(1) As used in this section, ‘water supplier’ and ‘water system’ have the meanings given those terms in ORS § 448.115.

(2) The Oregon Watershed Enhancement Board shall establish a program to provide grants to water suppliers to protect, restore or enhance sources of drinking water.

(3) Grants awarded under this section shall be used by a grant recipient for:

(a) Acquiring lands from willing sellers where the protection, restoration or enhancement of those lands will benefit a source of drinking water used by the water supplier;

(b) Entering into covenants, easements or similar agreements to protect, restore or enhance lands described in paragraph (a) of this subsection; or

(c) Repaying a loan used to finance a project to protect, restore or enhance lands consistent with paragraph (a) or (b) of this subsection.

(4)(a) Grants awarded under this section may not exceed $3 million.

(b) The board shall award grants under this section on a rolling basis.

(5) For purposes of obtaining a grant under this section, a water supplier may form a partnership with a holder, as defined in ORS § 271.715, other than a state agency. The board may establish by rule requirements for partnerships formed pursuant to this subsection.

(6) Applications for a grant under this section shall be made in the form and manner prescribed by the board. An application must demonstrate that the project will protect, restore or enhance a source of drinking water, and must be supported by evidence. The board shall review completed grant applications, rank grant applications based on criteria established by the board by rule under subsection (7) of this section and approve or deny the applications. If the board denies a grant application, the board shall notify the applicant in writing of the reason or reasons that the grant application was denied.

(7) The board shall adopt rules for the administration of the grant program established under this section. Rules adopted under this subsection may include, but need not be limited to:

(a) Eligibility criteria for water suppliers, including but not limited to:

(A) Eligible water system types; and

(B) Requirements that eligible water suppliers serve rural communities, communities experiencing lower incomes or communities that are at or below a specified population level;

(b) Requirements for grant applications and the grant application process;

(c) Criteria for ranking grant applications;

(d) Requirements setting forth the amount of matching funds a grant applicant must provide to be eligible to receive a grant;

(e) A schedule for when grant applications are due and grants will be awarded; or

(f) Provisions setting forth how the board will verify that grant funds have been used for the purposes for which the grant was awarded, including but not limited to:

(A) Provisions requiring status reports or other verification measures that ensure that the terms and conditions of any agreement between the board and the grant recipient are being performed;

(B) Provisions describing methods of protecting, enhancing or restoring sources of drinking water; and

(C) Provisions requiring the development of a long-term management plan for acquired lands.

(8)(a) A grant recipient is responsible for fulfilling the terms and conditions of any agreement:

(A) Between the grant recipient and the board; and

(B) Between the grant recipient and a landowner, or other person, necessary for the grant recipient to carry out the project for which a grant has been awarded.

(b) The board is not liable to any person for the failure of a grant recipient to fulfill the terms or conditions of any agreement between the person and the grant recipient. [2023 c.606 § 1]

448.370 to 448.380 were enacted into law by the Legislative Assembly but were not added to or made a part of ORS Chapter 448 or any series therein by legislative action. See Preface to Oregon Revised Statutes for further explanation.