PNWER Summit hosts Columbia River Treaty discussion

Consul General Sylvain Fabi and Minister Katrine Conroy speaking at the 2021 PNWER Annual Summit

On Aug. 18, 2021, Canada’s Chief Negotiator for the Columbia River Treaty, Sylvain Fabi, and B.C.’s Minister Responsible for the Treaty, the Honourable Katrine Conroy, took part virtually in a Water Infrastructure & Policy session at the Pacific NorthWest Economic Region’s (PNWER) 30th Annual Summit.  The pair spoke about modernizing the Treaty, common myths, and why it’s important for both countries to return to the negotiating table.

Fabi spoke first, emphasizing Canada’s desire to resume bi-lateral discussions.

“Throughout [the challenges of this past year], Canada has been ready to sit down and keep the negotiations going,” he said.  “We are ready to have an agreement that provides a new flood-control regime and provides certainty.  We’re ready to have a good discussion on the future of hydropower.  We are ready to discuss ways that we can make a positive environmental difference.  If we work together in good faith, we can accomplish all this.”

Fabi then clarified some misconceptions about the Treaty, including the idea that Canada’s share of the downstream benefits is too high.  “I’ve seen this in the media, and I keep hearing it directly from U.S. interests,” he said.  “I’ve even seen figures stating that Canada receives $300 to $350 million U.S. per year for the [Canadian] Entitlement.  I’m not sure where these numbers come from.”

The Canadian Entitlement is half the potential power the U.S. is able to generate as a result of how Canada operates the Treaty dams.  It is delivered in the form of electricity, which B.C. can choose to use or sell.  Fabi noted that, since 2012/2013, the value of the Entitlement has averaged approximately $100 million U.S. per year ($120 million Canadian). 

“At this point, the Entitlement is the only benefit that Canada receives from the Treaty,” Fabi explained, noting the Treaty flows bring ecosystem, irrigation, navigation and recreation benefits to the U.S., none of which are accounted for in the current agreement.  “Without the Canadian Entitlement, or with a significantly reduced Canadian Entitlement, there would be little incentive for Canada to continue with this Treaty.”

“Another claim I’ve heard. . . is that the dams have been paid for, so there is no need to continue providing benefits to Canada,” Fabi said.  “The purpose of the Treaty is the creation and equitable sharing of benefits between our two countries.  The phrase ‘the dams have been paid for’ doesn’t make sense; because, as long as benefits are being created, they need to be shared equitably.”

Fabi addressed confusion around the ‘called-upon’ flood control provision, which would come into effect in 2024 if a modernized Treaty agreement isn’t reached.  “The U.S. would only be able to call upon Canada to provide extra flood control under certain flow conditions, and once the U.S. has made effective use of their own reservoirs.”

He also spoke about the suggestion posed by some American proponents that the U.S. terminates only the electricity portion of the Treaty.  “The Treaty stipulates that either party can terminate all of the Treaty or none of it.  So unilaterally deciding to terminate the electricity portion is not an option.”

“As long as we recognize that the Treaty continues to be an agreement that creates and equitably shares benefits between Canada and the United States, I believe we’ll be able to successfully modernize the Treaty.”

Minister Conroy echoed Fabi’s sentiments, characterizing the current negotiations as “a once-in-a-generation chance to make a historical shift, and to collaborate on major improvements to the Treaty.” She shared her perspectives as a long-time resident of the Columbia Basin, MLA for the region and Minister Responsible for the Treaty.

“One of the Treaty safeguards that has prevented major floods since the Canadian dams were built, avoiding billions of dollars of potential flood damage in the U.S. alone, is set to expire in three years.  If the current ‘Assured Flood Control’ operation expires in 2024 without a modernized agreement in place, this will lead to a higher risk of flooding, and, in severe cases, cause damage to property and public infrastructure, threaten public safety, trigger economic disruption, and increase insurance premiums.”

The Minister explained that through Treaty co-ordination, Pacific Northwest power producers know on a daily basis the magnitude and timing of flows that will cross the border, and can plan accordingly.

“During this time of great and constant upheavals, the Treaty plays a significant role in reducing uncertainty around the effects of climate change, such as increased droughts and floods, transforming power markets and technologies, and evolving economic and societal objectives.

When we talk about the Treaty, there is sometimes a tendency, on both sides of the border, to speak about the things we don’t like,” Conroy said.  “But it’s vital that we not take for granted the reliability the Columbia River Treaty has given to American and Canadian communities for almost 60 years.”

Speaking about B.C.’s goals, Conroy said, “a successful outcome would see the range of benefits increase and shared fairly between our two countries.  This is the guiding principle of the Treaty which we remain committed to.”

The full session can be viewed on the PNWER website.