To: BOARD OF SUPERVISORS
From: Supervisor Cline and Supervisor Norvell
Meeting Date: October 21, 2025
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Department Contact: |
Supervisor Cline |
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707-463-4221 |
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Department Contact: |
Supervisor Norvell |
Phone: |
707-463-4221 |
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Item Type: Regular Agenda |
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Time Allocated for Item: 1 Hour |
Agenda Title:
title
Discussion and Possible Action Including Adoption of Resolution of the Mendocino County Board of Supervisors Regarding the Potter Valley Project and the Loss of Water Supply Reliability
(Sponsors: Supervisor Cline and Supervisor Norvell)
End
Recommended Action/Motion:
recommendation
Adopt Resolution regarding the Potter Valley Project and the loss of water supply reliability for Mendocino County; and authorize Chair to sign same.
End
Previous Board/Board Committee Actions:
August 21, 2018: Discussion and Adoption of Resolution Regarding the Future of the Potter Valley Project (Sponsor: Water Agency Ad Hoc Committee (Supervisors Brown and McCowen) Mendocino County - File #: 18-2043 <https://mendocino.legistar.com/LegislationDetail.aspx?ID=5468764&GUID=0D0A90D2-487B-40A4-9068-4A5E4188AE80&Options=Advanced&Search=>
February 25, 2020: Discussion and Possible Action Including Authorization of Twenty-Five Thousand Dollars ($25,000) to the Inland Water and Power Commission (IWPC) to Continue the Feasibility Study of a Potential Licensing Proposal for the Potter Valley Project (PVP) and Other Related Costs (Supervisors Brown and McCowen)
November 3, 2020: Approval of the Second Amended Planning Agreement for the Potter Valley Project Planning (Supervisors Brown and McCowen)
January 26, 2021: Discussion and Possible Action Including Authorization of Allocation of Fifty Thousand Dolars ($50,000) to the Mendocino County Inland Water and Power Commission (MCIWPC) to Continue to work for the Potential Licensing of the PVP (Supervisors McGourty and Mulheren)
September 10, 2024: Discussion and Possible Action Including Approval of Execution of Inland Water and Power Commission (IWPC) Joint Prosecution and Common Interest Agreement Regarding PG&E’s Surrender and Transfer of PVP (Supervisor McGourty and County Counsel)
May 29, 2025: Special Joint Meeting (IWPC All Boards Meeting) Informational Briefing - Issues Related to the Water Supply From PG&E’s PVP.
Summary of Request:
The Potter Valley Project (PVP) began operation in 1908 with the completion of Cape Horn Dam, which impounded water in Van Arsdale reservoir and diversion into the Russian River watershed, initially operated only as a “run of the river’ diversion, which was changed in 1922 when Scott Dam was built thus forming Lake Pillsbury, which allowed winter rains and snow melt to be impounded and stored for release in the late spring, summer and fall.
Stored water in Lake Pillsbury has historically been released and diverted into the East Branch of the Russian River since 1922, thus providing the water supply for multiple beneficial uses from Potter Valley along the East Branch of the Russian River and then along the Russian River in Mendocino and Sonoma Counties.
The original water rights for the PVP are held by Pacific Gas and Electric Company (PG&E), who also own and operate the PVP. The Potter Valley Irrigation District (PVID) has had a contract for a portion of the diverted water since 1926, and appropriative water rights have been subsequently granted by the California State Water Resources Control Board, relying on this imported water, from the tailrace of the Potter Valley Powerhouse downstream all along the Russian River. Additionally, small privately owned hydroelectric plants rely on the water released from the PVP.
Since the completion of Coyote Valley Dam in 1959, water released from the Potter Valley Project has been impounded and stored in Lake Mendocino and used for irrigation of crops as well as domestic, municipal, and industrial water supplies and has also provided significant recreational, environmental, and fire safety benefits, while also supporting a hydroelectric project at Lake Mendocino.
The economic value of this water supply annually derived from agricultural production within Mendocino County was estimated at $750 million in 2015. It is also estimated that 550,000 water users benefit from water diverted from the PVP.
In 2019, PG&E decided not to continue relicensing the Project and filed a Notice of Withdrawal of the Notice of Intent (NOI) and Pre-Application Document (PAD) for the Project, both previously filed on April 6, 2017. In response to PG&E’s Notice of Withdrawal, on March 1, 2019, the Federal Energy Regulatory Commission (FERC) issued a Notice Soliciting Applications from any party interested in filing a license application for a new license for the Project, stating that applicants must first file a NOI and PAD. FERC’s solicitation did not result in a viable new applicant, and on May 11, 2022, FERC directed PG&E to provide a plan and schedule for submitting a Surrender Application by July 11, 2022. PG&E’s approved plan and schedule stated that PG&E would file a Surrender Application with FERC within 30 months after FERC approval of the proposed plan and schedule. The FERC approved PG&E’s proposed plan and schedule on July 29, 2022; the Draft Surrender Application was filed with FERC on January 31, 2025. A public comment period was open from January 31 through March 3, 2025. The deadline for filing the Final Surrender Application was July 29, 2025. PG&E filed its Final Surrender Application on July 25, 2025.
The Mendocino County Board of Supervisors has long been involved with regulatory processes, forums, and organizations regarding the PVP. This resolution reaffirms what is at stake for all of Mendocino County regarding the future of the PVP. The community has been increasingly vocal in pursuits to maintain the PVP infrastructure, due to loss of water supply reliability, economic viability, recreation, environmental impacts, fire suppression and more.
Alternative Action/Motion:
Do not adopt resolution or adopt as amended.
Strategic Plan Priority Designation: A Thriving Economy
Supervisorial District: All
Vote Requirement: Majority
Supplemental Information Available Online At:
PG&E Potter Valley Project (FERC Project No. 77) Surrender Application and Decommissioning Plan Stakeholder Website <https://www.pottervalleysurrenderproceeding.com/?utm_source=chatgpt.com>
Our Shared Water - Inland Water & Power Commission of Mendocino County <https://mendoiwpc.com/our-shared-water/>
Upper Russian River System Storage and Water Supply Reliability Study <https://watermanagement.ucdavis.edu/download_file/view_inline/722>
Potter Valley Water Supply Reliability Study <https://mendoiwpc.com/wp-content/uploads/2025/07/PV-Jacobs-Water-SupplyReliability-Study-2025.pdf>
Eel-Russian Project Authority <https://www.sonomawater.org/media/PDF/Water%20Resources/Potter%20Valley%20-%20ERPA/Fact%20Sheets/ERPA%20Project%20Overview%20Fact%20Sheet.pdf>
Lake Pillsbury | Lake County, CA <https://www.lakecountyca.gov/1859/Lake-Pillsbury>
Eel River and the Potter Valley Project | Humboldt County, CA - Official Website <https://humboldtgov.org/3460/Eel-River-and-the-Potter-Valley-Project>
Sonoma Water - Eel-Russian Project Authority <https://www.sonomawater.org/pvp>
Potter Valley Project | Cloverdale, CA - Official Website <https://www.cloverdale.net/623/Potter-Valley-Project>
Economic Impact Water Brief <https://www.mendofb.org/wp-content/uploads/2019/06/Eyler-Water-Storage-Impacts-Brief-121815-Final.pdf>
Save Potter Valley Project | Mendocino County water <https://www.savepottervalleyproject.org/>
Lake Pillsbury Alliance <https://www.savelakepillsbury.org/>
Fiscal Details:
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source of funding: n/a |
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current f/y cost: n/a |
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budget clarification: n/a |
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annual recurring cost: n/a |
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budgeted in current f/y (if no, please describe): N/A |
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revenue agreement: N/A |
AGREEMENT/RESOLUTION/ORDINANCE APPROVED BY COUNTY COUNSEL: Yes
CEO Liaison: Darcie Antle, CEO
CEO Review: Yes
CEO Comments:
FOR COB USE ONLY
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Executed By: Deputy Clerk |
Final Status: Item Status |
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Date: Date Executed |
Executed Item Type: item |
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