The Columbia River Treaty is a 1961 agreement between Canada and the United States on the development and operation of dams in the upper Columbia River basin for power and flood control benefits in both countries. Four dams were constructed under this treaty: three in the Canadian province of British Columbia (Duncan Dam, Mica Dam, Keenleyside Dam) and one in the U.S. state of Montana (Libby Dam).
The treaty provided for the sharing with Canada of half of the downstream U.S. power and flood benefits, and allows the operation of Treaty storage for other benefits. The long-term impacts of the treaty have been mixed: while the dams have provided enormous economic benefits to British Columbia and the U.S. Pacific Northwest through hydroelectric generation and flood control, there are longstanding concerns regarding social and economic impacts to the local communities, and the environmental effects associated with the construction and operation of large dams.
Background In 1944, the Canadian and U.S. governments agreed to begin studying the potential for joint development of dams in the Columbia River basin. Planning efforts were slow until the 1948 Columbia River flood caused extensive damage from Trail, British Columbia, to near Astoria, Oregon, completely destroying Vanport, the second-largest city in Oregon. The increased interest in flood protection and the growing need for power development initiated 11 years of discussion and alternative proposals for construction of dams in Canada. In 1959, the governments issued a report that recommended principles for negotiating an agreement and apportioning the costs and benefits. Formal negotiations began in February 1960 and the treaty was signed 17 January 1961 by Prime Minister Diefenbaker and President Eisenhower."Columbia River Treaty Signed: U.S., Canada Pledge Resource Development", Fairbanks (Alaska) Daily News-Miner. 17 January 1961. Page A1.
The treaty was not implemented until over three years later because of difficulties in creating arrangements for funding the construction of the Canadian dams and marketing the electrical power owed to Canada which was surplus to Canadian needs during the early treaty years. A Treaty Protocol and a Canada-BC agreement were signed in January 1964 that limited and clarified many treaty provisions, defined rights and obligations between the British Columbia and Canadian governments, and allowed for the sale of the Canadian Entitlement to downstream U.S. power authorities (BPA). Instruments of ratification were exchanged and the treaty was implemented on 16 September 1964.
United States Starting in the 1930s, the United States constructed dams on the lower Columbia River for power generation, flood control, channel navigation and irrigation in Washington as part of the Columbia Basin Project. Dam construction on the American side of the border thus began prior to the entry into force of the Columbia River Treaty. There were various plans put forward in the early 20th century for major dams on the Columbia, many focused on irrigation, but development did not begin in earnest until the 1930s. During the Great Depression, the U.S. Federal Government provided the impetus for construction, as part of the New Deal make-work program. Construction on the Bonneville and Grand Coulee dams began during this period, but government involvement in Columbia dam construction has continued through to the present.
The long range plans for American development of the Columbia for hydroelectricity came together in the late 1930s. In 1937, the U.S. Congress passed the Bonneville Power Act, creating the Bonneville Power Administration. This was a new federal institution meant to build transmission lines and sell the power generated by Bonneville, Grand Coulee and future Columbia Dams. While these projects substantially increased the ability to control floods and generate power, the system was unable to provide full protection or maximize the amount of power generated. American planners realized that the full potential of the river could only be harnessed through transboundary cooperation to create additional storage capacity above the existing lower Columbia complex. With the storage provided in Canada, water releases could be timed to meet power demand, rather than relying on the snowmelt-determined natural flow rates of the river.
Canada British Columbia Premier W. A. C. Bennett and his Social Credit Government were responsible for the development of infrastructure throughout the province during the 1950s and 1960s. Bennett was the Canadian force behind the Columbia River Treaty and as a believer in the development of public power, he created and promoted a "Two Rivers Policy". This policy outlined the hydroelectric development of two major rivers within the province of British Columbia: the Peace River and the Columbia River. Bennett wanted to develop the Peace River to fuel northern expansion and development, while using the Columbia River to provide power to growing industries throughout the province.
The ongoing negotiations of the Columbia River Treaty provided a unique opportunity for Bennett to fulfil his Two Rivers Policy by working around British Columbia's monetary issues. During the 1950s, the government of British Columbia lacked the funds necessary to develop both the Columbia and Peace rivers and privately owned utility BC Electric was unwilling to pay for hydroelectric development on these rivers. Therefore, the BC Energy Board recommended that hydroelectric development be undertaken as a public venture. On 1 August 1961 Bill 5 was proposed to the BC legislature calling for provincial control over BC Electric and creation of the Peace River Power Development Company. Later that month, Bill 5 was passed into law paving the way for the creation of BC Hydro in 1963, completing Bennett's vision of "public power". BC Hydro thereafter consisted of BC Electric, the Peace River Power Development Company and the BC Power Commission. The creation of a government-owned power entity allowed Bennett to finance the dams and powerhouses on the Columbia at lower interest rates, thus reducing the cost. The BC-Canada Agreement of 8 July 1963 designated BC Hydro as the entity responsible for Canadian dams outlined in the treaty and annual operations of the treaty.
Bennett directed the negotiations for a Canadian Entitlement sales agreement which provided the funds to develop both the Columbia and the Peace rivers simultaneously. Since it was illegal for Canada to export power during the 1950s and 1960s, the funds provided by the Columbia River Treaty entitlement were the only affordable way for British Columbia to develop both rivers, thus the treaty became integral to Bennett's vision of power in British Columbia. With the cash received from the sale of the additional power generation of the Canadian Entitlement (approximately C$274.8 million in September 1964 for the first 30 years) the BC government proceeded to develop power facilities on both the Columbia and Peace Rivers, fulfilling Bennett's 'Two River Policy'.
In short, BC pursued the Columbia River Treaty because it provided a unique opportunity for hydroelectric development that otherwise would not have been possible (due to the financial situation of the province during that period). It was the hope that these developments would promote industrial growth within the province and help expand the economy.
Treaty provisions
Under the terms of the agreement, Canada was required to provide 19.12 km3 (15.5 million acre-feet [Maf]) of usable reservoir storage behind three large dams. This was to be accomplished with 1.73 km3 (1.4 Maf) provided by Duncan Dam (1967), 8.76 km3 (7.1 Maf) provided by Arrow Dam (1968) (subsequently renamed the Hugh Keenleyside Dam), and 8.63 km3 (7.0 Maf) provided by Mica Dam (1973). The latter dam, however, was built higher than required by the treaty, and thus provides a total of 14.80 km3 (12 Maf) including 6.17 km3 (5.0 Maf) of Non Treaty Storage space. Unless otherwise agreed, the three Canadian Treaty projects are required to operate for flood protection and increased power generation at-site and downstream in both Canada and the United States, although the allocation of water storage operations among the three projects is at Canadian discretion. The downstream power and flood control benefits in the United States created by the operation of Canada's Treaty reservoirs are shared by the two countries in accordance with Treaty provisions.
The treaty also allowed the U.S. to build the Libby Dam on the Kootenai River in Montana which provides a further 6.14 km3 (4.98 Maf) of active storage in the Koocanusa reservoir. Although the name sounds like it might be of aboriginal origins, it is actually a concatenation of the first three letters from Kootenai / Kootenay, Canada and USA, and was the winning entry in a contest to name the reservoir. Water behind the Libby dam floods back into Canada, while the water released from the dam returns to Canada just upstream of Kootenay Lake. Libby Dam began operation in March 1972 and is operated for power, flood control and other benefits at-site and downstream in both Canada and the United States. The U.S. did not pay Canada for the land submerged by the Libby Dam reservoir and Canada does not pay the U.S. for the resulting power and flood control benefits downstream on the Kootenay River.
With the exception of the Mica Dam, which was designed and constructed with a powerhouse, the Canadian Treaty projects were initially built for the sole purpose of regulating water flow. In 2002, however, a joint venture between the Columbia Power Corporation and the Columbia Basin Trust constructed the 185 MW Arrow Lakes Hydro project in parallel with the Keenleyside Dam near Castlegar, 35 years after the storage dam was originally completed. The Duncan Dam remains a storage project, and has no power generation facilities.
The Canadian and U.S. Entities defined by the treaty, and appointed by the national governments, manage most of the treaty required activities. The Canadian Entity is BC Hydro and Power Authority, and the U.S. Entity is the Administrator of the Bonneville Power Administration and the Northwestern Division Engineer for the U.S. Army Corps of Engineers. The treaty also established a Permanent Engineering Board, consisting of equal members from Canada and the U.S., that reports to both governments annually on Treaty issues, any deviations from the operating plans, and assists the Entities in resolving any disputes.
Payment for U.S. benefits As payment for the U.S. benefits realized by the Canadian storage operation, the treaty required the U.S. to: deliver to Canada half of the estimated increase in U.S. downstream power benefits, on an ongoing basis (the Canadian Entitlement), and make a one-time monetary payment as each of the dams were completed for half of the value of the estimated future flood damages prevented in the U.S. The Canadian Entitlement is calculated five years in advance for each operating year using an agreed treaty calculation method, and the amount varies mainly as a function of forecasted power loads, thermal generating resources and operating procedures. The method gives Canada a "first-added" storage benefit that ignores U.S. dams built after 1961 (e.g. Libby and Dworshak), limits sales of surplus power to California, and excludes modern fish related constraints at U.S. dams. Without the first two of these limits, the Canadian Entitlement would be slightly less than half of current values. The Canadian Entitlement is marketed by Powerex. The Canadian Entitlement varies from year to year, but is generally in the range of 4,400 GWh per year and about 1,250 MW of capacity.