Committee advances bill letting state set fees for cables and utility lines in Territorial Sea

The Ways and Means Natural Resources Subcommittee voted June 25 to advance Senate Bill 793, which directs the Department of State Lands to adopt administrative rules setting application fees, renewal fees and compensation rates for water, gas, electric, communication and telecommunication service lines and associated facilities on state land located within Oregon's Territorial Sea.

The bill keeps a current $5,000 per-application fee in place until a new fee schedule takes effect on Jan. 1, 2027, and requires the department to provide a progress report to the Legislature by Feb. 15, 2026. "Costs associated with the measure are anticipated to be minimal and exist within the department's budget," a Legislative Fiscal Office analyst said during the work session; the analyst also said revenue from the new fee schedule is "indeterminate" because exact fees will be set by rule.

The measure also notes that under ORS 291.055, administratively set fees must be ratified by the Legislature during the next session or they are rescinded. Committee members asked whether the fee would apply to cables coming ashore and whether Oregon's approach would be consistent with other states. The LFO analyst said the fee would be assessed on cables coming from offshore to the shore and that Washington and California have similar fee structures, though some states apply fees by cable length or diameter.

Co Chair Frederick moved Senate Bill 793 to the full committee with a due-pass recommendation; the motion passed on voice and roll-call confirmation. Recorded votes included: Senator Anderson (aye), Senator Frederick (yes), Representative Breeze Iverson (aye), Representative Owens (yes), Representative Lively (aye) and Representative Levy (aye); Senators Gorsek and Representative Hartman were recorded as excused. The committee did not record any no votes or abstentions.

Why it matters: the Territorial Sea is a 12-nautical-mile zone seaward from the baseline; the measure lays out a process for the state to charge and later adjust fees for companies that lay and maintain offshore cables and service lines that land on state property. Proponents at the hearing noted the fee schedule will be set in administrative rule and the department will continue to research how neighboring states apply similar charges.

The bill now goes to the Ways and Means full committee for further consideration.