'Warren Buffett, bring the Klamath River back to life'
Natural Resource Chair Raul Grijalva
Rep. Jared Huffman, Chair of the Water, Oceans, and Wildlife Subcommittee
This year, Americans have reckoned with historic inequalities, and urgent demands for change have been raised from coast to coast. The necessary work of fixing systemic racism and economic inequality is difficult and often complicated.
We need to address laws and policies at every level of government and industry. It’s a rare situation indeed where one man can make a single decision to reverse years of injustice.
But in northwest California, the Klamath dam removal project is that situation, and Warren Buffett is that man.
When Warren Buffett’s Berkshire Hathaway bought the western energy utility PacifiCorp in 2006, it acquired not only a fleet of fossil fuel power plants, but a century-old hydroelectric project comprising four Klamath River dams, operating under an expired 1954 permit that requires no mitigation for the dams’ harmful impacts to Native American tribes, the environment, or public health.
You might assume these dams provide broad societal benefits like drinking water, irrigation, or significant flood control. They don’t. Their main purpose is generating a little bit of power for PacifiCorp, which the company admits it can cost-effectively replace.
But for downstream tribes and communities, it is an environmental and social justice atrocity.
The dams’ impacts are borne by downstream communities and those who live along the river, including Native American tribes who have lived and fished on the river since time immemorial. Against a powerful corporate empire, these fragile tribes have no power, literally: parts of the Yurok and Karuk communities have no electricity.
Every year that PacifiCorp squeezes more profit out of this project, the dams squeeze more life out of the Klamath River.
The lowermost dam, appropriately named “Iron Gate,” blocks salmon and steelhead migration. Fish crowd below Iron Gate in superheated water carrying a toxic stew of parasites, disease, and algae that is deadly to fish and humans alike. Hatchery fish meant to replace the decimated natural populations are just as suspectable to infection and death.
In these conditions, fish don’t stand a chance and toxic algal blooms caused by the dams routinely require federal, state, county, and tribal agencies to issue health advisories to stop people from coming into contact with the river.
PacifiCorp’s managers know the dams are ruining the river, its fisheries, and the health and culture of Native peoples downstream. In 2010, after widespread public outcry, the company struck a deal with several tribes, the states of Oregon and California, and fishing and conservation groups to remove the dams and revive the river.
Under the deal, the settling parties asked the Federal Energy Regulatory Commission (FERC) to transfer the hydropower license to a dam removal entity they formed called the Klamath River Renewal Corporation.
FERC recently approved that request, but with a condition: PacifiCorp, with its experience and resources, should remain as a co-licensee for the project until the dams are out. This technical deviation from the parties’ request was always a widely understood possibility, but PacifiCorp is spinning it as a surprise that calls the whole deal into question.
Is PacifiCorp merely trying to protect ratepayers from escalating costs? If so, there’s a ready solution: California has put $250 million on the table to fund dam removal, and the other parties are eager to negotiate a firewall against unlikely cost overruns for PacifiCorp’s ratepayers.
But the most likely cause of cost overruns is a delay – which, ironically, PacifiCorp is causing today with its indecision about whether to honor the dam removal deal. Trying to relicense and operate the dams with modern public health and environmental standards is far more expensive than removing them. By walking away from a multi-state agreement, PacifiCorp’s executives would invite protracted regulatory proceedings and a bottomless pit of litigation, not to mention massive reputational damage. Surely, PacifiCorp isn’t interested in a reputation for greed and indifference to environmental, social, and racial injustice.
For Warren Buffett, Klamath dam removal is a rare union of economics, good corporate citizenship, and justice. PacifiCorp has the chance to rid itself of a toxic asset and the moral burden of the dams’ impact to tribal people and coastal communities, and the state of California helps pay for it – all while protecting the company’s longstanding reputation.
Mr. Buffett said it best himself: “Lose money for the firm, and I will be understanding; lose a shred of reputation for the firm, and I will be ruthless.”
The dark side of American history is that “progress” and development of the west generally came at the expense of marginalized Native peoples. Most Americans assume that’s a closed chapter of history, but it’s not. PacifiCorp is doing it now, tragically, by making a business decision to continue sickening the Klamath river, destroying its salmon runs and water quality, and devastating the region’s Native peoples.
PacifiCorp’s callousness, like its dams, cannot stand.
We’re not asking Warren Buffett to write a blank check or jeopardize his business; we’re asking him to honor a deal that protects his business, reputation, and legacy while repairing decades of racial and environmental injustice.
We’re asking him to agree to bring the Klamath River back to life.
Raúl Grijalva began his career in public service as a community organizer in Tucson. Four decades later, he continues to be an advocate for those in need and a voice for the constituents of his home community. From 1974 to 1986, Raúl served on the Tucson Unified School District Governing Board, including six years as Chairman. In 1988, he was elected to the Pima County Board of Supervisors, where he served for the next 15 years, chairing the Board for two of those years. Raúl resigned his seat on the Board of Supervisors in 2002 to seek office in Arizona's newly created Seventh Congressional District. Despite a nine-candidate primary and the challenge of being outspent three-to-one by his closest competitor, Raúl was elected with a 20-point victory, thanks to a diverse coalition of supporters that led the largest volunteer-driven election effort in Arizona. Raúl currently serves as Chair of the House Natural Resources Committee.
Jared Huffman represents California’s 2nd Congressional District which spans the North Coast of the state, from the Golden Gate Bridge to the Oregon border, and includes Marin, Sonoma, Mendocino, Humboldt, Trinity, and Del Norte counties. He was first elected to Congress in November 2012 and currently serves on the Committee on Natural Resources, the Committee on Transportation and Infrastructure, and the Select Committee on the Climate Crisis. In the 116th Congress, he chairs the Natural Resources Subcommittee on Water, Oceans and Wildlife, with jurisdiction over federal water projects, fisheries management, coastal zone and oceans policy, and wildlife and endangered species. Jared also founded the Congressional Freethought Caucus to promote sound public policy based on reason, science and moral values, while protecting the secular character of government and championing the value of freedom of thought worldwide.