The Corp Must Meet Its Obligations _ Opinion

THE VERY future of the White River fisheries, and the local economy depends upon whether the US Army Corps of Engineers will uphold their moral and financial obligation to the people of the White River Valley.

Currently it seems as if the Corps is intent, by its silence on the matter and track record, on weaseling out of paying the annual pittance needed to run the mitigation hatcheries, including the Norfork and Greer’s Ferry hatcheries, the two most critical to our trout fisheries. It’s certain that the Feds would love the State to take over hatchery obligations.

Right now the Corps can sit back waiting to see whether the fear an uncertainty created locally will force the State of Arkansas and the Game and Fish Commission to blink, and step in to “save the hatcheries”, the fishery and the tourism dollars.

But anything less than the Corps footing the bill for the operations and maintainance of 9 mitigation hatcheries across the country would be a craven backpedaling from the federal commitments to alleviate impacts of the construction of Corps Dams on local fisheries. Particularly when the Corps is sitting on a multi-million dollar cash cow from the proceeds of electricity sales.

As we revealed earlier this week, estimates from the Southwestern Power Administration annual reports show the Corps earned over $20 million from Bull Shoals and Norfork Dams alone in 2008, plus more from Beaver and Greer’s Ferry and Table Rock. 2008 of course was a flood year and the floodwaters enabled addition windfall power generation but it probably won’t be earning much less in 2009 or 2010.

That $20 million raised in 2008 alone would pay for 20 years operations at the Norfork hatchery, for on current figures about $1.8b into the local economy over that period.

Further investigation also unravelled some other interesting facts. While the Corps collects revenues, to the tune of 60%-plus off the top of SWPA electricity sales, it actually doesn’t have to meet the annual operations and maintenance costs out of this revenue stream. Nope the President’s Budget has a line item for that. Special projects needed at either Dam, yep the President’s Budget will take care of that too.

The 2012 Budget cuts $6.3 million from the 9 mitigation hatcheries, including 2 in Arkansas, and others further afield. The hatcheries were installed in Arkansas when the cold water flows from the Dams wiped out the wild smallmouth fishery, which was attracting tourists as far back as the ’20s and ’30s.

The Budget stated that the US Fish and Wildlife Service would be looking to recover costs from Federal agencies which built the Dams like the Corps and power authorities _ not-coincidentally those agencies which earn big dollars off the dams.

States depend on these activities to stock fisheries which provide economic benefit to local communities. The Service has been working to recover costs from the Federal agencies that built and operate these water infrastructure projects, and will continue ongoing reimbursement discussions with the U.S. Army Corps of Engineers (Corps), the Tennessee Valley Authority, Central Utah Project Completion Act, and the Bonneville Power Administration.

Hence the statement of intent is there, the Federal Government is simply shifting the entity which pays for the hatchery from the Fish and Wildlife’s budget to the budget of revenue raising entities like the Corp and perhaps SWPA. There hasn’t been too much mention of SWPA in all the public discussion yet _ even though there is $77 million of public funds sitting in the power marketer’s accounts.

But isn’t it all just Federal $ anyway you might ask. Well yes in the most general sense. But at the agency level, which is where this fight is being fought its all about who lets left holding the bill. Each agency operates in some small way like a little company owned by one giant company. Not every $ goes up the chain into the parent company’s account. And the every bureacrat loves hanging onto those $ from outside to play with on their own pet projects, just like the politicians in Washington.

 The Fish and Wildlife Service gets most of its funding out of the President’s Budget. The Corp has a whole bunch of outside revenue streams, including from hydroelectricity, so there is a dam good argument that the Corp should be paying for the hatcheries.

The absolute worst thing now would be for the local industry to be leaning on the Governor, state politicians and the AGFC to step in. Calls for raising of trout stamps and license fees to fund a State takeover of the hatchery is exactly what the Corps would love to see, but it makes little sense when the funds are already there locked away in the Corps deep pockets.

Now there is a decent argument that the State could contribute to the hatchery operations, but any State fund should not be used for day-to-day operations but additional special needs, tourism facilities at the hatcheries, and perhaps on future joint projects like Dry Run Creek.

The everyday operations of the hatcheries should and must only be met by the Corps. Having the State take over the hatchery will only create ongoing uncertainty and instability as the vagaries of the State Budget and the influence of political factors ebb and flow. Put it this way would you prefer a State with a very tight budget of $4.5b compared to the Corp which will bring in $4b in “private consultancies” and do $4.5 b in Federally funded projects as part of its overall budget be responsible for paying the bills. 

Panic at a local level will only play into the Corps’ hands. If any state, either Arkansas or Tennessee and Utah where similar local debates are being played out, and many people crying for the State to take over.

What is needed is a united front from the State of Arkansas, politicians, the AGFC, local officials, the local trout industry, guides, resorts and local communities. Even better a joint effort from all affected States to fight together to put pressure on the Corp to meet its commitments fully.

 Here in Arkansas that means an earmarked annual allocation from the Corps’ cut from Bull Shoals and Norfork, Greer’s Ferry and Beaver Dams to meet the needs of the Norfork and Greer’s Ferry Hatchery. The Corp needs to also fund several hundred thousand dollars in deferred maintenance at both hatcheries, to get them back to full operation.

This would give the industry the stability and confidence to invest grow and prosper in this region. Right now it has neither.

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