 Information & Education $ 0. 22 Pollution Abatement $ 0. 20 Facility Maintenance $ 0. 10 Production Evaluation Legal & Facility Security $ 0. 04 $ 0. 21 $ 0. 03