EEL River Dams

Regulatory FERC's Position and the Decommissioning Process

In a May 22, 2026 scoping document, FERC signaled support for full decommissioning, noting it "proposed to eliminate alternatives" to full removal — including proposals for a federal or public agency takeover of the dams. FERC said "there is currently no evidence" showing that such a takeover should be recommended, and additionally noted that no federal agency has expressed interest in operating the project. The Press Democrat

Dam removal is proposed to begin as early as 2028. However, it may take FERC roughly two years to process PG&E's application, with additional reviews from the State Water Resources Control Board, Army Corps of Engineers, and California Department of Fish and Wildlife, with construction potentially beginning between 2031 and 2039. EelriverMendoFever

FERC also concluded that doing nothing — maintaining the dams as-is — would not be a "reasonable alternative," since PG&E has determined the project too costly to operate and relicensing would be cost-prohibitive. The Press Democrat

The Core Water Mitigation Plan: The NERF

The primary mitigation for water availability is the New Eel-Russian Facility (NERF). The Eel-Russian Project Authority (ERPA) is planning to construct the NERF at the existing diversion point at Van Arsdale Reservoir on the Eel River. Once PG&E begins decommissioning, ERPA will begin constructing the new facility, which will transfer legal ownership of the diversion from PG&E. The Mendocino Voice

This new $50 million diversion facility would take the place of the current one, made obsolete once Cape Horn Dam and Scott Dam come down. Eel River diversions into the Russian River would continue in some form for at least 30 years after PG&E's exit, with a potential 20-year extension. The Press Democrat

Key terms of the Water Diversion Agreement (signed July 2025 by California Dept. of Fish & Wildlife, CalTrout, Humboldt County, Mendocino IWPC, Round Valley Indian Tribes, Sonoma Water, and Trout Unlimited):

• PG&E's Eel River water rights would be transferred to the Round Valley Indian Tribes, who have a deep connection to the Eel River watershed.
• Water diversions would be limited by rules based on the needs of Eel River fisheries.
• The facility design would allow a free-flowing river.
• Performance metrics and adaptive management would be required.
• There is a principle of a future phase-out of diversions when the Russian River basin becomes self-reliant and no longer dependent on Eel River diversions. Humboldt County

The Problem for Potter Valley Specifically

This is where things get complicated and contentious. The NERF will only divert water during the rainy season — typically December through April — with possible extensions depending on yearly rainfall. In drought years, diversions may halt entirely, underscoring the need for expanded storage capacity. MendoFever

This is a critical distinction: the current system (with Lake Pillsbury behind Scott Dam) provides summer water storage that irrigates Potter Valley farms through the dry season. The NERF, by contrast, is a wet-season-only pump station with no storage. The USDA raised concerns that water deliveries under NERF would be subject to curtailment based on minimum in-stream flow requirements, and that the example diversion calculations may be overly optimistic regarding summer and fall water availability. USDA

Farmers currently paying $18 per acre-foot were asked how they would handle costs potentially rising to $312 per acre-foot under alternative supply scenarios. The response acknowledged: "The alternative is no water." MendoFever

The plan for Potter Valley farmers essentially relies on a combination of groundwater, conservation, and new local storage — with proposals such as raising Coyote Valley Dam at Lake Mendocino under study by the Mendocino County Inland Water and Power Commission. The USACE has a feasibility study underway on Coyote Dam improvements. The Mendocino Voice

Opposition: The Trump Administration

The USDA, in a December 2025 filing, argued that PG&E's application "fails to consider appropriately the elimination of water supply to local communities without viable alternatives" and its negative impact on downstream agricultural producers and wildland firefighting capacity, and requested FERC reject PG&E's application. Lost Coast Outpost

However, FERC has jurisdiction over the surrender proceeding and eventual decommissioning. The tribes hold the water rights. The State of California regulates water transfers and water-quality certifications. USDA's December 2025 letter gives the administration standing to file briefs, but legal levers are limited. The Mendocino Voice

Bottom Line

FERC appears to be moving toward approving dam removal with the NERF as the water mitigation solution. For Potter Valley, the plan guarantees continued wet-season diversions via NERF for at least 30 years, but does not replicate the current summer storage capacity that irrigates farms through dry months. That gap remains largely unresolved, with longer-term local storage solutions (like an expanded Coyote Valley Dam) still years away from feasibility, let alone construction.