OWEB board opens rulemaking to update watershed council and SWCD operating capacity grants

OWEB staff asked the board to authorize formal rulemaking to update the operating capacity grant program after a six‑month engagement that included 11 listening sessions, a survey and outreach with watershed councils and soil & water conservation districts (SWCDs).

Brian Wolcott and Eric Williams summarized common themes from stakeholders: a strong preference for a stable, noncompetitive base of capacity funding; flexibility in eligible uses (audit costs, staff, equipment and permitting assistance); alignment and simplification of reporting between OWEB and ODA; and the importance of supporting organizational health so councils and districts can shepherd projects to implementation and long‑term stewardship.

Staff also described policy tensions that lacked consensus, including whether to add performance‑based or competitive tiers above a base award, whether formulaic allocation (population, stream miles, acreage) should be used for apportionment, how to treat SWCDs with tax bases, and whether mergers should be incentivized or discouraged. The Partnerships & Capacity Committee asked staff to explore shared services and to consider expanding watershed council eligibility while acknowledging possible impacts on the board’s spending plan.

The board voted to initiate rulemaking; staff will recruit a rulemaking advisory committee (RAC), hold RAC meetings (public and virtual) beginning autumn, and aim to file draft rules by May 2027 with a target effective date of January 2029 to give organizations and staff time to prepare.