This agreement follows Pacific Gas and Electric’s (PG&E) decision to remove the Scott Dam and Cape Horn Dam—two aging hydroelectric structures in the Potter Valley area that have long impeded fish migration. These removals will restore access to nearly 300 miles of historic spawning and rearing habitat for Chinook salmon, steelhead, and Pacific lamprey, which have been blocked from the upper Eel River watershed since the early 1900s. The decision aligns with state and federal efforts to improve California’s fisheries, where species such as the Chinook salmon have suffered dramatic declines. Data from the California Department of Fish and Wildlife show that salmon populations in the Eel River have dropped to a fraction of their historic numbers, with habitat fragmentation and water diversion playing a major role in their decline.
For over a century, water diversions from the Eel River have supported the Russian River watershed, sustaining residential, agricultural, and ranching operations. However, these diversions have also fueled long-standing disputes among counties, communities, and Native American sovereign nations. The new agreement marks a shift toward a collaborative approach that prioritizes ecological restoration while ensuring continued water availability for those who rely on it.
As part of the agreement, CDFW has committed $18 million in funding to support the transition. Half of these funds will be allocated to designing and constructing the New Eel-Russian Facility (NERF), a modernized diversion system aimed at maintaining water supply while minimizing environmental impact. The remaining $9 million will serve as initial funding for an Eel River Restoration Fund, dedicated to ecological recovery efforts.
The decommissioning of PG&E’s hydropower infrastructure represents a broader trend in California’s water management strategy. With climate change increasing pressures on water resources, state agencies are reassessing the long-term viability of dams that no longer meet modern environmental and safety standards. The California State Water Resources Control Board has reported that outdated dams not only obstruct fish passage but also contribute to declining water quality and habitat degradation. By prioritizing dam removals, the state is working toward a more sustainable and adaptive water system.
Tribal leaders view this agreement as a long-overdue step toward restoring their connection to the Eel River. Joseph Parker, President of the Round Valley Indian Tribes, emphasized the importance of finally having a voice in the decision-making process. The collaboration reflects a growing recognition of Indigenous leadership in environmental stewardship, aligning with California’s broader efforts to incorporate tribal perspectives into land and water management.
While PG&E’s separate decommissioning process continues, the need for a new diversion facility remains a priority. State and local officials acknowledge that securing a modernized water system is critical to ensuring both ecological and community resilience. The agreement serves as a model for resolving complex water disputes through cooperative governance, demonstrating that environmental restoration and water security do not have to be mutually exclusive.
