Oregon Revised Statutes

Chapter 543 — Hydroelectric Projects

82 sections

543.010 Definitions for ORS 543.010 to 543.610

As used in ORS 543.010 to 543.610: “Actual original cost” includes the sum paid to the state at the time the application was made for a preliminary permit; the sum paid or secured to be paid to the state by the applicant for license at the time such application was made; such sums as may be paid to the United States or any department thereof; and such sums …

543.012 Applicability of chapter to reauthorization of existing hydroelectric project

Except for the provisions of ORS 543.300, 543.310, 543.430, 543.440, 543.610, 543.650 to 543.685, 543.710, 543.720, 543.730 and 543.990, nothing in this chapter shall apply to the reauthorization of an existing project. All references in ORS 543.300, 543.310, 543.430, 543.440, 543.610, 543.650 to 543.685, 543.710, 543.720, 543.730 and 543.990 to a license o…

543.013 Applicability of chapter and ORS chapter 543A to ocean renewable energy facility

The provisions of this chapter and ORS chapter 543A do not apply to an ocean renewable energy facility as defined in ORS 274.870 if: The facility is located within Oregon’s territorial sea, as defined in ORS 196.405; or The facility is in an estuary, unless any part of the facility is not subject to a proprietary authorization issued by the Department of S…

543.014 [2007 c.212 §2; 2009 c.405 §§1,2; repealed by 2015 c.386 §15]

543.015 Policy

The Legislative Assembly declares that it is the policy of the State of Oregon: To protect the natural resources of this state from possible adverse impacts caused by the use of the waters of this state for the development of hydroelectric power. To permit siting of hydroelectric projects subject to strict standards established to protect the natural resou…

543.017 Minimum standards for development of hydroelectric power; public interest considerations; rules

In order to carry out the policy set forth in ORS 543.015, the following minimum standards shall apply to any action of the Water Resources Commission relating to the development of hydroelectric power in Oregon: The anadromous salmon and steelhead resources of Oregon shall be preserved. The commission shall not approve activity that may result in mortality…

543.020 [Repealed by 1961 c.224 §20]

543.030 [Repealed by 1961 c.224 §20]

543.040 [Repealed by 1961 c.224 §20]

543.050 Powers of Water Resources Commission as to permits, licenses, investigations, reports, forms and examination of records

The Water Resources Commission may: Issue preliminary permits, as provided in ORS 543.210 to 543.250, to any person qualified to become a licensee. Issue licenses, as provided in ORS 543.260, to citizens of the United States, associations of citizens, or private corporations organized under the laws of the United States or any state of the United States, t…

543.055 Hearings and witnesses

The Water Resources Commission may hold hearings and take testimony orally, by deposition or in such other form as the commission considers satisfactory, either within or without this state. The Water Resources Commission may require, by subpoena, the attendance of witnesses and the production of documentary evidence. An administrative law judge assigned fr…

543.060 Investigations; access to project, maps, books and other project data

The Water Resources Commission, the Water Resources Director or any employee of the Water Resources Department, at all reasonable times, shall have free access to any project, addition or betterment during or after construction or acquisition, and to all maps, plans, profiles, estimates, engineers’ reports, books, accounts, records and other data relating to…

543.070 [Repealed by 1975 c.581 §29]

HYDROELECTRIC PROJECT FEES

543.075 Definitions for ORS 543.075 to 543.092

As used in ORS 543.075 to 543.092: “1998 dollar” means a dollar amount that when adjusted for inflation or deflation equals the value of a dollar in 1998. “Holder” means a person authorized to operate a hydroelectric project under the authority of either a time-limited water right, a certificated water right or a pre-1909 uncertificated claim. “Holder” inc…

543.078 Annual fee for hydroelectric project

On or before January 1 of each year, each holder shall pay to the State of Oregon an annual fee for each hydroelectric project that is subject to this section. The annual fee required by this section shall be based on the theoretical horsepower specified in the water right for each project. The amount of the annual fee required under subsection (1) of this …

543.080 Project specific fees; summary of project specific expenditures

In addition to the annual fee set forth in ORS 543.078, a holder may be required to pay project specific fees. Project specific fees are fees that compensate a state agency for the agency’s reasonable and necessary oversight of a holder’s implementation of the protection, mitigation and enhancement measures included in a water right for the project, a certi…

543.082 Invoice for fees; overdue fee; interest on delinquent fees

At least 45 days before the fees required under ORS 543.078 or 543.080 become due, the Water Resources Department shall issue invoices to the holder for each fee. If any holder fails to pay the fees required under ORS 543.078 or 543.080 within 15 days after the date specified in the invoice, the department shall notify the holder of the amount and nature of…

543.085 Periodic review of annual fee

At least once every eight years the Water Resources Director shall appoint a review panel to review the amount of the annual fee established under ORS 543.078. The review panel shall consist of at least one representative from the following and others at the director’s discretion: The Department of Environmental Quality; The State Department of Fish and Wi…

543.088 Payment of costs or fee for reauthorization or relicensing of project

Notwithstanding ORS 543A.405 and 543A.410, during each year of the interim period established in subsection (2) of this section, any licensee or water right certificant seeking reauthorization of a state water right to operate a federally licensed hydroelectric project shall pay the greater of: The actual cost of the Hydroelectric Application Review Team’s …

543.090 Payment of expenses of Hydroelectric Application Review Team for project operating under federal license and state power claim or uncertificated claim

Any project operating under a hydroelectric license issued by the Federal Energy Regulatory Commission and concurrently operating under the authority of a power claim or uncertificated claim shall pay all expenses related to the review and decision of a Hydroelectric Application Review Team established under ORS 543A.075 that: Are incurred by the team and a…

543.092 Amendment of hydroelectric water right or claim; rules; unilateral amendment of power claim or uncertificated claim to assess project specific fees

Upon the request of the holder and the approval of the Water Resources Department, a hydroelectric water right or claim may be amended. The Water Resources Department shall develop rules governing the process by which a hydroelectric water right or claim may be amended. Any amendments under subsection (1) of this section shall: Be consistent with the final…

543.095 Challenges to certain statutes related to hydroelectric projects

As used in this section, “person” has the meaning given that term in ORS 174.100. No person shall be estopped or precluded from challenging the constitutionality or validity of any provision of chapter 449, Oregon Laws 1997, or the provisions of chapter 873, Oregon Laws 1999, as a result of having received or sought benefits under, complied with, paid fees …

543.110 Appropriation and use of water for power is governed by this chapter

After February 26, 1931, no right to appropriate or to use the waters of the lakes, rivers, streams or other bodies of water within this state, including water over which this state has concurrent jurisdiction, in connection with the development of any water power project for the generation of electricity, shall be initiated, perfected, acquired or held, exc…

543.120 Water power projects to be in conformity with this chapter

After February 26, 1931, no water power project involving the use of the waters of lakes, rivers, streams or other bodies of water within this state, including waters over which this state has concurrent jurisdiction, for the generation of electricity, shall be begun or constructed except in conformity with the provisions of ORS 543.010 to 543.610.

543.130 [Repealed by 1961 c.224 §20]

543.135 [1961 c.100 §§2,3; repealed by 1985 c.673 §185]

543.140 Projects or developments constructed by federal government excepted from law

The provisions of ORS 543.010 to 543.610 shall not apply to any water power project or development constructed by the United States.

543.150 Municipal corporations and utility districts; applicability of laws; powers of commission respecting districts

The provisions of ORS 543.010, 543.050, 543.210, 543.220, 543.250, 543.260 and 543.290 to 543.610 shall not apply to cities, towns or other municipal corporations of this state, including utility districts organized under section 12, Article XI, Oregon Constitution, and legislation enacted thereunder; saving, however, to such cities, towns and other municipa…

543.160 Hydroelectric facility on North Santiam River prohibited; exception

No person shall construct or maintain, and no officer or agency of the state shall issue any permit for the construction or maintenance of any hydroelectric facility or structure on the North Santiam River between river mile 27 and Big Cliff Dam. Nothing in subsection (1) of this section applies to any hydroelectric facility or structure constructed on the …

543.165 Hydroelectric facility on part of Deschutes River prohibited

No person, state agency, local government, district or municipal corporation shall construct, and no officer or agency of the state shall issue any permit for the construction of any hydroelectric facility or structure on the Deschutes River between river mile 172 below Lava Island Falls and river mile 227 below but not including Wickiup Dam. Note: 543.165 …

543.170 Hydroelectric facility on Isqúulktpe Creek prohibited

No person, state agency, local government, district or municipal corporation shall construct or maintain, and no officer or agency of the state shall issue any permit for the construction or maintenance of any hydroelectric facility or structure on Isqúulktpe Creek. Note: 543.170 was enacted into law by the Legislative Assembly but was not added to or made …

543.175 Hydroelectric facility on Deschutes River within City of Bend prohibited; exception

Except as provided in subsection (2) of this section, no person, state agency, local government, district or municipal corporation shall construct or maintain, and no officer or agency of the state shall issue any permit for the construction or maintenance of any hydroelectric facility or structure on that portion of the Upper Deschutes River situated within…

543.210 Preliminary permits; application; contents; fee

Any person who proposes to operate a hydroelectric project in Oregon shall apply for a state preliminary permit. Any person who applies to the Federal Energy Regulatory Commission for a preliminary permit to operate a hydroelectric project shall, at the same time, apply for a state preliminary permit. The Water Resources Commission may issue a preliminary pe…

543.220 Notice of filing of application; waiting period

If an application is made for a preliminary permit, after said application has been referred to hearing, the Water Resources Commission shall give written notice of the filing of the application to: Any municipality or other person or corporation that, in the judgment of the commission, is likely to be interested in or affected by the proposed project; and …

543.225 Hearing on application; notice; policy

The Water Resources Commission shall conduct a public hearing on any application or amended application for a preliminary permit or for a license for a major project of more than 100 theoretical horsepower and an application for preliminary permit or license for a minor project of less than 100 theoretical horsepower if the commission concludes it is in the …

543.230 Hearings on application; rules; protest

The Water Resources Commission shall, by order or rule, provide for the time and manner of hearings upon applications. However, upon request by any person made within 30 days after the Water Resources Director issues an order pertaining to cumulative impacts under ORS 543.255, the Water Resources Commission shall conduct a contested case hearing in accordanc…

543.240 [Repealed by 1991 c.869 §15]

543.250 Permit; duration; transfer; cancellation; priority; terms and conditions; denial

A preliminary permit may be issued for a period not exceeding a total of three years. It shall not be transferable except upon written approval of the Water Resources Commission, and may be canceled by order of the commission at any time upon proof to the commission’s satisfaction, after hearing, that the holder is not in good faith complying with the provis…

543.255 Determination of cumulative impacts of proposed hydroelectric power projects; consolidated review; applicability

Whenever the Water Resources Department receives an application to appropriate water for a new hydroelectric project under ORS 537.140 to 537.320 or for a hydroelectric permit or license under ORS 543.010 to 543.610, the department shall determine whether the impacts of the project would be cumulative with: Impacts of other proposed hydroelectric projects f…

543.257 [1985 c.569 §11; 1985 c.673 §194; repealed by 2007 c.354 §1]

543.260 Licenses; duration; terms and conditions; termination; denial of application; preference of municipality or utility district

A license may be issued by the Water Resources Commission to any qualified person for a period not exceeding 50 years. If the project is subject to regulation by the Federal Energy Regulatory Commission, the term shall be concurrent with and expire upon expiration of the federal license for the project. Each license shall be conditioned upon acceptance by th…

543.265 Testing of fish protection measures as condition for hydroelectric project permit or license; scope and cost

The Water Resources Department shall impose as a condition to any water right permit to appropriate water for hydroelectric purposes granted under ORS 537.211 or any license granted under ORS 543.260 that the person operating the hydroelectric project shall, during the operational lifetime of the project, perform or allow the State Department of Fish and Wil…

543.270 Preference in granting permit or license; municipal use

In issuing preliminary permits, and in issuing licenses where no preliminary permit is held by an applicant for a license, preference shall be given to the application which appears to the Water Resources Commission to be best adapted to conserve and utilize the water power involved. However, any application for the use of water made by any municipal corpora…

543.280 Fee payments by licensee

Any person who applies to the Federal Energy Regulatory Commission for a preliminary permit to operate a hydroelectric project shall, at the same time, apply for a state preliminary permit. An applicant for a state preliminary permit for a new hydroelectric project shall submit to the Water Resources Commission a complete copy of any application for the proj…

543.290 Filing of maps, plans, estimates and other materials; incorporation as part of license; alteration; further statements and data

The applicant for a license shall submit to and file with the Water Resources Commission: All maps, plans, specifications and cost estimates as may be required by the commission for a full understanding of the proposed project. The maps, plans and specifications, when approved by the commission, shall become a part of the license, if one is issued upon the …

543.300 Conditions governing license; fees; waiver of conditions

Any license issued under ORS 543.010 to 543.610 shall take into consideration, and shall be on, the following conditions: That the proposed project shall be such as, in the judgment of the Water Resources Commission, is well adapted to the development and utilization of the water power involved. That the licensee shall construct and build the project accor…

543.310 Disposition of moneys collected

Except as provided in ORS 536.015, all moneys collected under the provisions of ORS 543.010 to 543.610 shall forthwith be paid to the State Treasurer and become a part of the General Fund.

543.320 Effect of amendment or repeal of law

The right to alter, amend or repeal ORS 543.010 to 543.610, or any part thereof, hereby is expressly reserved; but no such alteration, amendment or repeal shall affect any license theretofore issued under the provisions of ORS 543.010 to 543.610, or the rights of any licensee thereunder, unless expressly assented to by the licensee. TIME FOR CONSTRUCTION; T…

543.410 Construction of project; time for commencement and completion; supply of service; extension of time; nonperformance; termination of license

The licensee shall commence the construction of the project works within the time fixed in the license, which shall not be more than two years from the date thereof, shall thereafter in good faith and with due diligence prosecute such construction, and shall, within the time fixed in the license, complete and put into operation such part of the ultimate deve…

543.420 Noncompletion of construction within prescribed time; judicial proceedings; sale of property; disposition of proceeds; rights of purchaser

If construction of a project under license has been begun but has not been completed within the time prescribed in the license or in any lawful extension thereof, then the Attorney General, upon request of the Water Resources Commission, shall institute proceedings in the circuit court for the county in which some part of the project is situated, for termina…

543.430 Proceedings after completion of project for violation of license terms; authority of court; sale of project

The Attorney General shall, upon request of the Water Resources Commission, institute proceedings in the circuit court for the county in which any project, or the major part of a project is situated, after the project has been completed, for the purpose of revoking for violation of its terms any license issued under ORS 543.010 to 543.610, or for the purpose…

543.440 Transfer of license, rights or property; effect

No voluntary transfer of any license or any rights under a license or of any property acquired, constructed or operated pursuant to license issued under ORS 543.010 to 543.610 shall be made without written approval of the Water Resources Commission. Any successor or assignee of any licensee under any project acquired, constructed or operated by licensee, whe…

543.510 [Repealed by 1995 c.229 §9]

543.520 [Repealed by 1995 c.229 §9]

FINANCING OF PROJECTS; LIENS; BOND OF LICENSEE

543.525 ORS 543.530 to 543.550 not applicable to regulated utilities

The provisions of ORS 543.530 to 543.550 shall not apply to any licensee which is a utility as defined in ORS 757.005 and regulated by the Public Utility Commission of Oregon. Note: 543.525 was enacted into law by the Legislative Assembly but was not added to or made a part of ORS chapter 543 or any series therein by legislative action. See Preface to Orego…

543.530 Issuance by licensee of stocks, bonds or other interest without authorization of Water Resources Commission prohibited

No licensee shall issue any share of corporate stock, or any bond, or other evidence of interest in or indebtedness of the licensee, or assume any obligation or liability as lessor, lessee, guarantor, indorser, surety or otherwise, in respect of the corporate shares, bonds or other evidence of indebtedness of any person in connection with the financing, acqu…

543.540 Consideration for bonds, stocks and other securities; restrictions; corporate shares; sale price of securities; discount from face value

No bonds, notes or other obligations or securities or corporate stock shall be issued in connection with the financing, construction or acquisition of any project or part of a project, under a license issued pursuant to ORS 543.010 to 543.610, except for cash or property. If issued for property, the price or value at which the property is to be acquired by t…

543.550 Liens prohibited; exceptions; what may be included by mortgage, trust deed, or sale; determination of investment in case of sale of part

No lien for labor, services, materials, machinery or equipment shall exist or be acquired or enforced upon any property acquired, constructed or made a part of any project under license issued pursuant to ORS 543.010 to 543.610. No property shall be put into or made part of any such project unless owned by the licensee free and clear of all liens and claims …

543.560 Bond of licensee or letter of credit securing claims of suppliers; enforcement of obligation; action for sums due State Accident Insurance Fund Corporation

Before entering upon the work of construction or acquisition of any project, the licensee shall execute to the state a bond, with good and sufficient sureties or an irrevocable letter of credit issued by an insured institution, as defined in ORS 706.008, in either case, to be approved by the Water Resources Commission, to the effect that the licensee shall p…

543.610 Acquisition of project by state or municipality

Upon not less than two years’ notice in writing the state, or any municipality thereof, shall have the right at any time to take over and thereafter to maintain and operate any project constructed under a license pursuant to ORS 543.010 to 543.610, upon payment of just compensation, including such reasonable damages, if any, to valuable, serviceable and depe…

543.620 [Repealed by 1995 c.229 §9]

POWER GENERATION BY DISTRICTS

543.650 Policy

The Legislative Assembly finds that a significant potential exists for the development of the hydroelectric generation capabilities of water systems serving domestic water supply districts, irrigation districts, drainage districts, water improvement districts and water control districts. The Legislative Assembly also finds that the development of such hydroe…

543.655 Definitions for ORS 543.650 to 543.685

As used in ORS 543.650 to 543.685, unless the context requires otherwise: “District” means any one of the following: A domestic water supply district organized under ORS chapter 264. An irrigation district organized under ORS chapter 545. A drainage district organized under ORS chapter 547. A water improvement district organized under ORS chapter 552. …

543.660 Authority of district to enlarge or modify water system and power generating facilities; joint district ventures; prohibitions; sale of energy; regulations

A district, alone or jointly with other districts, electric cooperatives, as defined in ORS 261.010, people’s utility districts, a cooperative as defined in ORS 62.015, municipal corporations authorized to engage in generating and distributing electricity or public utilities, as defined in ORS 757.005, engaged in the business of generating and distributing e…

543.662 Authority of district to develop joint project with private person; restrictions

A district may contract with a private person to enlarge or modify the district’s water system for the purpose of generating hydroelectric power. The district shall retain sufficient benefit and interest in, and control of a joint project as necessary for the project to be considered a district project. A district and a private person developing a joint proj…

543.664 Rules relating to joint projects of districts and private persons

The Water Resources Commission shall establish rules necessary to carry out the provisions of ORS 543.662. The rules shall include the amount of control over and interest in a joint project a district must retain in order to receive the benefit of the municipal preference and proceed under the municipal application process set forth in ORS chapter 537.

543.665 Authority to issue revenue bonds to acquire hydroelectric facilities

In addition to any other authority under its principal Act to issue bonds, a district, when authorized at any properly called election, shall have the power to sell and dispose of revenue bonds to construct or acquire hydroelectric facilities in conformance with ORS 543.650 to 543.685 to develop the hydroelectric generation capabilities of the water system, …

543.670 Manner of issuance of revenue bonds

All revenue bonds issued under ORS 543.665 shall be issued as prescribed in ORS chapter 287A, but the requirements of ORS 287A.150 do not apply.

543.675 Power of eminent domain not to be exercised to acquire hydroelectric facilities

Notwithstanding any powers of eminent domain and condemnation given to a district under its principal Act, a district shall not exercise any power of condemnation or eminent domain to condemn, appropriate or acquire real property for the purpose of constructing, acquiring, operating or maintaining hydroelectric facilities.

543.680 Compliance with water appropriation laws required

A district shall comply with all applicable provisions of ORS chapter 537 before enlarging or modifying the district’s water system for the purpose of generating hydroelectric energy.

543.685 District board to require weatherization; Weatherization Fund; purpose

If the board of directors of a district has not adopted an ordinance, resolution or administrative rule requiring the weatherization of the buildings of the district, the district shall deposit 10 percent of any revenues derived from the sale of excess electric energy under ORS 543.660 with the officer serving as the treasurer of the district to be credited …

543.705 Definitions for ORS 543.710 to 543.730

As used in ORS 543.710 to 543.730, “claimant” means any person claiming the right to the use of water for power development.

543.710 Annual fee based on horsepower; exemptions; disbursement

Every claimant other than a licensee under ORS 543.010 to 543.610 shall on or before January 1 of each year pay to the state in advance an annual fee based upon the theoretical water horsepower claimed under each separate claim to water and calculated using the formula under ORS 543.078 for a project of similar theoretical horsepower.

543.720 Payment of annual fee; accompanying statement; penalty for nonpayment of fees or nonfiling; lien; foreclosure; effect of filing excessive claim; computation of horsepower

The fees provided for in ORS 543.710 shall be paid to the Water Resources Commission in advance, and shall be accompanied by a written statement showing the extent of the claim. The statement shall set forth the name and address of the claimant; the name of the stream from which the water is appropriated or claimed for power development; a description of the…

543.725 [1985 c.674 §9; repealed by 1991 c.869 §15]

543.730 Failure to file statement or pay fees as evidence of abandonment of claim; cancellation of claim, permit and water right certificate

Failure of any claimant for a period of five successive years ending after August 20, 1957, to file the written statement showing the extent of the claim as required by ORS 543.720, or failure of any claimant for a period of five successive years ending after August 20, 1957, to pay the annual license fee as required by ORS 543.710, shall be conclusive evide…

543.760 Definition of water right

As used in ORS 543.765, “water right” means a water use established by an adjudication under ORS chapter 539 as evidenced by a court decree or a certificated ground water or surface water right that is issued for some use other than for hydroelectric power and that serves as the underlying water right for an application to use water for hydroelectric purpose…

543.765 Certificate to use water for hydroelectric purposes within artificial delivery system; expedited application process; certificate conditions; annual payments; fees

Notwithstanding ORS 537.145 and ORS chapter 543: The holder of a water right may apply to the Water Resources Department for a certificate to use water for hydroelectric purposes within an artificial delivery system under the applicant’s existing water right. A municipal corporation or people’s utility district, as defined in ORS 261.010, may apply to the …

543.810 [Repealed by 2001 c.369 §9]

543.820 [Amended by 1985 c.565 §83; 2001 c.104 §230; repealed by 2001 c.369 §9]

543.830 [Repealed by 2001 c.369 §9]

PENALTIES

543.990 Penalties

Violation of ORS 543.530 (3) is a Class A misdemeanor. Violation of any of the provisions of ORS 543.010 to 543.610, or any of the conditions made a part of any license issued under ORS 543.010 to 543.610, or any subpoena of the Water Resources Commission or of an administrative law judge or any person designated by the commission to take testimony, any law…