OR HB3806

Establishes a Deschutes River water bank pilot program for surface water, requiring approval by both the Water Resources Commission and the Confederated Tribes of the Warm Springs before operations can begin

Eligible participants include water rights holders diverting from the Deschutes River, irrigation districts, the Confederated Tribes of the Warm Springs, central Oregon cities, public utilities serving at least 2,000 water connections, and the Deschutes River Conservancy (which will manage operations)

Requires 25% of water loaned from fallowed acres to be dedicated to legally protected in-stream flows, and 100% of water withdrawn by North Unit Irrigation District from on-farm activities must be protected in-stream

Mandates participants commit a minimum of 1,800 acres of water rights to in-stream leases before the water bank can operate each calendar year, with annual operating plans due by January 1 and requiring Water Resources Department approval by March 1

Program sunsets January 2, 2034, and increases Water Resources Department expenditure limits by $216,394 for the 2025-2027 biennium to implement the program