This article was published on: 12/6/21 10:02 PM

Regulators approve partial funding for projects by Tumalo, Central Oregon irrigation districts

By MATEUSZ PERKOWSKI 

Oregon regulators have authorized about $7.5 million for water projects, though much of the grant funding was awarded provisionally until more state money becomes available.
The Oregon Water Resources Commission has unanimously voted to immediately grant $1.8 million for a Deschutes County irrigation modernization project and a Jackson County water supply protection project.

The commission has also approved $5.7 million in grant funding for four other projects, though the funding can’t be disbursed until the state government raises money by selling lottery revenue bonds in May.

The state only has about $3.2 million remaining in its water supply development fund after a lottery bond sale was canceled earlier this year due to a shortfall in lottery revenues caused by the coronavirus pandemic.

However, lawmakers have authorized another $30 million for water project grants, with funding becoming available when $15 million in lottery bonds are sold next spring and another $15 million are sold in the spring of 2023.

The delay between the authorization for the projects and the time money will be available has raised questions about potential cost overruns in light of inflation and supply shortages.

“That is something we hear from time to time from grantees experiencing especially in recent times increasing costs,” said Becky Williams, grant program manager for the Oregon Water Resources Department, which oversees the program, at the commission’s Dec. 3 meeting.

Though the agency does have a process for project managers to request additional grant funds, such an increase would still require another authorization from the commission, Williams said.

Staff at Oregon Water Resources Department have been telling applicants to consider the possibility of inflation during their budget-setting process, said Kim Fritz-Ogren, the department’s manager of planning, collaboration and investments.

“We have been really emphasizing and giving that advice to folks,” she said.

Commissioner Joe Moll, executive director of the McKenzie River Trust nonprofit, suggested the Oregon Water Resources Department should have the authority to increase grants modestly, by 5-10%, to account for inflation without having to return for commission approval.

“I would certainly advocate for that kind of discretion,” Moll said.

The commission voted unanimously to recommend that OWRD explore the possibility of making such adjustments.

“We would need clear delegation of authority from the commission,” Fritz-Ogren said. “Then we would develop policies and procedures for how we would make those decisions.”
Since the water supply grant program became operational in 2016, the commission has authorized 28 projects totaling $28.7 million.

Following is the grant funding approved for this year’s slate of six projects:

• $1.4 million for an irrigation ditch piping project proposed by Tumalo Irrigation District, which has a total cost of more than $6 million. Piping would prevent water loss through seepage and evaporation, with the conserved amount going to in-stream flows that would reduce temperatures to benefit fish. The funding was authorized to become immediately available.• $460,000 for a “water supply security and in-stream transfer” project proposed by the Trout Unlimited nonprofit with a total cost of $615,000. The money would buy a senior water right that would allow for the operation of the historic Butte Creek Mill near Eagle Point, Ore. Part of the secured water would be dedicated to in-stream flows that would benefit fish. The funding was authorized to become immediately available.

  • $2 million for an irrigation ditch piping project in Deschutes and Crook counties proposed by a conservation group and local irrigation districts. The total project is estimated to cost $4.4 million and would allow the Central Oregon Irrigation District to transfer saved water to the North Unit Irrigation District. That transfer would allow NUID to increase in-stream flows to help the threatened Oregon spotted frog. The funding was approved provisionally, pending lottery bond sales.

  • $530,000 for an irrigation ditch piping project in Wallowa County proposed by the Trout Unlimited nonprofit and a local cattle company. The total cost is expected to top $700,000, which would allow the ranch to convert 144 acres from flood irrigation and dryland farming to center pivot irrigation. The conserved water would be dedicated to in-stream flows for fish. The funding was approved provisionally, pending lottery bond sales.

  • Nearly $3 million to replace an outdated water treatment facility in John Day with a new plant that allows wastewater to be reused. The total cost is estimated to be $13.6 million. The project would make about 80 million gallons of recycled water available for users who currently divert water from the John Day River basin. The funding was approved provisionally, pending lottery bond sales.

  • $93,500 to create a fish passage, allowing for stream channel habitat restoration in Lake County. The total cost is more than $776,000. The project will allow the landowner to comply with state regulations and continue irrigating. The funding was approved provisionally, pending lottery bond sales.