Oregon lawmakers approve 50% fee hike for water right transactions and dam safety

The Oregon Legislature's Joint Committee on Ways and Means convened on June 17, 2025, to discuss significant fee increases proposed by the Water Resource Department, which are set to impact water users across the state. The committee reviewed House Bill 2803, which aims to raise various fees related to water right transactions and dam safety by 50%. This increase is expected to generate approximately $1.4 million in revenue, addressing a projected shortfall of $2.2 million by the 2027 biennium.

The bill's supporters argue that the fee adjustments are necessary to maintain essential services and prevent further delays in processing water rights, which are critical for farmers and ranchers. Representative Owens emphasized the need for these increases to avoid a backlog in service delivery, which could worsen if the funding is not secured. However, he acknowledged the burden that such a significant fee hike would place on water users, particularly those in the agricultural sector who are already struggling due to ongoing drought conditions.

Opposition to the bill was voiced by several committee members, including Representative Breeze Iverson, who expressed concern that the 50% increase would be unaffordable for many farmers. She highlighted the long-term impacts of drought on agricultural businesses, suggesting that the fee hike could exacerbate existing financial pressures. Other representatives echoed similar sentiments, questioning the fairness of placing the financial burden primarily on the agricultural community while other sectors receive more substantial general fund support.

In addition to House Bill 2803, the committee also discussed House Bill 2808, which proposes a 40% increase in fees related to well construction and operations. This bill aims to generate $920,000 in revenue to avert staff reductions within the Water Resource Department. While some committee members recognized the necessity of funding for well safety and construction oversight, concerns were raised about the cumulative impact of these fee increases on water users, particularly those with exempt wells.

The discussions highlighted a broader concern regarding the state's investment in natural resources, with representatives calling for a reevaluation of funding priorities to better support the agricultural sector. As the committee moves forward, the implications of these fee increases will be closely monitored, particularly regarding their effects on Oregon's farmers and ranchers who play a vital role in the state's economy.