The funding agreements were reached between the US Bureau of Reclamation (USBR), the California Department of Fish and Game (DFG), California Wildlife Conservation Board (WCB), California Department of Transportation (Caltrans)/Bay Area Toll Authority (BATA), Pacific Gas and Electric Company (PG&E), and US Fish and Wildlife Service (FWS).

The restoration project will restore approximately 42 miles (67.6km) of habitat in Battle Creek, a tributary to the Sacramento River that runs through Shasta and Tehama counties, and will restore an additional 6 miles (9.7km) of habitat in its tributaries. The project will help restore winter and spring-run Chinook and Central Valley steelhead, all of which are critically imperiled.

These funding agreements will support the first phase (Phase 1A) of the project, which will target the removal or retrofitting of dams within the Battle Creek hydroelectric project – a small hydroelectric system owned and operated by PG&E and licensed by the Federal Energy Regulatory Commission (FERC). This phase includes installing fish screens and ladders at the North Battle Creek Feeder and Eagle Canyon Diversion Dams and removing Wildcat diversion Dam and appurtenant conveyance systems of the North Fork, installing Eagle Canyon Canal pipeline, and modifying Asbury Dam on Baldwin Creek.

The project will also increase cold water flows in Battle Creek for the benefit of the salmon and steelhead.

The funding transfer agreements include $42.75M being contributed by the State of California to implement this first phase of construction, including:

• $26.82M from DFG from Proposition 50 funds.

• $9.98M from the WCB, Proposition 50 funds administered through the WCB’s Habitat Conservation Fund (Proposition 117).

• $5.95M from Caltrans/BATA for mitigation compliance.

An additional $6.5M in restoration funds will be provided from the Iron Mountain Mine Trustee Council, as facilitated by FWS. An implementation agreement associated with Phase 1A funding has also been completed between PG&E and Reclamation.

It is anticipated that Phase 1A construction contracts will be awarded in 2009 and the work will be completed in 2010. Partners are currently seeking funding for the next construction phases (Phase 1B and Phase 2) so the entire project can be implemented as soon as possible. Phase 1B includes installing an Inskip powerhouse tailrace connector and bypass on the South Fork, and Phase 2 includes installing a fish screen and ladder on Inskip diversion dam, installing a South powerhouse tailrace connector, and removing Lower Ripley Creek Feeder, Soap Creek Feeder, Coleman and South diversion dams, and appurtenant conveyance systems.