A Science-Based Recovery Plan: A science-based recovery plan would acknowledge that high rates of juvenile salmon mortality exist both prior to entering the hydroelectric power system and within the ocean environment; and that juvenile salmon survival rates through the hydro system have been greatly improved by use of the smolt transportation system and improved project operations. NMFS and other evaluations suggest mortality rates between the rearing/hatchery grounds and the Lower Granite Reservoir ranging from 30-40%. Ocean mortality estimates by NMFS, UW, and others suggest mortality rates between 80-95%. The Corps "Inter-Basin Study" depicts how poor ocean conditions have dramatically reduced chinook salmon runs along the Pacific Coast, within the recent past. University of Washington researchers estimate that Snake River juvenile salmon survival through the hydro power system, at the present time, ranges between 53-64% depending on water conditions. A science-based recovery plan would focus on the marginal benefits and costs of proposed salmon recovery measures, as displayed in the attached figure and table. This figure illustrates that: 1) the ability to make significant increases to juvenile salmon (smolt) survival through the hydro system is very limited; 2) measures that directly or indirectly enhance salmon survival are actions to improve the smolt transportation program; and 3) reservoir drawdown measures will not improve juvenile salmon survival. A science based recovery plan would totally reject the John Day Pool drawdown proposal. The NMFS-ESA Issues and Problems: It is suggested to the Committee to acknowledge fully the key issues and problems raised here: Because the Bonneville Power Administration is viewed as a "bottomless purse" for funding, extremely poor actions for salmon recovery--like a John Day Pool drawdown--are being pursued by NMFS. ◆ A John Day Pool drawdown would incur both high economic and environmental costs. ◆ A John Day Pool drawdown will not produce any measurable improvements to Snake-Columbia River salmon survival. ◆ NMFS ignores the fact that only relatively small improvements can be made to juvenile salmon survival through hydro system measures. The NMFS Proposed Recovery Plan ignores the marginal benefits and costs of proposed actions. NMFS currently operates under the "protection" of flawed ESA legislation, not recognizing biological or economic cost-effectiveness. Given the above, the need for reform to both Columbia Basin salmon recovery planning and the Endangered Species Act should be apparent. Surf.Collect. Snake 1.9 MA Snake 1.5 MA John Day DD Snake Full DD Snake Sp.DD Meaure Spill Snake-LG DD Survival rate benefit estimates based on UW CRISP 1.5 Model series; economic costs based on BPA and Corps estimates; final cost estimates in review. Source: Olsen, D. and J. Anderson, "Profiles in Cost-Effectiveness," 1995 (in publication review). Actual model change from Priest Rapids Dam to estuary 50.8% versus 50.9% survival. Mr. Chairman and members of the subcommittee, it is a pleasure to appear before you today to discuss the important issue of salmon restoration on the Columbia River system as it affects wheat producers in the Northwest.. To put this issue in perspective, I would first like to inform the subcommittee on how wheat is produced and marketed here in the Northwest. After the summer harvest, wheat is stored either on-farm or at the local country elevator. Wheat growers have the option of selling immediately or waiting for better prices. In the Midwest, wheat producers have the option of hedging on the major exchanges. Here in the Northwest, that option is not as viable, as the basis for soft white wheat is not as applicable as it is for the major Midwest futures markets. Therefore, it is critical that growers in this region have the opportunity to market wheat at any time, year around. The major type of wheat produced in the Northwest is soft white, of which about 90 percent is exported annually through lower Columbia River grain export terminals. Our major customers are in Asia and the Middle East. Soft white wheat is used for a number of end products, including cakes, pastries, biscuits, and flat breads. However, it is important to understand the soft white wheat is only a portion of the wheat export story. Hard red winter and spring wheat from Montana, Colorado, and the Dakotas is transported in increasing volumes by unit car trains to lower Columbia River terminals for export. Currently, over 60 percent of the annual total wheat volume arriving at lower Columbia River export terminals is red wheat, which is used for mainly bread products in those countries and regions previously mentioned. Durum wheat from North Dakota also arrives by rail, which is used by OREGON WHEAT GROWERS LEAGUE P.O. Box 400 PENDLETON, OR 97801 John T. Doolittle importing nations for pasta products. The lower Columbia River system has built a reputation on providing the highest quality of wheat for world export. This area is the only place in the world where a customer can source and load virtually any type or class of wheat available. In fact, it has become routine for a vessel to be loaded with many classes of wheat on the same vessel. It has also become routine for different protein levels of the same class to be loaded on the same vessel. As an example, one of our major customers, South Korea, routinely loads five different types of wheat on their vessels. Wheat is only part of the story, however. Corn has become a major export item, also. CongAgra Peavy, located at the Port of Kalama, loads almost exclusively corn for export, which arrives by rail from mainly Nebraska. Export terminals also routinely load barley, beet pulp pellets, and occasionally sorghum. In 1994, 18 million metric tons of grain were loaded by export terminals in the lower Columbia River. It is also important to understand how the export wheat marketing system operates in this region. Many of the customers are in this market weekly or monthly to source their needs. Japan, as an example, is in this market almost every week to source supplies that will arrive in Japan three months hence. The key to this success is the fact that we are a reliable, consistent supplier of high quality wheat and other grains. Export terminals in the lower Columbia River system are essentially "through put" operations, meaning that they do not and cannot store grain for long periods of time. Grain arrives daily, either by rail, barge, or truck, is binned according to quality and class, and is loaded on an export vessel almost immediately. The system is highly efficient, mostly automated, and reliable. That is what our customers have come to expect. I would like to turn a moment to wheat transportation in this region, which is the main reason I wanted to speak with you today. Almost all of the soft white wheat that is produced in the Pacific Northwest is shipped to the lower Columbia River by barge. The only real exception to that is wheat produced in the Willamette Valley, which is trucked. Occasionally a unit rail car train is loaded with soft white; however, that is generally not the preferred method of transportation, due to the cost competitiveness of barge transportation. Let's focus a few minutes on some of the proposals that have come forth the allegedly assist in the effort to protect and enhance salmon in the Columbia/Snake River system. Lowering the John Day pool to spillway crest for 4.5 months would mean a closure of barge transportation for six to seven months, as an example. Lowering that same pool for two months would mean a closure of the system for at least four months. John T. Doolittle Supporters of these ideas would simply say that wheat could be trucked or railed while the river system is inoperative. What proponents fail to understand is that the rail system is already fully utilized, both in sense of volumes of wheat and corn moving through the Columbia Gorge, as well as in the number of rail cars that are available to transport grain. Others might suggest that wheat be trucked to Biggs, which is below the John Day dam, and be put on barges there. Under the most conservative of scenarios, this would require the equivalent of six barges to handle the volume on a daily basis. That would mean 702 trucks, or two 102-car unit trains. This translates to an additional transportation cost of 30-40 cents per bushel ($28,000 per day!) which must be borne by upriver producers. I have little faith that the public would greet with great enthusiasm the addition of thousands of additional trucks on I-84, even if they were available. The cost to wheat producers for transportation would skyrocket if the river system were shut down for long periods of time. Barge transportation is not only a cost-effective way to move products to market, it is also environmentally friendly when compared to the addition of thousands of trucks spewing pollution into our air. In short, Mr. Chairman and members of the Subcommittee, there are no easy answers to salmon restoration. Most importantly, all parties to this debate must understand fully the implications of drawing down reservoirs and the effect those proposals will have on the most efficient, highquality wheat and grain exporting system in the world -- the lower Columbia River system. Wheat producers in Oregon and the Northwest started working on the development of export markets in the 1950's and have not stopped since that time. We are looking, as an example, at the development of a new class of wheat -- hard white -- which will, we hope, gain back market share that we lost to the Australians. This new wheat, when released, will add to our already impressive list of high quality wheat available for our customers and potential customers. In conclusion, Mr. Chairman, my message today is that rational thought must prevail in this debate over the future of the Columbia/Snake River system. I appreciate the opportunity to appear today, and would be glad to answer any questions you may have. Sincerely, Chair, Transportation Committee |