Water released from Keswick Dam into the Sacramento River on Tuesday, Feb. 11, 2025, north of Redding came out as a frothy foam.
Lake County, California – The Trump administration is reviewing appeals to halt PG&E’s plan to dismantle the century-old Potter Valley Project — a rare federal intervention in the region’s complex water politics. This is the first time President Donald Trump has weighed in on the fate of the system, which diverts water from the Eel River into the Russian River watershed to support agriculture and communities across Mendocino, Sonoma, Marin, and Lake counties.
The move follows a joint plea from local farm bureaus warning that decommissioning the project would devastate the North Coast’s farming economy, harm wildfire resilience, and threaten water access for over 600,000 residents. In response to an inquiry from the Lake Pillsbury Alliance, the Bureau of Reclamation said in an April 14 letter that project funding is “undergoing reviews” to ensure it complies with Trump’s executive order directing federal agencies to avoid imposing “undue burden” on domestic energy resources, including hydropower.
Built in 1922, the Potter Valley Project includes two dams — Scott Dam and Cape Horn Dam — and a 9.2-megawatt powerhouse that channels Eel River water into the Russian River. PG&E’s license for the project expired in 2022, and the utility has cited financial losses and aging infrastructure as reasons for its decision to relinquish control. A final decommissioning plan is expected by July 29, 2025.
The Bureau identified two potential funding streams that could support intervention: the Department of the Interior’s Aquatic Ecosystem Restoration Program and the Inflation Reduction Act’s water system resilience funds — both programs originating under the Biden administration. Nonetheless, their availability could provide leverage for federal involvement.
Estelle Clifton, president of the Mendocino County Farm Bureau, said in a statement that with Scott Dam located on public land, it would be “sensible” for the federal government to assume ownership and manage it as a national water project.
The Bureau’s letter, signed by acting Commissioner David M. Palumbo, noted that the Lake Pillsbury Alliance’s concerns were in line with others raised by local stakeholders in recent weeks.
If Trump ultimately decides to intervene, it would not be his first foray into California water policy. In January, the president ordered a controversial water release from Central Valley reservoirs — a move critics labeled political theater.
For now, the future of the Potter Valley Project hangs in the balance as local, state, and federal interests collide.
