Chapter 541 — Chapter 541
248 sections in this chapter.
ORS 541.697 Water Resources Department Water Supply Fund. The Water Resources Department Water Supply Fund is established separate and distinct from the General Fund. Interest earned on moneys deposited in the Water Resources Department Water Supply Fund shall be credited to the fund. The fund consists of lottery bond proceeds, interest credited to the fund and any other moneys deposited in or transferred to the fund. Moneys in the fund are continuously appropriated to the Water Resources Department for grants, loans and other expenditures related to the water supply. [2009 c.906 §10; 2011 c.624 §5; 2015 c.812 §14; 2019 c.671 §6; 2021 c.682 §8; 2023 c.599 §40; 2025 c.633 §50]
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Note: 541.697 was enacted into law by the Legislative Assembly but was not added to or made a part of ORS chapter 541 or any series therein by legislative action. See Preface to Oregon Revised Statutes for further explanation. WATER DEVELOPMENT PROJECTS (Definitions)
ORS 541.700 Definitions for ORS 541.700 to 541.855. As used in ORS 541.700 to 541.855, unless the context requires otherwise
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(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 …
ORS 541.703 Project applications; preference for approval. Of the applications filed under ORS 541.705 for assistance in constructing a water development project for municipal use, the Water Resources Commission shall give preference for approval to those projects required to be undertaken as a result of a proceeding under ORS 222.840 to 222.915 or 431.705 to 431.760 to alleviate conditions constituting a danger to public health. [1983 c.407 §13; 1985 c.673 §112]
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[Repealed or reserved.]
ORS 541.705 Project applications; contents. (1) Any water developer may file with the Water Resources Commission an application to enable the construction of a water development project as provided in ORS 541.700 to 541.855. The application shall be filed in the manner, be in the form and contain or be accompanied by any information prescribed by the commission. The commission, in considering applications, shall encourage the largest number of users of the Water Development Fund and shall consider the impact on the family farm units of the state
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(2) In addition to other requirements prescribed by the commission, an application filed under subsection (1) of this section shall: (a) Describe the nature and purposes of the proposed water development project, including the need for the project and reason why the project would…
ORS 541.710 Processing project application; fee. (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
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(a) Reject the application; (b) Require the applicant to submit additional information and revision of the feasibility study as may be necessary; or (c) Make such revisions of the feasibility study as the commission considers necessary to make the plan satisfactory. (2) Except as…
ORS 541.715 Applicant authorized to obtain private planning, engineering and construction services. Nothing in ORS 541.700 to 541.855 is intended to prevent an applicant from employing a private planning firm, engineering firm and construction firm to perform the planning work, engineering work and construction on the proposed water development project of the applicant. [1977 c.246 §4]
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[Repealed or reserved.]
ORS 541.720 Conditions for project application approval. The Water Resources Commission may approve the financing for the construction of a water development project described in an application filed as provided in ORS 541.705 using moneys in the Water Development Fund, secured by a first, parity or second lien in the manner provided in ORS 541.740, if, after investigation, the commission finds that
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(1) The proposed water development project is feasible and a reasonable risk from practical and economic standpoints; (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…
ORS 541.725 [2009 c.907 §2; repealed by 2013 c.784 §40]
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(Loan Contracts)
ORS 541.730 Loan contract; repayment plan. 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 in the manner provided in ORS 541.740, that shall set forth, among other matters
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(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. (2) A plan for repayment by the …
ORS 541.735 Payment of funds by State Treasurer pursuant to loan contract. If the Water Resources Commission approves a loan for a water development project or federal water development project, the State Treasurer shall pay moneys for such project from the Water Development Fund in accordance with the terms of the loan contract, as prescribed by the commission. [1977 c.246 §7; 1985 c.673 §117]
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[Repealed or reserved.]
ORS 541.740 Liens and other loan security; foreclosure; rules. (1)(a) 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
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(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. …
ORS 541.741 Recovery of certain interest amounts. The Water Resources Commission shall not attempt to recover interest amounts credited or paid before January 1, 1986, to any water developer who borrowed moneys under ORS 541.700 to 541.855 and shall adjust the borrower’s account balance as necessary to reflect those credits as lawful payments on the borrower’s contractual obligations to the state. [1989 c.950 §2]
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Note: 541.741 was added to and made a part of ORS 541.700 to 541.855 by legislative action but was not added to any smaller series therein. See Preface to Oregon Revised Statutes for further explanation.
ORS 541.745 Remedies of commission when water developer fails to comply with contract. If a water developer fails to comply with a contract entered into with the Water Resources Commission for construction and repayment as provided in ORS 541.730, the commission, in addition to remedies provided in ORS 541.740, may seek other appropriate legal remedies to secure the loan and may contract with any other water developer as provided in ORS 541.730 for continuance of construction and for repayment of moneys from the Water Development Fund used to continue construction and interest on the moneys. [1977 c.246 §8; 1981 c.166 §4; 1985 c.673 §119]
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[Repealed or reserved.]
ORS 541.750 Repayment of moneys to Water Development Administration and Bond Sinking Fund. Any water developer that enters into a contract with the Water Resources Commission for construction and repayment as provided in ORS 541.730 or 541.745 may obtain moneys for repayment to the Water Development Administration and Bond Sinking Fund under the contract in the same manner as other moneys are obtained for other authorized purposes. The commission may also provide by contract or otherwise, for the construction, operation and maintenance of a water development project until the project is assumed by such new water developer. Moneys in the Water Development Fund may be used for such construction, operation and maintenance, and if so used, shall be repaid to the Water Development Administration and Bond Sinking Fund by the contracting water developer. [1977 c.246 §10; 1985 c.673 §120]
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[Repealed or reserved.]
ORS 541.755 [1977 c.246 §14; 1991 c.944 §7; 1995 c.79 §304; repealed by 2009 c.907 §15]
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[Repealed or reserved.]
ORS 541.756 Projects obtaining other funds for construction; repayment of funds loaned by state. Except as provided in ORS 541.760
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(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 wit…
ORS 541.760 Reduction of loan amount when secondary use funding available. If a water development project has any secondary use, and if the water developer receives from any source other than the Water Development Fund any funds to assist in the construction, operation or maintenance of such secondary use, the amount of the loan to the water developer from the Water Development Fund shall be limited to that amount necessary for the construction of those portions of the project not funded by other sources. [1977 c.246 §15]
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[Repealed or reserved.]
ORS 541.765 Authorization for loans for certain federal projects. In addition to those uses of moneys in the Water Development Fund otherwise provided in ORS 541.700 to 541.855, the Water Resources Commission may authorize loans of such moneys to those persons to whom approval has been granted by the federal government or any agency or instrumentality of the United States for the funding and construction of federal water development projects. Any such person shall apply for a loan to the commission, in such form as the commission prescribes, and shall furnish such proof of federal approval for funding and construction as the commission considers appropriate. [1977 c.246 §16; 1985 c.673 §121; 1991 c.944 §8; 1999 c.212 §5; 2009 c.907 §§9,38]
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[Repealed or reserved.]
ORS 541.770 Federal project loan contract terms; foreclosure. If the Water Resources Commission approves an application for the loan of moneys authorized by ORS 541.765, the commission shall enter into a loan contract with the borrower that provides, among other matters
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(1) That the loan be secured by a first lien or by other good and sufficient collateral in the same manner as provided in ORS 541.740. (2) That the loan bear interest at the same rate of interest as provided in ORS 541.730. (3) That the loan becomes due and payable to the Water D…
ORS 541.780 Bonds to provide project financing. In order to provide funds for the purposes specified in Article XI-I (1) of the Oregon Constitution, the Water Resources Commission may request the State Treasurer to issue bonds in accordance with the provisions of ORS chapter 286A. [1977 c.246 §19; 1981 c.660 §45; 2007 c.783 §215]
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[Repealed or reserved.]
ORS 541.785 Disposition and use of bond proceeds. Except for the proceeds of refunding bonds, all moneys obtained from the sale of bonds under ORS 541.780 to 541.815 shall be credited by the State Treasurer to the Water Development Fund. Such moneys shall be used only for the purposes stated in Article XI-I (1), Oregon Constitution, and ORS 541.700, 541.705 to 541.770 and 541.835. If there are insufficient funds in the Water Development Administration and Bond Sinking Fund to make the payments set forth in ORS 541.830, moneys in the Water Development Fund may be transferred to the Water Development Administration and Bond Sinking Fund. Pending the use of moneys in the Water Development Fund for the proper purposes, such moneys may be invested in the manner provided by law. [1977 c.246 §20; 1981 c.660 §46; 1989 c.950 §4; 2009 c.907 §§11,39]
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[Repealed or reserved.]
ORS 541.790 [1977 c.246 §21; repealed by 1981 c.660 §18]
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[Repealed or reserved.]
ORS 541.795 [1977 c.246 §22; 1981 c.166 §6; repealed by 1981 c.660 §18]
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[Repealed or reserved.]
ORS 541.800 Payment of bond principal and interest from Water Development Administration and Bond Sinking Fund. (1) The State Treasurer shall make payment of the principal of and the interest on any bond issued under ORS 541.780 to 541.815 from the Water Development Administration and Bond Sinking Fund
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(2) The State Treasurer shall compute and determine in January of each year, after the sale of bonds under ORS 541.780 to 541.815, the amount of principal and interest which will fall due during such year on bonds then outstanding and unpaid and shall maintain or hold in the Wate…
ORS 541.805 [1977 c.246 §24; repealed by 1981 c.660 §18]
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[Repealed or reserved.]
ORS 541.810 [1977 c.246 §25; repealed by 1981 c.660 §18]
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[Repealed or reserved.]
ORS 541.815 Limitation on bond issuance amount. No bonds shall be issued or sold under ORS 541.780 to 541.815 nor indebtedness incurred thereunder, which, singly or in the aggregate with previous debts or liabilities incurred for the construction, operation and maintenance of water development projects and for the acquisition of easements and rights of way for federal water development projects shall exceed any limitation provided in the Oregon Constitution at the date of the issuance and sale of such bonds. If the maximum aggregate principal sum of bonds authorized to be issued under ORS 541.780 to 541.815, exceeds any limitation provided in the Oregon Constitution, bonds shall be issued under ORS 541.780 to 541.815, in the aggregate principal sum of not to exceed that authorized under the limitation provided in the Oregon Constitution. [1977 c.246 §27]
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(Administration)
ORS 541.830 Water Development Administration and Bond Sinking Fund; sources; use; Governor’s approval. (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
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(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 outstand…
ORS 541.835 Water Development Fund; use. All moneys in the Water Development Fund created by Article XI-I (1), Oregon Constitution, hereby are appropriated continuously to the Water Resources Commission and shall be used for the purposes provided in ORS 541.700 to 541.855. Moneys expended from the fund may include those expended or to be expended for engineering, legal fees and acquisition of water rights and property required for rights of way or facility locations. Interest earned by the fund shall be credited to the fund. [1977 c.246 §18; 1985 c.673 §124; 1989 c.966 §61]
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[Repealed or reserved.]
ORS 541.840 Emergency Board request for funds to pay administrative expenses; repayment of board allocations. (1) If there are insufficient funds in the Water Development Administration and Bond Sinking Fund to make the payments referred to in ORS 541.830 (1), the Water Resources Commission may request the funds necessary for such payments from the Legislative Assembly within the budget authorized by the Legislative Assembly or as that budget may be modified by the Emergency Board
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(2) When the commission determines that moneys in sufficient amount are available in the Water Development Administration and Bond Sinking Fund, the commission shall reimburse the General Fund without interest, in an amount equal to the amount allocated by the Legislative Assembl…
ORS 541.845 Rules. (1) In accordance with the applicable provisions of ORS chapter 183, the Water Resources Commission may adopt rules necessary to carry out ORS 541.700 to 541.855
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(2) In adopting rules establishing guidelines or criteria for awarding loans or grants for drinking water projects, the commission shall coordinate the Water Resources Department’s rulemaking process with the Oregon Business Development Department and the Oregon Health Authority …
ORS 541.850 Commission acceptance of gifts or grants. The Water Resources Commission may accept gifts of money or other property from any source, given for the purposes of ORS 541.700 and 541.705 to 541.770. Money so received shall be paid into the Water Development Fund. Money or other property so received shall be used for the purposes for which received. [1977 c.246 §12; 1985 c.673 §127; 2009 c.907 §§14,41]
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[Repealed or reserved.]
ORS 541.855 Biennial report to Legislative Assembly and Governor. The Water Resources Commission shall make available to the Legislative Assembly and the Governor a biennial report of the transactions of the Water Development Fund and the Water Development Administration and Bond Sinking Fund in such detail as will accurately indicate the transactions and the condition of the funds. [1977 c.246 §29; 1985 c.673 §128]
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ADMINISTRATION OF MONSANTO SETTLEMENT MONEYS
ORS 541.857 Policy. (1) It is the intent of the Legislative Assembly in enacting ORS 541.857 to 541.882 to
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(a) Establish the Oregon Environmental Restoration Fund in the State Treasury, consisting of moneys paid to the state from the Monsanto Settlement Agreement; (b) Provide for the investment of settlement funds and for the expenditure of earnings from those investments in an equita…
ORS 541.859 Definitions. As used in ORS 541.857 to 541.882
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(1) “Disproportionately impacted community” means communities that have been disproportionately impacted by PCB or other contaminants or that have been historically underrepresented in public processes regarding environmental laws or policies and as further defined by the Environ…
ORS 541.861 Environmental Restoration Council; reporting on expenditures; rules. (1) The Environmental Restoration Council is established in the Oregon Watershed Enhancement Board. The council consists of 13 members as follows
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(a) The Governor or the Governor’s designee. (b) The Director of the Department of Environmental Quality or the director’s designee. (c) The State Fish and Wildlife Director or the director’s designee. (d) The Director of the Oregon Health Authority or the director’s designee. (e…
ORS 541.863 Oregon Environmental Restoration Fund. (1) The Oregon Environmental Restoration Fund is established in the State Treasury, separate and distinct from the General Fund. Interest earned by the Oregon Environmental Restoration Fund shall be credited to the fund. The fund consists of
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(a) Proceeds from the Monsanto Settlement Agreement; (b) Moneys transferred to the fund by the Legislative Assembly; and (c) Other amounts deposited in the fund from any other public or private source. (2) Moneys in the Oregon Environmental Restoration Fund are continuously appro…
ORS 541.865 (1) The Environmental Restoration Council shall, based on the advice of the State Treasurer, establish a long-term distribution policy for the Oregon Environmental Restoration Fund that provides for the transfers described in subsections (3) and (4) of this section
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(2) No later than December 1 of each year, the Environmental Restoration Council shall determine the amounts that shall be transferred from the Oregon Environmental Restoration Fund by the Oregon Watershed Enhancement Board for the purposes of subsections (3) and (4) of this sect…
ORS 541.867 State Agency Program Fund. (1) The State Agency Program Fund is established in the State Treasury, separate and distinct from the General Fund. Interest earned by the fund shall be credited to the fund
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(2) Moneys in the State Agency Program Fund consist of moneys transferred to the fund under ORS 541.865 and moneys deposited or transferred into the fund from any other public or private source. (3) Moneys in the State Agency Program Fund are continuously appropriated to the Oreg…
ORS 541.869 Allocations from State Agency Program Fund; uses; rules; biennial reports. (1) The Environmental Restoration Council shall establish by rule procedures and criteria for approving allocations to state agencies that have a nexus with the projects and purposes described in the Monsanto Settlement Agreement from the State Agency Program Fund established under ORS 541.867
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(2)(a) Allocations approved by the council under this section must be for projects or purposes that are consistent with the terms of the Monsanto Settlement Agreement and the strategic priorities established under ORS 541.882. (b) Allocations may be used to supplement existing pr…
ORS 541.871 Disproportionately Impacted Community Fund. (1) The Disproportionately Impacted Community Fund is established in the State Treasury, separate and distinct from the General Fund. Interest earned by the fund shall be credited to the fund
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(2) Moneys in the Disproportionately Impacted Community Fund consist of moneys transferred to the fund under ORS 541.865 and moneys deposited or transferred into the fund from any other public or private source. (3) Moneys in the Disproportionately Impacted Community Fund are con…
ORS 541.873 Grants benefiting disproportionately impacted communities; uses; rules; reports. (1) The Environmental Restoration Council shall establish by rule a program to provide grants to public or private nonprofit entities to carry out projects that benefit disproportionately impacted communities. Rules adopted under this section shall include but need not be limited to
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(a) Procedures for soliciting and reviewing applications from public or private nonprofit entities; (b) Eligibility criteria for nonprofit entities; (c) Eligible purposes for which grants may be awarded; (d) Guidelines for collaborations or partnerships between multiple entities;…
ORS 541.875 [1981 c.151 §2; 1983 c.652 §2; 1985 c.673 §129; 1991 c.479 §1; renumbered 541.386 in 2017]
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[Repealed or reserved.]
ORS 541.876 Tribal Nation Natural Resource Program Fund. (1) The Tribal Nation Natural Resource Program Fund is established in the State Treasury, separate and distinct from the General Fund. Interest earned by the fund shall be credited to the fund
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(2) Moneys in the Tribal Nation Natural Resource Program Fund consist of moneys transferred to the fund under ORS 541.865 and moneys deposited or transferred into the fund from any other public or private source. (3) Moneys in the Tribal Nation Natural Resource Program Fund are c…
ORS 541.879 Transfers from Tribal Nation Natural Resource Program Fund; uses; rules; biennial reports. (1) The Environmental Restoration Council shall establish by rule procedures for the transfer of moneys from the Tribal Nation Natural Resource Program Fund established under ORS 541.876 to federally recognized Indian tribes in this state at the beginning of each biennium
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(2) Transfers made pursuant to this section: (a) Must be for projects or purposes consistent with the terms of the Monsanto Settlement Agreement. (b) Must be made in equal amounts to each of the nine federally recognized Indian tribes in this state, unless a different proportion …
ORS 541.880 [1991 c.479 §2; renumbered 541.393 in 2017]
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[Repealed or reserved.]
ORS 541.882 Strategic priorities for amounts expended; restrictions. (1) The Environmental Restoration Council, in consultation with state agencies described in ORS 541.869 (1) and the Environmental Justice Council, shall establish strategic priorities for amounts expended from the State Agency Program Fund established under ORS 541.867 and the Disproportionately Impacted Community Fund established under ORS 541.871. Before adopting strategic priorities, the Environmental Restoration Council shall compile and review relevant data or other scientific information
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(2) Strategic priorities may include guidelines for distributing amounts on an annual or biennial basis, and for committing to funding projects for more than one biennium, as appropriate for facilitating program outcomes and continuity. (3) Priorities established under this secti…
ORS 541.890 Definitions for ORS 541.890 to 541.969. As used in ORS 541.890 to 541.969
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(1) “Adaptive management” means applying management or practices over time and across the landscape to achieve site specific resource goals using an integrated and science based approach that results in changes over time in response to feedback or monitoring. (2) “Associated upla…
ORS 541.895 Legislative findings; principles of Oregon Plan; policy. (1) The Legislative Assembly finds that
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(a) The long-term protection of the water resources of this state, including sustainable watershed functions, is an essential component of Oregon’s environmental and economic stability and growth; (b) Each watershed in Oregon is unique, requiring different management techniques a…
ORS 541.898 Oregon Plan described; goals; elements; Governor to negotiate with federal government. (1) As used in this section when referring to salmonid recovery
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(a) “Listed unit” means one population or a group of populations of a species, such as an evolutionarily significant unit, that has been listed as threatened or endangered under the federal Endangered Species Act of 1973 (P.L. 93-205), as amended, or under ORS 496.171 to 496.192.…