EXECUTIVE SUMMARY Preliminary System Improvement Plan September 19, 2016

As the General Manager of Central Oregon Irrigation District, it has become apparent to myself and our staff that we need to modernize our 100-year-old system of canals. Responsibly managing our water supplies is not only important to the families and businesses who rely on us for their water, but it is essential for the long-term sustainabity of Central Oregon’s natural resources.

I’m proud that COID has taken the first step in creating a comprehensive Capital Project Plan that will help guide this much-needed modernization. The first phase is the System Improvement Plan that includes a detailed evaluation of our main water conveyance system and potential Hydro opportunities. The report identifies specific sections of canals COID should improve upon in the future. The report also describes the specific benefits we would realize from these actions, including water conservation and additional flows in the Deschutes River for fish, wildlife and recreation.

COID has taken unprecedented steps to conserve water, improve fish and wildlife habitat and responsibly manage our natural resources. But there is more work ahead of us. While COID’s System Improvement Plan is a valuable tool, it is just one of many steps we need to take in the future. For example, we will soon turn our sights to identifying “on-farm conservation” measures and additional fish and wildlife actions. All of these steps take time and can be expensive. We are committed to working with our partners on solutions that benefit farms, fish and families in the Deschutes Basin.

Craig Horrell General Manager September 19, 2016 Farming and ranching have long played Oregon spotted frog and other species. important roles in Central Oregon’s The Districts are also partnering with development. Agriculture continues to Fortune 500 companies to develop clean, contribute to the region’s economy through renewable hydropower. Four small, job creation, capital investment and micro-hydropower projects are now reliable economic activity. From thriving producing enough electricity for over farmers markets in Bend and Tumalo 6,000 homes. to internationally competitive farms in Madras, Redmond and Terrebonne, The Districts are working with the U. S. farming is a critical part of our region’s way Fish and Wildlife Service, National Marine of life. The irrigation districts (Districts) Fisheries Service and over a dozen basin play an invaluable role in conveying stakeholders on the Deschutes Basin water throughout the Deschutes Basin to Habitat Conservation Plan (DBHCP). many farm and ranch families, and are When complete, the DBHCP will result also improving fish and wildlife habitat. in the implementation of specific projects The Deschutes Basin Board of Control to protect, restore and enhance fish and represents the eight irrigation districts. wildlife habitat.

The Districts, in concert with conservation The DBBC is in integral part of the Upper groups and local, state and federal Deschutes Basin Study. This collaborative agencies are increasing instream flows initiative is being funded with $1.5 million in rivers and creeks, improving fish by the U.S. Bureau of Reclamation and passage into historical habitat and Oregon’s Department of Water Resources working to establish ecologically important to develop necessary information for wetlands. Since 2000, the Districts have future water-management options in the reduced annual irrigation diversions by Deschutes Basin. The study is scheduled for over 80,000 acre-feet to increase flows in completion in early 2018. The information the Deschutes River, Little Deschutes River, gathered from this study will be used to Crooked River, Ochoco Creek, Whychus create a holistic approach to Central Creek, Tumalo Creek and Crescent Creek Oregon Irrigation District’s System and benefit salmon, steelhead, bull trout, Improvement Plan. Deschutes Basin Irrigation Districts

Central Oregon Irrigation District COID JEFFERSON NUID Lone Pine iver Irrigation District PID R us toil Arnold Me ake Billy Madras Irrigation District AID Chinook

North Unit

Irrigation District NID r e iv R Swalley s te u HAYSTACK Irrigation District SID h c RESERVOIR s e NUID reek D C Tumalo ay 5,650 AF K Irrigation District TID c M Three Sisters

Irrigation District TSID k e OID e r

C Ochoco s LPID u h Irrigation District OID c hu W AF = Acre Feet Sisters Prineville TSID OCHOCO RESERVOIR COID 44,247 AF Redmond CROOK C ro o k e TID d

SID R iv e r

k e PRINEVILLE e r C RESERVOIR lo Tuma 148,640 AF Bend AID AID

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c ava s e ake ittle ava D ake DESCTES

iver R ll CRANE PRAIRIE Fa RESERVOIR 45,000 AF Paulina ake Paul ina Creek

r ive R s La Pine e WICKIUP t COID u 15,000 AF RESERVOIR h AID

c LPID 200,000 AF s e D OREGON

e TID NUID l SPOTTED t 30,000 AF t i FROG

CRESCENT CRANE PRAIRIE CRESCENT LAKE WICKIUP LAKE RESERVOIR RESERVOIR RESERVOIR RESERVOIR 45,000 AF 86,900 AF 200,000 AF cent Cree 86,900 AF Cres k Gilchrist Stored Water Rights 5 Irrigation Districts have stored water rights that effect the Deschutes river. Optimiing reservoir use is a critical component in providing reliale water for our asin and restoring haitat.

WINTER SUMMER Flows are held ack in winter to fill the reservoir to Wickiup Reservoir ensure enough water is availale for summer irrigation.

Flows can vary dramatically from PPER DESCTES 201200 cfs depending on climate conditions in winter. Fish can ecome stranded Average 0 cfs 1800 cfs when flows get too low. WINTER SUMMER

BENAM FAS

Triutaries and natural springs add flow to the river aove Benham Falls year round.

Irrigation diversions around BEND Bend reduce streamflows in the Middle Deschutes in Summer.

550 cfs 1800 cfs WINTER SUMMER

MIDDE DESCTES

550 cfs 130160 cfs WINTER SUMMER

ow flows and increased water temperature impact fish haitat.

Lake Billy Chinook

cfs = Cubic Feet per Second SYSTEM IMPROVEMENT PLAN OVERVIEW

Central Oregon Irrigation District operates and maintains over 400 miles of canals that collectively deliver water to approximately 46,222 acres of productive land. The volcanic nature of the Central Oregon geology results in the propensity for seepage losses in many areas of the COID canal system. To become more efficient, COID is analyzing its entire system through a comprehensive System Improvement Plan (SIP).

The purpose of the SIP is to: • Evaluate the district’s primary and secondary canal systems. • Develop a mitigation plan for the seepage losses. • Analyze the opportunities to deliver pressurized water to its patrons. • Evaluate hydro power opportunities while delivering pressurized water.

There are two primary alternatives for the mitigation of seepage losses: lining our existing canals or replacing the open canals with buried pipe. In our study, a 50-year life-cycle evaluation of lining versus piping alternatives revealed that lining may be less expensive to implement in its first installation cycle than piping. Canal lining, however, requires significant maintenance and replacement cycles that ultimately cause it to exceed the cost of piping over time.

Coupled with the approximate 700 feet of elevation differential across the district, piping is the preferred choice for responsible water management because it supports the following: • Opportunities for pressurized water for our patrons. • Reduced power consumption (by eliminating the need for pumps). • Long-term operation and maintenance cost benefits.

In addition to pressurized deliveries, reduced energy consumption, power savings and reduced maintenance cost, this elevation differential will allow for potential hydropower opportunities to help fund our water conservation and restoration projects with the benefit of clean, renewable energy. Aging infrastructure with high water loss on the Pilot Butte Canal

CONSERVATION PHASES

By piping COID’s two main canals, the District could conserve 82,752 acre-feet of water. This is a significant amount of water – equal to an increased flow of 276 cfs in the Upper Deschutes River during the winter months. Pilot Butte Canal

Currently, the percent of public funding used for conserved water projects must equal the percent of conserved water protected in stream. COID’s conserved water that is protected in stream currently benefits the Middle Deschutes.

Conserved water that does not have to be protected in stream can be used forjunior water right holders, 17,338 acres 171,819 AF 50,625 AF mitigation credits or expanding irrigated farmlands.Conserved water through piping projects will The Pilot Butte Canal 171,819 AF of water is The main Pilot Butte be used to reduce the demand for delivers water to diverted to service the canal showed a total stored water in the region’s dams and 17,338 acres patrons on the Pilot loss of 50,625 AF of land. Butte Canal during the of water. reservoirs. For example, COID could irrigation season. use all or a portion of the conserved water to reduce its reliance on stored water in Crane Prairie Reservoir, or Piping Sections Estimated Estimated Cost per CFS COID could transfer a portion of Conservation Cost the conserved water as live flow with Rivers Edge 36.89 cfs $27,140,966 $735,726.92 a priority date of 1907 to one of the other irrigation districts. Using the live Deschutes Market 26.32 cfs $28,699,448 $1,090,404.56 flow, the district could then commit through the Deschutes Basin Habitat Conservation Plan to limit storage as Canal 27.61 cfs $30,381,606 $1,100,384.14 needed to maintain a corresponding increase in the minimum instream Veterans Way 26.99 cfs $23,516,216 $871,293.66 flow downstream of Wickiup Reservoir during the winter. Redmond 6.34 cfs $33,285,710 $5,250,111.99

COID’s 42,666 acres are served by two King Way 13.34 cfs $25,068,026 $1,879,162.37 primary canals, the Central Oregon Canal and the Pilot Butte Canal, as Smith Rock 18.51 cfs $15,034,397 $812,231.06 well as some direct deliveries from the Deschutes River that were not included Total 156.00 cfs $183,126,369 $1,173,886.98 in the SIP analysis. The Central Oregon Canal conveys water to 25,257 acres and at the time of measurement had an estimated loss of 99 cfs or 32,127 acre-feet. The Pilot Butte Canal conveys water to 17,338 acres and had approximately 156 cfs or 50,625 acre- feet of loss. Dry Canyon JEFFERSON NID Smith Rock ver Ri us oil Met ake Billy Madras Chinook

r e iv R s te u AYSTACK h c RESERVOIR

s e NID Creek D y 5,650 AF Ka c M

k e OID King Way e r

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s PID u h c hu W

Sisters Prineville TSID OCOCO RESERVOIR COID 44,247 AF

Redmond CROOK C ro o k TID e d Redmond

SID R iv e r

k e e PRINEVIE r C RESERVOIR lo 148,640 AF Tuma Bend AID AID

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c ava s e ake ittle ava D Redmond ake DESCTES

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s e D

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r Crescent ake nt Cre e Reservoir sce ek Cre iv Gilchrist R Canal es ut h c s e D Copley

Deschutes Market

Rivers Edge

Powell Butte PILOT BUTTE CANAL DIVERSION

Bend Bear Creek Alfalfa Ferguson Market

Gosney Sky Wagon Brookswood

CENTRAL OREGON CANAL DIVERSION Dry Canyon JEFFERSON NID Smith Rock ver Ri us oil Met ake Billy Madras Chinook

r e iv R s te u AYSTACK h c RESERVOIR

s e NID Creek D y 5,650 AF Ka c M

k e OID King Way e r

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s PID u h c hu W

Sisters Prineville TSID OCOCO RESERVOIR COID 44,247 AF

Redmond CROOK C ro o k TID e d Redmond

SID R iv e r

k e e PRINEVIE r C RESERVOIR lo 148,640 AF Tuma Bend AID AID

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c ava s e ake ittle ava D Redmond ake DESCTES

ver Ri ll Craine Prairie Fa Reservoir Paulina ake Pauli na Creek

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Deschutes Market

Rivers Edge

Powell Butte PILOT BUTTE CANAL DIVERSION

Bend Bear Creek Alfalfa Ferguson Market

Gosney Sky Wagon Brookswood

CENTRAL OREGON CANAL DIVERSION Central Oregon Canal

25,257 acres 250,297 AF 32,127.68 AF

The Central Oregon 250,297 AF of water is The main Central Oregon Canal delivers water diverted to service the Canal showed a total to 25,257 acres patrons on the Central loss of 32,127.68 AF of land. Oregon Canal during of water. the irrigation season.

Piping Sections Estimated Estimated Cost per CFS Conservation Cost

Dry Canyon 4.00 cfs $16,913,502 $ 4,228,375.50

Brasada 4.65 cfs $30,415,122 $6,540,886.45

Copley 7.87 cfs $25,296,243 $3,214,262.13

Powell Butte 6.01 cfs $27,914,928 $4,644,746.76

Alfalfa Market 21.22 cfs $32,241,838 $1,519,408.01

Sky Wagon 23.29 cfs $21,476,997 $922,155.30

Gosney 5.62 cfs $28,092,126 $4,998,598.93

Bear Creek 8.11 cfs $21,381,153 $2,636,393.71

Ferguson 13.05 cfs $24,929,530 $1,910,308.81

Brookswood 5.18 cfs $26,457,287 $5,107,584.36

Total 99.09 cfs $225,118,726 $2,576,956.83 HYDROPOWER

The purpose of COID’s System While large-scale hydropower projects built in conjunction with buried pipe Improvement Plan (SIP) is to identify at dams are often criticized for their to replace older, open canals. Piping opportunities to conserve water, to impacts on fish and wildlife habitat, these canals helps to improve public safety. provide pressurized water to our smaller “micro-hydropower” projects Finally, because these projects result patrons and to improve our overall do not cause the same impacts. Located in the replacement of older, open water management. Hydropower along irrigation canals, and not on a canals with new, pressurized systems, generation is a secondary consideration. river or stream, these small facilities use local farmers and ranchers benefit. Nonetheless, renewable energy is the energy from water rushing through Pressurized systems conserve water, becoming increasingly important in a canal to spin turbines and produce and provide a more consistent, reliable Central Oregon. For decades, irrigation electricity, cleanly and efficiently. flow of water for crops, livestock and districts like COID have been using for other uses. water flowing through existing irrigation Micro-hydropower projects are beneficial canals to generate electricity. This type for a number of reasons. First, these COID will work closely with the local of energy generation is clean, renewable projects generate revenue. This revenue community, state and federal agencies and carbon-free. Throughout the process can be used to help defray the cost of and all stakeholders to evaluate the of developing the System Improvement large-scale water conservation projects, potential for any new micro-hydropower Plan COID evaluated a number of which often result in increased instream projects in its service area. potential micro-hydropower options flows in the Deschutes River for salmon, throughout the district’s service area, steelhead, Oregon spotted frogs and on both the Pilot Butte and the Central other species and for recreation. Second, Oregon canal systems. micro-hydropower projects are usually

COID HYDRO PILOT BUTTE CANAL Cooley Hydro The Greens Yew Hydro Salmon Hydro Coyner Hydro Smith Rock Sedgewick 2.9 MW Hydro 80 kW 110 kW 2.3 MW 500 kW Hydro 25 kW Hydro 500 kW

Project Cost Estimate $9,609,375 $923,438 $923,438 $7,560,938 $2,515,313 $513,750 $2,874,688

23-Year Total Revenue $12,317,608 -$629,315 -$245,553 $10,003,756 $1,024,001 -$488,006 $897,316

Cost Per MegaWatt $3,313,577.59 $11,542,975 $8,394,890 $3,287,364.35 $5,030,626 $20,550,000 $5,749,376

NOTE: Juniper Ridge Phase 2 adds 1.7 MW to the existing Juniper Ridge hydro facility

COID HYDRO CENTRAL OREGON CANAL Dodds Hydro Alfalfa Hydro Riggs Hydro Wiley Hydro 2.7 MW 1.5 MW 150 kW 225 kW

Project Cost Estimate $8,811,563 $6,231,250 $1,016,875 $1,196,563

23-Year Total Revenue $6,024,135 $2,008,608 -$19,064 $398,634

Cost Per MegaWatt $3,263,541.85 $4,154,166.67 $6,779,166.67 $5,318,057.78 Sedgewick Hydro

Smith Rock Hydro

JEFFERSON NID

River Coyner Hydro

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s e NID Creek D y 5,650 AF Ka c M

k e OID e r

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Sisters Prineville TSID OCOCO RESERVOIR COID 44,247 AF

Redmond CROOK C ro o k e TID d

SID R iv e r

k e e PRINEVIE r C RESERVOIR lo 148,640 AF Tuma Bend Salmon Hydro AID AID

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c ava s e ake ittle ava D Redmond ake DESCTES Yew Hydro

ver Ri ll Craine Prairie Fa Reservoir Riggs Hydro Wiley Paulina ake Pauli na Creek Hydro

er The Greens iv R s a Pine e Wickiup t Reservoir u h c Hydro s e D

e l t t i

r Crescent ake nt Cre e Reservoir sce ek Cre iv Gilchrist R es ut h c s e D

Alfalfa Hydro

Eisting Juniper Ridge Hydro 3.3 MW

Cooley Hydro PILOT BUTTE CANAL DIVERSION

Bend

Eisting SSP Hydro 5.5 MW Dodds Hydro

CENTRAL OREGON CANAL DIVERSION

MW = Megawatt WHAT’S NEXT?

September 2016 Phase One: System Improvement Plan Phase one is a water loss and cost analysis of COID’s main canal system as well as the cost and revenue potential for micro hydropower opportunities within the canal system.

April 2017 Phase Two: On-Farm Analysis Phase two is an analysis of on-farm and private lateral water loss and inefficiencies as well as a cost analysis for improvements.

June 2017 Phase Three: Capital Project Plan Phase three is a comprehensive capital project plan that combines a variety of information from phase one and two as well as other studies that are currently underway. This plan will optimize efficiency and cost as COID looks to package projects for funding.

STAKEHOLDERS

Throughout our history, local, state and federal agencies, agricultural and conservation groups and other stakeholders, have supported the District’s efforts to responsibly manage our water supplies. Their support has been invaluable. We plan to continue to work closely with these groups and many, many others as we implement the System Improvement Plan.

Deschutes Basin Board of Control Arnold Irrigation District Lone Pine Irrigation District North Unit Irrigation District Ochoco Irrigation District Swalley Irrigation District Three Sisters Irrigation District Tumalo Irrigation District Bend Metro Parks and Recreation Department Confederated Tribes of Warm Springs Deschutes River Conservancy Deschutes Water Alliance Energy Trust of Oregon Oregon Department of Energy Oregon Department of Environmental Quality Oregon Department of Fish and Wildlife Oregon Water Resources Department Oregon Watershed Enhancement Board Portland General Electric Company The Bureau of Reclamation The City of Bend The City of Prineville The City of Redmond The City of Sisters The Family Farm Alliance Trout Unlimited Upper Deschutes Watershed Council U.S. Fish and Wildlife Service

1055 SW Lake Court Redmond, Oregon 97756 541-408-7007 coid.org