72nd OREGON LEGISLATIVE ASSEMBLY--2003 Regular Session
Enrolled
House Bill 2456
Sponsored by Representative JENSON
CHAPTER ................
AN ACT
Relating to allocation of conserved water; creating new
provisions; amending ORS 537.460, 537.463, 537.465, 537.470 and
537.485; and declaring an emergency.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 537.460 is amended to read:
537.460. (1) The Legislative Assembly finds and declares that
conservation and efficient utilization of water benefits all
water users, provides water to satisfy current and future needs
through reduction of consumptive waste, improves water quality by
reducing contaminated return flow, prevents erosion and allows
increased in-stream flow; and
(2) It is therefore declared to be the policy of the State of
Oregon to:
(a) Aggressively promote conservation;
(b) Encourage the highest and best use of water by allowing the
sale or lease of the right to the use of conserved water; and
(c) Encourage local cooperation and coordination in development
of conservation { - proposals - } { + projects + } to provide
incentives for increased efficiency and to improve streamflows.
(3) As used in this section, 'efficient utilization' means use
without waste, upgrading of irrigation equipment to comply with
modern practices within a reasonable time period or other methods
used to meet both current and future water needs at the least
cost.
SECTION 2. ORS 537.463 is amended to read:
537.463. The provisions of ORS 537.455 to 537.500 establish a
voluntary program and apply only to those persons who choose to
{ - submit a conservation proposal - } { + apply for an
allocation of conserved water + } under ORS 537.465.
SECTION 3. ORS 537.465 is amended to read:
537.465. (1) Any person or group of persons holding { - one
or more water right certificates issued under ORS 537.250,
537.630 or 539.140 or decrees may submit a conservation
proposal - } { + a water use subject to transfer as defined in
ORS 540.505 may submit an application + } to the Water Resources
Commission for approval { + of an allocation of conserved water
for a measure that:
(a) The person or group of persons intends to implement; or
(b) Was implemented by the person or group of persons within
five years prior to the submission of the application + }.
Enrolled House Bill 2456 (HB 2456-A) Page 1
(2) { - A conservation proposal submitted under subsection
(1) - } { + An application submitted under subsection (1)(a)
+ }of this section shall include:
(a) A description of the proposed measures;
(b) A description of the existing diversion facilities and an
estimate of the amount of water that can be diverted at the
facilities;
(c) The amount of water { - which - } { + that + } will be
needed to supply
{ - the - } existing rights after implementation of the
conservation measures;
(d) The amount of conserved water expected from implementation
of the conservation measures;
(e) The proposed allocation and use of the conserved water if
different from the allocation specified in ORS 537.470;
(f) The intended use of any water allocated to the applicant;
{ - and - }
{ + (g) The applicant's choice of priority date for the
conserved water; and + }
{ - (g) - } { + (h) + } Any other information the
commission considers necessary to evaluate the effectiveness of
the proposal.
{ + (3) An application under subsection (1)(b) of this
section shall include:
(a) A description of the measure as implemented and the date on
which the measure was implemented;
(b) A description of the diversion facilities before the
conservation measure was implemented and the amount of water that
was diverted at the facilities before the conservation measure
was implemented;
(c) The amount of water needed to supply existing rights after
implementation of the conservation measure;
(d) The amount of water conserved by implementing the
conservation measure;
(e) The proposed allocation and use of the conserved water if
different from the allocation specified in ORS 537.470;
(f) The intended use of any water allocated to the applicant;
(g) The applicant's choice of priority date for the conserved
water;
(h) Evidence that the measure was implemented within five years
prior to the date of filing the application; and
(i) Any other information the commission considers necessary to
evaluate the application. + }
{ - (3) - } { + (4) + } If a person proposes conservation
measures within the boundaries of an irrigation district
organized under ORS chapter 545 or a water control district
organized under ORS chapter 553, at the time the person submits
the { - proposal - } { + application + }, the person also must
submit evidence that the district has approved the conservation
{ - proposal - } { + application + }.
SECTION 4. ORS 537.470 is amended to read:
537.470. (1) Upon receipt of { - a conservation proposal - }
{ + an application for allocation of conserved water + } under
ORS 537.465, the Water Resources Commission shall give notice of
receipt of the
{ - proposal - } { + application + } in accordance with ORS
540.520 (5).
(2) The commission shall allocate conserved water as provided
in subsection (3) of this section and approve modifications of
water rights as provided in subsection (6) of this section. { +
Enrolled House Bill 2456 (HB 2456-A) Page 2
The commission may not allocate conserved water pursuant to an
application under ORS 537.465 if the application is filed more
than five years after the conservation measure was
implemented. + }
(3) After determining the quantity of conserved water, if any,
required to mitigate the effects on other water rights, the
commission shall allocate 25 percent of the remaining conserved
water to the state and 75 percent to the applicant, unless the
applicant proposes a higher allocation to the state or more than
25 percent of the funds used to finance the conservation measures
comes from federal or state public sources. If more than 25
percent of the funds used to finance the conservation measures
comes from federal or state public sources and is not subject to
repayment, the commission shall allocate to the state a
percentage equal to the percentage of public funds used to
finance the conservation measures and allocate to the applicant a
percentage equal to the percentage of other funds used to finance
the conservation measures. If the commission determines that the
water allocated to the state is necessary to support in-stream
flow purposes in accordance with ORS 537.332 to 537.360, the
water shall be converted to an in-stream water right. If the
water allocated to the state is not necessary to support
in-stream flow purposes, it shall revert to the public for
appropriation by the next user in priority. In no event, however,
shall the applicant receive less than 25 percent of the remaining
conserved water unless the applicant proposes a higher allocation
to the state.
(4) The commission shall notify the applicant and any other
person requesting notice, of the action the commission intends to
take under subsection (3) of this section. Any person objecting
to the proposed allocation may file a protest requesting a
contested case hearing before the commission.
(5) The modification of water rights under { - a conservation
proposal shall - } { + an allocation of conserved water may + }
not require a separate request for transfer under ORS 540.520.
(6) After the commission completes the allocation of conserved
water under subsection (3) of this section, the commission shall
issue orders for proposed new certificates covering the changes
in the original water rights. Once the conservation project is
completed, separate new certificates preserving the previously
established priority of rights shall be issued to cover the
unaffected portion of the water rights and separate new
certificates indicating the priority of rights as set forth in
ORS 537.485 shall be issued to cover the right to the use of the
allocated water.
SECTION 5. ORS 537.485 is amended to read:
537.485. { + (1) + } Notwithstanding any other provision of
ORS chapter 536, 537, 538, 539, 540, 541, 542 or 543, the
priority of any right to the use of conserved water, including an
in-stream water right, under { - a proposal - } { + an
application + } submitted and approved by the Water Resources
Commission under ORS 537.465 and 537.470 shall be { + either the
same as or + } one minute after the priority of the water right
held by the person implementing the conservation measures.
{ + (2) A person who implements a conservation measure may
choose the priority of the water right for the conserved water in
accordance with subsection (1) of this section. However, the
priority date chosen must be the same for the portion of water
allocated to the applicant and the portion of water allocated to
the state. + }
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SECTION 6. { + The amendments to ORS 537.460, 537.463,
537.465, 537.470 and 537.485 by sections 1 to 5 of this 2003 Act
apply to applications for allocations of conserved water
submitted on or after July 1, 2003. + }
SECTION 7. { + This 2003 Act being necessary for the immediate
preservation of the public peace, health and safety, an emergency
is declared to exist, and this 2003 Act takes effect on its
passage. + }
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Enrolled House Bill 2456 (HB 2456-A) Page 4
Passed by House March 24, 2003
...........................................................
Chief Clerk of House
...........................................................
Speaker of House
Passed by Senate May 1, 2003
...........................................................
President of Senate
Enrolled House Bill 2456 (HB 2456-A) Page 5
Received by Governor:
......M.,............., 2003
Approved:
......M.,............., 2003
...........................................................
Governor
Filed in Office of Secretary of State:
......M.,............., 2003
...........................................................
Secretary of State
Enrolled House Bill 2456 (HB 2456-A) Page 6