Future of the Eel River to Russian River Trans Basin Diversion (Potter Valley Project)

PG&E Holds Public Town Hall on Potter Valley Project Surrender Application and Decommissioning Plan, August 11, 2025

On August 11, 2025 from 3 to 5 p.m., PG&E will host an online meeting (link below) to share information on the Potter Valley Project Surrender Application and Decommissioning Plan. During the town hall PG&E will discuss the overall regulatory process and note opportunities for public participation in the regulatory process.

LINK: https://teams.microsoft.com/l/meetup-join/19%3ameeting_MDViYTRlY2UtN2QyMS00YzAwLWExNTYtNDRjMDk1NTkzOTNk%40thread.v2/0?context=%7b%22Tid%22%3a%22201d63c4-1e77-40f4-817d-17442619a108%22%2c%22Oid%22%3a%22304455f8-5983-481b-ab61-44ab050ca50b%22%7d

PG&E Files Final Surrender Application for Potter Valley Project License

On July 25, 2025, Pacific Gas and Electric Company filed its Final Surrender Application and Final Non-Project Use of Project Lands Application (NPUPL) for the Potter Valley Hydroelectric Project (FERC No. P-77) with the Federal Energy Regulatory Commission (FERC). This submittal package contains two applications:

PG&E’s Final Surrender Application and decommissioning plan for its Potter Valley Hydroelectric Project that includes the removal of Project facilities and features, including, but not limited to, Scott Dam and Cape Horn Dam, and the removal of the Project from FERC jurisdiction; and
An application for NPUPL that seeks FERC’s authorization for PG&E to allow the Eel-Russian Project Authority (ERPA) (a joint powers authority formed by a joint exercise of powers agreement between the County of Sonoma, Sonoma Water, and the Mendocino County Inland Water and Power Commission) to construct the proposed New Eel-Russian Facility (NERF) for the purpose of future water diversion from the Eel River through the Project’s existing water diversion system to the Russian River Watershed.

An electronic version of this filing is available on the FERC website at https://www.ferc.gov/docs-filing/elibrary.asp. This document can also be accessed from the following website: https://www.pottervalleysurrenderproceeding.com/ on the Documents page using the following password: PV_Surrender.

PG&E Issues Public Draft Surrender Application & Decommissioning Plan, Updated April 2025

PG&E’s Final Draft Surrender Application and Conceptual Decommissioning Plan (Surrender Application) and Application for Non-Project Use of Project Lands for the Potter Valley Hydroelectric Project (FERC Project No. 77) is available for review at the following website: http//pottervalleysurrenderproceeding.com. This document can be accessed from the Documents page using the following password: PV_Surrender

In late 2023, PG&E received a proposal from Sonoma County Water Agency, Mendocino County Inland Water and Power Commission, Humboldt County, Round Valley Indian Tribes, California Trout, Trout Unlimited, and California Department of Fish and Wildlife, collectively referred to as the “Two-Basin Partners”, related to the decommissioning of Cape Horn Dam and associated diversion facilities. PG&E and the Two-Basin Partners have since collaborated to identify a regulatory pathway that would allow for the construction of the New Eel-Russian Facility (NERF) during decommissioning of Cape Horn Dam to minimize construction impacts to the Eel and Russian River basins, while facilitating activities related to NERF.

This file contains two applications:

PG&E’s Draft Application for Surrender of License, and
A draft application requesting the Federal Energy Regulatory Commission (FERC) to authorize non-Project Use of Project lands to allow the Eel-Russian Project Authority (ERPA) (a joint powers authority formed by a joint exercise of powers agreement between the County of Sonoma, Sonoma Water, and the Mendocino County Inland Water and Power Commission) to modify existing Project works and construct the NERF on lands within the FERC Project boundary.

PG&E solicited comments from Tribes, regulatory agencies, and other interested parties on the Draft Application for Surrender of License and Application for Non-Project Use of Project Lands. The public comment period closed on March 3, 2025. PG&E will address comments as appropriate before distribution of the Final Surrender Application in July 2025.

On Thursday, Feb. 6, 2025 PG&E hosted an online meeting to share information on the final draft, discussed the regulatory process, and noted opportunities to participate. Presentation linked below. See articles linked below for more information.

Slides from presentation: 2025, 2-6 PG&E DRAFT PVP License Surrender Application slides.pdf

On April 28, 2025, PG&E issued the following to those on the service list or those who responded to PG&E’s Initial or Draft Surrender Application and Decommissioning Plan for PG&E Potter Valley Hydroelectric Project, Federal Energy Regulatory Commission (FERC) Project No. 77.

PG&E distributed the Draft Surrender Application on January 31, 2025 to resource agencies, Tribes, non-governmental organization, and the interested public for public review and comment on January 31, 2025. PDF versions of the comments received are posted on PG&E’s Public SharePoint site: http//pottervalleysurrenderproceeding.com (password: PV_Surrender). These comments are being considered in the development of the Final Surrender Application.

PG&E will be filing the Final Surrender Application with FERC on or before July 29, 2025. FERC will issue a public notice upon receiving the Final Surrender Application that will include a comment period and schedule. PG&E will begin development of the proposed plans and measures in August 2025 following filing of the Final Surrender Application.

Decommissioning Related Articles, updated weekly:

Public Comments submitted on DRAFT Decommissioning Plan, March 2025

State Water Resources Control Board Comments to PG&E 2025, 03-03.pdf Lake County Board of Supervisors Comments to PG&E 2025, 03-03.pdf American Whitewater Comments to FERC, 2025, 03-04.pdf Lake County Comments to FERC. 2025, 3-13.pdf SWRCB supplemental Comments on PG&E Draft surr. 2025, 03-24.pdf

Two Basin Partnership Memorandum of Agreement (MOU), February 2025

Updated February 2025

Two Basin Partnership Memorandum of Agreement (MOU)

FROM THE PRESS DEMOCRAT, FEBRUARY 12, 2025:

Stakeholders on the Eel and Russian rivers have reached agreement on a framework for future water diversions from the Eel into the Russian River, once PG&E decommissions its Potter Valley power plant, through which flows have been directed for nearly 120 years.

A memorandum of understanding to be signed in a ceremony in Sacramento on Thursday [February 13, 2025] allows for limited diversions to continue, but only when the Eel River has sufficiently high flows to accommodate different life stages of federally protected salmon and steelhead trout.

The mostly wintertime diversions will reduce annual transfers into the Russian River watershed from a current level of about 40,000 acre-feet a year to about 35,000 acre-feet. (An acre-foot is equal to 325,851 gallons, or about the amount of water needed to flood most of a football field one foot deep.)

PG&E’s water rights for the diverted flows will be transferred to the Round Valley Indian Tribes, which will collect $1 million a year from Sonoma and Mendocino County users in exchange for diverted flows.

Russian River users also will pay $750,000 to $1 million annually into an Eel River restoration fund to pay for fish recovery and environmental restoration efforts on the Eel River, which has long been impacted negatively by diversions and dams in the river.

The agreement will stand for a 30-year term plus a possible 20-year renewal, but Russian River users are intended to wean themselves from the Eel River by developing new water storage and supply solutions.

Parties to the agreement also agree to endeavor to raise $50 million or more for new diversion facilities and $50 million or more for additional restoration funding.

Signatories include the Sonoma County Water Agency, known as Sonoma Water, the Mendocino County Inland Water and Power Commission, Humboldt County, the Round Valley Indian Tribes, Trout Unlimited, California Trout and the California Department of Fish and Wildlife.

Two Basin Partnership Final signed MOU, February 2025.pdf MCIWPC MOU Press Release 2-11-25.pdf

The Potter Valley Tribe filed a motion to intervene regarding the ongoing development of the Final Draft Surrender Agreement and the Final Surrender Application and Decommissioning Plan by PG&E. “Despite … extensive measures, the Tribe currently is not party to any of the major discussions or proceedings regarding the Project.” “The Tribe has now chosen to move for intervention in an exhaustive effort to be fairly included in the conversations that determine the divestment of the facilities and waters on their ancestral lands.”

2024, 7-16 Potter Valley Tribe Motion to Intervention.pdf

FERC Approves PG&E’s Revised Schedule for Filing Surrender Application, Updated July 2024

On July 1, 2024, FERC issued acknowledgement and acceptance of PG&E’s request to delay the submission of the Potter Valley Project decommissioning plan by six months.

2024, 7-1 FERC approval of PG&Es revised decommissing plan schedule.pdf

Huffman Delivers $2 million grant for Fish Friendly Diversion from Eel to Russian River, June 2024

US Bureau of Reclamation Commissioner Camile Touton joined Congressmember Jared Huffman and David Rabbitt, Chair of the Eel-Russian Project Authority for a site visit on Friday, June 7, 2024 to Scott Dam, Cape Horn Dam, and Coyote Valley Dam at Lake Mendocino. They announced the $2 million Infrastructure Investment grant to Sonoma Water which will support the design of a new transfer pump station to meet the goals of the two-basin solution.

June 6, 2024 Congressmember Huffman at Coyote Valley Dam, Lake Mendocino

Updated December 19, 2023

The U.S. Bureau of Reclamation announced on December 19, 2023 a $2 million grant to Sonoma County Water Agency (Sonoma Water) meant to study a diversion from the Eel River to the Russian River that will have the least possible impact on salmon and steelhead.

Sonoma Water Agency PRESS RELEASE: Huffman delivers $2 million grant for Sonoma Water to study potential fish-friendly diversion to Russian River , 12/19/23

Press Release also ran in the following:

PG&E Requests an Extension on Decommissioning Plan, June 2024

PG&E has made an Extension of Time request to the Federal Energy Regulatory Commission (FERC) for their final draft of the Surrender Agreement that they are curating for the Potter Valley Project dams. PG&E made this request so that they may submit for comments to be made on their draft in January 2025, instead of June 2024. Along with this, they requested that the Final Surrender Agreement be submitted in June of 2025, instead of January 2025 – which was agreed upon previously. PG&E says that by extending this time, they will have more success in consulting with various organizations and agencies to make a better Surrender Agreement and a quicker path for the decommissioning of the Potter Valley Project.

PG&E states that they are going to support the proposal of a new Eel-Russian Facility and will enter into legal agreements with the Eel-Russian Project Authority to address construction, permitting, and transferring the facility. Along with this, they would like to enter into legal agreements with agencies and parties whose interests fall outside of the FERC Surrender process.

For more information about ERPA Meetings: https://www.eelrussianauthority.org/events/meeting

Sign-up for newsletter updates (bottom of home page) on the Eel-Russian Facility Authority at https://www.eelrussianauthority.org/

PG&E Releases Draft Surrender Application and Decommissioning Plan for the PVP, February 2024

PG&E has reviewed the proposal provided by the Project Proponents determining there are aspects of the proposal which do not align with its goal of completing the decommissioning of the Potter Valley Project within the schedule approved by FERC. Therefore, the proponent’s request to construct the new Eel-Russian facility under FERC’s jurisdiction will not be included in PG&E’s Final Draft Surrender Application and Decommissioning Plan. PG&E is encouraged to see broad stakeholder support of the proposal and supports completion of the new facility in a separate but parallel path to PG&E’s decommissioning. To facilitate that path, PG&E will include those portions of the proposal that will not otherwise delay dam removal and will continue to engage with the proponents on a solution which addresses both parties’ goals. Eel Russian Project Authority (ERPA) representatives believe a path forward for continued diversions still exists and the work continues. PG&E stated it will support and facilitate that work where it can and remains committed to continue working together. North Coast U.S. Rep. Jared Huffman is not dismayed, emphasizing his committment to a Two Basin Solution and that continued diversion is not dependent on partnership with PG&E.

Mendocino County Inland Water & Power Commission, Sonoma Water, and Sonoma County form the Eel-Russian Project Authority

Updated February 12, 2024

The Eel Russian Project Authority (ERPA) held its first meeting on Wednesday 1/31/24, appointing Sonoma County Supervisor David Rabbit as Chair and Mendocino County Inland Water & Power Commission Chair Janet Pauli as Vice Chair. Sonoma Water Agency is acting as the interim Secretary. Sonoma Water staff reviewed the Eel River diversion options and funding. A large consent calendar addressing the business of the Authority was passed unanimously. More information, including handouts, is available on the website: https://www.eelrussianauthority.org/

Updated December 8, 2023

PRESS RELEASE: The Sonoma County Board of Supervisors, who also serve as the Board of Directors for the Sonoma County Water Agency, voted today to approve a Joint Exercise of Powers Agreement with Mendocino County Inland Water and Power Commission to form the Eel-Russian Project Authority.

The new entity will have the power to negotiate with the Pacific Gas and Electric Company (PG&E) as the utility moves ahead with plans to surrender operations of the Potter Valley Hydroelectric Project and to decommission the Scott and Cape Horn dams on the Eel River. The new authority will also have the legal capacity to own, construct and operate a new water diversion facility near the Cape Horn dam.

“This is another important step in the process to find a truly regional solution to the challenges facing the Eel and Russian River watersheds,” said Sonoma County Supervisor and Sonoma Water Director David Rabbitt. “We’re grateful to all of the partners who are working diligently to achieve our co-equal goals of continued diversions into the Russian River and improving fisheries in the Eel River.”

The Potter Valley Project, currently owned and operated by PG&E, has been diverting water from the Eel River into the Russian River watershed for more than a century, playing a critical role in supplying water for agriculture, homes, and instream flows to benefit aquatic ecosystems and threatened salmonids in Mendocino and Sonoma counties.

The Potter Valley Project is licensed by the Federal Energy Regulatory Commission. In 2019, PG&E announced that it would not proceed with relicensing the project and would instead enter into a license surrender and decommissioning process. PG&E stated that its application would propose to remove Scott and Cape Horn dams and end any operations, including water diversions to the Russian River, unless it received a complete and credible proposal by July 2023.

To meet this deadline, in July, the Mendocino County Inland Water and Power Commission, the Round Valley Indian Tribes and Sonoma Water submitted a proposal to PG&E to preserve water diversions into the Russian River, while also prioritizing upstream and downstream fish migration in the Eel River. The California Department of Fish and Wildlife, County of Humboldt, California Trout and Trout Unlimited subsequently signed on to a revised proposal in November.

PG&E released an initial draft surrender application on Nov. 17, 2023 which includes several of the measures proposed by the coalition. PG&E is set to release a final draft surrender application in June 2024. The final application is expected to be submitted by Jan. 29, 2025.

The New Eel-Russian Facility proposal submitted to PG&E also called for the creation of a regional entity, which today’s board action will move forward, with the capacity to develop a yet-to-be designed facility that would allow for ongoing water diversions through the Potter Valley Project’s tunnel between the Eel River and Russian River, while providing for fish migration to support naturally reproducing and self-sustaining native fish populations.

The Eel-Russian Project Authority’s five-member board of directors will initially consist of two representatives from the Mendocino County Inland Water and Power Commission, one from Sonoma Water, one from the County of Sonoma and one from the Round Valley Indian Tribes.

For more information, visit https://sonomawater.org/pvp and https://mendoiwpc.com/iwpc-pvp-updates/

PG&E Releases Initial Draft Surrender Application and Decommissioning Plan for the Potter Valley Project, December 2023

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 PVSurrender@pge.com or by mail.

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.

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.

Regional Partners Submit Proposal to Preserve Potter Valley Diversion and Fish Passage Options, October 2023

On August 7, 2023, the Mendocino County Inland Water and Power Commission (MCIWPC), the Round Valley Indian Tribes (RVIT), and the Sonoma County Water Agency (Sonoma Water) submitted a proposal to advance a regional solution for preserving flows in the Russian River and improving Eel River fisheries.

On October 3, 2023, PG&E issued a statement on the Proposal for Potter Valley Project’s Draft Surrender Application and Decommissioning Plan :
PG&E has made a non-binding acceptance in concept of the Sonoma County Water Agency, Mendocino County Inland Water and Power Commission and the Round Valley Indian Tribes proposal and agrees to include it in our November 15th 2023 initial draft Surrender Application and Decommissioning Plan (SA). The acceptance of this proposal is non-binding and allows for continued discussion and public comment. The initial Draft SA will be available for public review in November 2023 and will also include PG&E’s proposal to remove Cape Horn Dam. This proposal states that it has co-equal objectives of fish migration and water diversions. PG&E will include both the third-party proposal as well as our decommissioning plan in our initial Draft Surrender Application and Decommissioning Plan.

Seismic Safety of Scott Dam on Eel River, March 2023

Scott Dam by PG&E — Scott Dam at Lake Pillsubry by PG&E

In March 2023, PG&E notified local agencies that

"out of an abundance of caution and in the interest of community safety, PG&E has made the decision to keep the spillway gates atop Scott Dam at Lake Pillsbury in Lake County open this spring and in future years. This will result in lower summer lake levels and less water being released from Lake Pillsbury later in the year. Water availability moving forward is expected to be similar to dry year conditions experienced in 2020 and 2021.

"The safety of our hometowns is PG&E’s most important responsibility, and this includes the company’s dedicated team of geoscience and engineering experts regularly performing updated seismic analyses and modeling of its dams based on regional and site-specific data. While Scott Dam is not at risk of imminent failure, models with updated parameters show an increased risk around seismic performance. As a result, PG&E is taking steps to reduce the risk.

"We recognize the impacts that reduced water storage in Lake Pillsbury will have. We’re committed to public and environmental safety and are committed to working closely with resource agencies and water districts to address any impacts associated with this safety measure.

"Again, the seismic risks for the Scott Dam remain low and the decision to not close the spillway gates helps reduce risk."

PG&E usually closed the Scott Dam gates in April of each year, allowing spring runoff and snowmelt to raise water levels in Lake Pillsbury to be released throughout the summer and early autumn for Eel River flows. A small portion of the flows were historically diverted through the Potter Valley Project to generate power, with the water being released in the East Fork Russian River in Potter Valley. This water made its way downstream, into and through Lake Mendocino and into the mainstem Russian River. Over the years, the State Water Resources Control Board issue water rights for this diverted water to water users in Mendocino and Sonoma Counties.

On April 27, 2023, PG&E held a Town Hall Meeting on zoom, providing more information on the announcement and of the plan to decommission the Potter Valley Project. It was noted the Division of Safety of Dams (DSOS) under the California Natural Resources Agency Department of Water Resources had concurred with the PG&E's plan for reducing water storage levels in Lake Pillsbury (behind Scott Dam.) PG&E stated it planned to proceed with DSOS processes according to seismic studies and risk analysis.

PG&E's announcement based on updated seismic analysis of Scott Dam suggested a higher level of risk than previous evaluations, prompting a change in operations. PG&E would now release more water from Lake Pillsbury throughout the rainy season, allowing it to flow into the Eel River this spring instead of keeping it behind Scott Dam. This resulted in less water being available for summer and autumn releases, including diversions to the Russian River watershed.

The following documents provide further background and information:

2023, 3-21 Thompson let to FERC re Seismic Scott Dam impacts.pdf 2023, 4-28 FERC to PGE, Seismic Stability and IRRM Letter.pdf 2023, 6-13 PGE Seismic report comment response letter.pdf 2023, 6-13 PGE Seismic report comment response letter attachment.pdf 2023, 3-28 FERC response to PGE Seismic Scott Dam actions.pdf 2023, 6-30 FOER Response to 4-3-23 Lake County Comments on Scott Dam ops.pdf 2023, 4-3 Lake County letter to FERC re Seismic issue.pdf 2024, 4-23 Request for Review of CEII Filings regarding PVP.pdf 2023, 6-13 PGE Seismic report comment response letter attachment.pdf 2023, 4-12 DSOD to PGE, Scott Dam seismic.pdf 2023, 6-12 FERC reminder of report due.pdf 2023, 3-17 Press Dem - Scott Dam gates to stay open.pdf 2023, 10-18 PG&E Scott Dam DSOD inspection report.pdf 2023, 10-18 PG&E Van Arsdale Dam DSOD inspection report.pdf 2024, 7-1 PGE response to FERC RE-Scott Dam safety.pdf