On February 19, 2025, the Oregon State Legislature introduced House Bill 3364, aimed at reforming the process for awarding loans and grants from the Water Supply Development Account. The bill seeks to enhance the efficiency and transparency of funding decisions made by the Water Resources Commission, addressing ongoing concerns about water resource management in the state.

Key provisions of HB 3364 include the establishment of a continuous application process for loans and grants, allowing submissions at any time rather than adhering to a fixed schedule. This change is intended to streamline access to funding for water projects, which are critical for addressing Oregon's water supply challenges. The bill mandates that the Water Resources Commission evaluate projects based on public benefit criteria and preferences, ensuring that funding decisions align with community needs.

Notably, the bill proposes a shift in the timeline for public notice and comment periods related to funding applications, reducing the notice period from 60 days to 30 days. This adjustment has sparked debate among stakeholders, with some arguing that it may limit public engagement in the funding process. Additionally, the bill outlines a more structured review process involving a technical review team composed of representatives from various state departments and affected Indian tribes, which aims to provide a comprehensive assessment of applications.

The implications of HB 3364 are significant, as it seeks to address the pressing issue of water scarcity in Oregon, particularly in light of climate change and increasing demand for water resources. Experts suggest that by improving the funding process, the bill could lead to more timely and effective investments in water infrastructure, ultimately benefiting communities across the state.

As the bill progresses through the legislative process, it will likely face scrutiny from both supporters advocating for enhanced water management and opponents concerned about the potential reduction in public oversight. The outcome of HB 3364 could set a precedent for future water resource legislation in Oregon, making it a critical point of discussion in the ongoing dialogue about sustainable water management practices.