Columbia River Treaty Past, Present and Future Status of Columbia River Treaty Discussions: a BC government perspective October 7, 2015 Osoyoos, BC Kathy Eichenberger BC Ministry of Energy and Mines 1

2 Why the Columbia River Treaty 1948 flood Destroyed Vanport pop 35, people killed Trail BC flooded Damaged homes, farms, and levees from BC to Astoria Post-war era of industrialization called for more power production production Vanport Flood, 1948 Trail Flood, 1948

3 Columbia River Treaty  Founded on the key premise of two countries working collaboratively to create and share benefits equitably  Regarded worldwide as a model to emulate  Main objective: optimize power and flood control in both countries  Treaty was signed in 1961 and ratified in Diefenbaker and Eisenhower signing the Treaty in 1961 Treaty and Protocol ratified and proclaimed by Pearson and Johnson in 1964

4 Portland 1894

5 Key Provisions of the Columbia River Treaty Canada to construct 3 dams to provide 15.5M acre-feet of water storage  Duncan 1967  Hugh Keenleyside 1968  Mica 1973 US had the option to construct Libby dam in Montana – Canada made land available (67 km/42 mi) for Koocanusa reservoir  Changes to Treaty can be made at any time upon agreement Treaty continues indefinitely but can be terminated with 10 year notice at the earliest in Sept 2024

6 Treaty Provisions  Canada operates 15.5 Maf for optimum power generation downstream in Canada and US  US delivers to Canada one-half the estimated incremental US power benefits (Canadian Entitlement - CE)  The first 30 years of CE were pre-sold for an up front price of US$254.4 million  The US bought 8.45 Maf of “primary” flood control up to 2024 for $64.4 million  Regardless of Treaty continuation or termination, assured flood control ends in 2024 and flood control changes to “Called Upon”

BC Treaty Mandate Under Canadian Constitution: Federal treaty-making power Provincial jurisdiction of natural resources, including hydroelectric development 1963 Canada/BC Agreement transferred most of the Treaty obligations and benefits to BC BC Hydro is Canadian Entity to implement the Treaty Province of BC is the Canadian Entity for the disposal of the Canadian Entitlement 7

BC Treaty Review BC (MEM) leading the Columbia River Treaty Review in Canada Coordination of provincial ministries and federal agencies Technical studies (env/social/economic/legal) Consultation with First Nations Engagement of Basin residents Recommendations to BC Cabinet 8

Benefits of the Treaty to the U.S. 9 Prevents of damaging floods, loss of life, property and infrastructure Increases power production potential Manages flows for fisheries enhancement, ESA Ensures relief during low flow periods and dry years Provides seasonal availability water supply irrigation, municipal, industrial uses Maintains commercial navigation conditions Prolongs recreation season

Current Benefits of the Treaty to BC 10 Canadian Entitlement  Sold on the market  Currently worth: approx. $ 130M/year

Provincial Decision 11 Released March 13, 2014 Generally reflects input from First Nations, local governments and public Decision to continue the Treaty and seek improvements within its existing framework 14 principles to guide BC in discussion of any potential Treaty changes

Provincial Decision - Principles 12 High level themes : Goal is to create and share benefits equitably There is a lot of value from upstream regulation provided by Canada to a broad range of U.S. interests Treaty operations continue to impact Canadian basin residents and regional interests

13 Provincial Decision - Principles Treaty should be adaptable to changing conditions Treaty has flexibility to incorporate ecosystems and further improvements can be explored The reintroduction of salmon in the Upper Columbia is not currently a Treaty issue If reintroduction is feasible each country should be responsible for its own structures

Provincial Decision - Principles 14 Changing flood control in 2024 is a step backwards Risks and impacts of effective use of U.S. reservoirs Disagreement on interpretation of Called Upon Flood Control:  at what flood risk  which reservoirs  when to call BC is open to discussing alternatives

15 Provincial Decision - Principles Climate change will make collaboration even more important Canadian operations will continue to meet existing and evolving provincial and federal regulatory requirements Improve Libby coordination to incorporate BC interests BC is committed to continued engagement with First Nations and the public through any potential negotiations

Next Steps 16 Conduct valuation of full suite of U.S. benefits Pursue further modeling of potential BC ecosystem option(s) Continue to work with Canada on developing a collaborative approach to any future negotiations Gain a further understanding of U.S. perspectives and next steps in U.S. process Explore options to increase benefits to both countries

17 Thank you