77th OREGON LEGISLATIVE ASSEMBLY--2013 Regular Session
Enrolled
Senate Bill 839
Sponsored by COMMITTEE ON ENVIRONMENT AND NATURAL RESOURCES
CHAPTER ................
AN ACT
Relating to water; creating new provisions; amending ORS 541.700,
541.710, 541.720, 541.730, 541.740 and 541.830 and sections 17,
33, 34 and 46, chapter 907, Oregon Laws 2009; repealing ORS
541.600, 541.606, 541.611, 541.616, 541.621, 541.631, 541.636,
541.641, 541.646 and 541.725; appropriating money; and
declaring an emergency.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + As used in sections 1 to 15 of this 2013 Act:
(1) 'Newly developed water' means the new increment of water:
(a) Stored for a project providing new or expanded storage;
(b) Allocated to a use under a secondary water right for a
project involving the allocation of previously uncontracted water
stored by the United States Army Corps of Engineers under an
existing water right; or
(c) Conserved for a project to allocate conserved water under
the program described in ORS 537.455 to 537.500.
(2) 'Seasonally varying flows' means the duration, timing,
frequency and volume of flows, identified for the purpose of
determining conditions for a new or expanded storage project,
that must remain in-stream outside of the official irrigation
season in order to protect and maintain the biological,
ecological and physical functions of the watershed downstream of
the point of diversion, with due regard given to the need for
balancing the functions against the need to store water for
multiple purposes. + }
SECTION 2. { + (1) The purpose of sections 1 to 15 of this
2013 Act is to establish a means for state government to support
the development of water resource projects having economic,
environmental and community benefits.
(2) The Legislative Assembly intends that any conditions or
requirements described in sections 1 to 15 of this 2013 Act apply
only to projects that receive loans or grants from the Water
Supply Development Account established in section 3 of this 2013
Act. + }
SECTION 3. { + (1) The Water Supply Development Account is
established in the State Treasury, separate and distinct from the
General Fund. Interest earned by the Water Supply Development
Account shall be credited to the account. Moneys in the account
are continuously appropriated to the Water Resources Department
for use in carrying out sections 1 to 15 of this 2013 Act.
(2) The department may expend moneys from the account for:
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(a) Subject to subsection (4) of this section, making loans and
grants to evaluate, plan and develop in-stream and out-of-stream
water development projects approved by the Water Resources
Commission, including but not limited to projects that:
(A) Repair or replace infrastructure to increase the efficiency
of water use;
(B) Provide new or expanded water storage;
(C) Improve or alter operations of existing water storage
facilities in connection with newly developed water;
(D) Create new, expanded, improved or altered water
distribution, conveyance or delivery systems in connection with
newly developed water;
(E) Allocate federally stored water;
(F) Promote water reuse;
(G) Promote water conservation;
(H) Provide streamflow protection or restoration;
(I) Provide for water management or measurement in connection
with newly developed water; and
(J) Determine seasonally varying flows in connection with newly
developed water.
(b) Paying the necessary administrative and technical costs of
the department in carrying out sections 1 to 15 of this 2013 Act.
(3)(a) In addition to any other permissible uses of moneys in
the account, the department may expend moneys from the account to
support:
(A) Ongoing studies conducted by the United States Army Corps
of Engineers to allocate stored water; and
(B) Comprehensive basin studies conducted by the United States
Bureau of Reclamation.
(b) Expenditures described in this subsection are not subject
to any grant or loan procedures, public benefit scoring or
ranking or other requirements or restrictions for grants or loans
established under sections 1 to 15 of this 2013 Act.
(4) The department may expend account moneys under subsection
(2) of this section for loans and grants to develop in-stream and
out-of-stream water development projects only if the department
determines under ORS 540.530 that any transfer of water rights
for the project will not injure existing water rights. + }
SECTION 4. { + Loans and grants may be made from the Water
Supply Development Account to persons as defined in ORS 536.007,
Indian tribes as defined in ORS 391.802 and nonprofit
organizations. If an applicant is required to have a water
management and conservation plan, the plan must be submitted to
the Water Resources Department and receive approval prior to
department acceptance of an application for a loan or grant from
the account. + }
SECTION 5. { + (1) A prospective applicant for a loan or grant
from the Water Supply Development Account may participate in a
preapplication conference with the Water Resources Department.
(2) At the preapplication conference, the department shall
inform the prospective applicant of the procedural and
substantive requirements of a loan or grant application and of
the scoring system used to evaluate loan and grant requests. The
department shall assist the prospective applicant by identifying
known issues that may affect project eligibility for a loan or
grant from the account.
(3) Not less than 14 days before the preapplication conference,
the prospective applicant must provide the department with
adequate project information to prepare for the preapplication
conference.
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(4) The prospective applicant may request additional
preapplication consultation with the department. + }
SECTION 6. { + Applications for a loan or grant from the Water
Supply Development Account must be in a form prescribed by the
Water Resources Department and must include the following:
(1) A description of the need, purpose and nature of the
project, including what the applicant intends to complete and how
the applicant intends to proceed.
(2) Sufficient information to allow evaluation of the
application based upon the public benefit scoring and ranking of
the project.
(3) Current contact information for the principal contact,
fiscal officer and involved landowners.
(4) For applications involving physical changes or monitoring
on private land, evidence that landowners are aware of and agree
to the proposal and are aware that monitoring information is a
public record.
(5) The location of the proposed project, using public land
survey reference points, latitude and longitude, county,
watershed, river and stream mile, if appropriate.
(6) An itemized budget for the project, including fiscal and
administrative costs.
(7) A description of funds, services or materials available to
the project.
(8) A project schedule, including beginning and completion
dates.
(9) Any conditions that may affect the completion of the
project.
(10) A completed feasibility analysis if appropriate.
(11) Suggestions for interim and long-term project performance
benchmarks.
(12) If the application is for a grant, demonstrated in-kind
and cash cost match of not less than 25 percent of the amount of
the grant sought from the account.
(13) If the application is for a loan, evidence demonstrating
ability to repay the loan and provide collateral.
(14) Letters of support for the proposed project.
(15) If required by the department, a description of
consultations with affected Indian tribes regarding the project.
(16) Any other information required by the department. + }
SECTION 7. { + (1) The Water Resources Commission shall adopt
rules establishing a system for scoring and ranking projects to
determine which projects are to be awarded loans and grants from
the Water Supply Development Account, including but not limited
to the application of minimum criteria designed to achieve the
outcomes described in section 9 of this 2013 Act. The criteria
shall be based on the public benefit categories described in
section 8 of this 2013 Act. The commission shall make the loan
and grant funding decisions once each year. Applications must be
filed with the Water Resources Department. The department shall
accept an application for a loan or grant at any time, but shall
establish a yearly deadline for the consideration of a pool of
applications.
(2) The department shall conduct a preliminary review of
applications to check for completeness, eligibility and minimum
requirements upon receipt of each application. The department
shall return incomplete applications to the applicant. The
department shall provide public notice by posting new funding
applications on the department's website for a 60-day period
prior to reviewing the applications. The department shall provide
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for the receipt of public comment on the applications during the
60-day period that applications are posted on the department's
website.
(3) The department shall forward applications that have passed
preliminary review, along with any comments received from
applicants or the public, to a technical review team consisting
of representatives of the Water Resources Department, the
Department of Environmental Quality, the State Department of Fish
and Wildlife, the State Department of Agriculture, the Oregon
Business Development Department, affected Indian tribes, any
collaborative body established by the Governor to address
challenges, opportunities and priorities for the region affected
by the project and additional experts as determined by the Water
Resources Department. The technical review team shall conduct the
initial scoring and ranking for the projects described in the
applications, consider comments from applicants and the public
and make loan and grant funding recommendations to the
commission. The commission shall determine the final scoring and
ranking of projects and make the final decision regarding which
projects are awarded loans or grants from the account. Before the
commission makes a final decision on an application, the
commission shall offer one additional opportunity for public
comment.
(4) The commission is not required to obligate all available
account moneys during a funding cycle. Any available account
moneys that are not obligated during a funding cycle shall be
carried forward and be made available for projects in future
funding cycles.
(5) The department shall document the ranking of all
applications and make the application ranking publicly available
after the funding decisions by the commission have been
published. + }
SECTION 8. { + (1) Projects applying under section 7 of this
2013 Act for funding from the Water Supply Development Account
shall be evaluated based upon the public benefits of the project.
The evaluation must consider both positive and negative effects
of a project. The three categories of public benefit to be
considered in the project evaluation are economic benefits,
environmental benefits and social or cultural benefits. Each
category of benefits shall be given equal importance in the
evaluation of a project. The technical review team described in
section 7 of this 2013 Act shall use the evaluation system to
assign initial scores and rankings to projects. The Water
Resources Commission shall use the evaluation system to assign
final scorings and rankings to the projects. The commission shall
award loan and grant funding from the account to the projects
that have the greatest public benefit and will best achieve the
outcomes described in section 9 of this 2013 Act.
(2) The evaluation of economic benefits for a project shall be
based on the changes in economic conditions expected to result
from the project, including but not limited to conditions related
to:
(a) Job creation or retention;
(b) Increases in economic activity;
(c) Increases in efficiency or innovation;
(d) Enhancement of infrastructure, farmland, public resource
lands, industrial lands, commercial lands or lands having other
key uses;
(e) Enhanced economic value associated with tourism or
recreational or commercial fishing, with fisheries involving
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native fish of cultural significance to Indian tribes or with
other economic values resulting from restoring or protecting
water in-stream; and
(f) Increases in irrigated land for agriculture.
(3) The evaluation of environmental benefits for a project
shall be based on the changes in environmental conditions
expected to result from the project, including but not limited to
conditions related to:
(a) A measurable improvement in protected streamflows that:
(A) Supports the natural hydrograph;
(B) Improves floodplain function;
(C) Supports state or federally listed sensitive, threatened or
endangered fish species;
(D) Supports native fish species of cultural importance to
Indian tribes; or
(E) Supports riparian habitat important for wildlife;
(b) A measurable improvement in ground water levels that
enhances environmental conditions in ground water restricted
areas or other areas;
(c) A measurable improvement in the quality of surface water or
ground water;
(d) Water conservation;
(e) Increased ecosystem resiliency to climate change impacts;
and
(f) Improvements that address one or more limiting ecological
factors in the project watershed.
(4) The evaluation of the social or cultural benefits for a
project shall be based on the changes in social or cultural
conditions expected to result from the project, including but not
limited to conditions related to:
(a) The promotion of public health and safety and of local food
systems;
(b) A measurable improvement in conditions for members of
minority or low-income communities, economically distressed rural
communities, tribal communities or other communities
traditionally underrepresented in public processes;
(c) The promotion of recreation and scenic values;
(d) Contribution to the body of scientific data publicly
available in this state;
(e) The promotion of state or local priorities, including but
not limited to the restoration and protection of native fish
species of cultural significance to Indian tribes; and
(f) The promotion of collaborative basin planning efforts,
including but not limited to efforts under the state integrated
water resources strategy. + }
SECTION 9. { + (1) The Water Resources Commission shall design
the minimum criteria for the project scoring and ranking system
described in section 7 of this 2013 Act to achieve the following
outcomes:
(a) The issuance of grants or loans only to projects that
provide benefits in each of the three categories of public
benefit described in section 8 of this 2013 Act.
(b) Preference for partnerships and collaborative projects.
(c) The funding of projects of diverse sizes, types and
geographic locations.
(d) If a project proposes to divert water, preference for
projects that provide a measurable improvement in protected
streamflows.
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(e) If a project proposes to increase efficiency, preference
for projects that provide a measurable increased efficiency of
water use.
(2) The Water Resources Department shall review the loan and
grant program on a biennial basis to assess to what extent the
outcomes described in subsection (1) of this section are being
achieved, and shall report the review findings to the Water
Resources Commission. The commission shall modify the project
selection process as necessary to better achieve the outcomes
described in subsection (1) of this section. + }
SECTION 10. { + (1) The recipient of a grant from the Water
Supply Development Account must agree to the condition set forth
in subsection (2) of this section if the grant is for the
development of a new or expanded above-ground storage facility
that:
(a) Impounds surface water on a perennial stream;
(b) Diverts water from a stream that supports state or
federally listed sensitive, threatened or endangered fish
species; or
(c) Diverts more than 500 acre-feet of water annually.
(2) Twenty-five percent of the newly developed water from a
project described in subsection (1) of this section must be
dedicated to in-stream use.
(3) To establish that a project complies with subsection (2) of
this section, the grant recipient may include water dedicated to
in-stream use as a result of the conditions of federal, state or
local permits for the project. + }
SECTION 11. { + (1) A project that receives a loan or grant
from the Water Supply Development Account must:
(a) Demonstrate social or cultural benefits and economic
benefits sufficient to qualify the project under the scoring and
ranking system described in section 7 of this 2013 Act; and
(b) Except as otherwise provided in section 10 of this 2013
Act, demonstrate environmental benefits:
(A) By dedicating 25 percent of conserved water or newly
developed water to in-stream use; or
(B) By demonstrating environmental benefits that are sufficient
to qualify the project under the scoring and ranking system
described in section 7 of this 2013 Act.
(2) The description of public benefit requirements in
subsection (1) of this section does not exempt any project from
meeting the minimum criteria designed by the Water Resources
Commission under section 9 of this 2013 Act.
(3) To establish that a project complies with subsection (1)(b)
of this section, the loan or grant recipient may include water
dedicated to in-stream use as a result of the conditions of
federal, state or local permits for the project. + }
SECTION 12. { + If a project dedicates water to in-stream use
under the requirements described in section 10 of this 2013 Act
or as allowed under section 11 of this 2013 Act, the Water
Resources Department shall protect the dedicated water in-stream
consistent with the priority of the dedicated water source.
Dedicated water from projects may come from newly developed water
or from other sources and may be put in-stream at other locations
in the tributary if the department determines as provided under
ORS 540.530 that the alternate location would not injure existing
water rights and, in consultation with the State Department of
Fish and Wildlife, determines that the alternate location would
provide greater or equal environmental benefit. The Water
Resources Department, in consultation with the State Department
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of Fish and Wildlife, shall determine the timing of the flows to
maximize in-stream benefits in a manner consistent with public
health and safety. + }
SECTION 13. { + (1) The Water Resources Department shall make
a determination as provided under subsection (2) of this section
if an application for a loan or grant from the Water Supply
Development Account is for a project that requires a new water
storage or aquifer recharge permit or limited license for the
storage of water outside of the official irrigation season and:
(a) Impounds surface water on a perennial stream;
(b) Diverts water from a stream that supports state or
federally listed sensitive, threatened or endangered fish
species; or
(c) Diverts more than 500 acre-feet of surface water annually.
(2) The department shall review a completed application for a
project described in subsection (1) of this section to determine
whether the applicable seasonally varying flows have been
established under this section for the stream of interest. If the
department determines that the applicable seasonally varying
flows have not been established, the department shall establish
the seasonally varying flows before issuing a loan or grant from
the account. The department may use account moneys to pay the
cost of establishing a seasonally varying flow and to pay other
costs directly related to project development.
(3) The department shall establish any seasonally varying flows
under subsection (2) of this section in consultation with the
State Department of Fish and Wildlife and any affected Indian
tribes. The department may rely upon existing scientific data and
analysis or may fund new data and analysis. The department shall
establish seasonally varying flows using a methodology
established by Water Resources Commission rules. If seasonally
varying flows are established for a stream, a subsequent water
storage or aquifer recharge permit or limited license for the
storage of water must be conditioned in accordance with the
applicable seasonally varying flows if the license or permit:
(a) Is for a project receiving a loan or grant from the
account;
(b) Is for the storage of water outside of the official
irrigation season; and
(c) Has a diversion point that is subject to seasonally varying
flows.
(4) The applicant for a permit or license described in
subsection (3) of this section may request that seasonally
varying flows be altered based upon new information. There is,
however, a rebuttable presumption that existing applicable
seasonally varying flows protect and maintain the biological,
ecological and physical functions of the stream to the extent
required by commission rules.
(5) The department shall condition the new water storage permit
and resulting certificate, new aquifer recharge permit and
resulting certificate or new limited license associated with a
project that receives a grant or loan from the account to protect
the seasonally varying flow in effect at the time the loan or
grant is issued for the project.
(6) For purposes of any project that receives a loan or grant
from the account and has the characteristics described in
subsection (1) of this section, or any project described in
subsection (3) of this section, the department shall use a
seasonally varying flow methodology provided by commission rules
in lieu of any other methodologies for determining seasonally
Enrolled Senate Bill 839 (SB 839-B) Page 7
varying flows or any methodologies for determining peak and
ecological flows outside of the official irrigation season.
(7) Subsections (1) to (6) of this section do not eliminate or
alter any applicable standard for department review of an
application to determine whether water is available for purposes
of reviewing an application for a new water storage or aquifer
recharge permit or a limited license for the storage of
water. + }
SECTION 14. { + (1) Before loan or grant moneys are expended
from the Water Supply Development Account for the construction of
a project, the recipient must obtain all applicable local, state
and federal permits. Project materials must include a notation
indicating that Water Resources Department funding was used for
the project.
(2) The loans or grants may be conditioned to require that the
recipient complete and operate the funded project as described in
the loan or grant application. The department may require that
before commencing the operation of a project funded with account
moneys, the funding recipient demonstrate that the public
benefits identified for the project, including any environmental
benefits proposed at a location other than the project site, will
be realized in a timely fashion.
(3) At regular intervals, and upon completion of the project,
the loan or grant recipient must submit updates to the department
that describe the completed work, the public benefits achieved
and project expenditures. The recipient must regularly measure
and report the water diverted and used from the project. The
recipient must monitor, evaluate and maintain the project for the
life of the loan, or for a specified number of years for a grant,
and provide annual progress reports to the department. The
department may impose other project-specific conditions by noting
the conditions during project evaluation and including the
condition in the funding agreement for the project.
(4) The department may terminate, reduce or delay funding for a
project if the loan or grant recipient fails to comply with any
provision of subsections (1) to (3) of this section. + }
SECTION 15. { + (1) The Water Resources Commission shall adopt
rules establishing standards for borrowers obtaining loans issued
from the Water Supply Development Account. The commission shall
design the standards to ensure that all loans have a high
probability of repayment and that all loans are adequately
secured in the event of a default. The commission shall solicit
comments from the Oregon Department of Administrative Services
and the State Treasurer when designing the standards. The
standards may include, but need not be limited to, standards that
give preference to entities with ad valorem taxing authority.
(2) If the Water Resources Department approves a loan from the
account for the implementation of a water development project,
the department may require that the applicant enter into a loan
contract, secured by a first lien or by other good and sufficient
collateral. + }
SECTION 16. 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
Enrolled Senate Bill 839 (SB 839-B) Page 8
(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) { + (a) + } { - 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) - } { + (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 - } { + in an amount equal to at least 25
percent of the water stored by the project + }; and
{ - (b) - } { + (B) + } To the extent practicable, to
{ - return dedicated new stored water for stream - }
{ + deliver any net environmental public benefit water to be
provided in the form of in-stream flow + } 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.
{ + (b) For purposes of determining whether a project
described in this subsection produces the required net
environmental public benefit, the project shall be considered to
be for the development of not more than 25,000 acre-feet of
aquifer recharge as described in a final grant report submitted
by the grantee to the department. + }
(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 - } { + provide + }
net environmental public benefit { - or in-stream benefit a
percentage of the new stored water created by the project - }
{ + in an amount + } 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 - } { + amount of water
provided + } for net environmental public benefit { - and
in-stream benefit - } { + in the form of in-stream flow + }.
(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 - } { + additional grant moneys for
projects established as provided under this section + }, and as a
condition of any new ground water 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 { + or other state moneys used to complete the
feasibility design and pilot phase of project development funded
by a grant 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.
Enrolled Senate Bill 839 (SB 839-B) Page 9
(7) This section does not limit the authority granted the
Environmental Quality Commission or the Department of
Environmental Quality under ORS chapter 468B.
(8) This section is repealed { - January 2, 2030 - } { +
July 1, 2015 + }.
SECTION 17. { + At the request of the grantee, the terms and
conditions of a grant approved by the Water Resources Department
under section 17, chapter 907, Oregon Laws 2009, prior to the
effective date of this 2013 Act shall be amended to replace the
terms and conditions originally imposed for the grant with terms
and conditions similar to the terms and conditions imposed for
grants issued under section 17, chapter 907, Oregon Laws 2009, as
amended by section 16 of this 2013 Act. + }
SECTION 18. { + (1) The Governor, or a designee of the
Governor, shall appoint a nonlegislative task force composed of
members the Governor or designee deems to be appropriate and to
be sufficiently representative of agricultural, municipal,
conservation and tribal interests and of other groups having an
interest in water resources development.
(2) The task force shall meet at times and places specified by
the Governor or the designee of the Governor.
(3) The task force shall review the structure established for
water development project loans and grants under sections 1 to 15
of this 2013 Act and develop any proposals for changing the
structure that the task force determines to be warranted. The
review may include but need not be limited to possible changes in
the long-term structure of the decision-making process regarding:
(a) The appropriate role of the state in providing loan and
grant funding for multipurpose water resource development under
sections 1 to 15 of this 2013 Act; and
(b) The decision-making process for the allocation of newly
developed water from projects for which the uses of the water
were not specified in the funding application.
(4) The Water Resources Department shall provide staff support
to the task force.
(5) The task force shall submit a report in the manner provided
in ORS 192.245, including any recommendations for legislation, to
the Governor and to an interim committee of the Legislative
Assembly related to natural resources no later than July 1, 2014.
(6) Members of the task force are not entitled to compensation,
but may be reimbursed for actual and necessary travel and other
expenses incurred by them in the performance of their official
duties in the manner and amounts provided for in ORS 292.495.
Claims for expenses shall be paid out of funds appropriated to
the department for purposes of the task force. + }
SECTION 19. { + (1) As used in this section:
(a) 'Consensus' means that no more than one member of a
subgroup or task force objects to the product of the subgroup or
task force.
(b) 'Seasonally varying flows' has the meaning given that term
in section 1 of this 2013 Act.
(2) The Governor shall appoint a task force consisting, subject
to subsection (3) of this section, of such members as the
Governor deems to be appropriate and sufficient to act as an
advisory body on the functional needs of watersheds for
seasonally varying flows and the financial feasibility of new
water storage projects. The Governor shall consult with the
President of the Senate, the Speaker of the House of
Representatives, the Minority Leader of the Senate, the Minority
Leader of the House of Representatives and the Water Resources
Enrolled Senate Bill 839 (SB 839-B) Page 10
Commission prior to making appointments to the task force under
this section.
(3) The task force membership shall include, but need not be
limited to, a subgroup for addressing the functional needs of
watersheds for seasonally varying flows and a subgroup to address
the financial feasibility of new water storage projects. Each
subgroup must have at least three members. Subgroup members must
be persons with expertise in subjects relevant to the work of the
subgroup. Task force members who are not subgroup members must be
persons representing the interests of irrigated agriculture,
municipal water suppliers, counties, the conservation community,
Indian tribes, irrigation districts and industrial water users.
(4) When carrying out its functions, the subgroup on functional
needs for seasonally varying flows shall consider the biological,
ecological and physical functions in watersheds during periods
that are outside of the official irrigation season, including but
not limited to:
(a) Stream channel development and maintenance;
(b) Connectivity to floodplains;
(c) Sediment transport and deposition;
(d) Migration triggers for upstream movement of adult fish and
downstream movement of fry and juvenile fish;
(e) Fish spawning and incubation;
(f) Juvenile fish rearing; and
(g) Adult fish passage.
(5) When carrying out its functions, the subgroup on the
financial feasibility of new water storage projects shall
consider the practical aspects of developing and operating new
water development projects, including but not limited to:
(a) Practical engineering methods and applications;
(b) The costs and benefits of the methodology and alternatives;
(c) The economic feasibility of water storage development; and
(d) The cost of complying with environmental benefit standards.
(6)(a) The subgroups shall report their findings and
recommendations to the full task force no later than February 1,
2014. The findings and recommendations of a subgroup must have a
consensus of the subgroup. Any member of a subgroup who objects
to the findings and recommendations of the subgroup may provide
separate findings and recommendations to the task force.
(b) The task force shall meet at times and places specified by
the Governor or a designee of the Governor. The task force shall
consider the subgroup reports and by consensus develop a
recommended methodology for determining seasonally varying flows
that optimizes the functional benefits to watersheds while also
recognizing that:
(A) Many of the functional benefits will not occur unless a new
water storage project is financially feasible; and
(B) New water storage will not be appropriate or feasible in
many locations.
(c) The recommended methodology developed by the task force
must utilize the best available scientific knowledge. Any member
of the task force who objects to the recommended methodology
developed by the task force may provide a separate recommendation
for a methodology to the parties receiving the report under
subsection (7) of this section.
(7) The task force shall submit a report in the manner provided
in ORS 192.245, including any recommendations for legislation, to
the Governor, to an interim committee of the Legislative Assembly
related to natural resources and to the Water Resources
Commission no later than July 1, 2014.
Enrolled Senate Bill 839 (SB 839-B) Page 11
(8) The Water Resources Department shall provide staff support
to the task force.
(9) Members of the task force are not entitled to compensation,
but may be reimbursed for actual and necessary travel and other
expenses incurred by them in the performance of their official
duties in the manner and amounts provided for in ORS 292.495.
Claims for expenses shall be paid out of funds appropriated to
the department for purposes of the task force. + }
SECTION 20. { + (1) On or after the date that the Water
Resources Commission receives a copy of the task force report
required under section 19 of this 2013 Act, the commission shall
adopt rules to establish a methodology for use in determining the
seasonally varying flows for a stream of interest. In adopting
the rules, the commission shall give consideration to adoption of
the methodology described in the task force report. The
commission shall complete adoption of the rule in time for the
rule to take effect on January 1, 2015. As used in this
subsection, 'seasonally varying flow' has the meaning given that
term in section 1 of this 2013 Act.
(2) The commission shall appoint the task force established in
section 19 of this 2013 Act as provided in ORS 183.333 to act as
an advisory committee to the commission for the consideration of
rule adoption under this section. + }
SECTION 21. { + Section 13 of this 2013 Act becomes operative
January 1, 2015. + }
SECTION 22. { + Section 18 of this 2013 Act is repealed on the
date of the convening of the 2015 regular session of the
Legislative Assembly as specified in ORS 171.010. + }
SECTION 23. { + Section 19 of this 2013 Act is repealed on the
date of the convening of the 2016 regular session of the
Legislative Assembly as specified in ORS 171.010. + }
SECTION 24. { + In addition to and not in lieu of any other
appropriation, there is appropriated to the Water Resources
Department, for the biennium beginning July 1, 2013, out of the
General Fund, the amount of $30,000, which may be expended for
providing services to the task forces created in sections 18 and
19 of this 2013 Act and for paying the expenses of the task
forces. + }
SECTION 25. { + Notwithstanding section 3 of this 2013 Act,
moneys may not be expended from the Water Supply Development
Account for the construction of projects that:
(1) Impound surface water on a perennial stream;
(2) Diverts water from a stream that supports state or
federally listed sensitive, threatened or endangered fish
species; or
(3) Diverts more than 500 acre-feet of water annually. + }
SECTION 26. { + Section 25 of this 2013 Act is repealed
January 2, 2015. + }
SECTION 27. { + Notwithstanding section 3 of this 2013 Act,
the Water Resources Department may expend moneys from the Water
Supply Development Account for the purposes of paying the
necessary administrative and technical costs of the department in
carrying out sections 17 to 20 of this 2013 Act. + }
SECTION 28. { + Section 27 of this 2013 Act is repealed July
1, 2017. + }
SECTION 29. 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 - } { + ORS 541.611, 541.616, 541.621
and 541.631 + }, but subject to { - section 24 of this 2009
Enrolled Senate Bill 839 (SB 839-B) Page 12
Act - } { + ORS 541.636 + }, the Water Resources Department
shall waive the grant application process described in
{ - sections 19 and 21 to 23 of this 2009 Act - } { + ORS
541.611, 541.616, 541.621 and 541.631 + }when issuing a grant
for water development projects that:
(a) Are located in an area of the Umatilla Basin for which an
assessment has been performed under chapter 13, Oregon Laws 2008;
and
(b) Except as provided in subsection (2) of this section, are
designed:
(A) To provide for no more than 75 percent of new stored water
to be withdrawn and for not less than 25 percent of the new water
to be dedicated for the purpose of providing net environmental
public benefits or in-stream benefits; and
(B) To the extent practicable, to return dedicated new stored
water for stream augmentation at a time of year that the Water
Resources Department, in consultation with the State Department
of Fish and Wildlife and relevant tribal governments, determines
will provide the maximum net environmental public benefit or
in-stream benefit.
(2) If more than 25 percent of the funding for an aquifer
storage and recovery project is from grants of state moneys and
is not subject to repayment, the project must be designed to
dedicate for the purpose of providing net environmental public
benefit or in-stream benefit a percentage of the new stored water
created by the project that equals or exceeds the percentage of
funding for the project that is from grants of state moneys. The
Water Resources Department shall manage the dedicated increment
of new stored water for net environmental public benefit and
in-stream benefit.
(3) This section does not limit the authority granted the
Environmental Quality Commission or the Department of
Environmental Quality under ORS chapter 468B.
(4) This section is repealed { - January 2, 2030 - } { +
July 1, 2015 + }.
SECTION 30. Section 34, chapter 907, Oregon Laws 2009, is
amended to read:
{ + Sec. 34. + } Sections 20, 25 and 26 { - of this 2009
Act - } { + , chapter 907, Oregon Laws 2009, + }are repealed
{ - January 2, 2024 - } { + July 1, 2015 + }. The repeal of
sections 20, 25 and 26 { - of this 2009 Act - } { + , chapter
907, Oregon Laws 2009, + } by this section does not alter the
terms of any loan, contract or other agreement issued under
section 20, 25 or 26 { - of this 2009 Act - } { + , chapter
907, Oregon Laws 2009, + } or alter the conditions of any water
permit or water right certificate that contains conditions that
are based upon sections 20, 25 or 26 { - of this 2009 Act - }
{ + , chapter 907, Oregon Laws 2009 + }.
SECTION 31. Section 46, chapter 907, Oregon Laws 2009, as
amended by section 74, chapter 9, Oregon Laws 2011, is amended to
read:
{ + Sec. 46. + } (1) ORS 541.600, 541.616 and 541.641 and
sections 20, 25 and 26, chapter 907, Oregon Laws 2009, and the
amendments to ORS 541.700, 541.705, 541.710, 541.720, 541.730,
541.740, 541.765, 541.770, 541.785, 541.830, 541.845 and 541.850
by sections 3 to 14, chapter 907, Oregon Laws 2009, apply to
loans from the Water Development Fund for which an application is
filed on or after April 1, 2010.
(2) The repeal of ORS 541.755 by section 15, chapter 907,
Oregon Laws 2009, becomes operative April 1, 2010.
Enrolled Senate Bill 839 (SB 839-B) Page 13
(3) The amendments to ORS 541.616, 541.641, 541.705, 541.710,
541.720, 541.765, 541.785, 541.830 and 541.850 by sections 35 to
43, chapter 907, Oregon Laws 2009, become operative { - January
2, 2024 - } { + July 1, 2015 + }.
SECTION 32. 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
Enrolled Senate Bill 839 (SB 839-B) Page 14
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 33. ORS 541.710, as amended by section 36, chapter 907,
Oregon Laws 2009, is amended to read:
541.710. (1) Upon receipt of an application filed as provided
in ORS 541.705, the Water Resources Commission shall determine
whether the feasibility study described in ORS 541.705 for the
water development project set forth in or accompanying the
application is satisfactory and if the commission determines that
it is not satisfactory, the commission may:
(a) Reject the application;
Enrolled Senate Bill 839 (SB 839-B) Page 15
(b) Require the applicant to submit additional information and
revision of the feasibility study as may be necessary; or
(c) Make such revisions of the feasibility study as the
commission considers necessary to make the plan satisfactory.
(2) Except as provided in subsection (3) of this section, the
commission shall charge and collect from the applicant at the
time the application is filed { - an application fee equal to
the lesser of 0.10 percent of the loan applied for or $2,500. In
addition, the commission may require the applicant to pay for
costs that exceed the application fee if the Water Resources
Director determines that the costs are incurred solely in
connection with processing the application. Before incurring the
additional costs, the commission shall advise the applicant of
the additional costs to be paid by the applicant. - } { + a fee
of $100. In addition, the commission shall charge the applicant
the amount required to reimburse the commission for costs that
exceed the application fee incurred in connection with the
application. + } Moneys referred to in this subsection shall be
paid into the Water Development Administration and Bond Sinking
Fund.
(3) The commission may establish { - a reduced application
fee - } by rule { + an application fee of less than $100 + } for
a water development project that is for fish protection or for
watershed enhancement.
SECTION 34. ORS 541.720, as amended by section 37, chapter 907,
Oregon Laws 2009, is amended to read:
541.720. { - (1) - } The Water Resources Commission may
approve the financing for the construction of a water development
project described in an application filed { - under - } { +
as provided in + } ORS 541.705 { - , - } using moneys in the
Water Development Fund { + , + } secured by a first { + , parity
or second + } lien { - or by other good and sufficient
collateral - } in the manner provided in ORS 541.740 { + , + }
if, after investigation, the commission finds that:
{ - (a) - } { + (1) + } The proposed water development
project is feasible and a reasonable risk from practical and
economic standpoints;
{ - (b) - } { + (2) + } The plan for the construction,
operation and maintenance of the proposed water development
project is satisfactory and, if the primary purposes of the
project include irrigation or drainage, the agricultural
potential is confirmed;
{ - (c) - } { + (3) + } The plan for construction and
operation will provide multipurpose facilities, to the extent
practicable;
{ - (d) - } { + (4) + } The applicant is a qualified,
credit-worthy and responsible water developer { - that meets
the standards established by commission rule - } and is willing
and able to enter into a contract with the commission for
construction and repayment as provided in ORS 541.730;
{ - (e) - } { + (5) + } Moneys in the Water Development
Fund are or will be available for the construction of the
proposed water development project;
{ - (f) - } { + (6) + } There is a need for the proposed
water development project, the proposed project is in the public
interest and the applicant's financial resources are adequate to
provide the working capital needed to operate and maintain the
project; and
Enrolled Senate Bill 839 (SB 839-B) Page 16
{ - (g) - } { + (7) + } The construction cost associated
with any secondary use does not exceed the construction cost of
the primary use of the water development project.
{ - (2) ORS 541.700 to 541.855 do not limit the authority
granted the Environmental Quality Commission or the Department of
Environmental Quality under ORS chapter 468B. - }
SECTION 35. ORS 541.730 is amended to read:
541.730. { - (1) - } If the Water Resources Commission
approves the financing for the construction of a water
development project, the commission, on behalf of the state, and
the applicant may enter into a loan contract, secured by a
first { + , parity or second + } lien
{ - or by other good and sufficient collateral - } in the
manner provided in ORS 541.740 { - . The loan contract - }
{ + , that + } shall set forth, among other matters:
{ - (a) - } { + (1) + } That the commission, on behalf of
the state, must approve the arrangements made by the applicant
for the construction, operation and maintenance of the water
development project, using moneys in the Water Development Fund
for the construction.
{ - (b) A plan for the repayment of moneys borrowed from the
Water Development Fund and interest on those moneys as described
in subsection (3) of this section. - }
{ + (2) A plan for repayment by the applicant to the Water
Development Administration and Bond Sinking Fund of moneys
borrowed from the Water Development Fund used for the
construction, operation and maintenance of the water development
project and interest on such moneys used at such rate of interest
as the commission determines is necessary to provide adequate
funds to recover administrative expenses incurred under ORS
541.700 to 541.855. The repayment plan, among other matters:
(a) Shall provide for commencement of repayment by the water
developer of moneys used for construction and interest thereon
not later than two years after the date of the loan contract or
at such other time as the commission may provide;
(b) May provide for reasonable extension of the time for making
any repayment in emergency or hardship circumstances, if approved
by the commission;
(c) Shall provide for such evidence of debt assurance of and
security for repayment by the applicant as are considered
necessary or proper by the commission; and
(d) Shall set forth a schedule of payments and the period of
loan, which may not exceed the usable life of the constructed
project, or 30 years from the date of the first payment due under
the financial plan, whichever is less, and shall also set forth
the manner of determining when loan payments are delinquent. The
payment schedule shall include repayment of interest, which
accrues during any period of delay in repayment authorized by
paragraph (a) of this subsection, and the payment schedule may
require payments of varying amounts for collection of such
accrued interest. + }
{ - (c) - } { + (3) + } Provisions satisfactory to the
commission for field engineering and inspection, the commission
to be the final judge of completion of the contract.
{ - (d) - } { + (4) + } That the liability of the state
under the contract is contingent upon the availability of moneys
in the Water Development Fund for use in the construction,
operation and maintenance of the water development project.
Enrolled Senate Bill 839 (SB 839-B) Page 17
{ - (e) - } { + (5) + } Such further provisions as the
commission considers necessary to ensure expenditure of the funds
for the purposes set forth in the approved application.
{ - (f) - } { + (6) + } That the commission may institute
an appropriate action or suit to prevent use of the facilities of
a water development project financed by the Water Development
Fund by any person who is delinquent in the repayment of any
moneys due the Water Development Administration and Bond Sinking
Fund.
{ - (g) That a loan for a water development project is
assignable or transferable to a third party only with the prior
approval of the commission. - }
{ - (2) - } { + (7) That a loan for a water development
project is assignable or transferable to a third party only with
the prior approval of the commission. + } The commission may
approve a loan assignment or transfer only if the commission
finds that the assignee or transferee qualifies as a water
developer as defined in ORS 541.700 (7) and the assignment or
transfer does not have serious adverse effect upon the family
farm unit structure in this state.
{ - (3) The commission, in consultation with the State
Treasurer, shall set the interest rate in an amount the
commission determines to be sufficient to cover, to the extent
practicable: - }
{ - (a) The interest rate to be paid to bondholders on the
underlying bonds; - }
{ - (b) The administrative expenses incurred by the
commission, the Water Resources Department and the State
Treasurer in connection with the loan program; - }
{ - (c) All bond-related costs; - }
{ - (d) The establishment of Water Development Administration
and Bond Sinking Fund reserves; and - }
{ - (e) An amount to be deposited to the Water Development
Fund for the purpose of increasing the amount available for loans
from that fund. - }
{ - (4) In addition to any other fee or charge, the
commission may charge a loan processing fee, not to exceed one
percent of the loan amount. - }
{ - (5) The repayment plan: - }
{ - (a) Shall provide for commencement of repayment by the
water developer of moneys used for project construction and
interest on those moneys not later than two years after the date
of the loan contract or at such other time as the commission may
provide. - }
{ - (b) May provide for reasonable extension of the time for
making any repayment in emergency or hardship circumstances, if
approved by the commission. - }
{ - (c) Shall provide for such evidence of debt assurance of
and security for repayment by the applicant as are considered
necessary or proper by the commission. - }
{ - (d) Shall set forth a schedule of payments and the period
of loan. The period of the loan may not exceed the usable life of
the constructed project, or 30 years from the date of the first
payment due under the financial plan, whichever is less. - }
{ - (e) Shall set forth the manner of determining when loan
payments are delinquent. - }
{ - (f) Shall include repayment of interest that accrues
during any period of delay in repayment authorized by paragraph
(a) of this subsection, and may require payments of varying
amounts for collection of that accrued interest. - }
Enrolled Senate Bill 839 (SB 839-B) Page 18
{ - (g) May include provisions in addition to the provisions
described in paragraphs (a) to (f) of this subsection. - }
SECTION 36. ORS 541.740 is amended to read:
541.740. (1)(a) { - Except as provided in paragraph (b) of
this subsection, - } When a loan is made to a water developer
other than a water developer described in ORS 541.700 (7)(a),
(b), (c) or (d) for the construction of a water development
project under ORS 541.700 to 541.855, the State of Oregon has a
lien for the amount of the unpaid balance of the loan. The lien
created by this subsection attaches to the real property held in
fee simple of the water developer or to the user charges,
including interest, owed to or received by the water developer.
The lien created by this subsection does not attach to a
leasehold. At the discretion of the Water Resources Commission,
the lien may attach to all real property, whether owned by the
water developer or other persons, which is served by the water
development project or which is served by a water source enhanced
or restored by the water development project.
(b) Except for tax liens, the lien created by this section is
prior and superior to all other liens or encumbrances upon the
affected real property or user charges, without regard to the
date on which the other liens or encumbrances attached to the
real property or user charges. { - The commission, in
consultation with the State Treasurer, may accept other good and
sufficient collateral to secure a loan instead of, or in addition
to, a lien. - } { + However, the commission may elect to accept
a second or parity lien position against the real property or
user charges encumbered by this section, if the commission
determines the lien position would provide adequate security for
the water development loan, as set forth in rules adopted by the
commission. + }
(c) The existence or foreclosure of the lien created by this
subsection shall not cause the acceleration of payment of user
charges or other payments on affected real property. Such
payments shall continue to be made as they become due.
(2) { - Except as provided in this subsection, - } When a
loan is made under ORS 541.700 to 541.855 to a water developer
described in ORS 541.700 (7)(a), (b), (c) or (d), the loan shall
be secured by a mortgage or security agreement in the full amount
of the loan. The mortgage or security agreement shall be a first
lien { + , or a parity or second lien if the commission
determines it would provide adequate security, + } upon such real
property of the water developer as the commission shall require
for adequate security. { - The commission, in consultation with
the State Treasurer, may accept other good and sufficient
collateral to secure a loan instead of, or in addition to, a
lien. - }
(3) When a lien created by subsection (1) of this section is
foreclosed, a person whose real property is subject to the lien
solely because that real property is irrigated or drained by
reason of a water development project or because the real
property is served by a water source improved by a water
development project for watershed enhancement, shall only have
that portion of real property subjected to foreclosure that
represents that person's pro rata share of the indebtedness.
(4) When a loan is made to a water developer under ORS 541.700
to 541.855, the commission shall file notice of the loan with the
recording officer of each county in which is situated real
property of the water developer or real property to which the
lien created by subsection (1) or (2) of this section may attach.
Enrolled Senate Bill 839 (SB 839-B) Page 19
The notice shall contain a description of the real property of
the water developer, a description of any other real property
that will be served by the water development project and to which
the lien is to attach, the amount of the loan and a statement
that the State of Oregon has a lien against such real property as
provided in subsection (1) or (2) of this section.
(5) Upon payment of all amounts loaned to a water developer
pursuant to ORS 541.700 to 541.855, the commission shall file
with each recording officer referred to in subsection (4) of this
section a satisfaction notice that indicates repayment of the
loan.
(6) The commission may cause to be instituted appropriate
proceedings to foreclose liens for delinquent loan payments, and
shall pay the proceeds of any such foreclosure, less expenses
incurred in foreclosing, into the Water Development
Administration and Bond Sinking Fund. In a foreclosure
proceeding, the commission may bid on property offered for sale
in the proceeding and may acquire title to the property on behalf
of the state.
(7) The commission may take any action, make any disbursement,
hold any funds or institute any action or proceeding necessary to
protect the state's interest.
(8) Notwithstanding ORS 293.240, the commission may compromise,
release, discharge, waive, cancel or settle a claim against a
water developer if such action:
(a) Is consistent with the purposes of ORS 541.700 to 541.855;
(b) Does not impair the ability to pay the administrative
expenses of the commission or the obligations of any bonds
outstanding; and
(c) Is, under the circumstances, the means most likely to
preserve the claim or to recover the greatest part of the amount
claimed.
(9) The commission, by rule, may set out procedures to be used
when a water developer is unable to make required loan payments
because of illness, injury, death, involuntary job loss or
economic stress due to factors beyond individual control. The
rules shall be effective to the extent permitted by the terms of
the contracts associated with affected loans. The rules:
(a) May provide for a temporary reduction of loan payment;
(b) May provide for any other solution jointly agreed to by the
water developer and the commission;
(c) Shall provide for repayment of the amount of any loan
payments reduced under the rules in accordance with terms and
conditions agreed upon by the borrower and the commission; and
(d) Shall require the commission to consider the effect of any
payment reduction or delay on the solvency of the program as a
whole, on estimates of the most probable financial position of
the program in the future and on other borrowers in the program.
(10)(a) Upon application by a water developer, the commission
may grant a partial release of security when the commission
determines that granting the requested release will not
jeopardize the water development loan program's security
position.
(b) The remaining property must qualify as security for the
loan balance under the applicable law.
(c) Notwithstanding compliance with paragraph (b) of this
subsection, the commission may require that the loan balance be
reduced as consideration for granting the requested release.
SECTION 37. ORS 541.830, as amended by section 40, chapter 907,
Oregon Laws 2009, is amended to read:
Enrolled Senate Bill 839 (SB 839-B) Page 20
541.830. (1) There hereby is created the Water Development
Administration and Bond Sinking Fund, separate and distinct from
the General Fund, to provide for payment of:
(a) Administrative expenses of the Water Resources Commission
and the Water Resources Department in processing applications,
investigating proposed water development projects and federal
water development projects under ORS 541.700 to 541.855 and
servicing and collecting outstanding loans made under ORS 541.700
to 541.855, if the expense is not paid directly by the applicant,
including principal and interest due on bonds outstanding. These
administrative expenses also may include all costs associated
with the issuance of bonds and the funding of any credit
enhancements or reserves determined to be necessary or
advantageous in connection with the bonds.
(b) Administrative expenses of the State Treasurer in carrying
out the duties, functions and powers imposed upon the State
Treasurer by ORS 541.700 to 541.855.
(c) Principal and interest of all bonds issued pursuant to the
provisions of ORS 541.780 to 541.815.
(2) The fund created by subsection (1) of this section shall
consist of:
(a) Application fees { - and additional processing costs paid
under ORS 541.710 and loan processing fees under ORS 541.730. - }
{ + required under ORS 541.710. + }
(b) Repayments of moneys loaned to water developers from the
Water Development Fund, including interest on such moneys.
(c) Repayments of moneys loaned for the acquisition of
easements and rights of way for federal water development
projects, including interest on such moneys.
(d) Such moneys as may be appropriated to the fund by the
Legislative Assembly, including appropriations dedicated to the
partial payment for or repayment of projects affording public
benefits.
(e) Moneys obtained from the sale of refunding bonds and any
accrued interest on such bonds.
(f) Moneys received from ad valorem taxes levied pursuant to
Article XI-I(1), Oregon Constitution, and all moneys that the
Legislative Assembly may provide in lieu of such taxes.
(g) Interest earned on cash balances invested by the State
Treasurer.
(h) Any revenues received by the commission under the
provisions of ORS 541.745.
(i) Moneys transferred from the Water Development Fund.
(3) The moneys referred to in subsection (2) of this section
are continuously appropriated to the commission for the purposes
provided in subsection (1) of this section.
(4) The commission, with the approval of the Governor, may
identify those projects financed under the provisions of ORS
541.700 to 541.855 that offer significant public benefit, and
recommend to the Legislative Assembly funding of those projects
in proportion to the public benefits offered.
(5) The commission, with the approval of the State Treasurer,
may transfer moneys from the fund created under subsection (1) of
this section to the Water Development Fund if:
(a) A cash flow projection shows that the transfer will not
have any negative impact on the commission's ability to pay bond
principal, interest and administration costs;
(b) The transfer will not create the need for issuance of any
bonds; and
Enrolled Senate Bill 839 (SB 839-B) Page 21
(c) The transfer, together with loans outstanding from prior
transfers and not refinanced by funds derived directly from a
bond sale, does not exceed $1.
(6) The transfer amount authorized by subsection (5) of this
section may be increased by the Emergency Board.
SECTION 38. { + Section 39 of this 2013 Act is added to and
made a part of ORS 541.700 to 541.855. + }
SECTION 39. { + Except as provided in ORS 541.760:
(1) If any water development project investigated under ORS
541.700 to 541.855, other than a safe drinking water project
financed in whole or in part from moneys in the Special Public
Works Fund created by ORS 285B.455 or the Water Fund created by
ORS 285B.563, is constructed with funds other than those loaned
under ORS 541.700 to 541.855, the amount expended by the state
shall immediately become due and payable, together with interest
at the rate provided in ORS 541.730 (2) from the date of
notification of the amount due.
(2) If any water development project is refinanced or financial
assistance is obtained from other sources, other than a safe
drinking water project financed in whole or in part from moneys
in the Special Public Works Fund created by ORS 285B.455 or the
Water Fund created by ORS 285B.563, after the execution of the
loan from the state, all such funds shall be first used to repay
the state. + }
SECTION 40. { + ORS 541.600, 541.606, 541.611, 541.616,
541.621, 541.631, 541.636, 541.641, 541.646 and 541.725 are
repealed July 1, 2015. + }
SECTION 41. { + Section 39 of this 2013 Act and the amendments
to ORS 541.700, 541.710, 541.720, 541.730, 541.740 and 541.830 by
sections 32 to 37 of this 2013 Act become operative July 1,
2015. + }
SECTION 42. { + This 2013 Act being necessary for the
immediate preservation of the public peace, health and safety, an
emergency is declared to exist, and this 2013 Act takes effect on
its passage. + }
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Passed by Senate July 6, 2013
.............................................................
Robert Taylor, Secretary of Senate
.............................................................
Peter Courtney, President of Senate
Passed by House July 7, 2013
.............................................................
Tina Kotek, Speaker of House
Enrolled Senate Bill 839 (SB 839-B) Page 22
Received by Governor:
......M.,............., 2013
Approved:
......M.,............., 2013
.............................................................
John Kitzhaber, Governor
Filed in Office of Secretary of State:
......M.,............., 2013
.............................................................
Kate Brown, Secretary of State
Enrolled Senate Bill 839 (SB 839-B) Page 23