Feds not "currently" seeking takeover of Potter Valley Project
Statement from the Bureau of Reclamation on the Potter Valley Project provided in full.
The Bureau of Reclamation (BOR) claims in a statement that the agency is not “currently” seeking authority to own or operate the Potter Valley Project, but confirms that funding related to its decommissioning is being reviewed in light of President Trump’s recent executive order on domestic energy.
Reclamation is aware of the Potter Valley Project. Currently, Reclamation does not have and is not seeking authority from Congress to own or operate the Potter Valley Project.
The "Eel River at Cape Horn Dam Fish Passage Improvement Planning and Design Project" was selected through a competitive process for a $2,000,000 federal award to Sonoma County Water Agency in December 2023 through the Aquatic Ecosystem Restoration Program (AERP). You can read the project details on our website at https://www.usbr.gov/watersmart/aquatic/selected.html.
At this time, funding for the Potter Valley Project provided through the Aquatic Ecosystem Restoration Program and other funding that had been proposed for the project from the Inflation Reduction Act in January 2025 is undergoing reviews to ensure consistency with this year’s Executive Order 14154, Unleashing American Energy, and current Administration priorities.
This follows an April 14 letter from BOR acting commissioner David Palumbo to Lake Pillsbury Alliance member Aaron Sykes in which Palumbo states the agency is reviewing funding for decommissioning after hearing significant outcry from locals concerned about the impact of losing a vital water storage system.
“Your February letter is consistent with other perspectives we have heard in recent weeks from the Lake County area, and will be taken into account as the potential for funding to this project is reviewed by agency leadership,” writes acting commissioner David M. Palumbo. “The Bureau of Reclamation is committed to our mission of supplying water and power to the West and will continue to develop strategies to help ensure water supplies for current and future generations.”
Skyes says this was written in response to his original letter specifically requesting that the federal government step in and assume control of the Potter Valley Project. Lake Pillsbury Alliance is a local advocacy group.
The statement from BOR acting chief of public affairs Peter Soeth references President Trump’s day-one executive order on unleashing American energy, designed to remove regulatory barriers in order to promote domestic energy production—including hydropower.
Sonoma County outlet The Press Democrat reported on the statement in an article titled: “Amid pleas to ‘Santa Trump,’ dam removals remain on track as feds rule out takeover of PG&E’s Potter Valley plant.”
The depiction of BOR as “ruling out” taking over the dam caused a stir in the community. The article did not include the full statement from BOR.
“After reading the entire statement, I am more hopeful that the state or federal government will step in to save our water supply,” says Cloverdale Mayor Todd Lands. “I will continue to fight for what is right for the health and safety of our community.”
Background on the Potter Valley Project
The Potter Valley Project is a 110 year-old hydropower project that includes two dams, a diversion tunnel, and a hydroelectric plant. The system diverts about 2% of the Eel River to the Russian River. Beyond its historic purpose of providing power, the project has served as key water storage, fostering a multi-generational agricultural community from Potter Valley to Marin county by supplying water to thousands of farms and ranches as well as 600,000 residents.
In 2019, Pacific Gas & Electric (PG&E) announced its decision to relinquish its license to operate the dams after severe water cuts mandated by the federal government rendered the project unprofitable. Lawsuits by environmental groups including California Trout and Friends of the Eel, claiming that the dams caused harm to endangered fish populations, have since placed added pressure on the power company. PG&E’s final surrender plans are due July 2025.
I can't stand the Press Communist newspaper. What a bunch of poltroons they are.
The Bureau of Reclamation has to take over the dams. They are the biggest gorilla in the room.