OR Rev Stat § 541.696 (2021)
2021 Oregon Revised Statutes|Volume : 15 - Water Resources, Agriculture and Food|Chapter 541 - Water Distributors; Water Releases; Conservation and Storage; Water Development Projects; Watershed Management and Enhancement|Section 541.696 - Standards for security of loans from account; rules.

(1) The Water Resources Commission shall adopt rules establishing standards for borrowers obtaining loans issued from the Water Supply Development Account. The commission shall design the standards to ensure that all loans have a high probability of repayment and that all loans are adequately secured in the event of a default. The commission shall solicit comments from the Oregon Department of Administrative Services and the State Treasurer when designing the standards. The standards may include, but need not be limited to, standards that give preference to entities with ad valorem taxing authority. (2) If the Water Resources Department approves a loan from the account for the implementation of a water development project, the department may require that the applicant enter into a loan contract, secured by a first lien or by other good and sufficient collateral. [2013 c.784 §15] Note: See note under 541.651. Note: Section 10, chapter 906, Oregon Laws 2009, provides: Sec. 10. (1) The Water Resources Department Water Supply Fund is established separate and distinct from the General Fund. Interest earned on moneys deposited in the Water Resources Department Water Supply Fund shall be credited to the fund. Moneys in the fund are continuously appropriated to the Water Resources Department. (2) The Water Resources Department Water Supply Fund consists of: (a) Net proceeds of lottery bonds issued pursuant to sections 8 and 9, chapter 906, Oregon Laws 2009, deposited into the Water Resources Department Water Supply Fund for the following purposes: (A) $2,500,000 for the purposes of issuing grants to develop Umatilla Basin critical ground water storage projects described in section 17, chapter 907, Oregon Laws 2009, and to provide or pay for services in connection with those projects. (B) $217,000 to pay for the operation of loan and grant programs under sections 18 to 27, chapter 907, Oregon Laws 2009. (C) $283,000 for the purpose of developing an integrated state water resources strategy to implement the state water resources policy pursuant to ORS 536.220 and section 45, chapter 907, Oregon Laws 2009. (D) $500,000 for purposes of the grant program established by section 1, chapter 13, Oregon Laws 2008. (b) Net proceeds of lottery bonds issued pursuant to section 4, chapter 624, Oregon Laws 2011, in an amount sufficient to provide $1,229,052 in net proceeds and interest earnings for the department to finance grants for feasibility studies for water conservation, reuse and storage projects. (c) $11 million in net proceeds and interest earnings pursuant to section 13, chapter 812, Oregon Laws 2015, to develop and implement water storage systems and delivery infrastructure, implement conservation and reuse projects or provide access to new water supplies. (d) $750,000 in net proceeds and interest earnings pursuant to section 13, chapter 812, Oregon Laws 2015, to provide grants for place-based planning. (e) $1 million in net proceeds and interest earnings pursuant to section 13, chapter 812, Oregon Laws 2015, to repair, replace or remediate water wells in the Mosier Creek area. (f) $14 million in net proceeds pursuant to section 4, chapter 671, Oregon Laws 2019, as amended by section 6 of this 2021 Act, for remediation of the Big Creek Dams, including design, environmental permitting and construction of a seismically sound replacement dam. (g) $14 million in net proceeds pursuant to section 5, chapter 671, Oregon Laws 2019, as amended by section 7 of this 2021 Act, for rehabilitation of the Wallowa Lake Dam. (h) Any other fees, revenues or income deposited in the fund by the Legislative Assembly. [2009 c.906 §10; 2011 c.624 §5; 2015 c.812 §14; 2019 c.671 §6; 2021 c.682 §8] Note: Sections 4 and 5, chapter 671, Oregon Laws 2019, provide: Sec. 4. (1) For the biennium beginning July 1, 2021, at the request of the Oregon Department of Administrative Services, after the department consults with the Water Resources Department, the State Treasurer is authorized to issue lottery bonds pursuant to ORS 286A.560 to 286A.585 in an amount that produces $14 million in net proceeds for the purposes described in subsection (2) of this section, plus an additional amount estimated by the State Treasurer to be necessary to pay bond-related costs. (2) Net proceeds of lottery bonds issued under this section must be transferred to the Water Resources Department for deposit in the Water Resources Department Water Supply Fund, established in section 10, chapter 906, Oregon Laws 2009, for distribution to the City of Newport for remediation of the Big Creek Dams, including design, environmental permitting and construction of a seismically sound replacement dam. (3) The Legislative Assembly finds that the use of lottery bond proceeds will create jobs, further economic development, finance public education or restore and protect parks, beaches, watersheds and native fish and wildlife, and is authorized based on the following findings: (a) Having adequate drinking water systems, irrigation, drainage and healthy ecosystems enhances community development and supports Oregon’s economic growth; and (b) Assisting local governments to mitigate losses resulting from reduced water supply for irrigation and retirement of water rights will enhance community efforts to facilitate and promote economic growth. [2019 c.671 §4; 2021 c.682 §6] Sec. 5. (1) For the biennium beginning July 1, 2021, at the request of the Oregon Department of Administrative Services, after the department consults with the Water Resources Department, the State Treasurer is authorized to issue lottery bonds pursuant to ORS 286A.560 to 286A.585 in an amount that produces $14 million in net proceeds for the purposes described in subsection (2) of this section, plus an additional amount estimated by the State Treasurer to be necessary to pay bond-related costs. (2) Net proceeds of lottery bonds issued under this section must be transferred to the Water Resources Department for deposit in the Water Resources Department Water Supply Fund, established in section 10, chapter 906, Oregon Laws 2009, for distribution to the Wallowa Lake Irrigation District for rehabilitation of the Wallowa Lake Dam. (3) Lottery bonds authorized under this section may not be issued unless: (a) The Wallowa Lake Irrigation District, State Department of Fish of Wildlife, Confederated Tribes of the Umatilla Indian Reservation and Nez Perce Tribe enter into an agreement regarding the protection and release of instream water from the Wallowa Lake Dam; and (b) The Wallowa Lake Irrigation District submits a copy of the executed agreement to the Water Resources Department. (4) The Legislative Assembly finds that the use of lottery bond proceeds will create jobs, further economic development, finance public education or restore and protect parks, beaches, watersheds and native fish and wildlife, and is authorized based on the following findings: (a) Having adequate drinking water systems, irrigation, drainage and healthy ecosystems enhances community development and supports Oregon’s economic growth; and (b) Assisting local governments to mitigate losses resulting from reduced water supply for irrigation and retirement of water rights will enhance community efforts to facilitate and promote economic growth. [2019 c.671 §5; 2021 c.682 §7]