Chapter 1026 Oregon Laws 1999

Session Law

AN ACT

HB 3225

Relating to management of natural resources; creating new provisions; amending ORS 171.553, 496.009, 536.009, 541.355, 541.360, 541.370, 541.375, 541.380, 541.392, 541.397, 541.399, 541.405, 541.407, 541.409 and 541.413; repealing ORS 541.345, 541.347, 541.350, 541.382 and 541.403 and section 175, chapter 59, Oregon Laws 1999 (Enrolled Senate Bill 564); appropriating money; and declaring an emergency.

Be It Enacted by the People of the State of Oregon:

SECTION 1. ORS 541.350 is repealed and section 2 of this 1999 Act is enacted in lieu thereof.

SECTION 2. As used in ORS 541.350 to 541.403:

(1) "Adaptive management" means applying management or practices over time and across the landscape to achieve site specific resource goals using an integrated and science based approach that results in changes over time in response to feedback or monitoring.

(2) "Associated uplands" includes those lands of a watershed that are critical to the functioning and protection of a riparian area.

(3) "Board" means the Oregon Watershed Enhancement Board created under ORS 541.360.

(4) "Capital expenditures" means direct expenses related to:

(a) Personal property of a nonexpendable nature including items that are not consumed in the normal course of operations, can normally be used more than once, have a useful life of more than two years and are for use in the enforcement of fish and wildlife and habitat protection laws and regulations; or

(b) Projects that restore, enhance or protect fish and wildlife habitat, watershed functions, native salmonid populations or water quality, including but not limited to:

(A) Expenses of assessment, research, design or other technical requirements for the implementation of a project;

(B) The acquisition of determinate interests, including fee and less than fee interests, in land or water in order to protect watershed resources, including appraisal costs and other costs directly related to such acquisitions;

(C) Development, construction or implementation of a project to restore, enhance or protect water quality, a watershed, fish or wildlife, or riparian or other habitat;

(D) Technical support directly related to the implementation of a project; and

(E) Monitoring or evaluation activities necessary to determine the actual effectiveness of a project.

(5) "Independent Multidisciplinary Science Team" means the scientific team of recognized experts in fisheries, artificial propagation, stream ecology, forestry, range, watershed and agricultural management created under ORS 541.409.

(6) "Native" means indigenous to Oregon and not introduced.

(7) "Oregon Plan" means the guidance statement and framework described in ORS 541.405.

(8) "Protect" or "protection" means to minimize or mitigate adverse effects on salmonid and habitat to the maximum extent practicable given the anticipated duration, geographic scope and primary purpose of proposed activities.

(9) "Restore" or "restoration" means to take actions likely to achieve sustainable population levels of native fish or wildlife and their habitats.

(10) "Riparian area" means a zone of transition from an aquatic ecosystem to a terrestrial ecosystem, dependent upon surface or subsurface water, that reveals through the zone's existing or potential soil-vegetation complex the influence of such surface or subsurface water. A riparian area may be located adjacent to a lake, reservoir, estuary, pothole, spring, bog, wet meadow, muskeg or ephemeral, intermittent or perennial stream.

(11) "Soil and water conservation district" means a political subdivision of the state as described in ORS 568.550.

(12) "Stewardship" means the careful and responsible management of the environment.

(13) "Tribe" means a federally recognized Indian tribe in Oregon.

(14) "Watershed" means the entire land area drained by a stream or system of connected streams such that all stream flow originating in the area is discharged through a single outlet.

(15) "Watershed council" means a voluntary local organization, designated by a local government group convened by a county governing body, to address the goal of sustaining natural resource and watershed protection, restoration and enhancement within a watershed.

SECTION 3. ORS 541.347 is repealed and section 4 of this 1999 Act is enacted in lieu thereof.

SECTION 4. (1) The Legislative Assembly finds that:

(a) The long-term protection of the water resources of this state, including sustainable watershed functions, is an essential component of Oregon's environmental and economic stability and growth;

(b) Each watershed in Oregon is unique, requiring different management techniques and programs;

(c) Management techniques and programs for the protection and enhancement of watersheds can be most effective and efficient when voluntarily initiated at the local level;

(d) Cooperative partnerships between affected private individuals, interested citizens, tribes and representatives of local, state and federal agencies may improve opportunities to achieve the protection, enhancement and restoration of the state's watersheds; and

(e) The establishment of such cooperative partnerships should be encouraged by local individuals, local organizations and representatives of state agencies.

(2) The Legislative Assembly declares that the Oregon Plan for integrating regulatory efforts while fostering incentives and voluntary action for environmental stewardship should be founded upon the following principles:

(a) Promoting collaboration and partnerships among local, state, regional, tribal and federal governments and private individuals and organizations;

(b) Establishing clear, technically defensible, practicable and achievable recovery and restoration objectives;

(c) Assessing the conditions in each watershed to determine the quality of the existing environment, to identify the causes for declines in habitat, fish and wildlife populations and water quality, and to assist with the development of locally integrated action plans for watersheds that will achieve agreed-upon protection and restoration objectives;

(d) Coordinating implementation of integrated watershed action plans;

(e) Monitoring and ensuring implementation of the integrated watershed action plans using adaptive management to make appropriate changes in action plans and goals as needed; and

(f) Establishing funding priorities across basins based on the value of programs and projects for watershed and habitat recovery.

(3) It is the policy of the State of Oregon that:

(a) Voluntary programs initiated at the local level to protect and enhance the quality and stability of watersheds are a high priority of the state and should be encouraged;

(b) State agencies are encouraged to respond cooperatively to local watershed protection and enhancement efforts and coordinate their respective activities with other state agencies and affected local, regional, tribal and federal governments and private landowners to the greatest degree practicable; and

(c) State agencies responding to local watershed protection and enhancement efforts are encouraged to foster local watershed planning, protection and enhancement efforts before initiating respective action within a watershed.

SECTION 5. ORS 541.405 is amended to read:

541.405. (1) The Legislative Assembly finds that the efforts of many Oregonians have resulted in the creation of the "Oregon Plan," and recognizes that the Oregon Plan:

[(1)] (a) Includes programs and activities [described in the document entitled "Oregon's Coastal Salmon Restoration Initiative," dated February 24, 1997, which represents a framework of programs] identified to address a coordinated approach for the recovery of native salmon populations within Oregon;

[(2)] (b) Includes the guidance statement and framework provided by the healthy streams partnership developed to provide cooperative solutions and voluntary approaches to improving the water quality of our streams and [achieving] to achieve healthy streams throughout Oregon; and

[(3)] (c) Is subject to modification and alteration to enhance program efforts consistent with appropriate guidance principles developed by the Legislative Assembly and oversight as set forth in ORS 171.551 and 171.553.

(2) The purpose of the Oregon Plan is to enhance, restore and protect Oregon's native salmonid populations, watersheds, fish and wildlife habitat and water quality, while sustaining a healthy economy.

(3) The Oregon Plan shall:

(a) Provide for coordination of local, state, federal and tribal agency responsibilities and authorities for native salmonid, watershed and habitat restoration throughout Oregon.

(b) Rely on watershed councils and soil and water conservation districts, which are encouraged to cooperate in the development of local watershed plans that assess watershed conditions and create watershed action plans and strategies for the implementation of the local watershed action plans.

(c) Focus state policies and resources on achieving native salmonid recovery and watershed restoration while sustaining a healthy economy and environment.

SECTION 6. In cooperation with other state, interstate and federal agencies, tribes, local governments, watershed councils, soil and water conservation districts, not-for-profit organizations and volunteer groups, the Oregon Watershed Enhancement Board shall facilitate the implementation of the grant programs established under ORS 541.350 to 541.403.

SECTION 7. (1) There is established in the State Treasury, separate and distinct from the General Fund, the Parks and Natural Resources Fund to be administered by the Oregon Department of Administrative Services. All moneys transferred from the State Lottery Fund and all other moneys authorized to be transferred to the Parks and Natural Resources Fund from whatever source are appropriated continuously for the public purposes of restoring and protecting Oregon's parks, beaches, watersheds and critical fish and wildlife habitats. Fifteen percent of the net proceeds from the Oregon State Lottery shall be deposited in the Parks and Natural Resources Fund created under this subsection.

(2) Of the moneys deposited into the Parks and Natural Resources Fund from the Oregon State Lottery, 50 percent shall be deposited into a Parks Subaccount for the public purpose of financing the protection, repair, operation, creation and development of state parks, ocean shores, public beach access areas, historic sites and recreation areas. The State Treasurer may invest and reinvest the moneys in the Parks Subaccount as provided in ORS 293.701 to 293.820. Interest from the moneys deposited in the subaccount and earnings from investment of the moneys in the subaccount shall be credited to the subaccount.

(3) All moneys in the Parks Subaccount for financing the protection, repair, operation, creation and development of state parks, ocean shores, public beach access areas, historic sites and recreation areas shall be allocated to the State Parks and Recreation Department. Such moneys shall be deposited into the State Parks and Recreation Department Fund established under ORS 390.134 and shall be used for the following purposes:

(a) Maintaining, constructing, improving, developing, managing and operating state park and recreation facilities, programs and areas.

(b) Acquiring real property, or interest therein, deemed necessary for the creation and operation of state parks, ocean shores, public beach access areas, recreation areas and historic sites or because of natural, scenic, cultural, historic and recreational values.

(c) Operating grant programs for local government entities deemed necessary to accomplish the public purposes of the Parks and Natural Resources Fund.

(4) Of the moneys deposited into the Parks and Natural Resources Fund from the Oregon State Lottery, 50 percent shall be deposited into a Restoration and Protection Subaccount for the public purpose of financing the restoration and protection of native salmonid populations, watersheds, fish and wildlife habitats and water quality in Oregon. The State Treasurer may invest and reinvest the moneys in the Restoration and Protection Subaccount as provided in ORS 293.701 to 293.820. Interest from the moneys deposited in the subaccount and earnings from investment of the moneys in the subaccount shall be credited to the Restoration and Protection Research Fund created under section 7a of this 1999 Act.

(5) The moneys in the Restoration and Protection Subaccount for financing the restoration and protection of native salmonid populations, watersheds, fish and wildlife habitats and water quality shall be administered by the Oregon Watershed Enhancement Board and shall be used for all of the following purposes:

(a) Restoration and protection of watersheds and fish, wildlife, riparian and native species and for habitat conservation activities, including but not limited to planning, coordination, assessment, implementation, restoration, inventory, information management and monitoring activities.

(b) Watershed and riparian education efforts.

(c) Development and implementation of watershed and water quality enhancement plans.

(d) Entering into agreements to obtain from willing owners determinate interests in lands and waters that protect watershed resources, including but not limited to fee simple interests in land, leases of land or water or conservation easements.

(e) Enforcement of fish and wildlife and habitat protection laws and regulations.

(6) Of the moneys deposited into the Restoration and Protection Subaccount from the Oregon State Lottery, the Oregon Watershed Enhancement Board shall deposit:

(a) Sixty-five percent of the funds into the Watershed Improvement Grant Fund established under ORS 541.397 to be used only for funding capital expenditure projects; and

(b) Thirty-five percent of the funds into the Watershed Improvement Operating Fund established under section 7b of this 1999 Act to be used for the purposes set forth in section 7b (1) of this 1999 Act.

(7) The Legislative Assembly shall not limit expenditures from the Parks and Natural Resources Fund. The Legislative Assembly may appropriate other moneys or revenues to the Parks and Natural Resources Fund.

SECTION 7a. (1) There is created in the General Fund of the State Treasury the Restoration and Protection Research Fund. Interest earned by the Restoration and Protection Research Fund shall be credited to the fund. Moneys credited to the fund are continuously appropriated to the Oregon Watershed Enhancement Board for the purpose of funding research and other activities related to the restoration and protection of native salmonid populations, watersheds, fish and wildlife habitats and water quality, including but not limited to research, monitoring, evaluation and assessment related to the Oregon Plan.

(2) All moneys received by the Oregon Watershed Enhancement Board from interest earned on the Restoration and Protection Subaccount of the Parks and Natural Resources Fund created under section 7 of this 1999 Act, from the Watershed Improvement Operating Fund created under section 7b of this 1999 Act and from the Watershed Improvement Grant Fund created under ORS 541.397 shall be credited to the Restoration and Protection Research Fund. Moneys credited to the fund and not expended by the completion of a biennium shall remain in the fund.

SECTION 7b. (1) The Watershed Improvement Operating Fund is established in the State Treasury separate and distinct from the General Fund. The Watershed Improvement Operating Fund shall consist of all moneys placed in the fund as provided by law. All moneys in the Watershed Improvement Operating Fund are continuously appropriated for the following purposes:

(a) Operational activities of the Oregon Watershed Enhancement Board;

(b) Activities of state and local agencies and other public entities related to the restoration and protection of native salmonid populations, watersheds, fish and wildlife habitats and water quality, including but not limited to activities under the Oregon Plan;

(c) Watershed improvement grants described in ORS 541.399 and 541.401 that are not capital expenditures; and

(d) Watershed improvement grants described in ORS 541.399 and 541.401 that are capital expenditures.

(2) Interest accruing to the Watershed Improvement Operating Fund shall be credited to the Restoration and Protection Research Fund created under section 7a of this 1999 Act. Funds appropriated and not expended by the completion of a biennium shall remain in the Watershed Improvement Operating Fund.

(3) The Oregon Watershed Enhancement Board created under ORS 541.360 shall administer the Watershed Improvement Operating Fund.

(4) In addition to the funds made available for the purposes of ORS 541.350 to 541.403 under ORS 541.399, the board also may accept gifts and grants from any public or private source for the purposes described in subsection (1) of this section.

SECTION 8. ORS 541.360 is amended to read:

541.360. (1) The [Governor's] Oregon Watershed Enhancement Board is created. The board shall consist of [11] 17 members as set forth in subsection (2) of this section. The chairperson shall have such powers and duties as are provided by the rules of the board.

(2)(a) The [five] 11 voting members of the board shall be knowledgeable about natural resource issues, represent all geographic regions of this state and include at least one representative of a tribe. The board shall consist of the following:

(A) [The chairperson of] Each of the following boards or commissions[, or a member of the board or commission designated by the] shall designate one member of their board or commission to serve on the [Governor's] Oregon Watershed Enhancement Board [in lieu of the chairperson]:

[(A)] (i) The Environmental Quality Commission;

[(B)] (ii) The State Fish and Wildlife Commission;

[(C)] (iii) The State Board of Forestry;

[(D)] (iv) [The State Soil and Water Conservation Commission; and] The State Board of Agriculture; and

[(E)] (v) The Water Resources Commission[.]; and

(B) Six public members appointed by the Governor and confirmed by the Senate in accordance with ORS 171.562 and 171.565. Each public member shall serve for a term of four years. A member shall be eligible for reappointment, but no member shall serve more than two consecutive terms.

(b) In addition to the voting members, the [following persons shall serve as nonvoting members] director of the agricultural extension service of Oregon State University, or the director's designee, shall serve as a nonvoting member of the board and shall participate as needed in the activities of the board[:]

[(A) The Governor's natural resources adviser, or a designee of the adviser, who shall serve as chairperson of the board;]

[(B) The director of the agricultural extension service of Oregon State University, or designee; and]

[(C) The Director of Agriculture, or designee].

(c) In addition to the voting and nonvoting members designated in paragraphs (a) and (b) of this subsection, representatives of the following federal agencies shall be invited to serve as additional nonvoting members of the board:

(A) A representative of the United States Forest Service.

(B) A representative of the United States Bureau of Land Management.

(D) A representative of the United States Environmental Protection Agency.

(E) A representative of the National Marine Fisheries Service of the United States Department of Commerce.

(3) The voting members of the board shall select a chairperson from among the voting members of the board.

(4) At least eight voting members of the board must be present to take action to award grant funds under ORS 541.370. If three or more voting members object to an award of grant funds, the board shall reject the proposal and direct the applicant to revise the proposal to comply with the requirements of ORS 541.397, 541.399 and 541.401 and resubmit the proposal.

[(3) The board shall use state agency employees with relevant expertise to provide staff support necessary for the board to carry out its duties and responsibilities under ORS 541.350 to 541.403.]

SECTION 9. (1) Subject to confirmation by the Senate in the manner provided in ORS 171.562 and 171.565, the Governor shall appoint an executive director of the Oregon Watershed Enhancement Board. The executive director shall be an individual qualified by training and experience and shall serve for a term of four years, at the pleasure of the Governor.

(2) The executive director shall receive a salary as provided by law or, if not so provided, as prescribed by the Governor.

(3) In addition to salary, but subject to any applicable law regulating travel and other expenses of state officers and employees, the executive director shall be reimbursed for actual and necessary travel and other expenses incurred by the executive director in the performance of official duties.

(4) Subject to any applicable provisions of the State Personnel Relations Law, the executive director shall appoint all subordinate officers and employees of the board, prescribe their duties and fix their compensation.

SECTION 10. In addition to any other authority granted to the executive director of the Oregon Watershed Enhancement Board, the executive director, on behalf of the board, may enter into interagency agreements necessary to carry out the duties and responsibilities of the board.

SECTION 11. ORS 541.370 is amended to read:

541.370. (1) In carrying out the watershed enhancement program, the [Governor's] Oregon Watershed Enhancement Board shall:

(a) Coordinate the board's funding of enhancement projects with the activities of the Natural Resources Division staff and other agencies, especially those agencies working together through a system of coordinated resource management planning.

(b) Use the expertise of the appropriate state agency according to the type of enhancement project.

(c) Provide educational and informational materials to promote public awareness and involvement in the watershed and enhancement program.

(d) Coordinate and provide for or arrange for assistance in the activities of persons, agencies or political subdivisions developing local watershed enhancement projects funded by the board.

(e) Grant funds for the support of watershed councils in assessing watershed conditions, developing action plans, implementing projects and monitoring results and for the implementation of watershed enhancement projects from such moneys as may be available to the board therefor.

(f) Develop and maintain a centralized repository for information about the effects of watershed enhancement and education projects.

(g) Give priority to proposed watershed enhancement projects receiving funding or assistance from other sources.

(h) Identify gaps in research or available information about watershed health and enhancement.

(i) Cooperate with appropriate federal entities to identify the needs and interests of the State of Oregon so that federal plans and project schedules relating to watershed enhancement incorporate the state's intent to the fullest extent practicable.

(j) Encourage the use of nonstructural methods to enhance the riparian areas and associated uplands of Oregon's watersheds.

(2) In accordance with ORS [541.397 to 541.401, the Governor's] 541.350 to 541.403, the Oregon Watershed Enhancement Board shall administer a watershed improvement grant program using funds from the Watershed Improvement Grant Fund established under ORS 541.397 and from the Restoration and Protection Subaccount established under section 7 of this 1999 Act.

(3) To aid and advise the board in the performance of the functions of the board, the board may establish such advisory and technical committees as the board considers necessary. These committees may be continuing or temporary. The board shall determine the representation, membership, terms and organization of the committees and shall appoint their members. The chairperson is ex officio a member of each committee.

SECTION 12. (1) In addition to the duties set forth in ORS 541.370, in carrying out the provisions of ORS 541.350 to 541.403, the Oregon Watershed Enhancement Board:

(a) Shall establish a framework for a locally based integrated watershed planning and management process designed to assist watershed councils and soil and water conservation districts and to support the efforts of watershed councils and soil and water conservation districts to work within the requirements of state and federal laws without duplication of planning effort. The framework shall include all of the following:

(A) Guidance and protocols for watershed assessments to encourage consistent assessment methods across all watersheds and agencies, including assessment of cumulative effects. At a minimum, such guidance shall address the following plan components:

(i) A description of the watershed;

(ii) An assessment of current watershed conditions and the distribution and condition of habitat; and

(iii) Identification of conditions preventing watershed restoration.

(B) Guidance on how to prepare watershed action plans. At a minimum, such guidance shall address the following plan components:

(i) Applicable water quality standards and native salmonid and habitat recovery objectives;

(ii) Proposed measures needed to restore watershed health;

(iii) Timeline and budget estimates for implementation of action measures in priority order; and

(iv) Monitoring and evaluation systems.

(b) May review plans, actions and rules of state agencies pertaining to restoration and protection grants for the purpose of coordinating the board's grant program with other ongoing grant programs.

(c) Shall establish statewide and regional goals and priorities that shall become the basis for funding decisions by the board. In adopting such goals and priorities, the board shall adopt priorities for grant funding based on the Oregon Plan and on measurable goals. In carrying out this function, the board shall consider local economic and social impacts among the criteria.

(d) Shall support development and implementation of a system that enables standardized collection, management and reporting of natural resources information in Oregon, including water data, geographic information system data and information on native fish and wildlife and habitat.

(e) Shall promote the availability of information on the effects of watershed enhancement.

(f) May not have regulatory or enforcement authority except for the fiscal responsibilities described in ORS 541.350 to 541.403.

(2) In addition to the uses of grant funds described in ORS 541.399, in allocating grant funds under ORS 541.350 to 541.403 that are derived from the Restoration and Protection Subaccount, the board:

(a) May allocate funds to be used for staff for soil and water conservation districts and watershed councils.

(b) May award funds for a specific project or program application or for implementation of an approved action plan.

(3) To the maximum extent practicable, soil and water conservation districts and watershed councils shall share technical staff.

SECTION 13. ORS 541.375 is amended to read:

541.375. (1) Any person, [state agency, federal agency, federally recognized Indian] tribe, watershed council, soil and water conservation district, community college, state institution of higher education, independent not-for-profit institution of higher education or political subdivision of this state that is not a state agency may submit a request for funding for or for advice and assistance in developing a [watershed enhancement] project under [the program established by the Governor's Watershed Enhancement Board under ORS 541.365] ORS 541.350 to 541.403. A state agency or federal agency may apply for funding under this section only as a coapplicant with one of the other eligible entities.

(2) The request under subsection (1) of this section shall be filed in the manner, be in the form and contain the information required by the [board] Oregon Watershed Enhancement Board. [The requester may submit the request to the board or to a local soil and water conservation district organized under ORS 568.210 to 568.808 and 568.900 to 568.933.]

(3) The board may establish a grant program through soil and water conservation districts organized under ORS 568.210 to 568.808 and 568.900 to 568.933 that provides funds for local implementation of watershed enhancement, education and monitoring efforts.

(4) The board may fund implementation of action plans based on a watershed assessment that addresses water quality and aquatic resources of the watershed.

[(3) Based upon criteria established by rule by the board, within 90 days after a district receives a request under subsection (1) of this section, the district shall either:]

[(a) Approve the request and provide the requested advice, assistance or funding for the project; or]

[(b) Forward the request to the board for approval or disapproval.]

[(4)] (5) A [watershed enhancement] project may use mechanical, vegetative or structural methods including, but not limited to, management techniques, erosion control, streambank stabilization, forest, range or crop land treatment, site specific in-stream structures, acquisitions or leases of land or water rights from a willing owner, watershed assessments, landowner incentives and action plan development, implementation and monitoring.

[(5)] (6) [A watershed enhancement project proposal submitted to a district under this] The actions of a soil and water conservation district carried out pursuant to a grant program established by the board under subsection (3) of this section shall not be subject to review and approval by the Natural Resources Division under ORS 561.400.

[(6)] (7) The [Governor's] Oregon Watershed Enhancement Board shall approve for funding only those [enhancement] projects that:

(a) Are based on sound principles of watershed management;

(b) Use [enhancement] methods most adapted to the project locale;

(d) Contribute to either:

(A) The improved health of a stream, lake or reservoir and toward the achievement of standards that satisfy the requirements of the Federal Water Pollution Control Act (P.L. 92-500), as amended; or

(B) The restoration of wildlife, habitat or native [or anadromous] fish [habitat].

[(7)] (8) The [Governor's] Oregon Watershed Enhancement Board may fund a project for the restoration of a riparian area or associated upland that is carried out in conjunction with a storage structure. However, the board shall not approve funding for any proposed project that consists solely of construction of a storage structure for out-of-stream use.

(9) The Oregon Watershed Enhancement Board may fund projects involving the acquisition of lands and waters, or interests therein from willing sellers, for the purpose of maintaining or restoring watersheds, habitat and native salmonids. Interests in these lands and waters may be held by local, state and federal agencies, tribes, not-for-profit land conservation organizations and trusts, state institutions of higher education, independent not-for-profit institutions of higher education or political subdivisions of this state, as long as the entity continues to use the land or water for the purposes specified under section 4b, Article XV of the Oregon Constitution.

[(8)] (10) If the [Governor's] Oregon Watershed Enhancement Board approves funding for a project under this section that requires the applicant to obtain a permit or license from a local, state or federal agency or governing body, the board shall not disburse any funds to the applicant until the applicant presents evidence that the agency has granted the permit or license.

SECTION 14. ORS 541.380 is amended to read:

541.380. (1) In accordance with the applicable provisions of ORS 183.310 to 183.550, the [Governor's] Oregon Watershed Enhancement Board shall adopt rules and standards to carry out the watershed enhancement program.

(2) The rules and standards adopted by the board under subsection (1) of this section shall include, but need not be limited to:

(a) Grant application requirements and review and selection criteria for [selecting] projects to receive assistance or funding from the board.

(b) Criteria for distributing to those entities specified in ORS 541.375 those funds appropriated to the board for funding projects. The criteria shall include a process for periodic review of the distribution by the joint legislative committee [on Salmon and Stream Enhancement] created pursuant to ORS 171.551.

(A) Provisions satisfactory to the board for inspection and evaluation of the implementation of a project including all necessary agreements to allow the board and employees of any cooperating agency providing staff services for the board access to the project area;

(B) Provisions satisfactory to the board for controlling the expenditure of and accounting for any funds granted by the board for implementation of the project;

(C) An agreement that those initiating the project will submit all pertinent information and research gained from the project to the board for inclusion in the centralized repository established by the board; and

(D) Provisions for the continued maintenance of the portion of the riparian area or associated uplands enhanced by the project.

[(d) The amount of funding that a local soil and water conservation district organized under ORS 568.210 to 568.808 and 568.900 to 568.933 can provide directly for a watershed enhancement project without prior approval of the board.]

SECTION 15. ORS 541.392 is amended to read:

541.392. (1) The [Governor's] Oregon Watershed Enhancement Board shall report [annually to the appropriate legislative committee] biennially to the Legislative Assembly on the implementation of the management program under ORS 541.384 and grants awarded under ORS 541.399. The report shall include but need not be limited to:

(a) An explanation of the effectiveness and workability of the partnership process described in ORS 541.384;

(b) A description of any modifications to the process that have been instituted; [and]

(d) Information about the use of moneys received by and distributed by the board under section 4b, Article XV of the Oregon Constitution.

[(2) On or before January 1, 1997, the Governor's Watershed Enhancement Board shall submit a report on the projects undertaken under ORS 541.384 to the Sixty-ninth Legislative Assembly.]

(2) The board shall include with each report under subsection (1) of this section a copy of each audit completed pursuant to section 4c, Article XV of the Oregon Constitution.

SECTION 15a. Section 175, chapter 59, Oregon Laws 1999 (Enrolled Senate Bill 564) (amending ORS 541.392), is repealed.

SECTION 15b. ORS 541.397 is amended to read:

541.397. (1) The Watershed Improvement Grant Fund is established separate and distinct from the General Fund. The Watershed Improvement Grant Fund shall consist of all moneys placed in the fund as provided by law. All moneys in the Watershed Improvement Grant Fund are continuously appropriated to fund watershed improvement grants described in ORS 541.399 and 541.401. Interest accruing to the Watershed Improvement Grant Fund shall [become part of the fund] be credited to the Restoration and Protection Research Fund created under section 7a of this 1999 Act. Funds appropriated and not expended by the completion of a biennium shall remain in the Watershed Improvement Grant Fund.

(2) The Governor's Watershed Enhancement Board created under ORS 541.360 shall administer the Watershed Improvement Grant Fund and provide grants from the fund for the purposes described in ORS 541.399 and 541.401 in the manner described under ORS 541.399 and 541.401.

(3)[(a)] In addition to the funds made available for the purposes of ORS 541.350 to 541.403 under ORS 541.399, the board also may accept gifts and grants from any public or private source for the purpose of providing the grants described in subsection (2) of this section.

[(b) The moneys received under subsection (1) of this section shall be deposited in the Watershed Improvement Grant Fund established under this section. All moneys so deposited and all earnings thereon are continuously appropriated to the board to be used for the purposes of providing grants described in subsection (2) of this section.]

[(4) The amount in the Watershed Improvement Grant Fund that is available after the grants described in subsection (2) of this section have been made for any period may be reported to the Oregon Investment Council by the board and, if so reported, shall be considered investment funds within the meaning of ORS 293.701 to 293.820 and shall be invested in accordance with the standards of ORS 293.726. All earnings on such investments shall be credited to the Watershed Improvement Grant Fund.]

SECTION 16. ORS 541.399 is amended to read:

541.399. The purpose of the Watershed Improvement Grant Fund is to provide funding for grants for:

(1) Expenses of the Independent Multidisciplinary Science Team established under ORS 541.409; and

(2) The following:

(a) Watershed and riparian habitat conservation activities, including but not limited to planning, coordination, assessment, implementation and monitoring activities.

(b) Watershed and riparian education efforts, including peer education about stream processes for landowners.

(d) Water quality improvement plans approved by the State Department of Agriculture or the Department of Environmental Quality.

(e) Entering into an agreement to obtain from a willing owner a determinate interest in [land that protects the watershed resources. Such interest may include only a nonpossessory interest in land, including but not limited to an interest under ORS 271.715 to 271.795, a lease of land or a lease under ORS 537.348] lands and waters that protect watershed resources, including but not limited to fee simple interests in land, leases of land and conservation easements.

(f) Activities to implement the provisions of section 4b, Article XV of the Oregon Constitution.

SECTION 17. There is hereby established in the State Treasury the Oregon Plan for Salmon and Watersheds Legal Fund for the purpose of funding the activities of the Department of Justice in providing legal advice to or appearing on behalf of a state agency that takes, funds or authorizes actions when those actions are challenged under the federal Endangered Species Act (16 U.S.C. 1531 et seq.), as amended, or the Federal Water Pollution Control Act (P.L. 92-500), as amended, to the limits of the fund. The fund created by this section shall consist of all moneys received on behalf of the fund by gift, grant or appropriation, from whatever source. Moneys in the fund are continuously appropriated to the Department of Justice for the uses described in this section. Such uses may include, but need not be limited to, participation in a legal proceeding involving an action taken by a citizen or political subdivision of this state, where that action is authorized or funded by this state, and where:

(1) The state agency that authorizes or funds the action:

(a) Determines that the action is consistent with the Oregon Plan and is in compliance with applicable state laws; and

(b) Recommends to the Attorney General that the state participate in such legal challenge; and

(2) The Attorney General, after consulting with the Governor, the President of the Senate and the Speaker of the House of Representatives, determines that such participation is in the best strategic interest of the state.

SECTION 18. ORS 496.009 is amended to read:

496.009. As used in the wildlife laws, unless the context requires otherwise, "game fish" means:

(1) Those members of the family Salmonidae, commonly known as trout, steelhead, char, grayling, Atlantic salmon and whitefish.

(2) Those members of the family Salmonidae, commonly known as salmon, when under 15 inches in length or when taken by angling.

(3) Those members of the family Ictaluridae, commonly known as freshwater catfish.

(4) Those members of the family Centrarchidae, commonly known as freshwater bass, sunfish and crappie.

(5) Those members of the family Acipenseridae, commonly known as green sturgeon and white sturgeon, when taken by angling.

(6) Perca flavescens, commonly known as yellow perch.

(7) Stizostedion vitreum, commonly known as walleye.

(8) Catostomus luxatus, commonly known as mullet.

(9) Morone saxatilis, commonly known as striped bass.

(10) Alosa sapidissima, commonly known as American shad, when taken by angling.

[(11) Rana catesbeiana, commonly known as bullfrog.]

SECTION 19. ORS 536.009 is amended to read:

536.009. (1) There hereby is established in the General Fund of the State Treasury the Water Resources Department Operating Account to provide for the payment of the administrative expenses of the Water Resources Commission and the Water Resources Department in carrying out the provisions of ORS 536.050[,] and 537.747 [and 541.345].

(2) The account created by subsection (1) of this section shall consist of:

(a) Fees received pursuant to ORS 536.050 (1) and 537.747 (6).

(b) All moneys received on behalf of this account by gift, grant or appropriation, from whatever source.

SECTION 20. ORS 541.355 is amended to read:

541.355. (1) The Legislative Assembly finds that:

(a) The implementation of watershed-wide conservation, restoration or enhancement will require a comprehensive and cooperative approach, including assessing the condition of the watershed, developing a priority-based action plan and executing the plan using a broad range of financial and human resources.

[(b) Each watershed in Oregon is unique and each requires different management techniques and programs.]

[(c)] (b) Local watershed councils are highly effective in the implementation of plans to maintain and restore the biological and physical processes in the watersheds for the sustainability of our communities and all residents of Oregon.

[(d)] (c) The initiative and implementation of riparian area restoration and management programs, planned and implemented at the local level by persons or agencies that perceive the need and have the management responsibility for achieving the best solution for local watershed enhancement and improved land and water management, are important components of watershed health and enhancement.

[(e)] (d) It is in the best interest of the state to restore and maintain and enhance its watersheds in order to protect the economic and social well-being of the state and its citizens.

(2) Therefore, the Legislative Assembly declares that:

(a) A goal of the people of the State of Oregon is to:

(A) Enhance Oregon's waters through the management of riparian and associated upland areas of watersheds in order to improve water quality and quantity for all beneficial purposes as set forth in ORS 536.310.

(B) Restore, maintain and enhance the biological, chemical and physical integrity of the riparian zones and associated uplands of the state's rivers, lakes and estuaries systems.

(D) Improve the filtering capability of riparian areas to reduce nonpoint source runoff and improve water quality.

(b) In order to achieve this goal in the most cost-effective manner, the State of Oregon shall:

(A) Maximize the use of individuals and groups wishing to volunteer time, resources and effort to watershed enhancement projects;

(B) Encourage private individuals and organizations and local, state and federal agencies to work jointly to conduct watershed enhancement programs; and

(C) Enforce statutes, rules and regulations that require federal land management agencies to exercise their management and trustee responsibilities to restore, maintain and enhance the watersheds of the state.

SECTION 21. ORS 541.407 is amended to read:

541.407. (1) [As soon as possible after March 25, 1997,] The Governor, the President of the Senate and the Speaker of the House of Representatives shall appoint a statewide or regional Healthy Streams Partnership. The Healthy Streams Partnership may consist of up to 15 persons. The persons appointed to the Healthy Streams Partnership shall include, but need not be limited to, persons who are involved in the local implementation of the Oregon [Coastal Salmon Restoration Initiative] Plan and other watershed restoration and enhancement projects and representatives of industry, local government and environmental interests.

(2) The duties of the Healthy Streams Partnership shall include but need not be limited to:

(a) Providing information to the joint legislative committee [on Salmon and Stream Enhancement] created pursuant to ORS 171.551 about the implementation of the programs from a local and regional perspective; and

(b) Recommending changes necessary to facilitate more efficient implementation of the initiative and other stream improvement programs at the local level.

(3) Members of the Healthy Streams Partnership shall not be compensated for their services but are eligible for reimbursement of travel and other reasonable expenses in accordance with ORS 292.495.

SECTION 22. ORS 541.409 is amended to read:

541.409. (1) There is created an Independent Multidisciplinary Science Team consisting of up to seven scientists with recognized expertise in fisheries, artificial propagation, stream ecology, forestry, range, watershed and agricultural management. [As soon as possible after March 25, 1997,] The Governor, the President of the Senate and the Speaker of the House of Representatives shall jointly appoint the Independent Multidisciplinary Science Team. The decision to appoint a member of the team shall be a unanimous decision by the appointing authorities. The members of the Independent Multidisciplinary Science Team shall serve for four years and may be reappointed for a subsequent term. The team shall be governed by generally accepted guidelines and practices governing the activities of independent science boards such as the National Academy of Sciences.

(2) The Independent Multidisciplinary Science Team shall:

(a) Review implementation of the Oregon [Coastal Salmon Restoration Initiative] Plan and other programs for achieving healthy streams as described in ORS 541.405.

(b) Prepare and submit to the Governor, the Legislative Assembly and the public an annual report on the implementation of the Oregon [Coastal Salmon Restoration Initiative] Plan, including any recommendations for changes or adjustments to the initiative.

(c) Serve as an independent scientific peer review panel to the state agencies responsible for developing and implementing the Oregon [Coastal Salmon Restoration Initiative] Plan and other salmon or stream enhancement programs throughout this state.

(d) Report regularly to the joint legislative committee [on Salmon and Stream Enhancement] created pursuant to ORS 171.551 concerning the duties described under this subsection and other requests by [the] that joint legislative committee [on Salmon and Stream Enhancement].

(3) If the Independent Multidisciplinary Science Team submits suggestions to an agency responsible for implementing a portion of the Oregon Plan, the agency shall respond in writing to the team, explaining how the agency intends to implement the suggestion or why the agency does not implement the suggestion. The team shall include any agency responses in its report to the joint legislative committee [on Salmon and Stream Enhancement] created pursuant to ORS 171.551.

(4) Members of the Independent Multidisciplinary Science Team shall be compensated for their services and are eligible for reimbursement of travel and other reasonable expenses in accordance with ORS 292.495.

(5) Compensation for members of the Independent Multidisciplinary Science Team shall be cooperatively determined by the appointing authorities and the joint legislative committee [on Salmon and Stream Enhancement] created pursuant to ORS 171.551.

(6) The office of the Governor shall provide administrative support and services to the Independent Multidisciplinary Science Team.

SECTION 23. ORS 541.413 is amended to read:

541.413. Notwithstanding any other provision of law, if during the interim between legislative sessions any agency responsible for implementing a portion of the Oregon [Coastal Salmon Restoration Initiative] Plan or a program for the enhancement or restoration of streams throughout the state requires additional funding or an adjustment to the agency's expenditure limitations as approved by the Legislative Assembly to complete implementation of the Oregon [Coastal Salmon Restoration Initiative] Plan, the agency shall first submit a report to the joint legislative committee [on Salmon and Stream Enhancement] created pursuant to ORS 171.551. The committee shall review the request and present a recommendation to the Emergency Board at the time the agency submits its request to the Emergency Board.

SECTION 24. ORS 171.553, as amended by section 2, chapter 270, Oregon Laws 1999 (Enrolled Senate Bill 133), is amended to read:

171.553. The joint legislative committee created pursuant to ORS 171.551:

(1) Shall be responsible for oversight and coordination of Oregon Plan activities and other stream restoration and species recovery activities;

(2) Shall be responsible for any additional coordination, oversight or advisory duties related to the management of natural resources in Oregon, as the President of the Senate and the Speaker of the House of Representatives may assign; and

(3) May:

(a) Receive informational reports from the Healthy Streams Partnership established under ORS 541.407, from the Independent Multidisciplinary Science Team created under ORS 541.409, from the Coastal Salmon Restoration and Production Task Force established under section 2, chapter 544, Oregon Laws 1995, and from other sources and, on the basis of such informational reports, recommend changes to the statewide stream and fish and wildlife species enhancement efforts undertaken to prevent a species listing as threatened or endangered, or to restore a species that is listed.

(b) Review the activities of the individuals and state and federal agencies implementing the Oregon [Coastal Salmon Restoration Initiative] Plan and other programs related to species enhancement, protection and restoration of wildlife habitat, and improvement of the health of Oregon's streams.

(c) Review requests for and make recommendations to the Joint Legislative Committee on Ways and Means or, during the interim between legislative sessions, to the Emergency Board, regarding grant proposals and other requests for funds submitted by the Governor's Watershed Enhancement Board or other state agencies responsible for implementing the Oregon [Coastal Salmon Restoration Initiative] Plan or other species enhancement, protection and restoration of wildlife habitat, or stream enhancement projects.

(d) Review any memorandum of understanding or intergovernmental agreement between a state agency and any other local, state or federal agency to implement all or any portion of a program described in ORS 541.405.

(e) Review rules proposed for adoption by an agency to implement the programs described in ORS 541.405.

(f) Review the effectiveness of existing projects and programs.

(g) Review research projects related to all factors that influence the health of Oregon's streams.

(h) Recommend implementation principles, priorities and guidance for the programs described in ORS 541.405.

SECTION 25. The Governor shall appoint the additional public members of the Oregon Watershed Enhancement Board not later than October 1, 1999. The six public members all shall begin their terms of office on the first day of the month immediately following Senate confirmation of the sixth member.

SECTION 26. (1) Notwithstanding the term of office specified by ORS 541.360, as amended by section 8 of this 1999 Act, of the six public members first appointed to the Oregon Watershed Enhancement Board:

(a) Two shall serve for terms ending June 30, 2001.

(b) Two shall serve for terms ending June 30, 2002.

(c) Two shall serve for terms ending June 30, 2003.

(2) Notwithstanding the adjustment of membership on the Oregon Watershed Enhancement Board under ORS 541.360, as amended by section 8 of this 1999 Act, the members of the board designated before the effective date of this 1999 Act to serve on the Governor's Watershed Enhancement Board shall continue such service until the appointment of their successors and may take any action necessary to continue the duties of the Oregon Watershed Enhancement Board.

(3) Nothing in this 1999 Act shall prevent a member designated to serve on the Governor's Watershed Enhancement Board from being appointed or designated to serve on the Oregon Watershed Enhancement Board created under ORS 541.360, as amended by section 8 of this 1999 Act, so long as the candidate meets the requirements of ORS 541.360, as amended by section 8 of this 1999 Act.

SECTION 27. (1) The amendments to ORS 541.360 by section 8 of this 1999 Act are intended to change the name of the Governor's Watershed Enhancement Board to the Oregon Watershed Enhancement Board.

(2) For the purpose of harmonizing and clarifying statute sections published in Oregon Revised Statutes, the Legislative Counsel may substitute for words designating the Governor's Watershed Enhancement Board, wherever they occur in Oregon Revised Statutes, other words designating the Oregon Watershed Enhancement Board.

SECTION 28. ORS 541.392, 541.405, 541.407, 541.409, 541.411 and 541.413 and sections 4, 6, 7, 7a, 7b, 9, 10, 12 and 17 of this 1999 Act are added to and made a part of ORS 541.350 to 541.403.

SECTION 29. ORS 541.345, 541.382 and 541.403 are repealed.

SECTION 30. This 1999 Act being necessary for the immediate preservation of the public peace, health and safety, an emergency is declared to exist, and this 1999 Act takes effect on its passage.

Approved by the Governor August 20, 1999

Filed in the office of the Secretary of State August 23, 1999

Effective date August 20, 1999

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