Potter Valley Project Licensing

The Potter Valley Project: 100+ Years of Water Supply...Will It Continue?

Mendocino County Farm Bureau supports local control of the Potter Valley Project.

The support of our membership is what allows us to continue to host events that educate the public and work on critical issues such as water supply. As a member, you will continue to receive updates on the latest developments in the licensing and future of the Project through your e-letter subscription. Please contact our office if you have an updated e-mail address. If you are not a member, please consider joining the united voice of Farm Bureau.

Taking Action

  • Developed a postcard to provide our community with an opportunity to speak to their elected officials. View more information under the Community Education section.
  • For 15+ years we provided water tours to the public to provide a hands-on understanding of the water system.
  • Keeping our members informed with new developments through our quarterly newsletter and our e-letter subscription.

Project Information

Potter Valley Project Update: November 2023

PG&E Releases Draft Surrender Application and Decommissioning Plan for the PVP

On November 17th, PG&E released the Initial Draft Surrender Application and Conceptual Decommissioning Plan (SA) for public review at the following website: pottervalleysurrenderproceeding.com

The initial draft can be accessed from the DOCUMENTS PAGE using the Password: PV_Surrender

The public comment period will be open until December 22, 2023. Formal comments must be submitted in writing via email to [email protected] or by mail to:

Tony Gigliotti
Senior Licensing Project Manager
Power Generation
12840 Bill Clark Way
Auburn, CA 95602

PG&E will address comments as appropriate before distribution of the Final Draft Surrender Application in June 2024.

The initial draft includes PG&E’s conceptual decommissioning plan and a third-party proposal for modifications of the former Cape Horn Dam site and Van Arsdale Diversion, as necessary, to construct a New Eel-Russian Facility. PG&E has not accepted the proposal at this time, but is including it as an option for Cape Horn Dam. Proponents of the proposal include California Department of Fish and Wildlife (CDFW) California Trout, Humboldt County, Mendocino County Inland Water and Power Commission, the Round Valley Indian Tribes, Sonoma County Water Agency, and Trout Unlimited. A copy of the Proponent’s Proposal is available at: https://www.sonomawater.org/pvp or under background below.

PG&E is soliciting comments from Tribes, regulatory agencies, and other interested parties on the Initial Draft Surrender Application that includes PG&E’s conceptual decommissioning plan and the Proponent’s proposal for Cape Horn Dam site and Van Arsdale Diversion. 

The Initial Draft Surrender Application does not include an environmental analysis. The environmental analysis will be included in the Final Draft Surrender Application, which will be available for public review in June 2024.

Additional Background

In late July 2023, Mendocino County Inland Water and Power Commission (MCIWPC), Sonoma County Water Agency (Sonoma Water), and Round Valley Indian Tribes (RVIT) submitted a joint proposal to PG&E. The proposal, called the New Eel-Russian Facility Proposal, would remove and modify Cape Horn Dam and Van Arsdale reservoir to allow for a new diversion and fish screening facility.

The proposal requested that PG&E include the New Eel-Russian Facility in the final license surrender application submitted to the Federal Energy Regulatory Commission (FERC). On October 3rd, PG&E made a non-binding acceptance in concept of the MCIWPC, Sonoma Water, and RVIT proposal and agreed to include it in the initial draft SA.

The New Eel-Russian Facility Proposal would require a regional entity be formed with the legal and financial capacity to be responsible for all aspects of the new project, including ownership, construction, and operation of the facility. The acceptance of this proposal is non-binding and allows for continued discussion and public comment.

More information on the Eel-Russian Facility Proposal can be seen from the presentation materials HERE from the August planning group meeting.

The press release on the “Regional Partners Proposal to Preserve Potter Valley Diversion and Fish Passage Options” from August 7th can be seen HERE.

Please Participate

Mendocino County Farm Bureau (MCFB) strongly encourages stakeholders and community members to submit their feedback and questions in this vital step of the process. There are many details still to be decided, including the new diversion facility design, who will operate and maintain the facility, and how it will be financed. Please plan to submit feedback and questions before the end of the comment period on December 22, 2023.

The Draft Surrender Application and Conceptual Decommissioning Plan will be included on the agenda for the next Russian River Water Forum Planning Group meeting, which will take place on Thursday, December 7 in Ukiah (and via Zoom). For more information on the December 7th meeting and Zoom registration, please visit:  https://russianriverwaterforum.org/.

MCFB supports maintaining water supply reliability and local control of this vital resource. Farms, families and fish in the Russian River are dependent on the future of this diversion and the community needs to remain vocal!

Current Water Supply

For current water supply graphs for Lake Pillsbury, Lake Mendocino and Lake Sonoma, please click HERE

If you have concerns about where a future licensing and/or decommissioning process may go and how it will impact your water supply, you are encouraged to voice this concern. Since FERC is a Federal Agency, our federal representatives connected to the Project need to hear from their constituents. See contact information below. MCFB also has postcards available at our office that can be sent to local, state and federal elected officials.

Congressman Huffman: (202) 225-5161
Congressman Thompson: (202) 225-3311
** All numbers are in Washington D.C. on EST**


Initial Study Report
Mendocino County Inland Water and Power Commission, Sonoma County Water Agency, California Trout, Inc., the County of Humboldt, California, and the Round Valley Indian Tribes (together, NOI Parties) submitted a an Initial Study Report (ISR) to FERC in mid September 2020. The ISR describes the overall progress in implementing the study plan and schedule and the data collected, including an explanation of any variance from the study plan and schedule. The full Initial Study Report can be found HERE.

Timeline for Future Actions
Within Scoping Document 3 released by FERC in July 2020, a timeline was provided as Appendix A for a process plan and schedule for the licensing. This is a general timeline, but a good reference to review. Appendix A can be seen HERE

File Disagreements and Requests to Amend Study Plan
Stakeholders were able to file disagreements and requests to amend the study plan on November 13, 2020. MCFB submitted comments which can be found HERE. The main points of conversation were related to the importance of analyzing impacts to water users in the newly introduced studies of AQ12 and SE1.

Response to Comments on Initial Study Report
The NOI Parties provided a response to comments document on December 14, 2020. The response document can be found HERE.

FERC Determination
FERC was scheduled to release a “Director’s determination on disagreements and amendments ” on January 13, 2021. The document was finally released from FERC on March 16, 2021. The document can be seen HERE

Abeyance Request
In a letter dated September 2, 2021, the partner entities (IWPC, Sonoma Water, Cal Trout, Humboldt County and Round Valley Tribes) submitted a request to the Federal Energy Regulatory Commission (FERC) for an abeyance (temporary suspension) in the current schedule for the licensing as provided by FERC until May 31, 2022. Also included in the notice are a series of technical memorandums discussing sedimentation analysis from possible dam removal scenarios and an overview of work completed to date by the partners on the license related studies. The full document can be seen HERE

On September 23,2021, FERC responded to the request for an abeyance. Within this response, FERC granted an abeyance, but only through April 14, 2022 to coincide with the current license expiration date. In addition, FERC requested that the partner entities submit a status report on the process of forming the Regional Entity that will be ultimately filing the Project license application and a plan for gathering the information needed to support the license application, including completing the required studies, within 60 days (approximately mid November). It was also requested by FERC that an additional progress report be submitted by January 31, 2022, if the Regional Entity is not formed by the due date for the first 60-day progress report. The full FERC response can be seen HERE.

FERC Update Letter
In relation to the licensing efforts, the partner entities submitted an update to FERC on November 22, 2021 which can be seen HERE. The letter is a progress report to FERC and is NOT a declaration that the partners have abandoned the licensing process.

Status Report
The partner entities submitted a status report to FERC on January 31, 2022. The status report provides follow up information to FERC from the November correspondence mentioned above. The full letter can be seen HERE

License Expired
The current license for the Project expired on April 14, 2022. The efforts by the partner entities (Mendocino County Inland Water and Power Commission, Sonoma Water, Round Valley Indian Tribe, County of Humboldt and Cal Trout) were not successful to submit the required license application information by the April 14th deadline.

PG&E Directed by FERC to Operate Under Year to Year License
On April 21, 2022, FERC provided a notice stating that PG&E has been authorized to continue to operate the Project under a year-to-year license or until the issuance of a new license for the project or other disposition under the Federal Power Act, whichever comes first. Currently the annual extension would be until April 14, 2023. The letter from FERC can be seen HERE.

License Surrender and Decommissioning Plan
On May 11,2022, FERC submitted a response to PG&E requesting a license surrender plan to be submitted within 60 days. Also included was an ask of PG&E to explain how they will plan to respond to the earlier requests from the National Marine Fisheries Service (see March 16, 2022 letter below) related to making amendments to the current license operations for fishery purposes. The full notice can be seen HERE.

On July 8, 2022, PG&E submitted a response to FERC’s May 11th correspondence described above. The response briefly described PG&E’s plan and schedule for the surrender application of the Potter Valley Hydroelectric Project. There was not a lot of detail provided, but it was stated that, “30 months after approval from FERC of the Plan and Schedule (as described in Figure 1 from the July 8th letter) PG&E will file with FERC the Potter Valley Project surrender application and decommissioning plan.” The full letter from July 8th can be seen HERE.

On July 28, 2022, FERC submitted a response to the May 20, 2022, filing for a request for rehearing, reconsideration, and/or discretionary action regarding the FERC issuance of the annual Project license to PG&E that was approved on April 21, 2022. The rehearing request was submitted by Friends of the Eel River, Pacific Coast Federation of Fishermen’s Associations, Institute for Fisheries Resources, Trout Unlimited, and California Trout (collectively, Petitioners) alleging that the annual license is not in compliance with the Endangered Species Act (ESA). The full text can be seen HERE. Take note of the last page, where one of the FERC Commissioners makes a statement worth reading.

On July 29, 2022, FERC’s released correspondence to PG&E, NMFS, U.S FWS and the CA Office of Historic Preservation in response to the July 8th PG&E notice of license surrender and timeline for decommissioning. FERC designates the licensee (PG&E) as the non-federal representative for various consultation requirements that will occur, outlines what is required in the license surrender application and also states that FERC expects a surrender application to be filed within 30 months, January 2025. The full letter can be seen HERE.

Also on July 29,2022, several fishery NGOs submitted comments in response to FERC’s approval of the PG&E license surrender timeline in the document described above. The entities offer an alternative timeline to complete the surrender and decommissioning plan from the proposed 30 months to 22 months. The full letter can be seen HERE.

PG&E Responds to FERC Related to NMFS Letter
On July 11, 2022, PG&E sent separate correspondence in response to FERC’s May 11, 2022 letter pertaining to NMFS’ March 16, 2022 filing. The full letter from July 11th can be seen HERE.

The National Marine Fisheries Service (NMFS) submitted a letter to FERC on March 16, 2022 with several requests related to the current operation of the Project and listed fish species. This correspondence can be seen HERE.

On August 15,2022 FERC submitted a letter to NMFS that was in relation to the March 17th NMFS filing regarding consultation under the Endangered Species Act (ESA) and the Essential Fish Habitat (EFH) provisions of section 305(b) of the Magnuson-Stevens Fishery Conservation and Management Act (MSA) for operations at the Potter Valley Hydroelectric Project No. 77. FERC required a response from NMFS within 60 days. The full text can be seen HERE.

FERC Notice of Proceeding
On November 16, 2022, FERC released a notice of proceeding to consider reopening license and soliciting comments, motions to intervene and comments as a response to the letters filed by the National Marine Fisheries Service (NMFS) on March 17, 2022 and October 17, 2022 ( for copies of these letters, please refer to licensing information tab below). NMFS requested that FERC exercise its reserved authority to require additional protective measures, that NMFS deemed necessary on the current annual Project license to protect listed salmonid species. In a July 12, 2022 letter, PG&E declined to volunteer to file an amendment application to adopt NMFS’ proposed measures. The November 16th notice can be seen HERE

If you would like to sign up to receive updates related to any future filings connected to the Potter Valley Project, you can do so by visiting the FERC website and going to the e-subscription page. If you have not registered with FERC, you will have to register before proceeding with the e-subscription. Once registered you can sign up to receive information related to docket P-77-000, which is the Potter Valley Project.

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