Quantifying the Benefits of River Restoration for Chinook Salmon on the Lower Yuba River

QUANTIFYING THE BENEFITS OF RIVER RESTORATION FOR CHINOOK SALMON ON THE LOWER YUBA RIVER A group project submitted in partial satisfaction of the degree of Master of Environmental Science and Management for the Bren School of Environmental Science & Management, University of California, Santa Barbara by JO ANNA BECK NATHAN BURROUGHS LEAH GONZALES ALYSSA OBESTER ELIJAH PAPEN Faculty Advisor: DR. DEREK BOOTH MARCH 2017 Quantifying the Benefits of River Restoration for Chinook Salmon on the Lower Yuba River As authors of this Group Project report, we archive this report on the Bren School’s website such that the results of our research are available for all to read. Our signatures on the document signify our joint responsibility to fulfill the archiving standards set by the Bren School of Environmental Science & Management. Jo Anna Beck Leah Gonzales Nathan Burroughs Alyssa Obester Elijah Papen The Bren School of Environmental Science & Management produces professionals with unrivaled training in environmental science and management who will devote their unique skills to the diagnosis, assessment, mitigation, prevention, and remedy of the environmental problems of today and the future. A guiding principal of the School is that the analysis of environmental problems requires quantitative training in more than one discipline and an awareness of the physical, biological, social, political, and economic consequences that arise from scientific or technological decisions. The Group Project is required of all students in the Master of Environmental Science and Management (MESM) Program. The project is a year-long activity in which small groups of students conduct focused, interdisciplinary research on the scientific, management, and policy dimensions of a specific environmental issue. This Group Project Final Report is authored by MESM students and has been reviewed and approved by: Dr. Derek Booth DATE Acknowledgements We would like to extend our gratitude to the many individuals that contributed to this project. First and foremost, we would like to thank our faculty advisor, Derek Booth, for his expertise and guidance. Additionally, we would like to thank the following people who provided assistance by sharing their knowledge, time, and resources. External Advisors Gary Libecap, Professor of Economics, UC Santa Barbara Allison Horst, Faculty at UC Santa Barbara Joseph Merz, Cramer Fish Sciences; Professor, UC Santa Cruz PhD Mentor Alexa Fredston-Hermann Client Rachel Hutchinson, South Yuba River Citizens League iii Abbreviations AFRP — Anadromous Fish Restoration Program BCR — Benefit-Cost Ratio BLM — Bureau of Land Management BMI —Benthic Macroinvertebrates CDWF — California Department of Fish and Wildlife DO — Dissolved Oxygen DOC — Dissolved Organic Carbon EPA — Environmental Protection Agency EPT— Ephemeroptera, Plecoptera, Tricoptera ESA — Endangered Species Act ESA — Environmental Science Associates ESU — Evolutionarily Significant Unit FEMA — Federal Emergency Management Agency LWD — Large Woody Debris MU — Morphological Unit NMFS — National Marine Fisheries Service NOAA —National Oceanic and Atmospheric Administration ODEQ — Oregon Department of Environmental Quality SRI — Silica Resources, Inc. SSI — Sierra Streams Institute SWRCB — State Water Resources Control Board SYRCL — South Yuba River Citizens League TSS — Total Suspended Solids USACE —United States Army Corps of Engineers USFWS — United States Fish and Wildlife Service USGS — United States Geological Survey WTP — Willingness to Pay YCWA — Yuba County Water Agency List of Tables and Figures TABLES Table 1. Parameters considered in ecosystem health report card Table 2. Scoring categories for ecosystem health report card Table 3. pH by river reach Table 4. Summer daily average and summer daily high temperatures Table 5. Dissolved oxygen by reach Table 6. Total mercury soil samples on the Lower Yuba River Table 7. Number of EPT taxa by reach Table 8. Riparian vegetation cover by reach Table 9. Mean substrate diameter by reach Table 10. Percent pool and riffle by reach Table 11. Summary of river health report card results iv Table 12. Gravel augmentation impacts on river health Table 13. Riparian enhancement impacts on river health Table 14. Large woody debris placement impacts on river health Table 15. Floodplain lowering and side channel reconnection impacts on river health Table 16. Estimated annual value generated to river recreational fishery from restoration Table 17. Estimated annual value generated to ocean recreational fishery from restoration Table 18. Estimated annual value generated to ocean commercial fishery from restoration Table 19. Total annual value of Chinook salmon fishery after restoration Table 20. Travel cost analysis results Table 21. Estimated annual value generated from riparian planting projects Table 22. Total value of restoration based on hedonic property method Table 23. Restoration cost estimates Table 24. Benefits of restoration with low and high costs for years 1-10, and in perpetuity Table 25. Benefit-cost ration for 100% increase in populations under low and high costs Table 26. Minimum returns required for benefit-cost ratio ≥ 1 Table 27. Benefit-cost ratios with varying discount rates under low restoration costs Table 28. Benefit-cost ratios with varying discount rates under high restoration costs Table 29. Percent population returns for varying discount rates, low project costs FIGURES Figure 1. The Yuba River Watershed Figure 2. The Lower Yuba River Figure 3. Levees on the Lower Yuba River Figure 4. Salmon life-cycle Figure 5. Number of pounds of Chinook salmon harvested commercially from 1991-2015 Figure 6. Study areas designated by Tsournos et al. 2016 Figure 7. Benefit-Cost Ratios for the 100% increase in Chinook salmon population Figure 8. Chinook salmon returns required for benefit-cost ratio to at least equal one, Figure 9. Benefit-cost ratios with varying discount rates (5-13%) under low restoration costs, with different scenarios of Chinook salmon returns. Figure 10. Benefit-cost ratios with varying discount rates (5-13%) under high restoration costs, with different scenarios of Chinook salmon returns. Figure 11. Percent of salmon population returns for discount rates ranging from 5%- 13% to achieve a BCR of 1, assuming low project costs. v Table of Contents ACKNOWLEDGEMENTS III ABBREVIATIONS IV LIST OF TABLES AND FIGURES IV ABSTRACT VIII EXECUTIVE SUMMARY 1 SIGNIFICANCE 3 THE YUBA RIVER WATERSHED 4 STUDY AREA 4 CLIMATE 4 TOPOGRAPHY 5 YUBA WATERSHED HISTORY 7 ANTHROPOGENIC ACTIONS AFFECTING INSTREAM CONDITIONS 8 SALMONIDS ON THE LOWER YUBA RIVER 11 BENEFITS OF A HEALTHY RIVER SYSTEM 15 RESTORATION GOALS 17 RESTORATION EFFORTS 17 PROJECT OBJECTIVES AND APPROACH 22 RIVER HEALTH REPORT CARD 23 REPORT CARD APPROACH 23 WATER QUALITY 24 ECOLOGICAL RESOURCES 29 PHYSICAL CONDITIONS 33 RESTORATION STRATEGIES 36 GRAVEL AUGMENTATION VIA GRAVEL SLUICING 37 RIPARIAN ENHANCEMENT 39 LARGE WOODY DEBRIS PLACEMENT 41 FLOODPLAIN LOWERING AND SIDE CHANNEL RECONNECTION 43 ADDITIONAL RESTORATION STRATEGIES NOT INCLUDED IN RECOMMENDATIONS 45 YUBA SALMON AND HABITAT RELATIONSHIPS 47 SALMON LIFE CYCLE MODEL 47 YUBA RIVER LIFE STAGE BOTTLENECK 49 CONCLUSIONS 51 SELECTION OF FINAL RESTORATION STRATEGIES 51 COST-BENEFIT ANALYSIS 53 vi BENEFITS OF RESTORATION 53 FISHERY VALUATION 54 TRAVEL COST ANALYSIS 61 CARBON SEQUESTRATION ANALYSIS 65 HEDONIC PROPERTY VALUATION 66 COMBINING BENEFITS 69 COSTS OF RESTORATION 69 COMPARING COSTS AND BENEFITS 71 COST-BENEFIT SENSITIVITY ANALYSIS 72 OTHER CONSIDERATIONS AND LIMITATIONS 76 UNCERTAINTY OF RESTORATION OUTCOMES 78 SPATIAL SCALE OF RESTORATION 80 FURTHER CONSIDERATIONS 81 CONCLUSIONS 83 REFERENCES 84 APPENDICES 103 APPENDIX I: MERCURY REMEDIATION 103 APPENDIX II: LITERATURE EVIDENCE OF SALMON-HABITAT RELATIONSHIPS 105 APPENDIX III: YUBA RIVER LIFE STAGE BOTTLENECKS 107 APPENDIX IV: TRAVEL COST ANALYSIS 110 APPENDIX V: HEDONIC PROPERTY VALUATION 120 APPENDIX VI: SENSITIVITY ANALYSIS 123 vii Abstract The Yuba River has experienced over a century of anthropogenic modification, particularly gold mining and dam construction, which have significantly impacted native aquatic and riparian species. In particular, Chinook salmon (Oncorhynchus tshawytscha) have experienced dramatic declines in numbers. While a variety of restoration projects have been conducted on the Lower Yuba River, no efforts to date have sought to quantify the economic benefits associated with restoration, leading to a potential undervaluation of benefits. To address this knowledge gap, the objectives of this study were to 1) characterize current water quality, ecological, and physical conditions of the river; 2) quantify the local and regional monetary benefits of a restored river landscape; and 3) compare costs and benefits across various temporal scales. We developed a “report card” to characterize current river health. We also utilized four economic methods to quantify the benefits associated with river restoration. If Chinook salmon populations in the Lower Yuba River are doubled through restoration, the results of our analysis indicate that benefits total $63 million. These benefits outweigh the costs of restoration in several of the scenarios that were considered. Results also indicate that the favorable outcome of the benefit-cost ratio is critically dependent on actual project costs. The methodologies laid forth in this study provide river scientists and managers with a framework for quantifying benefits that can aid in project comparison

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