Fish and wildlife    Project Selection 

MEMORANDUM

TO: Project Sponsors
FROM: Doug Marker and Dan Warren

The Council needs to adopt a "provisional" start of year budget for Fiscal Year 2002 fish and wildlife projects. At the Spokane meeting, we will present an initial budget for the fiscal year that allows projects that have not yet been through provincial review to be renewed at previously approved budget levels with a 3.4 percent inflation estimate.

This budget confirms the previously approved budgets for projects in the Columbia Gorge, Intermountain and Mountain Columbia provinces. It bases renewal budgets for projects in the remainder of the provinces on the Council's approved 2001 budgets. We adjusted for "one time only" 2001 budgets for capital construction and land acquisitions.

This draft budget was routed to project sponsors through CBFWA for comments. Comments were consolidated and most incorporated in this current draft. The only adjustments were for errors in the correct budget from 2001 or to adjust for current construction schedules for previously approved projects.

We show budgets for the Columbia Plateau based on the same renewal assumption. The Plateau budget, however, will be determined at the October working session and will replace these project estimates.

As occurred last year, we will invite project sponsors to have the opportunity to seek exceptions to the strict maintenance of the previously approved budget levels. The Columbia Basin Fish and Wildlife Authority, Bonneville and the Council can review proposed exceptions as a group within available funds.

We need to confirm a few more budget elements to complete a final Fiscal Year 2002 budget. These include:

• A Council decision on a placeholder for subbasin planning.
• Confirmation of Bonneville's program support budget. Through the 1996-2001 fish and wildlife funding agreement (also called the MOA period) this budget was $8 million.
• A definition by Bonneville of any Biological Opinion implementation requirements in 2002 that will not be developed through provincial reviews.
• A final review of all unspent budgets from Fiscal year 2001. Budgets should be offset by available carry-forward (budgeted but un obligated amounts) and Bonneville should offset 2002 contracts with available carry-over (obligated but unbilled amounts). Standard exceptions are construction projects where Council has approved scope and budget and land acquisitions where the Council has approved scope and budget. Bonneville recommends case-by-case exceptions where scheduled work was not completed in 2001. This review usually occurs in November when Fiscal Year contract actions should be complete.

The start of year budget begins with confirming the Council's decisions in the first three provincial reviews; the Columbia Gorge, Intermountain and Mountain Columbia. In Fiscal Year 2002, those budgets are:

The Council will adopt three more provincial review decisions for Fiscal Year 2002. The Plateau province decision is now scheduled for October. The attached tables show ongoing budgets based on last year's funding levels after correction for one-time only construction and acquisition costs. Because they will be revised so soon, they are really only illustrative of a "current services" level for the Plateau.

The Blue Mountain and Mountain Snake province decisions are scheduled for March, 2002. As occurred last year with the Gorge and Intermountain decisions, these budgets will be revised with those decisions. In the meantime, Bonneville may renew budgets if needed before March, but should do so only consistent with the previously approved budget and scope.

Current budgets for these provinces are:

For the remaining provinces, this budget assumes only the continuation of ongoing budgets at previously approved budgets and scopes of work with the addition of the Council's recommended 3.4 percent inflation assumption. When Bonneville renews these projects, it should do so ensuring that the scope of work is consistent with what was approved by the Council in Fiscal Year 2000 with any revisions approved in Fiscal Year 2001. The Council will approve new or expanded work in the provincial reviews which have already begun.

The ongoing budgets for the remaining provinces are:

In addition to the provincial budgets, this start of year budget assumes the following "placeholders"

Bonneville program support; A placeholder of $8 million is shown for Bonneville program support. Bonneville has not provided a revised budget for its program support costs. Eight million dollars was the annual budget during the 1996-2001 funding agreement.

Subbasin planning; The Council has had limited discussions about an overall budget for subbasin planning. This budget assumes $5 million for 2002 but only as a placeholder. The Council may want to reserve a larger amount to preserve flexibility while a final budget is established.

Innovative projects; . The Council has already approved reserving $2 million for the solicitation of innovative projects as occurred in 2001.

Artificial Production Advisory Committee (APAC); A placeholder of $1 million is shown in this draft. A concept budget of $869,000 was presented to the Council in Polson, Montana on August 6, 2001. This budget may be revised as the scope of work for facility and program evaluation is refined. The initial APAC process is scheduled to finish December 2002. This budget is for the full scope of APAC work to that point.

Independent Scientific Advisory Board (ISAB); The budget of $700,000 is consistent with previous annual budgets for the ISRP.

Independent Scientific Review Panel (ISRP The budget assumes $500,000 for Fiscal year 2002, consistent with the Power Act's authorization for the ISRP.

These six placeholders total $17.2 million before any Council revision of an initial estimate for subbasin planning.

The total start of year budget therefore is $152.7 million. The amount of funding that must come from new Bonneville funds will be finalized when unobligated project budgets are reviewed in November.

The staff recommends the Council approve this budget as an assumption for renewal of project budgets with the following conditions:

• That project sponsors will have the opportunity to present exceptions for revising these budgets subject to consultation with CBFWA and Bonneville. This should be the same procedure that was used last year.
• That projects in the Plateau will be revised in October as scheduled by the Council. In the interim, Bonneville has agreed to "bridge funding", meaning maintaining staff and capacity pending the Council's decision.
• That project budgets in the Blue Mountain and Mountain Snake provinces will be revised by the Council in March. Bonneville should ensure that any renewals scheduled prior to that decision should be limited to previously approved project scope. The Council staff may recommend additional conditions if the preliminary Independent Scientific Review Panel report in these provinces does not recommend funding for specific projects without additional information.
• That Bonneville will report remaining unobligated balances in the Fiscal Year 2001 budgets and recommend retaining those budgets with the projects for uncompleted work, offset of the 2002 budget or reallocation to the appropriate placeholder.
• That Bonneville confirms or revises assumptions for its program support costs or Biological Opinion implementation requirements that will not be addressed in provincial reviews.
• Projects required for implementation of the 2001 Biological Opinion for the federal hydropower system.

Table 1. Draft FY 2002 Start of Year Base Budget (Projects by Province, Subbasin, Project I.D)
Table 2. Draft FY 2002 Start of Year Base Budget (Province Totals)

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