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Basin Irrigation Districts Eye Pacts with BPA by Shirley Wentworth, Herald Basin bureau Tri-City Herald, March 17, 2001

Officials from the East and South Columbia Basin irrigation districts expect to scramble this weekend finishing up power buyout contracts with the Bonneville Power Administration.

The deals will enable the power marketing agency to buy water from farmers willing to take crop acreage out of production.

Friday, boards of both districts approved signing contracts with the BPA. The deals are contingent on the agency's agreement to compensate Seattle, Tacoma and Grant County utilities, which buy power from water that flows through the Columbia Basin Project. The utilities stand to lose between $6 million and $7 million in lost small-scale hydroelectric generation if Columbia River water is not diverted into irrigation canals.

The BPA wants to buy water that would otherwise irrigate 75,000 acres. This extra water would produce additional hydropower through the federal dam system. The BPA would spend about $25 million and idle about 10 percent of the Columbia Basin Project's irrigated farmland if it buys all the water it needs.

The idea is to take 25,000 acres out of each district with the goal of hanging onto about 300,000 acre-feet of water in the Grand Coulee Dam, which South District manager Shannon McDaniel estimated equals about 138 megawatt hours of power.

If the contracts are signed this weekend, land owners can pick up applications for the program Monday at irrigation district offices: 55 Eighth St., Othello, and 1135 E. Hillsboro Road, Pasco. The Quincy Columbia Basin Irrigation District meets Monday to work through its own arrangement with BPA.

Farmers will sign individual contracts with the BPA, and the irrigation districts will sign a separate contract to administer the program, which includes weekly reports from district officials ensuring program participants comply with the agreement.

The program's details were in a state of flux all week, but by late Friday some contested items had been resolved.

For instance, BPA officials earlier refused to allow farmers to enroll in its program if they choose to enter another program offered by the Grant County Public Utility District. BPA later reversed its position. However, its conditions don't allow participants already enrolled in other federal programs paying to use water or that pay farmers not to grow crops.

"They don't want to pay for something that's already fallow," said Dick Erickson, East District manager.

BPA's first proposal came Tuesday when it offered to pay farmers $265 an acre. However, the agency came back later with a $330-per-acre figure after East District officials told the agency its offer wasn't good enough.

However, the hitch for most farmers will be a condition that penalizes farmers who want to irrigate between Sept. 17 and Oct. 1 to prepare for spring planting. They would be limited in how much water they could use, and their water-for-power payments would be reduced.

"It will be fairly expensive to take the September option to irrigate," Erickson said. "BPA wants it to be expensive. They expect to need a lot of power."

Some farmers consider that the worst part of the deal because of the need to start irrigating in mid-September for spring crops.

"Whoever does it has to look at it as a two-year program," said Dwayne Michel, an Othello farmer. "It's a backlash on the farmer for the next year."

Attorney Richard LeMargie told those attending district meetings in Othello and Pasco Friday they need to be farming while waiting for BPA approval because there's no guarantee about who will be selected for the program -- or how they will be selected.

South District board member Richard Conrad agreed.

"BPA has the final say," Conrad said. "They can say no because they don't like the way you part your hair." He added that anyone with a question regarding the contract should have their attorney review it.

"It's a first time thing for everybody, so there'll probably be some administrative problems," LeMargie said, stressing BPA's responsibility. "It's like the airline. If there's a problem, don't chew on the ticket person -- chew on the airline. In this case, BPA is the airline."

To be eligible for the program, the land must be supplied by Columbia Basin Project surface water from Banks Lake or other project reservoirs fed by Banks Lake. The BPA will take applications until April 20 unless it reaches the 75,000-acre goal sooner. Applications should take about 15 days to process.

Those who wish to sign up for Grant County PUD's program must do so by April 10. PUD officials estimate canal irrigators can make between $50 and $100 an acre by entering the program and an additional $15 to $45 per acre if water users let their water remain in the river for power production. Deep well irrigators should be able to make between $120 and $200 per acre.

PUD Manager Don Godard said his utility has sufficient power to meet Grant County's needs this year without raising rates. However, he said, the program is important to help prepare for next year's power needs. Those interested in signing up can call 509-766-2504.