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Panel adopts amendment and advances HB 3806 to pilot Deschutes River water bank
Summary
The House Ways and Means Subcommittee on Natural Resources adopted the -6 amendment to House Bill 3806 and voted to send the bill to the full committee with a due-pass recommendation. The bill would authorize a pilot Deschutes River water bank, designate the Deschutes River Conservancy as manager, require reporting and create a funded staff role.
The House Ways and Means Subcommittee on Natural Resources on May 29, 2025, adopted the -6 amendment to House Bill 3806 and voted to move the bill to the full Ways and Means committee with a due-pass recommendation.
House Bill 3806 would authorize the Oregon Water Resources Commission to approve a Deschutes River water bank pilot program for surface water and designate the Deschutes River Conservancy to manage the bank’s operations. The bill sets operating requirements, outlines eligible participants and requires a charter; it also sunsets on Jan. 2, 2034. The Legislative Fiscal Office estimated the water resources department would need one permanent position at 0.75 full-time equivalent, with an estimated cost of $532,394 for the 2025–27 biennium. Funding for that position is identified as a transfer from the Deschutes River Conservancy and the -6 amendment reflects the cost of the measure.
Supporters told the subcommittee the pilot is intended to speed transfers by packaging water deposits and withdrawals and to provide a transactional, recorded process that would operate similar to existing water-district transactions. Subcommittee discussion indicated the bank would report annually to the department before the irrigation season and that the Conservancy would need to show how much water would be in the bank before transfers occur.
Some members expressed caution about placing management responsibility with a nonprofit rather than housing it inside the department. One legislator said the arrangement raised “red flags” and asked for regular accountability reporting. Representative Breece Iverson said, “I am going to be a no today,” citing those reservations. Other members noted long-standing collaboration in Deschutes County and said the Conservancy has experience managing regional water issues.
Committee action: Co-chair Frederick moved adoption of the -6 amendment; the amendment passed on a roll-call vote. Frederick then moved HB 3806, as amended, to the full committee with a due-pass recommendation; that motion also passed. The roll calls recorded the following votes on the amendment and the subsequent motion: Senators Anderson, Korcyk and Frederick voted yes; Representative Breece Iverson voted no; Representatives Owens, Lively, Hartman and Co-chair Levy voted yes. With those votes, both the amendment and the motion to advance the bill passed.
Key operational and fiscal details discussed in the session include the annual reporting schedule to the department prior to irrigation season, the plan to treat transfers as packages similar to water-district transactions, a stated in‑stream allocation equal to 25% of a transactional deposit, and the identified funding source and estimated FTE cost for the department. The subcommittee noted the pilot is limited to the Deschutes River area and that proponents view Deschutes River Conservancy as a collaborator with existing irrigation districts.
Next steps: HB 3806, as amended, will go to the full Ways and Means committee for further consideration. The subcommittee asked for ongoing accountability reporting as the pilot is implemented and for attention to any processing delays that might arise when transfers are packaged through the bank.
