Canada and the United States were facing two major challenges in the Columbia Basin after the Second World War. With increased population and community growth in the region the "untamed" Columbia River was causing periodic and sometimes devastating flooding, and an upswing in the economy increased the need for energy sources.

In 1964, Canada and the United States ratified the Columbia River Treaty (CRT). The purpose of the CRT is to coordinate flood control and optimize electrical energy production in the Columbia River Basin in the United States and Canada.

Under the CRT, Canada agreed to build three storage dams - Keenleyside, Duncan and Mica - in the Canadian Columbia Basin. A fourth dam - Libby - was built in the United States.

In return for the storage of water, Canada is entitled to one half of the additional power generated at the American power plants on the Columbia River. The Province of BC owns this "Canadian Entitlement of Downstream Benefits". The Province sold the first 30 years of these benefits to a group of U.S. utilities for $254 million US. This sales agreement began to expire in 1998. The Province is now receiving the Canadian Entitlement for the remaining 30 years of the CRT.

Although there is no official "expiry date", there are provisions for renewal, termination or re-negotiation after 60 years (2024), if 10 years notice is given (2014). Canada is obligated to continue to provide flood control as long as the three CRT dams are in operation.

The Columbia River Treaty provided a number of long-term benefits to BC and the US Pacific North West including flood control and increased source of power. There were also employment benefits from the construction and ongoing maintenance/operations of the CRT project dams.

Impacts of the Columbia River Treaty

During the creation of the Columbia River Treaty, there was a lack of consultation with the residents of the Canadian Columbia Basin, even though they were most impacted.

When the water started rising behind Keenleyside, Duncan, Mica and Libby dams:

• 2,300 people along the Arrow Lakes, and the Koocanusa, Duncan, and Kinbasket reservoirs were displaced.
• Sixty thousand hectares (500 square kilometres) of high value, valley bottom land was flooded.
• Numerous First Nations archaeological and burial sites were submerged or buried. Areas that were critical to the cultural, economic and environmental well-being of the region were lost.

The region is still burdened with the on-going impacts from the rise and fall of water levels.

• Recreation on the reservoirs is limited because of the large seasonal fluctuations of the water levels.
• Loss of key wildlife habitat, species and populations have been impacted by increased pressures on low elevation areas.
• Dust storms around reservoirs impact human health.
• Transportation infrastructure in the region is more complex and difficult to maintain.
• Agriculture and forestry activities in the region are limited due to the loss of fertile low elevation land.

The CRT and Columbia Basin Trust

Drastic social upheaval, an absence of local input into major decisions and permanent environmental losses; such is the history of the dam building experience in the Columbia Basin. By the early 1990s people became aware that an opportunity for public involvement might at last present itself. The sale of the first 30 years of BC's share of the downstream benefits was about to expire. Residents of the region resolved that local people should be given more say in matters concerning environmental, economic and social health. Columbia Basin Trust was created in that spirit.

In the early 1990s leaders from First Nations, local communities and the Province of BC worked cooperatively on an agreement recognizing the impacts to the region. In 1995, Columbia Basin Trust was created with a unique mandate to support the efforts of the people of the Basin to create a legacy of social, economic and environmental well-being in the region most directly affected by the creation of the Columbia River Treaty dams. Columbia Basin Trust was endowed with $295 million from the Province of BC (approximately five per cent of the total downstream benefits owned by the Province of BC).