Bill Text: OR HB2809 | 2013 | Regular Session | Introduced

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Bill Title: Relating to water development projects.

Spectrum: Committee Bill

Status: (Failed) 2013-07-08 - In committee upon adjournment. [HB2809 Detail]

Download: Oregon-2013-HB2809-Introduced.html

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     77th OREGON LEGISLATIVE ASSEMBLY--2013 Regular Session

NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .

LC 2200

                         House Bill 2809

Sponsored by COMMITTEE ON ENERGY AND ENVIRONMENT

                             SUMMARY

The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.

  Eliminates requirement that certain water development projects
receiving funding through Water Resources Department reserve
increment of stored water for net environmental public benefit or
enhancing in-stream flows. Deletes requirement that funding
decision by department include consideration of funded water
development project effect on peak and ecological flows.  Deletes
requirement for reasonable certainty that funded water
development project will produce net environmental public
benefit.  Subject to exceptions, applies to water development
projects fully or partially funded by department on or after
March 5, 2008.
  Requires Water Resources Department to deliver written offer
for unconditional waiver of requirement for funded water
development project to return water for stream augmentation, net
environmental public benefit or in-stream flow. Requires
department to waive acquired legal protection of water returned
to stream by funded water development project. Creates
exceptions.

                        A BILL FOR AN ACT
Relating to water development projects; creating new provisions;
  and amending ORS 541.600, 541.611, 541.621, 541.631, 541.636
  and 541.700 and sections 17, 20, 25 and 33, chapter 907, Oregon
  Laws 2009.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 541.600 is amended to read:
  541.600. As used in ORS 541.600 to 541.641 and sections 20, 25
and 26, chapter 907, Oregon Laws 2009:
  (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  { + quality + }, velocity  { - , - }  { +  and + }
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) - }  { +  (b) + } Water temperature, dissolved oxygen
content and other water quality conditions, and progress toward
the attainment of water standards that are not being met in the
relevant water body.
    { - (g) - }  { +  (c) + } Ground water quality or quantity.
    { - (h) - }  { +  (d) + } Aquatic or riparian habitat
restoration or enhancement.
    { - (i) - }  { +  (e) + } 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) Benefiting 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.
  SECTION 2. ORS 541.611 is amended to read:
  541.611. (1) Any person or entity described in ORS 541.606 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 ORS 541.631.
  (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  { + 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. + }
  { - 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 ORS 541.561 to 541.581 and sections 5 and

6, chapter 13, Oregon Laws 2008, is deemed to satisfy the
requirements of subsection (3) of this section.
  SECTION 3. ORS 541.621 is amended to read:
  541.621. (1) The Water Resources Commission shall adopt rules
establishing guidelines for the Water Resources Department's
review of applications for a grant filed under ORS 541.611 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; { +  or + }
    { - (c) Include in-stream flow restoration components; - }
    { - (d) - }  { +  (c) + } 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 ORS 541.616. 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.
  SECTION 4. ORS 541.631 is amended to read:
  541.631. (1) Subject to any additional qualifications or
restrictions under ORS 541.616, 541.621 or 541.636 or Water
Resources Commission rules, the Water Resources Department may
approve a grant application filed under ORS 541.611 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; { +  and + }
  (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 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) - }  { +  (2) + } 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) - }  { +  (3) + } This section and ORS 541.611,
541.616, 541.621, 541.636 and 541.641 do not limit the authority
granted the Environmental Quality Commission or the Department of
Environmental Quality under ORS chapter 468B.
  SECTION 5. ORS 541.636 is amended to read:
  541.636. (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 ORS 541.631. 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 ORS 541.631 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 - }  { +  any + } 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 ORS 541.631 (2), the
commission may require compliance with the conditions described
in ORS 541.631 (2) as a condition of any new water permits issued
for the project and may monitor operation of the project to
ensure compliance. - }
  SECTION 6. 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 541.900.
  (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 7. Section 17, chapter 907, Oregon Laws 2009, is
amended to read:
   { +  Sec. 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) - }  { +  (3) + } This section does not limit the
authority granted the Environmental Quality Commission or the
Department of Environmental Quality under ORS chapter 468B.
    { - (8) - }  { +  (4) + } This section is repealed January 2,
2030.
  SECTION 8. Section 20, chapter 907, Oregon Laws 2009, is
amended to read:
   { +  Sec. 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 - }  { + , chapter 907,
Oregon Laws 2009 + }.
  (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  { + 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. + }
  { - 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 - }
 { + ORS 541.561 to 541.581 and sections 5 and 6, chapter 13,
Oregon Laws 2008 + }, is deemed to satisfy the requirements of
subsection (4) of this section.
  SECTION 9. Section 25, chapter 907, Oregon Laws 2009, as
amended by section 31, chapter 907, Oregon Laws 2009, 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 - }  { + , chapter 907, Oregon Laws 2009 + }, 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 - }
 { + , chapter 907, Oregon Laws 2009 + }, 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; { +  and + }
  (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 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) - }  { +  (2) + } This section and sections 20 and 26
 { - of this 2009 Act - }  { + , chapter 907, Oregon Laws
2009, + } do not limit the authority granted the Environmental
Quality Commission or the Department of Environmental Quality
under ORS chapter 468B.
  SECTION 10. Section 33, chapter 907, Oregon Laws 2009, is
amended to read:
   { +  Sec. 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. - }
   { +  (1) Notwithstanding ORS 541.611 and 541.616 to 541.631,
but subject to ORS 541.636, the Water Resources Department shall
waive the grant application process described in ORS 541.611 and
541.616 to 541.631 when issuing a grant for water development
projects that are located in an area of the Umatilla Basin for
which an assessment has been performed under ORS 541.561 to
541.581 and sections 5 and 6, chapter 13, Oregon Laws 2008. + }
    { - (3) - }  { +  (2) + } This section does not limit the
authority granted the Environmental Quality Commission or the
Department of Environmental Quality under ORS chapter 468B.
    { - (4) - }  { +  (3) + } This section is repealed January 2,
2030.
  SECTION 11.  { + (1) The amendments to ORS 541.600, 541.611,
541.621, 541.631, 541.636 and 541.700 and sections 17, 20, 25 and
33, chapter 907, Oregon Laws 2009, by sections 1 to 10 of this
2013 Act apply to water development projects for which the Water
Resources Department takes final action on a loan or grant
application or after the effective date of this 2013 Act.
  (2) Except as provided in this subsection, for any water
development project not described in subsection (1) of this
section that received full or partial funding by the department
on or after March 5, 2008, no later than 90 days after the
effective date of this 2013 Act the Water Resources Department
shall present the owner or operator of the water development
project with an unconditional offer to waive without
consideration any contractual provision and any license, permit
or certificate term or condition requiring the dedication of a
percentage of new stored water created by the water development
project for stream augmentation, net environmental public benefit
or in-stream benefit. Except as provided in this subsection, no
later than 90 days after the effective date of this 2013 Act, the
department shall waive any legal protection of an increment of
water that a water development project returns to a stream that
was obtained by the department under ORS 541.631 or section 17,
chapter 907, Oregon Laws 2009, both as set forth in the 2011
Edition of the Oregon Revised Statutes and make the water
described in the surrendered water right available for
appropriation for any beneficial use. This subsection does not
apply if the waiver of a contractual provision or license, permit
or certificate term or condition or the surrender of a perfected
water right would impair a contractual right of any person or
governmental unit other than the department that was created
prior to the effective date of this 2013 Act or would violate a
treaty right created prior to the effective date of this 2013
Act. This subsection does not cancel any certificate for an
in-stream water right issued under ORS 537.341 prior to the
effective date of this 2013 Act.
  (3) A water development project owner or operator that receives
a written offer under subsection (2) of this section to waive a
contractual provision or license, permit or certificate term or
condition must deliver any acceptance of the offer to the Water
Resources Department no later than 180 days after the offer is
sent by the department. Failure to deliver a written acceptance
shall result in lapse of the offer of waiver. + }
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