75th OREGON LEGISLATIVE ASSEMBLY--2009 Regular Session
HA to A-Eng. HB 3369
LC 2753/HB 3369-A13
HOUSE AMENDMENTS TO
A-ENGROSSED HOUSE BILL 3369
By JOINT COMMITTEE ON WAYS AND MEANS
June 26
On page 1 of the printed A-engrossed bill, line 2, after ' ORS'
delete the rest of the line and delete lines 3 and 4 and insert
'536.220, 541.700, 541.705, 541.710, 541.720, 541.730, 541.740,
541.765, 541.770, 541.785, 541.830, 541.845 and 541.850;
repealing ORS 541.755; appropriating money; and declaring an
emergency.'.
In line 12, after 'future' insert 'in-stream and
out-of-stream'.
In line 13, after 'address' insert 'in-stream and
out-of-stream'.
On page 2, after line 13, insert:
' Whereas water development projects that deliver mutual
benefits for water users, the environment and the fiscal
condition of this state should be funded or financed with public
dollars; and'.
Delete lines 16 through 45 and delete pages 3 through 16 and
insert:
'
{ + ADDING + }
' { + SECTION 1. + } { + (1) Section 2 of this 2009 Act is
added to and made a part of ORS 541.700 to 541.855.
' (2) Sections 16 and 18 to 27 of this 2009 Act are added to
and made a part of ORS chapter 541. + }
'
{ + WATER DEVELOPMENT FUND + }
' { + SECTION 2. + } { + The Water Resources Commission
shall adopt rules establishing standards for borrowers obtaining
loans issued from the Water Development Fund. The commission
shall design the standards to ensure that all loans have a high
probability of repayment and that all loans are adequately
secured in the event of a default. The commission shall solicit
comments from the Oregon Department of Administrative Services
and the State Treasurer when designing the standards. The
standards may include, but need not be limited to, standards that
give preference to entities with ad valorem taxing authority. + }
' { + SECTION 3. + } ORS 541.700 is amended to read:
' 541.700. As used in ORS 541.700 to 541.855, unless the
context requires otherwise:
' (1) 'Commission' means the Water Resources Commission
appointed under ORS 536.022.
' (2) 'Construction' means the construction, or improvement or
rehabilitation, in whole or in part, of a water development
project, including planning and engineering work, purchasing or
refinancing directly related to such construction or improvement
or rehabilitation, or any combination of such construction or
improvement or rehabilitation. As used in this subsection:
' (a) 'Purchasing' means the purchasing of materials, land or
existing facilities necessary to complete a water development
project.
' (b) 'Refinancing' includes refinancing existing debt of a
water developer, as defined in subsection (7)(f) to (m) and (o)
of this section, in order to complete a water development project
or to provide adequate security for a water development loan, but
does not include refinancing existing debt only to reduce
interest rates or costs to the borrower or to pay off existing
debt.
' (3) 'Director' means the Water Resources Director appointed
pursuant to ORS 536.032.
' (4) 'Federal water development project' means any water
development project that receives funding from the federal
government, or any agency or instrumentality of the United
States.
' (5)(a) 'Secondary use' means:
' (A) Any water-related recreational use.
' (B) Any flood control use.
' (C) Any power generation use.
' (D) Any water supply system utilized as a domestic water
system for the benefit of an individual residence related to the
operation of the water development project.
' (b) 'Secondary use' does not include any use that is
incompatible with a water development project.
' (6) 'Water development project' means:
' (a) An undertaking, in whole or in part, in this state for
the purpose of irrigation, including structures for the
application of water for agricultural harvest activities, dams,
storage reservoirs, wells or well systems, pumping plants,
pipelines, canals, ditches, revetments, water supply systems used
for the purpose of agricultural temperature control and any other
structure, facility and property necessary or convenient for
supplying lands with water for irrigation purposes.
' (b) An undertaking, in whole or in part, in this state for
the purpose of drainage, including ditching, tiling, piping,
channel improvement, pumping plants or other agronomically
approved methods of land drainage that will increase soil
versatility and productivity.
' (c) An undertaking, in whole or in part, in this state for
the purpose of providing water for municipal use, which may
include safe drinking water for communities with population less
than 30,000, including dams, storage reservoirs, wells or well
systems, pumping plants, treatment facilities, pipelines, canals,
ditches, revetments and all other structures and facilities
necessary or convenient for supplying water. An undertaking may
provide water to two or more communities with a combined
population of more than 30,000. An undertaking may be part of a
project that provides water to a community with a population of
more than 30,000, but loans of moneys from the Water Development
Fund, including moneys in ORS 285B.563 (11) may be made only to
communities served by the project that have a population of less
than 30,000.
' (d) An undertaking, in whole or in part, in this state for
the purpose of fish protection, including fish screening or
by-pass devices, fishways and all other structures and facilities
necessary or convenient for providing fish protection.
' (e) An undertaking, in whole or in part, in this state for
the purpose of enhancing watershed health or improving fish
habitat, including methods and materials to restore, maintain and
enhance { + water quality, streamflows and + }the biological,
chemical and physical integrity of the riparian zones and
associated uplands of the state's rivers, lakes and estuaries
systems and recommended by the Oregon Watershed Enhancement Board
established under ORS 541.360.
' (f) Secondary uses in conjunction with projects described in
paragraphs (a) to (e) of this subsection.
' (7) 'Water developer' means:
' (a) Any individual resident of this state;
' (b) Any partnership for profit subject to the provisions of
ORS chapter 67 or 70, whose principal income is from farming in
Oregon;
' (c) Any corporation for profit subject to the provisions of
ORS chapter 60, whose principal income is from farming in Oregon;
' (d) Any nonprofit corporation subject to the provisions of
ORS chapter 65, whose principal income is from farming in Oregon;
' (e) Any cooperative subject to the provisions of ORS chapter
62, whose principal income is from farming in Oregon;
' (f) Any irrigation district organized under or subject to ORS
chapter 545;
' (g) Any water improvement district organized under ORS
chapter 552;
' (h) Any water control district organized under ORS chapter
553;
' (i) Any irrigation or drainage corporation organized under or
subject to ORS chapter 554;
' (j) Any drainage district organized under ORS chapter 547 or
subject to all or part of ORS chapter 545;
' (k) Any corporation, cooperative, company or other
association formed prior to 1917 for the purpose of distributing
water for irrigation purposes;
' (L) Any port district organized under ORS 777.005 to 777.725,
777.915 to 777.953 and 777.990;
' (m) Any city or county;
' (n) Any organization formed for the purpose of distributing
water for community water supply; or
' (o) Any local soil and water conservation district organized
under ORS 568.210 to 568.808 and 568.900 to 568.933.
' { + SECTION 4. + } ORS 541.705 is amended to read:
' 541.705. (1) { + Except as provided in section 20 of this
2009 Act for a water development project in the Columbia River
Basin, + } any water developer may file with the Water Resources
Commission an application to enable the construction of a water
development project as provided in ORS 541.700 to 541.855. The
application shall be filed in the manner, be in the form and
contain or be accompanied by any information prescribed by the
commission. The commission, in considering applications, shall
encourage the largest number of users of the Water Development
Fund and shall consider the impact on the family farm units of
the state.
' (2) In addition to other requirements prescribed by the
commission, an application filed under subsection (1) of this
section shall:
' (a) Describe the nature and purposes of the proposed water
development project, including the need for the project and
reason why the project would be in the public interest.
' (b) State whether any purposes other than improvement of a
drinking water system, irrigation, drainage, fish protection,
watershed enhancement or municipal use, but consistent therewith,
will be served by the proposed water development project, and the
nature of the other purposes, if any.
' (c) Set forth or be accompanied by a feasibility study for
the construction, operation and maintenance of the proposed water
development project, an estimate of the costs of construction and
if the project includes as a primary purpose irrigation or
drainage, an evaluation of the agricultural potential of the land
from any competent public agency.
' (d) State whether any moneys other than those in the Water
Development Fund are proposed to be used for the construction of
the proposed water development project, and whether any other
moneys are available or have been sought for the construction.
' (e) Show that the applicant holds or can acquire all lands,
other than public lands, and interests therein and water rights
necessary for the construction, operation and maintenance of the
proposed water development project.
' (3) If the application is for a safe drinking water project,
the applicant also shall demonstrate that:
' (a) The applicant is a city, county, district, water
authority or other political subdivision of the state or an
organization operated on a not-for-profit basis that makes
drinking water available to members of the general public;
' (b) The primary use of the loan will be to improve a drinking
water system for the purpose of complying with applicable state
or federal drinking water quality regulations; and
' (c) The applicant has:
' (A) Developed a water system master plan; and
' (B) Either has a coordination agreement in place as defined
in ORS 195.020, 195.025 and 197.712 or can demonstrate that
options to find a coordinated solution to the system's drinking
water problems have been fully explored.
' { + SECTION 5. + } ORS 541.710 is amended to read:
' 541.710. (1) Upon receipt of an application filed as provided
in ORS 541.705, the Water Resources Commission shall determine
whether the feasibility study described in ORS 541.705 for the
water development project set forth in or accompanying the
application is satisfactory and if the commission determines that
it is not satisfactory, the commission may:
' (a) Reject the application;
' (b) Require the applicant to submit additional information
and revision of the feasibility study as may be necessary; or
' (c) Make such revisions of the feasibility study as the
commission considers necessary to make the plan satisfactory.
' (2) Except as provided in subsection (3) of this section,
{ + for a loan application filed under ORS 541.705 or section
20 of this 2009 Act, + } the commission shall charge and collect
from the applicant at the time the application is filed { - , a
fee of $100. In addition, the commission shall charge the
applicant the amount required to reimburse the commission for
costs that exceed the application fee incurred in connection with
the application. - } { + an application fee equal to the lesser
of 0.10 percent of the loan applied for or $2,500. In addition,
the commission may require the applicant to pay for costs that
exceed the application fee if the Water Resources Director
determines that the costs are incurred solely in connection with
processing the application. Before incurring the additional
costs, the commission shall advise the applicant of the
additional costs to be paid by the applicant. + } Moneys referred
to in this subsection shall be paid into the Water Development
Administration and Bond Sinking Fund.
' (3) The commission may establish { + a reduced application
fee + } by rule { - an application fee of less than $100 - }
for a water development project that is for fish protection or
for watershed enhancement.
' { + SECTION 6. + } ORS 541.720 is amended to read:
' 541.720. { + (1) + } The Water Resources Commission may
approve the financing for the construction of a water development
project described in an application filed { - as provided
in - } { + under + } ORS 541.705 { + , or subject to section 25
of this 2009 Act in an application filed under section 20 of this
2009 Act, + }using moneys in the Water Development Fund
{ - , - } secured by a first { - , parity or second - }
lien { + or by other good and sufficient collateral + } in the
manner provided in ORS 541.740 if, after investigation { + , + }
the commission finds that:
' { - (1) - } { + (a) + } The proposed water development
project is feasible and a reasonable risk from practical and
economic standpoints;
' { - (2) - } { + (b) + } The plan for the construction,
operation and maintenance of the proposed water development
project is satisfactory and, if the primary purposes of the
project include irrigation or drainage, the agricultural
potential is confirmed;
' { - (3) - } { + (c) + } The plan for construction and
operation will provide multipurpose facilities, to the extent
practicable;
' { - (4) - } { + (d) + } The applicant is a qualified,
credit-worthy and responsible water developer { + that meets the
standards established by commission rule + } and is willing and
able to enter into a contract with the commission for
construction and repayment as provided in ORS 541.730;
' { - (5) - } { + (e) + } Moneys in the Water Development
Fund are or will be available for the construction of the
proposed water development project;
' { - (6) - } { + (f) + } There is a need for the proposed
water development project, the proposed project is in the public
interest and the applicant's financial resources are adequate to
provide the working capital needed to operate and maintain the
project; and
' { - (7) - } { + (g) + } The construction cost associated
with any secondary use does not exceed the construction cost of
the primary use of the water development project.
' { + (2) ORS 541.700 to 541.855 do not limit the authority
granted the Environmental Quality Commission or the Department of
Environmental Quality under ORS chapter 468B. + }
' { + SECTION 7. + } ORS 541.730 is amended to read:
' 541.730. { + (1) + } If the Water Resources Commission
approves the financing for the construction of a water
development project, the commission, on behalf of the state, and
the applicant may enter into a loan contract, secured by a first
{ - , parity or second - } lien { + or by other good and
sufficient collateral + } in the manner provided in ORS 541.740
{ - , which - } { + . The loan contract + }shall set forth,
among other matters:
' { - (1) - } { + (a) + } That the commission, on behalf of
the state, must approve the arrangements made by the applicant
for the construction, operation and maintenance of the water
development project, using moneys in the Water Development Fund
for the construction.
' { - (2) A plan for repayment by the applicant to the Water
Development Administration and Bond Sinking Fund of moneys
borrowed from the Water Development Fund used for the
construction, operation and maintenance of the water development
project and interest on such moneys used at such rate of interest
as the commission determines is necessary to provide adequate
funds to recover administrative expenses incurred under ORS
541.700 to 541.855. The repayment plan, among other matters: - }
' { - (a) Shall provide for commencement of repayment by the
water developer of moneys used for construction and interest
thereon not later than two years after the date of the loan
contract or at such other time as the commission may provide; - }
' { - (b) May provide for reasonable extension of the time for
making any repayment in emergency or hardship circumstances, if
approved by the commission; - }
' { - (c) Shall provide for such evidence of debt assurance of
and security for repayment by the applicant as are considered
necessary or proper by the commission; and - }
' { - (d) Shall set forth a schedule of payments and the
period of loan which shall not exceed the usable life of the
constructed project, or 30 years from the date of the first
payment due under the financial plan, whichever is less, and
shall also set forth the manner of determining when loan payments
are delinquent. The payment schedule shall include repayment of
interest which accrues during any period of delay in repayment
authorized by paragraph (a) of this subsection, and the payment
schedule may require payments of varying amounts for collection
of such accrued interest. - }
' { + (b) A plan for the repayment of moneys borrowed from
the Water Development Fund and interest on those moneys as
described in subsection (3) of this section. + }
' { - (3) - } { + (c) + }Provisions satisfactory to the
commission for field engineering and inspection, the commission
to be the final judge of completion of the contract.
' { - (4) - } { + (d) + } That the liability of the state
under the contract is contingent upon the availability of moneys
in the Water Development Fund for use in the construction,
operation and maintenance of the water development project.
' { - (5) - } { + (e) + } Such further provisions as the
commission considers necessary to { - insure - } { +
ensure + } expenditure of the funds for the purposes set forth in
the approved application.
' { - (6) - } { + (f) + } That the commission may institute
an appropriate action or suit to prevent use of the facilities of
a water development project financed by the Water Development
Fund by any person who is delinquent in the repayment of any
moneys due the Water Development Administration and Bond Sinking
Fund.
' { - (7) - } { + (g) + } That a loan for a water
development project is assignable or transferable to a third
party only with the prior approval of the commission.
' { + (2) + } The commission may approve a loan assignment or
transfer only if the commission finds that the assignee or
transferee qualifies as a water developer as defined in ORS
541.700 (7) and the assignment or transfer does not have serious
adverse effect upon the family farm unit structure in this state.
' { + (3) The commission, in consultation with the State
Treasurer, shall set the interest rate in an amount the
commission determines to be sufficient to cover, to the extent
practicable:
' (a) The interest rate to be paid to bondholders on the
underlying bonds;
' (b) The administrative expenses incurred by the commission,
the Water Resources Department and the State Treasurer in
connection with the loan program;
' (c) All bond-related costs;
' (d) The establishment of Water Development Administration and
Bond Sinking Fund reserves; and
' (e) An amount to be deposited to the Water Development Fund
for the purpose of increasing the amount available for loans from
that fund.
' (4) In addition to any other fee or charge, the commission
may charge a loan processing fee, not to exceed one percent of
the loan amount.
' (5) The repayment plan:
' (a) Shall provide for commencement of repayment by the water
developer of moneys used for project construction and interest on
those moneys not later than two years after the date of the loan
contract or at such other time as the commission may provide.
' (b) May provide for reasonable extension of the time for
making any repayment in emergency or hardship circumstances, if
approved by the commission.
' (c) Shall provide for such evidence of debt assurance of and
security for repayment by the applicant as are considered
necessary or proper by the commission.
' (d) Shall set forth a schedule of payments and the period of
loan. The period of the loan may not exceed the usable life of
the constructed project, or 30 years from the date of the first
payment due under the financial plan, whichever is less.
' (e) Shall set forth the manner of determining when loan
payments are delinquent.
' (f) Shall include repayment of interest that accrues during
any period of delay in repayment authorized by paragraph (a) of
this subsection, and may require payments of varying amounts for
collection of that accrued interest.
' (g) May include provisions in addition to the provisions
described in paragraphs (a) to (f) of this subsection. + }
' { + SECTION 8. + } ORS 541.740 is amended to read:
' 541.740. (1)(a) { + Except as provided in paragraph (b) of
this subsection, + } when a loan is made to a water developer
other than a water developer described in ORS 541.700 (7)(a),
(b), (c) or (d) for the construction of a water development
project under ORS 541.700 to 541.855, the State of Oregon has a
lien for the amount of the unpaid balance of the loan. The lien
created by this subsection attaches to the real property held in
fee simple of the water developer or to the user charges,
including interest, owed to or received by the water developer.
The lien created by this subsection does not attach to a
leasehold. At the discretion of the Water Resources Commission,
the lien may attach to all real property, whether owned by the
water developer or other persons, which is served by the water
development project or which is served by a water source enhanced
or restored by the water development project.
' (b) Except for tax liens, the lien created by this section is
prior and superior to all other liens or encumbrances upon the
affected real property or user charges, without regard to the
date on which the other liens or encumbrances attached to the
real property or user charges. { - However, the Water Resources
Commission may elect to accept a second or parity lien position
against the real property or user charges encumbered by this
section, if the commission determines the lien position would
provide adequate security for the water development loan, as set
forth in rules adopted by the commission. - } { + The
commission, in consultation with the State Treasurer, may accept
other good and sufficient collateral to secure a loan instead of,
or in addition to, a lien. + }
' (c) The existence or foreclosure of the lien created by this
subsection shall not cause the acceleration of payment of user
charges or other payments on affected real property. Such
payments shall continue to be made as they become due.
' (2) { + Except as provided in this subsection, + } when a
loan is made under ORS 541.700 to 541.855 to a water developer
described in ORS 541.700 (7)(a), (b), (c) or (d), the loan shall
be secured by a mortgage or security agreement in the full amount
of the loan. The mortgage or security agreement shall be a first
lien { - , or a parity or second lien if the commission
determines it would provide adequate security, - } upon such
real property of the water developer as the commission shall
require for adequate security. { + The commission, in
consultation with the State Treasurer, may accept other good and
sufficient collateral to secure a loan instead of, or in addition
to, a lien. + }
' (3) When a lien created by subsection (1) of this section is
foreclosed, a person whose real property is subject to the lien
solely because that real property is irrigated or drained by
reason of a water development project or because the real
property is served by a water source improved by a water
development project for watershed enhancement, shall only have
that portion of real property subjected to foreclosure that
represents that person's pro rata share of the indebtedness.
' (4) When a loan is made to a water developer under ORS
541.700 to 541.855, the commission shall file notice of the loan
with the recording officer of each county in which is situated
real property of the water developer or real property to which
the lien created by subsection (1) or (2) of this section may
attach. The notice shall contain a description of the real
property of the water developer, a description of any other real
property that will be served by the water development project and
to which the lien is to attach, the amount of the loan and a
statement that the State of Oregon has a lien against such real
property as provided in subsection (1) or (2) of this section.
' (5) Upon payment of all amounts loaned to a water developer
pursuant to ORS 541.700 to 541.855, the commission shall file
with each recording officer referred to in subsection (4) of this
section a satisfaction notice that indicates repayment of the
loan.
' (6) The commission may cause to be instituted appropriate
proceedings to foreclose liens for delinquent loan payments, and
shall pay the proceeds of any such foreclosure, less expenses
incurred in foreclosing, into the Water Development
Administration and Bond Sinking Fund. In a foreclosure
proceeding, the commission may bid on property offered for sale
in the proceeding and may acquire title to the property on behalf
of the state.
' (7) The commission may take any action, make any
disbursement, hold any funds or institute any action or
proceeding necessary to protect the state's interest.
' (8) Notwithstanding ORS 293.240, the commission may
compromise, release, discharge, waive, cancel or settle a claim
against a water developer if such action:
' (a) Is consistent with the purposes of ORS 541.700 to
541.855;
' (b) Does not impair the ability to pay the administrative
expenses of the commission or the obligations of any bonds
outstanding; and
' (c) Is, under the circumstances, the means most likely to
preserve the claim or to recover the greatest part of the amount
claimed.
' (9) The commission, by rule, may set out procedures to be
used when a water developer is unable to make required loan
payments because of illness, injury, death, involuntary job loss
or economic stress due to factors beyond individual control. The
rules shall be effective to the extent permitted by the terms of
the contracts associated with affected loans. The rules:
' (a) May provide for a temporary reduction of loan payment;
' (b) May provide for any other solution jointly agreed to by
the water developer and the commission;
' (c) Shall provide for repayment of the amount of any loan
payments reduced under the rules in accordance with terms and
conditions agreed upon by the borrower and the commission; and
' (d) Shall require the commission to consider the effect of
any payment reduction or delay on the solvency of the program as
a whole, on estimates of the most probable financial position of
the program in the future and on other borrowers in the program.
' (10)(a) Upon application by a water developer, the commission
may grant a partial release of security when the commission
determines that granting the requested release will not
jeopardize the water development loan program's security
position.
' (b) The remaining property must qualify as security for the
loan balance under the applicable law.
' (c) Notwithstanding compliance with paragraph (b) of this
subsection, the commission may require that the loan balance be
reduced as consideration for granting the requested release.
' { + SECTION 9. + } ORS 541.765 is amended to read:
' 541.765. In addition to those uses of moneys in the Water
Development Fund otherwise provided in ORS 541.700 to
541.855 { + or section 25 of this 2009 Act + }, the Water
Resources Commission may authorize loans of such moneys to those
persons to whom approval has been granted by the federal
government or any agency or instrumentality of the United States
for the funding and construction of federal water development
projects. Any such person shall apply for a loan to the
commission, in such form as the commission prescribes, and shall
furnish such proof of federal approval for funding and
construction as the commission considers appropriate.
' { + SECTION 10. + } ORS 541.770 is amended to read:
' 541.770. If the Water Resources Commission approves an
application for the loan of moneys authorized by ORS 541.765, the
commission shall enter into a loan contract with the borrower
that provides, among other matters:
' (1) That the loan be secured by a first lien { - , or parity
or second lien if appropriate, - } { + or by other good and
sufficient collateral + } in the same manner as provided in ORS
541.740.
' (2) That the loan bear interest at the same rate of interest
as provided in ORS 541.730.
' (3) That the loan becomes due and payable to the Water
Development Administration and Bond Sinking Fund not later than
60 days after the date that federal funds for the acquisition of
easements and rights of way for the project are paid to the
borrower or 30 years from the date of the loan, whichever is
earlier.
' (4) Such provisions as the commission considers necessary to
{ - insure - } { + ensure + } expenditure of the moneys loaned
for the purposes provided in ORS 541.765.
' (5) That the commission may cause to be instituted
appropriate proceedings to foreclose liens for delinquent loan
payments, and shall pay the proceeds of any such foreclosure,
less expenses in foreclosing, into the Water Development
Administration and Bond Sinking Fund.
' { + SECTION 11. + } ORS 541.785 is amended to read:
' 541.785. Except for the proceeds of refunding bonds, all
moneys obtained from the sale of bonds under ORS 541.780 to
541.815 shall be credited by the State Treasurer to the Water
Development Fund. Such moneys shall be used only for the purposes
stated in Article XI-I (1), Oregon Constitution, and ORS 541.700,
541.705 to 541.770 and 541.835 { + and sections 25 and 26 of
this 2009 Act + }. If there are insufficient funds in the Water
Development Administration and Bond Sinking Fund to make the
payments set forth in ORS 541.830, moneys in the Water
Development Fund may be transferred to the Water Development
Administration and Bond Sinking Fund. Pending the use of moneys
in the Water Development Fund for the proper purposes, such
moneys may be invested in the manner provided by law.
' { + SECTION 12. + } ORS 541.830 is amended to read:
' 541.830. (1) There hereby is created the Water Development
Administration and Bond Sinking Fund, separate and distinct from
the General Fund, to provide for payment of:
' (a) Administrative expenses of the Water Resources Commission
and the Water Resources Department in processing applications,
investigating proposed water development projects and federal
water development projects under ORS 541.700 to 541.855 and
servicing and collecting outstanding loans made under ORS 541.700
to 541.855 { + or section 25 of this 2009 Act + }, if the
expense is not paid directly by the applicant, including
principal and interest due on bonds outstanding. These
administrative expenses also may include all costs associated
with the issuance of bonds and the funding of any credit
enhancements or reserves determined to be necessary or
advantageous in connection with the bonds.
' (b) Administrative expenses of the State Treasurer in
carrying out the duties, functions and powers imposed upon the
State Treasurer by ORS 541.700 to 541.855.
' (c) Principal and interest of all bonds issued pursuant to
the provisions of ORS 541.780 to 541.815.
' (2) The fund created by subsection (1) of this section shall
consist of:
' (a) Application fees { - required by ORS 541.710 - } { +
and additional processing costs paid under ORS 541.710 and loan
processing fees under ORS 541.730 + }.
' (b) Repayments of moneys loaned to water developers from the
Water Development Fund, including interest on such moneys.
' (c) Repayments of moneys loaned for the acquisition of
easements and rights of way for federal water development
projects, including interest on such moneys.
' (d) Such moneys as may be appropriated to the fund by the
Legislative Assembly, including appropriations dedicated to the
partial payment for or repayment of projects affording public
benefits.
' (e) Moneys obtained from the sale of refunding bonds and any
accrued interest on such bonds.
' (f) Moneys received from ad valorem taxes levied pursuant to
Article XI-I(1), Oregon Constitution, and all moneys that the
Legislative Assembly may provide in lieu of such taxes.
' (g) Interest earned on cash balances invested by the State
Treasurer.
' (h) Any revenues received by the commission under the
provisions of ORS 541.745.
' (i) Moneys transferred from the Water Development Fund.
' (3) The moneys referred to in subsection (2) of this section
are continuously appropriated to the commission for the purposes
provided in subsection (1) of this section.
' (4) The commission, with the approval of the Governor, may
identify those projects financed under the provisions of ORS
541.700 to 541.855 { - which - } { + or section 25 of this
2009 Act that + } offer significant public benefit, and recommend
to the Legislative Assembly funding of those projects in
proportion to the public benefits offered.
' (5) The commission, with the approval of the State Treasurer,
may transfer moneys from the fund created under subsection (1) of
this section to the Water Development Fund if:
' (a) A cash flow projection shows that the transfer will not
have any negative impact on the commission's ability to pay bond
principal, interest and administration costs;
' (b) The transfer will not create the need for issuance of any
bonds; and
' (c) The transfer, together with loans outstanding from prior
transfers and not refinanced by funds derived directly from a
bond sale, { - shall - } { + does + } not exceed $1.
' (6) The transfer amount authorized by subsection (5) of this
section may be increased by the Emergency Board.
' { + SECTION 13. + } ORS 541.845 is amended to read:
' 541.845. (1) In accordance with the applicable provisions of
ORS chapter 183, the Water Resources Commission may adopt rules
necessary to carry out ORS 541.700 to 541.855.
' (2) In adopting rules establishing guidelines or criteria for
awarding loans or grants for drinking water projects, the
commission shall coordinate the Water Resources Department's
rulemaking process with the Economic and Community Development
Department and the Department of Human Services in order to
ensure that rules adopted under this subsection are consistent
with rules adopted under ORS 285B.563 and 431.120. The rules
adopted under this subsection shall:
' (a) Require the installation of meters on all new active
service connections from any municipal drinking water
distribution lines funded under ORS 285B.560 to 285B.599,
431.120, 541.700, 541.705, { - 541.755, - } 541.765, 541.830
and 541.845; and
' (b) Require a plan, to be adopted by the municipality, for
installation of meters on all service connections throughout the
drinking water system.
' (3) As used in this section, 'service connection' does not
include fire hydrants, fire sprinkler system connections, line
blow-offs and drains, standby emergency interties, valve
controlled drinking fountains and other similar intermittently
used connections.
' { + SECTION 14. + } ORS 541.850 is amended to read:
' 541.850. The Water Resources Commission may accept gifts of
money or other property from any source, given for the purposes
of ORS 541.700 and 541.705 to 541.770 { + or section 25 of this
2009 Act + }. Money so received shall be paid into the Water
Development Fund. Money or other property so received shall be
used for the purposes for which received.
' { + SECTION 15. + } { + ORS 541.755 is repealed. + }
'
{ + WATER INVESTMENT GRANT FUND + }
' { + SECTION 16. + } { + (1) The Water Investment Grant
Fund is established in the State Treasury, separate and distinct
from the General Fund. Interest earned by the Water Investment
Grant Fund shall be credited to the Water Investment Grant Fund.
Moneys in the Water Investment Grant Fund are continuously
appropriated to the Water Resources Department to fund grants
under section 23 of this 2009 Act and to pay the administrative
costs of the department in operating a grant program under
sections 18 to 27 of this 2009 Act.
' (2) The Water Investment Grant Fund consists of the
following:
' (a) Moneys appropriated to the fund by the Legislative
Assembly.
' (b) Any moneys that may be transferred to the fund by the
federal government, a state agency or a local government.
' (c) Any bond proceeds authorized for deposit to the fund.
' (d) Proceeds from grant application fees described in section
19 of this 2009 Act.
' (e) Gifts, grants or donations to the fund. Notwithstanding
subsection (1) of this section, the department may use moneys
received under this paragraph according to any terms and
conditions of the gift, grant or donation.
' (3)(a) Except as provided in paragraph (b) of this
subsection, the department may make a grant for a qualifying
project from the fund to:
' (A) An Indian tribe as defined in ORS 391.802;
' (B) A person as defined in ORS 536.007; or
' (C) A for-profit or nonprofit cooperative.
' (b) The department may not issue a grant from the fund to a
municipality or a provider of water for municipal purposes. + }
'
{ + UMATILLA BASIN PROJECTS + }
{ + + }
' { + SECTION 17. + } { + (1) As used in this section,
'critical ground water storage project' means an underground or
below-ground storage of river water in a critical ground water
area designated under ORS 537.730 for use in:
' (a) Aquifer storage and recovery as described in ORS 537.534
and streamflow augmentation and restoration; or
' (b) Recharging ground water basins and reservoirs as
described in ORS 537.135 and streamflow augmentation and
restoration.
' (2) The Water Resources Department may issue a grant under
this section only for a critical ground water storage project
that is located in the Umatilla Basin and that meets the
conditions described in this section.
' (3) Except as provided in subsection (4) of this section,
notwithstanding ORS 537.534, if the project uses artificial
recharge to recharge an alluvial aquifer that is not confined,
the project must be designed:
' (a) To provide for no more than 75 percent of new stored
water to be withdrawn and for not less than 25 percent of the new
water to be dedicated for the purpose of providing net
environmental public benefits or in-stream benefits; and
' (b) To the extent practicable, to return dedicated new stored
water for stream augmentation at a time of year that the Water
Resources Department, in consultation with the State Department
of Fish and Wildlife and relevant tribal governments, determines
will provide the maximum net environmental public benefit or
in-stream benefit.
' (4) If more than 25 percent of the funding for an aquifer
storage and recovery project is from grants of state moneys and
is not subject to repayment, the project must be designed to
dedicate for the purpose of providing net environmental public
benefit or in-stream benefit a percentage of the new stored water
created by the project that equals or exceeds the percentage of
funding for the project that is from grants of state moneys. The
Water Resources Department shall manage the dedicated increment
of new stored water for net environmental public benefit and
in-stream benefit.
' (5) On or before the earlier of six years after the issuance
of the ground water recharge permit or the date the water right
certificate is issued, the department shall quantify and legally
protect in-stream the increment of new water returned in stream
from a project described in this section.
' (6) The department shall require as a contractual condition
for issuing the grant, and as a condition of any new groundwater
recharge permit or water right certificate issued for the
project, that if the project receives grants or loans from state
moneys other than a grant issued under this section, the project
must be operated in a manner that actually dedicates the
percentage of new stored water for net environmental public
benefit or in-stream benefit that the project was designed to
dedicate for those purposes.
' (7) This section does not limit the authority granted the
Environmental Quality Commission or the Department of
Environmental Quality under ORS chapter 468B.
' (8) This section is repealed January 2, 2030. + }
'
{ + DEFINITIONS + }
' { + SECTION 18. + } { + As used in sections 18 to 27 of
this 2009 Act:
' (1) 'Economic public benefit' means the improvement of
economic conditions that relate to one or more of the following:
' (a) Job creation;
' (b) Encouragement of economic investments;
' (c) Increases in state revenues;
' (d) Protection of public resource lands;
' (e) Increases in the efficiency of state spending; and
' (f) Other activities that enhance economic activity within
the state.
' (2) 'Net environmental public benefit' means the improvement
of ecological conditions, compared with a preproject baseline,
that relate to one or more of the following:
' (a) Water, velocity, temperature, stream flow levels and
other stream flow conditions that provide for critical life
history needs of state or federally listed sensitive, threatened
or endangered fish species and that maintain or enhance
population viability of those species.
' (b) Stream flow conditions that support the life stages of
native fish species or that will allow for the reintroduction of
native fish species.
' (c) Return flows to surface water bodies from aquifer
recharge projects or from other underground water storage
projects, and the in-stream protection for those return flows
designed to have in-stream benefits.
' (d) Protection of peak flows at above-ground and underground
storage projects.
' (e) Protection of ecological flows at above-ground and
underground storage projects.
' (f) Water temperature, dissolved oxygen content and other
water quality conditions, and progress towards the attainment of
water standards that are not being met in the relevant water
body.
' (g) Ground water quality or quantity.
' (h) Aquatic or riparian habitat restoration or enhancement.
' (i) Eliminating nonpoint source pollutant transport.
' (3) 'Secondary use' has the meaning given that term in ORS
541.700.
' (4) 'Social and cultural public benefit' means the
improvement of conditions that relate to one or more of the
following:
' (a) Promoting public health and welfare;
' (b) Recreational use;
' (c) Outdoor schools; and
' (d) Hunting and fishing.
' (5) 'Water conservation' means an undertaking that results
in:
' (a) A decrease in the consumptive use of water;
' (b) An increase in water use efficiency; or
' (c) An increase in water available to meet in-stream needs.
' (6) 'Water development project' means:
' (a) A water development project as defined in ORS 541.700.
' (b) All or part of an undertaking in this state for the
purpose of:
' (A) Water management, measurement, conservation, efficiency,
reuse or storage;
' (B) Streamflow restoration; or
' (C) Benefitting multiple purposes, such as agricultural,
domestic, commercial, recreational, municipal or in-stream
purposes.
' (c) Secondary uses in conjunction with projects described in
paragraph (b) of this subsection. + }
'
{ + APPLICATIONS + }
' { + SECTION 19. + } { + (1) Any person or entity described
in section 16 of this 2009 Act may file an application with the
Water Resources Department for a grant from the Water Investment
Grant Fund to enable the construction of a water development
project located in the Columbia River Basin.
' (2) An application filed under this section must be in a form
prescribed by the Water Resources Commission and include the
following:
' (a) A description of the nature and the primary and secondary
purposes of the project.
' (b) An analysis of the need for the project and for the water
that the project is intended to deliver.
' (c) Identification and description of the project components
sufficient to meet the conditions for project funding approval
under section 23 of this 2009 Act.
' (d) A description of the economic feasibility of the project,
including but not limited to:
' (A) The costs of the project; and
' (B) Information about the financial and other aspects of the
operation and maintenance plans for the project.
' (e) Suggestions for interim and long-term project performance
benchmarks.
' (f) An analysis of the project impacts including, but not
limited to, the:
' (A) Expected economic public benefits.
' (B) Expected social and cultural public benefits.
' (C) Expected net environmental public benefits.
' (g) An evaluation of the potential impact on water quality,
based upon water quality standards.
' (h) Proof that the applicant has acquired at least a final
order or limited license for necessary water permits from the
department.
' (i) Letters of support for the proposed water resource
development project.
' (j) If the project has not previously received state funding,
a statement regarding whether other moneys are available or have
been sought or received for the implementation of the project.
' (k) Information sufficient to demonstrate that the amount of
the requested funding will be matched by the funding from another
source that is not less than a dollar-for-dollar match.
' (L) Any other information required by the department.
' (3) If the project will receive surface water impounded from
a perennial stream, water diverted from a stream that supports
sensitive, threatened or endangered fish, or more than 500
acre-feet of diverted surface water annually, in addition to the
other information required under this section the application
shall include the following completed studies:
' (a) An analysis of by-pass, optimum peak, flushing and other
ecological flows of the affected stream and of the impact of the
project on those flows, that conforms to standards set by the
department in consultation with the State Department of Fish and
Wildlife and other relevant agencies;
' (b) An independent comparative analysis of alternative means
of supplying the water intended to be generated by the project,
including but not limited to the costs and benefits of
conservation, reuse and alternatives and the extent to which
long-term water supply needs may be met using those alternatives;
and
' (c) Evaluation of the need for and feasibility of using
project-derived water to augment in-stream flows to conserve,
maintain and enhance aquatic life, fish life and any other
ecological values.
' (4) If the applicant is an agricultural water supplier, the
applicant must have an approved agriculture water management and
conservation plan, have submitted a completed agricultural water
management and conservation plan to the Water Resources
Department for approval or be in the process of completing or
updating a water management and conservation plan.
' (5) The commission may establish fees for filing applications
for a grant under this section. Moneys from the application fees
established by the commission shall be deposited to the Water
Investment Grant Fund.
' (6) An analysis and evaluation conducted as part of a study
performed pursuant to chapter 13, Oregon Laws 2008, is deemed to
satisfy the requirements of subsection (3) of this section. + }
' { + SECTION 20. + } { + (1) A water developer, as defined
in ORS 541.700, shall file an application for a loan from the
Water Development Fund as provided in this section instead of
under ORS 541.705 if:
' (a) The applicant is not a municipality or a provider of
water for municipal purposes;
' (b) The loan is for the purpose of enabling the construction
of a water development project in the Columbia River Basin; and
' (c) The moneys from which the loan is to be funded were
provided under an appropriation that dedicates the moneys for use
under this section or for loans of a type described in this
subsection made to applicants of a type described in this
subsection.
' (2) An application filed under this section must be in a form
prescribed by the Water Resources Commission and include the
following:
' (a) A description of the nature and the primary and secondary
purposes of the project.
' (b) An analysis of the need for the project and for the water
that the project is intended to deliver.
' (c) Identification and description of the project components
sufficient to meet the conditions for project funding approval
under section 25 of this 2009 Act.
' (d) A description of the economic feasibility of the project,
including but not limited to:
' (A) The costs of the project; and
' (B) Information about the financial and other aspects of the
operation and maintenance plans for the project.
' (e) Suggestions for interim and long-term project performance
benchmarks.
' (f) An analysis of the project impacts including, but not
limited to, the:
' (A) Expected economic public benefits.
' (B) Expected social and cultural public benefits.
' (C) Expected net environmental public benefits.
' (g) An evaluation of the potential impact on water quality,
based upon water quality standards.
' (h) Proof that the applicant has acquired at least a final
order or limited license for necessary water permits from the
department.
' (i) Letters of support for the proposed water resource
development project.
' (j) If the project has not previously received state funding,
a statement regarding whether other moneys are available or have
been sought or received for the implementation of the water
resource development project.
' (k) A description of a loan repayment plan.
' (L) Any other information required by the department.
' (3) Any relevant information described in ORS 541.705 (2)(c)
or (e) or (3).
' (4) If the project will receive surface water impounded from
a perennial stream, water diverted from a stream that supports
sensitive, threatened or endangered fish, or more than 500
acre-feet of diverted surface water annually, in addition to the
other information required under this section the application
shall include the following completed studies:
' (a) An analysis of by-pass, optimum peak, flushing and other
ecological flows of the affected stream and of the impact of the
project on those flows, that conforms to standards set by the
department in consultation with the State Department of Fish and
Wildlife and other relevant agencies;
' (b) An independent comparative analysis of alternative means
of supplying the water intended to be generated by the project,
including but not limited to the costs and benefits of
conservation, reuse and alternatives and the extent to which
long-term water supply needs may be met using those alternatives;
and
' (c) Evaluation of the need for and feasibility of using
project-derived water to augment in-stream flows to conserve,
maintain and enhance aquatic life, fish life and any other
ecological values.
' (5) If the applicant is an agricultural water supplier, the
applicant must have an approved agriculture water management and
conservation plan, have submitted a completed agricultural water
management and conservation plan to the Water Resources
Department for approval or be in the process of completing or
updating a water management and conservation plan.
' (6) An application under this section is subject to
application fees and additional processing costs as described in
ORS 541.710 and loan processing fees under ORS 541.730.
' (7) An analysis and evaluation conducted as part of a study
performed pursuant to chapter 13, Oregon Laws 2008, is deemed to
satisfy the requirements of subsection (4) of this section. + }
' { + SECTION 21. + } { + (1) If an application filed under
section 19 or 20 of this 2009 Act lacks any required information,
the Water Resources Department may reject the application or
require the applicant to submit additional information.
' (2) Upon receipt of a completed application filed under
section 19 or 20 of this 2009 Act, the department shall provide
public notice by posting the application on the department's
website for a 60-day period prior to issuing a loan or grant to
the applicant.
' (3) The department shall provide for the receipt of public
comment on the application during the 60-day period that the
application is posted on the department website, as specified by
the Water Resources Commission by rule.
' (4) The department shall review the application information
filed under section 19 or 20 of this 2009 Act. The department
shall commence the assessment no later than 60 days after
receiving the application.
' (5) The department shall assess each project in consultation
with the State Department of Fish and Wildlife, the State Parks
and Recreation Department the Department of Environmental Quality
and affected tribal governments, and with other interested
parties as appropriate. If a project may affect agricultural use,
the Water Resources Department shall also assess the project in
consultation with the State Department of Agriculture.
' (6) In assessing the net environmental public benefit of the
project, the Water Resources Department shall weigh the project's
various environmental impacts on, and enhancements to, all of the
forms of environmental benefit described in section 18 (2) of
this 2009 Act. + }
' { + SECTION 22. + } { + (1) The Water Resources Commission
shall adopt rules establishing guidelines for the Water Resources
Department's review of applications for a grant filed under
section 19 of this 2009 Act and for the assessment of projects
for which grants are sought. The guidelines shall include:
' (a) Evaluation of the awarding of grants as a financial
incentive to accomplish the goals of the grant program;
' (b) Consideration of the financial needs of applicants and
other special circumstances; and
' (c) Consideration of the economic public benefit, social and
cultural public benefit and net environmental public benefit of
the project.
' (2) The guidelines shall give priority to projects that:
' (a) Recharge aquifers in limited and critical ground water
areas;
' (b) Are designed to deliver the greatest net environmental
public benefit;
' (c) Include in-stream flow restoration components;
' (d) Conserve water; or
' (e) Are water storage projects that provide for stored water
to be used for restoring or augmenting streamflows in a manner
that conserves, maintains and enhances water quality, aquatic
life, fish life or other ecological values.
' (3) The guidelines shall require that the department consider
the following:
' (a) Local support for the project;
' (b) Oregon's in-stream and out-of-stream water needs as
influenced by existing and anticipated climate change;
' (c) The project's potential to facilitate economic
development;
' (d) The projected impact of the project on public health
matters relating to water; and
' (e) Statewide water needs.
' (4) The commission shall adopt rules for use by the Water
Resources Department in assessing the net environmental public
benefits of a project under section 21 of this 2009 Act. The
commission must consult with, and provide a 60-day period for the
receipt of comment from, the State Department of Fish and
Wildlife, the State Parks and Recreation Department, the State
Department of Agriculture and the Department of Environmental
Quality before the commission adopts a rule described in this
subsection. + }
'
{ + LOANS AND GRANTS + }
' { + SECTION 23. + } { + (1) Subject to any additional
qualifications or restrictions under sections 21, 22 or 24 of
this 2009 Act or Water Resources Commission rules, the Water
Resources Department may approve a grant application filed under
section 19 of this 2009 Act if the department finds that:
' (a) The plan for the construction of the proposed project
complies with all applicable provisions related to water well
constructors under ORS 537.747 to 537.765, reservoirs and
diversion dams under ORS 540.340 and dams, dikes and hydraulic
structures or works in ORS 540.350;
' (b) Planned diversions of surface water include provision for
fish screens and, if applicable, volitional fish passage;
' (c) The use of surface water or ground water from the project
will be measured and reported;
' (d) The applicant or beneficiaries of water from the project
measure and report, or have scheduled and financed the
measurement of, all existing water use at the point of diversion;
' (e) There is a reasonable certainty that the project,
considered in total, will deliver a measurable net environmental
public benefit; and
' (f) To the extent applicable, the project complies with
subsection (2) or (3) of this section.
' (2) A water storage project must be designed:
' (a) To provide for no more than 75 percent of new stored
water in the aquifer or above-ground storage location of the
project to be withdrawn for agricultural purposes and for not
less than 25 percent of the new water to be dedicated for the
purpose of providing net environmental public benefits or
in-stream benefits; and
' (b) To the extent practicable, to return dedicated new stored
water for stream augmentation at a time of year that the Water
Resources Department, in consultation with the State Department
of Fish and Wildlife and relevant tribal governments, determines
will provide the maximum net environmental public benefit or
in-stream benefit.
' (3) If more than 25 percent of the funding for a water
storage project is from grants of state moneys and is not subject
to repayment, the project must be designed to dedicate for the
purpose of providing net environmental public benefit or
in-stream benefit a percentage of the new stored water created by
the project that equals or exceeds the percentage of funding for
the project that is from grants of state moneys. The Water
Resources Department shall manage the dedicated increment of new
stored water for net environmental public benefit or in-stream
benefit.
' (4) On or before the earlier of six years after the issuance
of the ground water recharge permit or the date the water right
certificate is issued, the department shall quantify and legally
protect the increment of new water returned in stream from a
project described in this section.
' (5) The department shall require as a contractual condition
for issuing the grant, and as a condition of any new water permit
or water right certificate, that the project be operated in a
manner that actually dedicates the percentage of new stored water
for net environmental public benefit or in-stream benefit that
the project was designed to dedicate for those purposes.
' (6) The department may require that a project protect peak
and ecological flows to the extent determined by the State
Department of Fish and Wildlife to be necessary.
' (7) The commission, by rule, may allow the Water Resources
Department to waive any requirement of this section for the
issuance of a grant, other than the requirement of a measurable
net environmental public benefit, if:
' (a) The grant application requests less than $20,000; or
' (b) The project is a conservation, efficiency, restoration or
reuse project that can be shown to the satisfaction of the
department to cause no harm to the source, any receiving stream,
fish or wildlife or existing water rights.
' (8) This section and sections 19, 21, 22, 24 and 27 of this
2009 Act do not limit the authority granted the Environmental
Quality Commission or the Department of Environmental Quality
under ORS chapter 468B. + }
' { + SECTION 24. + } { + (1) The Water Resources Department
shall ensure that any necessary federal and state environmental
impact approval processes have been completed, and that agencies
have issued any relevant approvals and permits, before the
advancement of any grant moneys for a project described in
section 23 of this 2009 Act. The department shall determine the
amount of a grant from the Water Investment Grant Fund on a
case-by-case basis. The department may not issue a grant under
section 23 of this 2009 Act to provide assistance for operational
or maintenance expenses of a water development project other than
project startup costs.
' (2) The department may issue a grant from the fund only if
the applicant agrees to periodic review of the project, including
but not limited to:
' (a) Review of interim and long-term performance benchmarks
set by the department; and
' (b) Program and fiscal audits to ensure that performance
benchmarks are achieved on project development, project benefits
and return on investment.
' (3) The department may issue a grant from the fund only if
the applicant agrees to report to the department no later than
two years after receiving the grant moneys regarding the progress
of the project and the economic public benefit, social and
cultural public benefit and net environmental public benefit
realized from the project. The department shall provide copies of
the applicant reports received by the department during the
biennium to an interim committee of the Legislative Assembly
dealing with natural resources.
' (4) The Water Resources Commission may establish reasonable
fees for management, oversight or review services that the
department provides for a water development project. The fees
shall be deposited to the Water Investment Grant Fund.
' (5) For a project described in section 23 (2) of this 2009
Act, the commission may require compliance with the conditions
described in section 23 (2) of this 2009 Act as a condition of
any new water permits issued for the project and may monitor
operation of the project to ensure compliance. + }
' { + SECTION 25. + } { + (1) The Water Resources
Department, acting as agent for the Water Resources Commission,
may approve a loan for which an application is filed under
section 20 of this 2009 Act, if the department finds that:
' (a) The loan meets any applicable qualifications or
restrictions under Article XI-I(1) of the Oregon Constitution,
ORS 541.700 to 541.855, section 26 of this 2009 Act, Water
Resources Commission rules and bondholder agreements;
' (b) The plan for the construction of the proposed project
complies with all applicable provisions related to water well
constructors under ORS 537.747 to 537.765, reservoirs and
diversion dams under ORS 540.340 and dams, dikes and hydraulic
structures or works in ORS 540.350;
' (c) Planned diversions of surface water include provision for
fish screens and, if applicable, volitional fish passage;
' (d) The use of surface water or ground water from the project
will be measured and reported;
' (e) The applicant or beneficiaries of water from the project
measure and report, or have scheduled and financed the
measurement of, all existing water use at the point of diversion;
' (f) There is a reasonable certainty that the project will
deliver a measurable net environmental public benefit; and
' (g) The project is designed to deliver in-stream benefits.
' (2) The department may require that a project protect peak
and ecological flows to the extent determined by the State
Department of Fish and Wildlife to be necessary.
' (3) This section and sections 20 and 26 of this 2009 Act do
not limit the authority granted the Environmental Quality
Commission or the Department of Environmental Quality under ORS
chapter 468B. + }
' { + SECTION 26. + } { + (1) The Water Resources Department
shall ensure that any necessary federal and state environmental
impact approval processes have been completed, and that agencies
have issued any relevant approvals and permits, before the
advancement of any loan moneys for a project described in section
25 of this 2009 Act. The department shall determine the amount of
a loan for a project described in section 25 of this 2009 Act on
a case-by-case basis. The department shall determine the maximum
amount of a loan based in part upon a reasonable and prudent
expectation of the ability of the borrower to repay the loan. The
department may not issue a loan to provide assistance for
operational or maintenance expenses of a water development
project other than project startup costs.
' (2) Notwithstanding ORS 541.730, if the Water Resources
Commission, in consultation with the State Treasurer, believes
that the project is unlikely to produce a net profit for the
borrower or for any for-profit entity, the commission may set the
loan interest rate at a level that reduces or waives the amount
of the interest rate set under ORS 541.730 that is in excess of
the interest to be paid to bondholders on the underlying bonds.
' (3) The department may issue a loan only if the applicant
agrees to periodic review of the project, including but not
limited to:
' (a) Review of interim and long-term performance benchmarks
set by the department; and
' (b) Program and fiscal audits to ensure that performance
benchmarks are achieved on project development, project benefits
and return on investment.
' (4) The department may issue a loan only if the applicant
agrees to report to the department no later than two years after
receiving the loan moneys regarding the progress of the project
and the economic public benefit, social and cultural public
benefit and net environmental public benefit realized from the
project. The department shall provide copies of the applicant
reports received by the department during the biennium to an
interim committee of the Legislative Assembly dealing with
natural resources.
' (5) The commission may establish reasonable fees for
management, oversight or review services that the department
provides for a water development project. The fees shall be
deposited to the Water Development Administration and Bond
Sinking Fund. + }
' { + SECTION 27. + } { + Notwithstanding sections 23 and 25
of this 2009 Act, the Water Resources Department may issue a
grant under section 23 of this 2009 Act or a loan under section
25 of this 2009 Act to an agricultural water supplier that fails
to adequately demonstrate water measurement if:
' (1) The water development project otherwise qualifies for
that grant or loan as provided under section 23 or 25 of this
2009 Act; and
' (2) The department finds that:
' (a) The applicant is seeking the grant or loan for the
purpose of implementing water measurement and the department has
approved an implementation plan to ensure that the water
measurement requirement is met; or
' (b) The applicant has secured funding from a source other
than the state that will ensure implementation of water
measurement. + }
' { + SECTION 28. + } { + The Water Resources Commission may
adopt rules the commission considers reasonable for the
administration and enforcement of sections 18 to 27 of this 2009
Act. + }
' { + SECTION 29. + } { + The Water Resources Department
shall report to the Seventy-sixth Legislative Assembly in the
manner provided by ORS 192.245 no later than October 1, 2012,
regarding the operation of the loan and grant programs described
in sections 18 to 27 of this 2009 Act, including but not limited
to:
' (1) The number and types of jobs created by water development
projects receiving loans or grants from the department;
' (2) Any studies conducted by the department or loan or grant
recipients during the 2009-2011 biennium regarding peak and
ecological flows in streams;
' (3) Any recommendations by the department for legislative
changes to improve the operation of the loan and grant programs;
' (4) Any recommendations for changes to Article XI-I(1) of the
Oregon Constitution to be referred to the people;
' (5) The total economic public benefit, social and cultural
public benefit and net environmental public benefit created as a
result of loans and grants issued under sections 23 and 25 of
this 2009 Act;
' (6) An analysis of the effect of the requirement imposed
under section 23 (2) of this 2009 Act;
' (7) Estimated increases in state tax revenues generated by
projects receiving grants or loans;
' (8) The gross dollar value of issued loans, the amount of
loan reserves and the increase the Water Development Fund
attributable to the interest rate amount described in ORS 541.730
(3)(e); and
' (9) Moneys generated from fees under sections 19, 20, 24 and
26 of this 2009 Act. + }
'
{ + TRANSITIONAL PROVISIONS + }
' { + SECTION 30. + } Section 23 of this 2009 Act is amended
to read:
' { + Sec. 23. + } (1) Subject to any additional
qualifications or restrictions under sections 21, 22 or 24 of
this 2009 Act or Water Resources Commission rules, the Water
Resources Department may approve a grant application filed under
section 19 of this 2009 Act if the department finds that:
' (a) The plan for the construction of the proposed project
complies with all applicable provisions related to water well
constructors under ORS 537.747 to 537.765, reservoirs and
diversion dams under ORS 540.340 and dams, dikes and hydraulic
structures or works in ORS 540.350;
' (b) Planned diversions of surface water include provision for
fish screens and, if applicable, volitional fish passage;
' (c) The use of surface water or ground water from the project
will be measured and reported;
' (d) The applicant or beneficiaries of water from the project
measure and report, or have scheduled and financed the
measurement of, all existing water use at the point of diversion;
' (e) There is a reasonable certainty that the project,
considered in total, will deliver a measurable net environmental
public benefit; and
' (f) To the extent applicable, the project complies with
subsection (2) or (3) of this section.
' (2) A water storage project must be designed:
' (a) To provide for no more than 75 percent of new stored
water in the aquifer or above-ground storage location of the
project to be withdrawn for agricultural purposes and for not
less than 25 percent of the new water to be dedicated for the
purpose of providing net environmental public benefits or
in-stream benefits; and
' (b) To the extent practicable, to return dedicated new stored
water for stream augmentation at a time of year that the Water
Resources Department, in consultation with the State Department
of Fish and Wildlife and relevant tribal governments, determines
will provide the maximum net environmental public benefit or
in-stream benefit.
' (3) If more than 25 percent of the funding for a water
storage project is from grants of state moneys and is not subject
to repayment, the project must be designed to dedicate for the
purpose of providing net environmental public benefit or
in-stream benefit a percentage of the new stored water created by
the project that equals or exceeds the percentage of funding for
the project that is from grants of state moneys. The Water
Resources Department shall manage the dedicated increment of new
stored water for net environmental public benefit or in-stream
benefit.
' (4) On or before the earlier of six years after the issuance
of the ground water recharge permit or the date the water right
certificate is issued, the department shall quantify and legally
protect the increment of new water returned in stream from a
project described in this section.
' (5) The department shall require as a contractual condition
for issuing the grant, and as a condition of any new water permit
or water right certificate, that if the project receives grants
or loans from state moneys other than a grant issued under this
section, the project must be operated in a manner that actually
dedicates the percentage of new stored water for net
environmental public benefit or in-stream benefit that the
project was designed to dedicate for those purposes.
' (6) The department { - may - } { + shall + } require that
a project protect peak and ecological flows to the extent
determined by the State Department of Fish and Wildlife to be
necessary.
' (7) The commission, by rule, may allow the Water Resources
Department to waive any requirement of this section for the
issuance of a grant, other than the requirement of a measurable
net environmental public benefit, if:
' (a) The grant application requests less than $20,000; or
' (b) The project is a conservation, efficiency, restoration or
reuse project that can be shown to the satisfaction of the
department to cause no harm to the source, any receiving stream,
fish or wildlife or existing water rights.
' (8) This section and sections 19, 21, 22, 24 and 27 of this
2009 Act do not limit the authority granted the Environmental
Quality Commission or the Department of Environmental Quality
under ORS chapter 468B.
' { + SECTION 31. + } Section 25 of this 2009 Act is amended
to read:
' { + Sec. 25. + } (1) The Water Resources Department, acting
as agent for the Water Resources Commission, may approve a loan
for which an application is filed under section 20 of this 2009
Act, if the department finds that:
' (a) The loan meets any applicable qualifications or
restrictions under Article XI-I(1) of the Oregon Constitution,
ORS 541.700 to 541.855, section 26 of this 2009 Act, Water
Resources Commission rules and bondholder agreements;
' (b) The plan for the construction of the proposed project
complies with all applicable provisions related to water well
constructors under ORS 537.747 to 537.765, reservoirs and
diversion dams under ORS 540.340 and dams, dikes and hydraulic
structures or works in ORS 540.350;
' (c) Planned diversions of surface water include provision for
fish screens and, if applicable, volitional fish passage;
' (d) The use of surface water or ground water from the project
will be measured and reported;
' (e) The applicant or beneficiaries of water from the project
measure and report, or have scheduled and financed the
measurement of, all existing water use at the point of diversion;
' (f) There is a reasonable certainty that the project will
deliver a measurable net environmental public benefit; and
' (g) The project is designed to deliver in-stream benefits.
' (2) The department { - may - } { + shall + } require that
a project protect peak and ecological flows to the extent
determined by the State Department of Fish and Wildlife to be
necessary.
' (3) This section and sections 20 and 26 of this 2009 Act do
not limit the authority granted the Environmental Quality
Commission or the Department of Environmental Quality under ORS
chapter 468B.
' { + SECTION 32. + } { + The amendments to sections 23 and
25 of this 2009 Act by sections 30 and 31 of this 2009 Act become
operative January 2, 2012. + }
' { + SECTION 33. + } { + (1) Notwithstanding sections 19
and 21 to 23 of this 2009 Act, but subject to section 24 of this
2009 Act, the Water Resources Department shall waive the grant
application process described in sections 19 and 21 to 23 of this
2009 Act when issuing a grant for water development projects
that:
' (a) Are located in an area of the Umatilla Basin for which an
assessment has been performed under chapter 13, Oregon Laws 2008;
and
' (b) Except as provided in subsection (2) of this section, are
designed:
' (A) To provide for no more than 75 percent of new stored
water to be withdrawn and for not less than 25 percent of the new
water to be dedicated for the purpose of providing net
environmental public benefits or in-stream benefits; and
' (B) To the extent practicable, to return dedicated new stored
water for stream augmentation at a time of year that the Water
Resources Department, in consultation with the State Department
of Fish and Wildlife and relevant tribal governments, determines
will provide the maximum net environmental public benefit or
in-stream benefit.
' (2) If more than 25 percent of the funding for an aquifer
storage and recovery project is from grants of state moneys and
is not subject to repayment, the project must be designed to
dedicate for the purpose of providing net environmental public
benefit or in-stream benefit a percentage of the new stored water
created by the project that equals or exceeds the percentage of
funding for the project that is from grants of state moneys. The
Water Resources Department shall manage the dedicated increment
of new stored water for net environmental public benefit and
in-stream benefit.
' (3) This section does not limit the authority granted the
Environmental Quality Commission or the Department of
Environmental Quality under ORS chapter 468B.
' (4) This section is repealed January 2, 2030. + }
' { + SECTION 34. + } { + Sections 20, 25 and 26 of this
2009 Act are repealed January 2, 2024. The repeal of sections 20,
25 and 26 of this 2009 Act by this section does not alter the
terms of any loan, contract or other agreement issued under
section 20, 25 or 26 of this 2009 Act or alter the conditions of
any water permit or water right certificate that contains
conditions that are based upon sections 20, 25 or 26 of this 2009
Act. + }
' { + SECTION 35. + } ORS 541.705, as amended by section 4 of
this 2009 Act, is amended to read:
' 541.705. (1) { - Except as provided in section 20 of this
2009 Act for a water development project in the Columbia River
Basin, - } Any water developer may file with the Water Resources
Commission an application to enable the construction of a water
development project as provided in ORS 541.700 to 541.855. The
application shall be filed in the manner, be in the form and
contain or be accompanied by any information prescribed by the
commission. The commission, in considering applications, shall
encourage the largest number of users of the Water Development
Fund and shall consider the impact on the family farm units of
the state.
' (2) In addition to other requirements prescribed by the
commission, an application filed under subsection (1) of this
section shall:
' (a) Describe the nature and purposes of the proposed water
development project, including the need for the project and
reason why the project would be in the public interest.
' (b) State whether any purposes other than improvement of a
drinking water system, irrigation, drainage, fish protection,
watershed enhancement or municipal use, but consistent therewith,
will be served by the proposed water development project, and the
nature of the other purposes, if any.
' (c) Set forth or be accompanied by a feasibility study for
the construction, operation and maintenance of the proposed water
development project, an estimate of the costs of construction and
if the project includes as a primary purpose irrigation or
drainage, an evaluation of the agricultural potential of the land
from any competent public agency.
' (d) State whether any moneys other than those in the Water
Development Fund are proposed to be used for the construction of
the proposed water development project, and whether any other
moneys are available or have been sought for the construction.
' (e) Show that the applicant holds or can acquire all lands,
other than public lands, and interests therein and water rights
necessary for the construction, operation and maintenance of the
proposed water development project.
' (3) If the application is for a safe drinking water project,
the applicant also shall demonstrate that:
' (a) The applicant is a city, county, district, water
authority or other political subdivision of the state or an
organization operated on a not-for-profit basis that makes
drinking water available to members of the general public;
' (b) The primary use of the loan will be to improve a drinking
water system for the purpose of complying with applicable state
or federal drinking water quality regulations; and
' (c) The applicant has:
' (A) Developed a water system master plan; and
' (B) Either has a coordination agreement in place as defined
in ORS 195.020, 195.025 and 197.712 or can demonstrate that
options to find a coordinated solution to the system's drinking
water problems have been fully explored.
' { + SECTION 36. + } ORS 541.710, as amended by section 5 of
this 2009 Act, is amended to read:
' 541.710. (1) Upon receipt of an application filed as provided
in ORS 541.705, the Water Resources Commission shall determine
whether the feasibility study described in ORS 541.705 for the
water development project set forth in or accompanying the
application is satisfactory and if the commission determines that
it is not satisfactory, the commission may:
' (a) Reject the application;
' (b) Require the applicant to submit additional information
and revision of the feasibility study as may be necessary; or
' (c) Make such revisions of the feasibility study as the
commission considers necessary to make the plan satisfactory.
' (2) Except as provided in subsection (3) of this section,
{ - for a loan application filed under ORS 541.705 or section
20 of this 2009 Act, - } the commission shall charge and collect
from the applicant at the time the application is filed an
application fee equal to the lesser of 0.10 percent of the loan
applied for or $2,500. In addition, the commission may require
the applicant to pay for costs that exceed the application fee if
the Water Resources Director determines that the costs are
incurred solely in connection with processing the application.
Before incurring the additional costs, the commission shall
advise the applicant of the additional costs to be paid by the
applicant. Moneys referred to in this subsection shall be paid
into the Water Development Administration and Bond Sinking Fund.
' (3) The commission may establish a reduced application fee by
rule for a water development project that is for fish protection
or for watershed enhancement.
' { + SECTION 37. + } ORS 541.720, as amended by section 6 of
this 2009 Act, is amended to read:
' 541.720. (1) The Water Resources Commission may approve the
financing for the construction of a water development project
described in an application filed under ORS 541.705, { - or
subject to section 25 of this 2009 Act in an application filed
under section 20 of this 2009 Act, - } using moneys in the Water
Development Fund secured by a first lien or by other good and
sufficient collateral in the manner provided in ORS 541.740 if,
after investigation, the commission finds that:
' (a) The proposed water development project is feasible and a
reasonable risk from practical and economic standpoints;
' (b) The plan for the construction, operation and maintenance
of the proposed water development project is satisfactory and, if
the primary purposes of the project include irrigation or
drainage, the agricultural potential is confirmed;
' (c) The plan for construction and operation will provide
multipurpose facilities, to the extent practicable;
' (d) The applicant is a qualified, credit-worthy and
responsible water developer that meets the standards established
by commission rule and is willing and able to enter into a
contract with the commission for construction and repayment as
provided in ORS 541.730;
' (e) Moneys in the Water Development Fund are or will be
available for the construction of the proposed water development
project;
' (f) There is a need for the proposed water development
project, the proposed project is in the public interest and the
applicant's financial resources are adequate to provide the
working capital needed to operate and maintain the project; and
' (g) The construction cost associated with any secondary use
does not exceed the construction cost of the primary use of the
water development project.
' (2) ORS 541.700 to 541.855 do not limit the authority granted
the Environmental Quality Commission or the Department of
Environmental Quality under ORS chapter 468B.
' { + SECTION 38. + } ORS 541.765, as amended by section 9 of
this 2009 Act, is amended to read:
' 541.765. In addition to those uses of moneys in the Water
Development Fund otherwise provided in ORS 541.700 to 541.855
{ - or section 25 of this 2009 Act - } , the Water Resources
Commission may authorize loans of such moneys to those persons to
whom approval has been granted by the federal government or any
agency or instrumentality of the United States for the funding
and construction of federal water development projects. Any such
person shall apply for a loan to the commission, in such form as
the commission prescribes, and shall furnish such proof of
federal approval for funding and construction as the commission
considers appropriate.
' { + SECTION 39. + } ORS 541.785, as amended by section 11
of this 2009 Act, is amended to read:
' 541.785. Except for the proceeds of refunding bonds, all
moneys obtained from the sale of bonds under ORS 541.780 to
541.815 shall be credited by the State Treasurer to the Water
Development Fund. Such moneys shall be used only for the purposes
stated in Article XI-I (1), Oregon Constitution, and ORS 541.700,
541.705 to 541.770 and 541.835 { - and sections 25 and 26 of
this 2009 Act - } . If there are insufficient funds in the Water
Development Administration and Bond Sinking Fund to make the
payments set forth in ORS 541.830, moneys in the Water
Development Fund may be transferred to the Water Development
Administration and Bond Sinking Fund. Pending the use of moneys
in the Water Development Fund for the proper purposes, such
moneys may be invested in the manner provided by law.
' { + SECTION 40. + } ORS 541.830, as amended by section 12
of this 2009 Act, is amended to read:
' 541.830. (1) There hereby is created the Water Development
Administration and Bond Sinking Fund, separate and distinct from
the General Fund, to provide for payment of:
' (a) Administrative expenses of the Water Resources Commission
and the Water Resources Department in processing applications,
investigating proposed water development projects and federal
water development projects under ORS 541.700 to 541.855 and
servicing and collecting outstanding loans made under ORS 541.700
to 541.855 { - or section 25 of this 2009 Act - } , if the
expense is not paid directly by the applicant, including
principal and interest due on bonds outstanding. These
administrative expenses also may include all costs associated
with the issuance of bonds and the funding of any credit
enhancements or reserves determined to be necessary or
advantageous in connection with the bonds.
' (b) Administrative expenses of the State Treasurer in
carrying out the duties, functions and powers imposed upon the
State Treasurer by ORS 541.700 to 541.855.
' (c) Principal and interest of all bonds issued pursuant to
the provisions of ORS 541.780 to 541.815.
' (2) The fund created by subsection (1) of this section shall
consist of:
' (a) Application fees and additional processing costs paid
under ORS 541.710 and loan processing fees under ORS 541.730.
' (b) Repayments of moneys loaned to water developers from the
Water Development Fund, including interest on such moneys.
' (c) Repayments of moneys loaned for the acquisition of
easements and rights of way for federal water development
projects, including interest on such moneys.
' (d) Such moneys as may be appropriated to the fund by the
Legislative Assembly, including appropriations dedicated to the
partial payment for or repayment of projects affording public
benefits.
' (e) Moneys obtained from the sale of refunding bonds and any
accrued interest on such bonds.
' (f) Moneys received from ad valorem taxes levied pursuant to
Article XI-I(1), Oregon Constitution, and all moneys that the
Legislative Assembly may provide in lieu of such taxes.
' (g) Interest earned on cash balances invested by the State
Treasurer.
' (h) Any revenues received by the commission under the
provisions of ORS 541.745.
' (i) Moneys transferred from the Water Development Fund.
' (3) The moneys referred to in subsection (2) of this section
are continuously appropriated to the commission for the purposes
provided in subsection (1) of this section.
' (4) The commission, with the approval of the Governor, may
identify those projects financed under the provisions of ORS
541.700 to 541.855 { - or section 25 of this 2009 Act - } that
offer significant public benefit, and recommend to the
Legislative Assembly funding of those projects in proportion to
the public benefits offered.
' (5) The commission, with the approval of the State Treasurer,
may transfer moneys from the fund created under subsection (1) of
this section to the Water Development Fund if:
' (a) A cash flow projection shows that the transfer will not
have any negative impact on the commission's ability to pay bond
principal, interest and administration costs;
' (b) The transfer will not create the need for issuance of any
bonds; and
' (c) The transfer, together with loans outstanding from prior
transfers and not refinanced by funds derived directly from a
bond sale, does not exceed $1.
' (6) The transfer amount authorized by subsection (5) of this
section may be increased by the Emergency Board.
' { + SECTION 41. + } ORS 541.850, as amended by section 14
of this 2009 Act, is amended to read:
' 541.850. The Water Resources Commission may accept gifts of
money or other property from any source, given for the purposes
of ORS 541.700 and 541.705 to 541.770 { - or section 25 of this
2009 Act - } . Money so received shall be paid into the Water
Development Fund. Money or other property so received shall be
used for the purposes for which received.
' { + SECTION 42. + } Section 21 of this 2009 Act is amended
to read:
' { + Sec. 21. + } (1) If an application filed under section
19 { - or 20 - } of this 2009 Act lacks any required
information, the Water Resources Department may reject the
application or require the applicant to submit additional
information.
' (2) Upon receipt of a completed application filed under
section 19 { - or 20 - } of this 2009 Act, the department
shall provide public notice by posting the application on the
department's website for a 60-day period prior to issuing a
{ - loan or - } grant to the applicant.
' (3) The department shall provide for the receipt of public
comment on the application during the 60-day period that the
application is posted on the department website, as specified by
the Water Resources Commission by rule.
' (4) The department shall review the application information
filed under section 19 { - or 20 - } of this 2009 Act. The
department shall commence the assessment no later than 60 days
after receiving the application.
' (5) The department shall assess each project in consultation
with the State Department of Fish and Wildlife, the State Parks
and Recreation Department the Department of Environmental Quality
and affected tribal governments, and with other interested
parties as appropriate. If a project may affect agricultural use,
the Water Resources Department shall also assess the project in
consultation with the State Department of Agriculture.
' (6) In assessing the net environmental public benefit of the
project, the Water Resources Department shall weigh the project's
various environmental impacts on, and enhancements to, all of the
forms of environmental benefit described in section 18 (2) of
this 2009 Act.
' { + SECTION 43. + } Section 27 of this 2009 Act is amended
to read:
' { + Sec. 27. + } Notwithstanding { - sections 23 and
25 - } { + section 23 + } of this 2009 Act, the Water Resources
Department may issue a grant under section 23 of this 2009 Act
{ - or a loan under section 25 of this 2009 Act - } to an
agricultural water supplier that fails to adequately demonstrate
water measurement if:
' (1) The water development project otherwise qualifies for
that grant { - or loan - } as provided under section 23
{ - or 25 - } of this 2009 Act; and
' (2) The department finds that:
' (a) The applicant is seeking the grant { - or loan - } for
the purpose of implementing water measurement and the department
has approved an implementation plan to ensure that the water
measurement requirement is met; or
' (b) The applicant has secured funding from a source other
than the state that will ensure implementation of water
measurement.
'
{ + INTEGRATED WATER RESOURCES STRATEGY + }
' { + SECTION 44. + } ORS 536.220 is amended to read:
' 536.220. (1) The Legislative Assembly recognizes and declares
that:
' (a) The maintenance of the present level of the economic and
general welfare of the people of this state and the future growth
and development of this state for the increased economic and
general welfare of the people thereof are in large part dependent
upon a proper utilization and control of the water resources of
this state, and such use and control is therefore a matter of
greatest concern and highest priority.
' (b) A proper utilization and control of the water resources
of this state can be achieved only through a coordinated,
integrated state water resources policy, through plans and
programs for the development of such water resources and through
other activities designed to encourage, promote and secure the
maximum beneficial use and control of such water resources, all
carried out by a single state agency.
' (c) The economic and general welfare of the people of this
state have been seriously impaired and are in danger of further
impairment by the exercise of some single-purpose power or
influence over the water resources of this state or portions
thereof by each of a large number of public authorities, and by
an equally large number of legislative declarations by statute of
single-purpose policies with regard to such water resources,
resulting in friction and duplication of activity among such
public authorities, in confusion as to what is primary and what
is secondary beneficial use or control of such water resources
and in a consequent failure to utilize and control such water
resources for multiple purposes for the maximum beneficial use
and control possible and necessary.
' (2) The Legislative Assembly, therefore, finds that:
' (a) It is in the interest of the public welfare that a
coordinated, integrated state water resources policy be
formulated and means provided for its enforcement, that plans and
programs for the development and enlargement of the water
resources of this state be devised and promoted and that other
activities designed to encourage, promote and secure the maximum
beneficial use and control of such water resources and the
development of additional water supplies be carried out by a
single state agency which, in carrying out its functions, shall
give proper and adequate consideration to the multiple aspects of
the beneficial use and control of such water resources with an
impartiality of interest except that designed to best protect and
promote the public welfare generally.
' (b) The state water resources policy shall be consistent with
the goal set forth in ORS 468B.155.
' { + (3)(a) The Water Resources Department shall develop an
integrated state water resources strategy to implement the state
water resources policy specified in subsection (2) of this
section. The department shall design the strategy to meet
Oregon's in-stream and out-of-stream water needs.
' (b) The Water Resources Department shall work in close
cooperation with the Department of Environmental Quality and the
State Department of Fish and Wildlife to develop the integrated
state water resources strategy in consultation with other state,
local and federal agencies, with other states, with Indian
tribes, with stakeholders and with the public.
' (c) The Water Resources Department, in close cooperation with
the Department of Environmental Quality and the State Department
of Fish and Wildlife, shall develop data on an ongoing basis to
forecast Oregon's in-stream and out-of-stream water needs,
including but not limited to in-stream, underground water, human
consumption and water supply needs, for the purpose of developing
and updating the integrated state water resources strategy.
' (d) The integrated water resources strategy shall describe
the following:
' (A) Oregon's in-stream and out-of-stream water needs,
including but not limited to ecosystem services, water quality
and water supply needs.
' (B) Objectives of the strategy.
' (C) Actions that are designed to achieve the objectives of
the strategy.
' (D) Plans related to the challenges presented by climate
change.
' (E) Provisions to ensure communication and partnership with
key stakeholders.
' (F) Specific functions and roles to be played by state
agencies, including but not limited to the State Department of
Agriculture, the State Forestry Department, the Department of
Human Services, the Economic and Community Development
Department, the Department of Land Conservation and Development,
the Oregon Watershed Enhancement Board, the State Parks and
Recreation Department, the Department of State Lands and other
relevant state agencies.
' (G) Public policy options and recommendations.
' (H) Relevant strategy factors, including but not limited to
population growth and land use change.
' (I) Recommendations of the Water Resources Department
regarding the continuous monitoring of climate change effects on
Oregon's water supply and regarding water user actions that are
necessary to address climate change.
' (e)(A) The Water Resources Commission shall give the
Environmental Quality Commission, the State Department of
Agriculture and the State Department of Fish and Wildlife notice
of the integrated state water resources strategy prior to
adoption of the strategy. The strategy shall take effect upon
adoption by the Water Resources Commission.
' (B) The Water Resources Commission shall review and update
the integrated state water resources strategy every five years.
The Water Resources Commission shall give notice to the
Environmental Quality Commission, the State Department of
Agriculture and the State Department of Fish and Wildlife prior
to adopting any revisions of the strategy. Revisions of the
strategy shall take effect upon the Water Resources Commission's
adoption of the revised strategy by reference in rule.
' (4) This section does not limit the authority granted the
Environmental Quality Commission or the Department of
Environmental Quality under ORS chapter 468B. + }
' { + SECTION 45. + } { + (1) The Water Resources Department
shall, working in close cooperation with the Department of
Environmental Quality, the State Department of Agriculture and
the State Department of Fish and Wildlife, submit a report by
February 1, 2011, to the Seventy-sixth Legislative Assembly, in
the manner provided in ORS 192.245, detailing benchmarks and
progress toward the development of the integrated state water
resources strategy. The report must include a discussion of
whether the Water Resources Department expects to complete
development of the strategy by December 31, 2012.
' (2) As part of the report specified in subsection (1) of this
section, the Water Resources Department, working in close
cooperation with the Department of Environmental Quality, the
State Department of Fish and Wildlife and other state agencies,
may identify legislative amendments and submit budget
recommendations, including but not limited to requests for a
long-term, dedicated funding source to implement the integrated
state water resources strategy. + }
'
{ + APPLICABILITY + }
' { + SECTION 46. + } { + (1) Sections 18 to 27 of this 2009
Act and the amendments to ORS 541.700, 541.705, 541.710, 541.720,
541.730, 541.740, 541.765, 541.770, 541.785, 541.830, 541.845 and
541.850 by sections 3 to 14 of this 2009 Act apply to loans from
the Water Development Fund for which an application is filed on
or after April 1, 2010.
' (2) The repeal of ORS 541.755 by section 15 of this 2009 Act
becomes operative April 1, 2010.
' (3) The amendments to ORS 541.705, 541.710, 541.720, 541.765,
541.785, 541.830 and 541.850 and sections 21 and 27 of this 2009
Act by sections 35 to 43 of this 2009 Act become operative
January 2, 2024. + }
'
{ + CAPTIONS + }
' { + SECTION 47. + } { + The unit captions used in this
2009 Act are provided only for the convenience of the reader and
do not become part of the statutory law of this state or express
any legislative intent in the enactment of this 2009 Act. + }
'
{ + EMERGENCY + }
' { + SECTION 48. + } { + This 2009 Act being necessary for
the immediate preservation of the public peace, health and
safety, an emergency is declared to exist, and this 2009 Act
takes effect July 1, 2009. + } ' .
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