Oregon revenue committee hears wide-ranging public testimony on HB 3940 A as bottle-bill surcharge draws opposition

The House Committee on Revenue opened a public hearing May 1 on House Bill 3940 A, a wide-ranging package meant to create dedicated funding for wildfire suppression, mobilization and landscape resiliency across Oregon.

The bill would package multiple revenue options and policy changes: a proposed 5¢ surcharge on beverage containers, a redirection of the state's retaliatory insurance tax, changes to landowner assessment rates and forest harvest taxes, a one-time transfer from the rainy day fund and a proposed target to provide about $280 million per biennium for wildfire suppression and mitigation programs. "The governor's recommended budget identified $150,000,000 to be redirected from going into state reserves to help proactively pay the fire costs and support the fire programs," said Doug Graff, wildfire and military advisor to the governor.

Why it matters: testimony showed broad consensus that Oregon needs a durable revenue solution for larger, costlier wildfire seasons, but sharp disagreement over how to raise the money. Supporters said the bill bundles revenue and policy fixes to stabilize the Oregon Department of Forestry (ODF), the Oregon State Fire Marshal (OSFM) and rural fire protection districts. Opponents — including recycling organizations, beverage industry groups and many nonprofits — warned that a 5¢ surcharge on beverage containers would damage Oregon's longstanding bottle bill system and the social programs it funds.

Legislative staff gave committee members an overview of the bill. "Sections 1 through 5 are the new funding pieces for wildfire costs," said Chris of the Legislative Revenue Office, who walked the committee through the bill's table of sections and amendments. He and other staff described six possible revenue sources across related bills: a 5¢ container…