(1) 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.

(2) The amount of the annual fee required under subsection (1) of this section shall be determined in the following manner:

(a) Subject to the adjustment required under this paragraph, for a project producing more than 123.5 theoretical horsepower each holder shall pay an amount equal to a base rate of $0.687 per theoretical horsepower covered by the water right for the holder’s hydroelectric project. The annual fee may be set forth in the water right or may be established by order of the Water Resources Director. The Water Resources Commission shall annually adjust the fee established in this paragraph based on the Consumer Price Index for All Urban Consumers, West Region (All Items), as published by the Bureau of Labor Statistics of the United States Department of Labor, using a base date of January 1, 2021. The annual fee also may be adjusted through the periodic review process established in ORS § 543.085.

(b) Each holder of a hydroelectric project that produces 15 or more theoretical horsepower but not more than 123.5 theoretical horsepower shall pay an annual fee of $50 for that project.

(c) Each holder of a hydroelectric project that produces less than 15 theoretical horsepower shall pay an annual fee of $15 for that project.

(d) The amount of theoretical horsepower upon which the fees are paid must be computed by multiplying the maximum amount of water appropriated, expressed in cubic feet per second, by the average total fall utilized, expressed in feet, and dividing the number resulting from the multiplication by 8.8.

(e) For a project that diverts water from a point on a river that forms a border with another state, the fee computation described in paragraph (d) of this subsection may not use as the maximum amount of water appropriated more than half of the capacity of the project. [1999 c.873 § 5; 2021 c.516 § 2]