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Water resources department seeks carryover authority for Harney Basin conservation payments
Summary
The Oregon Water Resources Department asked the Agriculture, Land Use, Natural Resources, and Water Committee on Jan. 29 to approve a technical change allowing unspent general fund dollars for the Harney Valley Conservation Reserve Enhancement Program to carry into an other-funds account.
The committee opened a public hearing Jan. 29 on House Bill 2813, an agency-sponsored technical change to the Harney Valley Conservation Reserve Enhancement Program. Ivan Gahl, director of the Oregon Water Resources Department, said the program helps retire groundwater rights in the Harney Basin through voluntary enrollment and financial compensation, with federal funds expected to cover 80 percent of payments and a 20 percent state match.
Gahl told the committee the legislature previously authorized the program in 2021 and the Department expects to begin accepting applications this winter; the Legislature has allocated $500,000 per biennium in continuous funding. Under current budget rules, unspent general fund dollars revert to the general fund at the end of the biennium, which can limit the department's ability to build the fund and enroll more groundwater users. HB 2813 would allow unspent general fund dollars to roll into an other-funds account at the end of each biennium so the department can increase payments to enrollees and expand enrollment.
Co-chair Owens told the committee a friendly amendment is being developed to allow the program framework to be used statewide in basins that meet specific conditions, including that the basin be a critical groundwater designation where no new groundwater allocations would occur and that the basin establish a federal credit program before qualifying for state funds. Gahl cautioned that establishing a federal credit program typically requires an environmental impact statement and federal approvals and may be years before other basins are prepared to enroll.
Committee members asked about timing of federal funding and whether interest on rolled funds could be used to stretch the program. Gahl and Brynn Hudson, legislative coordinator for the department, said federal payments are expected to flow as enrollees enter the program and that some accounts may accrue interest but the department is limited to spending amounts specifically appropriated by the Legislature. Representative Levy asked the department to research whether interest-bearing structures are possible and report back.
No formal committee action or vote was recorded during the hearing.
