Committee hears bill to authorize Deschutes River water‑bank pilot

The House Committee on Agriculture, Land Use, Natural Resources, and Water opened a public hearing March 12 on House Bill 3,806, which would authorize the Oregon Water Resources Commission to approve a Deschutes River Water Bank pilot in Deschutes County.

Representative Emerson Levy, sponsor of the bill, said the proposal “would develop a water bank…in Deschutes County.” Kate Fitzpatrick, executive director of the Deschutes River Conservancy, told the committee the bank would scale up existing tools — temporary leases, trades and mitigation credits — to “make it easier to move water around to meet needs in a voluntary way using incentives.”

Josh Bailey, general manager of North Unit Irrigation District, described repeated shortfalls for his district, saying North Unit is a junior water‑rights holder that irrigates nearly 60,000 acres and that recent drought years have cut allotments and harmed local agriculture. Bailey said the pilot aims to expand voluntary market transactions to access more reliable sources for North Unit.

Jeremy Austin of Central Oregon Land Watch and Mike Butner, water services director for the city of Bend, testified in support. Austin cited the basin study findings of recurring annual shortfalls and said market‑based tools should complement infrastructure investments. Butner said Bend is “fully supportive” and called the pilot “one step” toward flexible basin management.

Doug Riggs of Central Oregon Cities and other local partners described long‑running basin collaboration. Kate Fitzpatrick emphasized centering tribal priorities, noting the Confederated Tribes of Warm Springs reserve rights across much of the basin. Testimony noted that about 86% of current basin water is used for irrigated agriculture, about 12% has been protected in‑stream through projects, and about 2% is used by cities, based on the basin study the panel cited.

Several witnesses stressed that the bank would be voluntary and locally managed; panelists said the pilot is intended to learn and adapt. Committee members asked about public concerns — including media stories about speculation — and witnesses said the proposal is a locally controlled program. Lawmakers asked for a later report on pilot performance; one co‑chair suggested a one‑ to two‑year check‑in to assess results and transferability to other basins.

The committee closed the public hearing on HB 3,806 and did not take final action during the March 12 meeting.