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83rd OREGON LEGISLATIVE ASSEMBLY--2026 Regular Session Enrolled Senate Bill 1585 Sponsored by Senators MANNING JR, ANDERSON, SOLLMAN, MEEK, PATTERSON, PROZANSKI, Representative DIEHL;
SB 1585-2 (LC 133) 2/10/26 (VSR/DJ/ps) Requested by Senator MANNING JR PROPOSED AMENDMENTS TO SENATE BILL 1585 On page 1 of the printed bill, line 2, after “cities;” insert “creating new provisions;
Senators BROADMAN, DRAZAN, GOLDEN, GORSEK, HAYDEN, NASH, SMITH DB, THATCHER, WEBER, Representatives BOICE, BUNCH, CATE, EDWARDS, EVANS, FRAGALA, GAMBA, GOMBERG, HARBICK, HELFRICH, HELM, HUDSON, LEVY B, LEWIS, MANNIX, MCINTIRE, MCLAIN, MUNOZ, NELSON, OWENS, RIEKE SMITH, WISE, WRIGHT, YUNKER (Presession filed.) CHAPTER .................................................
amending ORS 184.742, 285B.420, 285B.421, 367.082, 367.093, 541.561 and 541.666;”.
AN ACT Relating to matching grants for cities;
Delete lines 4 through 27 and delete page 2 and insert:
creating new provisions;
“SECTION 1.
amending ORS 184.742, 285B.420, 285B.421, 367.082, 367.093, 541.561 and 541.666;
and prescribing an effective date.
Be It Enacted by the People of the State of Oregon:
SECTION 1.
184.742.
“184.742.
(1) The Oregon Transportation Commission may provide matching grants under this section for safety improvement projects near schools.
(1) The Oregon Transportation Commission may provide match- ing grants under this section for safety improvement projects near schools.
(2) To qualify for a matching grant an applicant shall:
“(2) To qualify for a matching grant an applicant shall:
(a) Demonstrate that a project fits within the applicable plan developed pursuant to ORS 195.115;
“(a) Demonstrate that a project fits within the applicable plan developed pursuant to ORS 195.115;
(b) Provide a cash match [of at least 40 percent of the project’s costs] in an amount determined under subsection (3) of this section;
“(b) Provide a cash match [of at least 40 percent of the project’s costs] in an amount determined under subsection (3) of this section;
and (c) Provide any other information required by the commission.
and “(c) Provide any other information required by the commission.
(3)(a) Except as provided in paragraphs (b) and (c) of this subsection, an applicant shall provide a cash match of at least 40 percent of the project’s total costs.
“(3)(a) Except as provided in paragraphs (b) and (c) of this sub- section, an applicant shall provide a cash match of at least 40 percent of the project’s total costs.
(b) Incorporated cities with a population not greater than 20,000 shall provide cash matches on the following terms, based on population according to the most recent federal decennial census:
“(b) Incorporated cities with a population not greater than 20,000 shall provide cash matches on the following terms, based on popu- lation according to the most recent federal decennial census:
(A) An incorporated city with a population not greater than 5,000 may be required to provide a cash match of not greater than:
“(A) An incorporated city with a population not greater than 5,000 may be required to provide a cash match of not greater than:
(i) Three percent of project costs of $100,000 or less.
“(i) Three percent of project costs of $100,000 or less.
(ii) Five percent of project costs greater than $100,000.
“(ii) Five percent of project costs greater than $100,000.
(B) An incorporated city with a population greater than 5,000 but not greater than 7,500 may be required to provide a cash match of not greater than seven percent of the project’s costs.
“(B) An incorporated city with a population greater than 5,000 but not greater than 7,500 may be required to provide a cash match of not greater than seven percent of the project’s costs.
(C) An incorporated city with a population greater than 7,500 but not greater than 10,000 may be required to provide a cash match of not greater than nine percent of the project’s costs.
“(C) An incorporated city with a population greater than 7,500 but not greater than 10,000 may be required to provide a cash match of not greater than nine percent of the project’s costs.
(D) An incorporated city with a population greater than 10,000 but not greater than 20,000 may be required to provide a cash match of not greater than 12 percent of the project’s costs.
“(D) An incorporated city with a population greater than 10,000 but not greater than 20,000 may be required to provide a cash match of not greater than 12 percent of the project’s costs.
Enrolled Senate Bill 1585 (SB 1585-A) Page 1 (c) [Notwithstanding subsection (2) of this section, by rule,] The commission may reduce the amount [the] an applicant must provide for a cash match.
“(c) [Notwithstanding subsection (2) of this section, by rule,] The commis- sion may reduce the amount [the] an applicant must provide for a cash match.
(d) Notwithstanding any other provision of law restricting the use of the grant award moneys, incorporated cities with a population not greater than 20,000 may use grant moneys awarded for capital construction or municipal infrastructure for all phases of a funded project in addition to construction, including, but not limited to, engineering, planning and support.
“(d) Notwithstanding any other provision of law restricting the use of the grant award moneys, incorporated cities with a population not greater than 20,000 may use grant moneys awarded for capital con- struction or municipal infrastructure for all phases of a funded project in addition to construction, including, but not limited to, engineering, planning and support.
(4) The commission shall prioritize the expenditure of funds as authorized under this section for projects that are located within a two-mile radius of a school that serves students in prekindergarten, kindergarten or grades 1 through 12, or any combination of those grade levels.
“(4) The commission shall prioritize the expenditure of funds as author- ized under this section for projects that are located within a two-mile radius of a school that serves students in prekindergarten, kindergarten or grades 1 through 12, or any combination of those grade levels.
(5) The matching grants shall be used to reduce barriers and hazards to children walking or bicycling to and from school, including but not limited to safety improvement projects that:
“(5) The matching grants shall be used to reduce barriers and hazards to children walking or bicycling to and from school, including but not limited to safety improvement projects that:
(a) Improve sidewalks;
“(a) Improve sidewalks;
(b) Reduce vehicle speeds;
“(b) Reduce vehicle speeds;
(c) Improve pedestrian and bicycle crossings;
“(c) Improve pedestrian and bicycle crossings;
or (d) Create or improve bicycle lanes.
or SB 1585-2 2/10/26 Proposed Amendments to SB 1585 Page 2 “(d) Create or improve bicycle lanes.
(6) The commission may adopt rules specifying the application process and the selection criteria that will be used in awarding matching grants.
“(6) The commission may adopt rules specifying the application process and the selection criteria that will be used in awarding matching grants.
SECTION 2.
“SECTION 2.
367.082.
“367.082.
(1) Except as provided in subsection (2) of this section, the Department of Transporta- tion may provide, from moneys in the Connect Oregon Fund established under ORS 367.080, grants for transportation projects to public bodies, as defined in ORS 174.109, and to private entities.
(1) Except as provided in subsection (2) of this section, the De- partment of Transportation may provide, from moneys in the Connect Oregon Fund established under ORS 367.080, grants for transportation projects to public bodies, as defined in ORS 174.109, and to private entities.
(2) Grants may not be made from the Connect Oregon Fund for transportation projects that could constitutionally be funded by revenues described in Article IX, section 3a, of the Oregon Constitution.
“(2) Grants may not be made from the Connect Oregon Fund for trans- portation projects that could constitutionally be funded by revenues de- scribed in Article IX, section 3a, of the Oregon Constitution.
(3) The Department of Transportation shall adopt rules specifying the process by which a public body or private entity may apply for a grant under this section and prescribing the terms and con- ditions of grants.
“(3) The Department of Transportation shall adopt rules specifying the process by which a public body or private entity may apply for a grant under this section and prescribing the terms and conditions of grants.
(4) Except as provided in subsection (5) of this section, an applicant receiving a grant must provide the following amounts:
“(4) Except as provided in subsection (5) of this section, an applicant receiving a grant must provide the following amounts:
(a) For public bodies and private entities, other than Class I railroads, 30 percent of the moneys required for the transportation project.
“(a) For public bodies and private entities, other than Class I railroads, 30 percent of the moneys required for the transportation project.
(b) For Class I railroads, 50 percent of the moneys required for the transportation project.
“(b) For Class I railroads, 50 percent of the moneys required for the transportation project.
(5)(a) Match amounts for grants for transportation projects awarded to incorporated cities with a population not greater than 20,000 shall be offered as follows, based on popu- lation according to the most recent federal decennial census:
“(5)(a) Match amounts for grants for transportation projects awarded to incorporated cities with a population not greater than 20,000 shall be offered as follows, based on population according to the most recent federal decennial census:
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(A) Incorporated cities with a population not greater than 5,000 may be required to pro- vide match amounts of not greater than:
“(A) Incorporated cities with a population not greater than 5,000 may be required to provide match amounts of not greater than:
(i) Three percent of the moneys required for a transportation project having a project cost of $100,000 or less.
“(i) Three percent of the moneys required for a transportation project having a project cost of $100,000 or less.
(ii) Five percent of the moneys required for a transportation project having a project cost greater than $100,000.
“(ii) Five percent of the moneys required for a transportation project having a project cost greater than $100,000.
(B) Incorporated cities with a population greater than 5,000 but not greater than 7,500 may be required to provide match amounts not greater than seven percent of the moneys required for the transportation project.
SB 1585-2 2/10/26 Proposed Amendments to SB 1585 Page 3 “(B) Incorporated cities with a population greater than 5,000 but not greater than 7,500 may be required to provide match amounts not greater than seven percent of the moneys required for the transpor- tation project.
(C) Incorporated cities with a population greater than 7,500 but not greater than 10,000 may be required to provide match amounts not greater than nine percent of the moneys required for the transportation project.
“(C) Incorporated cities with a population greater than 7,500 but not greater than 10,000 may be required to provide match amounts not greater than nine percent of the moneys required for the transporta- tion project.
(D) Incorporated cities with a population greater than 10,000 but not greater than 20,000 may be required to provide match amounts not greater than 12 percent of the moneys re- quired for the transportation project.
“(D) Incorporated cities with a population greater than 10,000 but not greater than 20,000 may be required to provide match amounts not greater than 12 percent of the moneys required for the transportation project.
Enrolled Senate Bill 1585 (SB 1585-A) Page 2 (b) Notwithstanding any other provision of law restricting the use of the grant award moneys, incorporated cities with a population not greater than 20,000 may use grant moneys awarded for capital construction or municipal infrastructure for all phases of a funded project in addition to construction, including, but not limited to, engineering, planning and support.
“(b) Notwithstanding any other provision of law restricting the use of the grant award moneys, incorporated cities with a population not greater than 20,000 may use grant moneys awarded for capital con- struction or municipal infrastructure for all phases of a funded project in addition to construction, including, but not limited to, engineering, planning and support.
SECTION 3.
“SECTION 3.
367.093.
“367.093.
(1) The Department of Transportation shall establish the Multimodal Active Transpor- tation Program.
(1) The Department of Transportation shall establish the Multi- modal Active Transportation Program.
(2) The department shall adopt rules specifying the process by which a public body or private entity may apply for a grant under this section and prescribing the terms and conditions of grants.
“(2) The department shall adopt rules specifying the process by which a public body or private entity may apply for a grant under this section and prescribing the terms and conditions of grants.
(3) Except as provided in subsection (4) of this section, an applicant receiving a grant must provide 30 percent of the moneys required for the transportation project.
“(3) Except as provided in subsection (4) of this section, an applicant receiving a grant must provide 30 percent of the moneys required for the transportation project.
(4)(a) Match amounts for grants for transportation projects awarded to incorporated cities with a population not greater than 20,000 shall be offered as follows, based on popu- lation according to the most recent federal decennial census:
SB 1585-2 2/10/26 Proposed Amendments to SB 1585 Page 4 “(4)(a) Match amounts for grants for transportation projects awarded to incorporated cities with a population not greater than 20,000 shall be offered as follows, based on population according to the most recent federal decennial census:
(A) Incorporated cities with a population not greater than 5,000 may be required to pro- vide match amounts of not greater than:
“(A) Incorporated cities with a population not greater than 5,000 may be required to provide match amounts of not greater than:
(i) Three percent of the moneys required for a transportation project having a project cost of $100,000 or less.
“(i) Three percent of the moneys required for a transportation project having a project cost of $100,000 or less.
(ii) Five percent of the moneys required for a transportation project having a project cost greater than $100,000.
“(ii) Five percent of the moneys required for a transportation project having a project cost greater than $100,000.
(B) Incorporated cities with a population greater than 5,000 but not greater than 7,500 may be required to provide match amounts not greater than seven percent of the moneys required for the transportation project.
“(B) Incorporated cities with a population greater than 5,000 but not greater than 7,500 may be required to provide match amounts not greater than seven percent of the moneys required for the transpor- tation project.
(C) Incorporated cities with a population greater than 7,500 but not greater than 10,000 may be required to provide match amounts not greater than nine percent of the moneys required for the transportation project.
“(C) Incorporated cities with a population greater than 7,500 but not greater than 10,000 may be required to provide match amounts not greater than nine percent of the moneys required for the transporta- tion project.
(D) Incorporated cities with a population greater than 10,000 but not greater than 20,000 may be required to provide match amounts not greater than 12 percent of the moneys re- quired for the transportation project.
“(D) Incorporated cities with a population greater than 10,000 but not greater than 20,000 may be required to provide match amounts not greater than 12 percent of the moneys required for the transportation project.
(b) Notwithstanding any other provision of law restricting the use of the grant award moneys, incorporated cities with a population not greater than 20,000 may use grant moneys awarded for capital construction or municipal infrastructure for all phases of a funded project in addition to construction, including, but not limited to, engineering, planning and support.
“(b) Notwithstanding any other provision of law restricting the use of the grant award moneys, incorporated cities with a population not greater than 20,000 may use grant moneys awarded for capital con- struction or municipal infrastructure for all phases of a funded project in addition to construction, including, but not limited to, engineering, planning and support.
[(3)] (5) The Oregon Transportation Commission shall select transportation projects to be funded with moneys in the Multimodal Active Transportation Fund.
“[(3)] (5) The Oregon Transportation Commission shall select transporta- tion projects to be funded with moneys in the Multimodal Active Transpor- SB 1585-2 2/10/26 Proposed Amendments to SB 1585 Page 5 tation Fund.
SECTION 4.
“SECTION 4.
285B.420.
“285B.420.
(1)(a) The Oregon Infrastructure Finance Authority may provide financial assistance in the form of loans or grants for a levee project to:
(1)(a) The Oregon Infrastructure Finance Authority may pro- vide financial assistance in the form of loans or grants for a levee project to:
[(a)] (A) Municipalities;
“[(a)] (A) Municipalities;
[(b)] (B) Corporations or companies for drainage or flood control organized under ORS chapter 554;
“[(b)] (B) Corporations or companies for drainage or flood control organ- ized under ORS chapter 554;
and [(c)] (C) For-profit or nonprofit entities and individuals engaged in the ownership, construction, inspection, accreditation, certification or repair of levees.
and “[(c)] (C) For-profit or nonprofit entities and individuals engaged in the ownership, construction, inspection, accreditation, certification or repair of levees.
(b) Grants awarded under this section shall be paid from available moneys in the Levee Project Grant Fund established under ORS 285B.421.
“(b) Grants awarded under this section shall be paid from available moneys in the Levee Project Grant Fund established under ORS 285B.421.
Enrolled Senate Bill 1585 (SB 1585-A) Page 3 (2) To qualify for financial assistance under this section, the municipality, corporation, company, entity or individual must demonstrate, and the authority must find, that the levee project substan- tially contributes to the improvement, expansion or repair of the state’s or a municipality’s infrastructure system and is essential for the use or development of farm, industrial or commercial land in Oregon.
“(2) To qualify for financial assistance under this section, the munici- pality, corporation, company, entity or individual must demonstrate, and the authority must find, that the levee project substantially contributes to the improvement, expansion or repair of the state’s or a municipality’s infrastructure system and is essential for the use or development of farm, industrial or commercial land in Oregon.
(3) Grant awards for planning projects are limited to a maximum of $2 million per appli- cant per biennium.
“(3) Grant awards for planning projects are limited to a maximum of $2 million per applicant per biennium.
(4) Except as provided in subsection (5) of this section, a grant may not be awarded un- less the applicant pledges matching funds to the project of at least 20 percent of the amount of the grant award.
“(4) Except as provided in subsection (5) of this section, a grant may not be awarded unless the applicant pledges matching funds to the project of at least 20 percent of the amount of the grant award.
(5)(a) For projects to protect cities with a population not greater than 5,000, applicants may be required to provide matching funds of not greater than:
“(5)(a) For projects to protect cities with a population not greater than 5,000, applicants may be required to provide matching funds of not greater than:
(A) Three percent of the amount of a grant award of $100,000 or less.
SB 1585-2 2/10/26 Proposed Amendments to SB 1585 Page 6 “(A) Three percent of the amount of a grant award of $100,000 or less.
(B) Five percent of the amount of a grant award greater than $100,000.
“(B) Five percent of the amount of a grant award greater than $100,000.
(b) For projects to protect cities with a population greater than 5,000 but not greater than 7,500, applicants may be required to provide matching funds of not greater than seven percent of the amount of the grant award.
“(b) For projects to protect cities with a population greater than 5,000 but not greater than 7,500, applicants may be required to provide matching funds of not greater than seven percent of the amount of the grant award.
(c) For projects to protect cities with a population greater than 7,500 but not greater than 10,000, applicants may be required to provide matching funds of not greater than nine percent of the amount of the grant award.
“(c) For projects to protect cities with a population greater than 7,500 but not greater than 10,000, applicants may be required to provide matching funds of not greater than nine percent of the amount of the grant award.
(d) For projects to protect cities with a population greater than 10,000 but not greater than 20,000, applicants may be required to provide matching funds of not greater than 12 percent of the amount of the grant award.
“(d) For projects to protect cities with a population greater than 10,000 but not greater than 20,000, applicants may be required to pro- vide matching funds of not greater than 12 percent of the amount of the grant award.
(e) Population shall be determined according to the most recent federal decennial census.
“(e) Population shall be determined according to the most recent federal decennial census.
(f) Notwithstanding any other provision of law restricting the use of the grant award moneys, municipalities with a population not greater than 20,000 may use grant moneys awarded for capital construction or municipal infrastructure for all phases of a funded project in addition to construction, including, but not limited to, engineering, planning and support.
“(f) Notwithstanding any other provision of law restricting the use of the grant award moneys, municipalities with a population not greater than 20,000 may use grant moneys awarded for capital con- struction or municipal infrastructure for all phases of a funded project in addition to construction, including, but not limited to, engineering, planning and support.
(6) At least 60 percent of the dollar value of grants awarded under this section for any biennium shall be used to provide assistance with levee projects to rural or distressed areas as those terms are defined in ORS 285A.010.
“(6) At least 60 percent of the dollar value of grants awarded under this section for any biennium shall be used to provide assistance with levee projects to rural or distressed areas as those terms are defined in ORS 285A.010.
[(3)] (7) Levee projects that receive financial assistance under this section are subject to the provisions and requirements of ORS 285B.410 to 285B.482, if applicable.
“[(3)] (7) Levee projects that receive financial assistance under this sec- tion are subject to the provisions and requirements of ORS 285B.410 to SB 1585-2 2/10/26 Proposed Amendments to SB 1585 Page 7 285B.482, if applicable.
SECTION 5.
“SECTION 5.
285B.421.
“285B.421.
(2) Moneys in the fund are continuously appropriated to the Oregon Business Development De- partment for the Oregon Infrastructure Finance Authority to provide grants under ORS 285B.420 for levee projects [as defined in ORS 285B.410].
“(2) Moneys in the fund are continuously appropriated to the Oregon Business Development Department for the Oregon Infrastructure Finance Authority to provide grants under ORS 285B.420 for levee projects [as de- fined in ORS 285B.410].
[(3) Grants from the fund for planning projects are limited to a maximum of $2 million per appli- cant per biennium.] [(4) Grants from the fund for construction or capital improvement projects may not exceed an amount equal to 80 percent of the total cost of the project.] [(5) A grant may not be awarded from the fund unless the applicant pledges matching funds to the project of at least 20 percent of the amount of the grant.] Enrolled Senate Bill 1585 (SB 1585-A) Page 4 [(6) At least 60 percent of the dollar value of grants awarded from the fund in any biennium shall be used to provide assistance with levee projects to rural or distressed areas as those terms are defined in ORS 285A.010.] SECTION 6.
“[(3) Grants from the fund for planning projects are limited to a maximum of $2 million per applicant per biennium.] “[(4) Grants from the fund for construction or capital improvement projects may not exceed an amount equal to 80 percent of the total cost of the project.] “[(5) A grant may not be awarded from the fund unless the applicant pledges matching funds to the project of at least 20 percent of the amount of the grant.] “[(6) At least 60 percent of the dollar value of grants awarded from the fund in any biennium shall be used to provide assistance with levee projects to rural or distressed areas as those terms are defined in ORS 285A.010.] “SECTION 6.
SECTION 7.
“SECTION 7.
(1) Match requirements for grants for projects described in ORS 390.135 (2)(c) to incorporated cities with a population not greater than 20,000 shall be offered on the following terms, based on population according to the most recent federal decennial census:
(1) Match requirements for grants for projects de- scribed in ORS 390.135 (2)(c) to incorporated cities with a population not greater than 20,000 shall be offered on the following terms, based on population according to the most recent federal decennial census:
(a) Incorporated cities with a population not greater than 5,000 may be required to pro- vide matching funds of not greater than:
“(a) Incorporated cities with a population not greater than 5,000 SB 1585-2 2/10/26 Proposed Amendments to SB 1585 Page 8 may be required to provide matching funds of not greater than:
(A) Three percent of a total project cost of $100,000 or less.
“(A) Three percent of a total project cost of $100,000 or less.
(B) Five percent of a total project cost greater than $100,000.
“(B) Five percent of a total project cost greater than $100,000.
(b) Incorporated cities with a population greater than 5,000 but not greater than 7,500 may be required to provide matching funds of not greater than seven percent of the total project cost.
“(b) Incorporated cities with a population greater than 5,000 but not greater than 7,500 may be required to provide matching funds of not greater than seven percent of the total project cost.
(c) Incorporated cities with a population greater than 7,500 but not greater than 10,000 may be required to provide matching funds of not greater than nine percent of the total project cost.
“(c) Incorporated cities with a population greater than 7,500 but not greater than 10,000 may be required to provide matching funds of not greater than nine percent of the total project cost.
(d) Incorporated cities with a population greater than 10,000 but not greater than 20,000 may be required to provide matching funds of not greater than 12 percent of the total project cost.
“(d) Incorporated cities with a population greater than 10,000 but not greater than 20,000 may be required to provide matching funds of not greater than 12 percent of the total project cost.
(2) Notwithstanding any other provision of law restricting the use of the grant award moneys, incorporated cities with a population not greater than 20,000 may use grant moneys awarded for capital construction or municipal infrastructure for all phases of a funded project in addition to construction, including, but not limited to, engineering, planning and support.
“(2) Notwithstanding any other provision of law restricting the use of the grant award moneys, incorporated cities with a population not greater than 20,000 may use grant moneys awarded for capital con- struction or municipal infrastructure for all phases of a funded project in addition to construction, including, but not limited to, engineering, planning and support.
SECTION 8.
“SECTION 8.
541.561.
“541.561.
(1) The Water Resources Department shall establish a grant program to pay the quali- fying costs of studies performed to evaluate the feasibility of projects related to:
(1) The Water Resources Department shall establish a grant program to pay the qualifying costs of studies performed to evaluate the feasibility of projects related to:
(a) Water conservation.
“(a) Water conservation.
(b) Water reuse.
“(b) Water reuse.
(c) Aquifer recharge.
“(c) Aquifer recharge.
(d) Aquifer storage and recovery.
“(d) Aquifer storage and recovery.
(e) Streamflow protection or restoration.
“(e) Streamflow protection or restoration.
(f) Water storage.
“(f) Water storage.
(g) Other activities identified by rule by the Water Resources Commission.
“(g) Other activities identified by rule by the Water Resources Commis- sion.
(2) A grant under this section may be made to:
SB 1585-2 2/10/26 Proposed Amendments to SB 1585 Page 9 “(2) A grant under this section may be made to:
(a) A person, as defined in ORS 536.007.
“(a) A person, as defined in ORS 536.007.
(b) A public body, as defined in ORS 174.109.
“(b) A public body, as defined in ORS 174.109.
(c) A federally recognized Indian tribe in Oregon that has members residing on a reservation or tribal trust lands in Oregon.
“(c) A federally recognized Indian tribe in Oregon that has members re- siding on a reservation or tribal trust lands in Oregon.
(d) A nonprofit organization.
“(d) A nonprofit organization.
(3) In lieu of grants, the department may pay the cost of providing direct services, including but not limited to technical services, for a study that is eligible for a grant under this section.
“(3) In lieu of grants, the department may pay the cost of providing direct services, including but not limited to technical services, for a study that is eligible for a grant under this section.
(4) Except as provided in subsection (5) of this section, a grant may be provided only if the amount of the grant is matched by an in-kind or cash cost match of not less than 25 percent of the grant amount.
“(4) Except as provided in subsection (5) of this section, a grant may be provided only if the amount of the grant is matched by an in-kind or cash cost match of not less than 25 percent of the grant amount.
(5) Matching funds for grants or payments for direct services under this section awarded to incorporated cities with a population not greater than 20,000 shall be offered as follows, based on population according to the most recent federal decennial census:
“(5) Matching funds for grants or payments for direct services un- der this section awarded to incorporated cities with a population not greater than 20,000 shall be offered as follows, based on population according to the most recent federal decennial census:
Enrolled Senate Bill 1585 (SB 1585-A) Page 5 (a) Incorporated cities with a population not greater than 5,000 may be required to pro- vide matching funds in an amount not greater than:
“(a) Incorporated cities with a population not greater than 5,000 may be required to provide matching funds in an amount not greater than:
(A) Three percent of a grant or the cost of direct services awarded in an amount of $100,000 or less.
“(A) Three percent of a grant or the cost of direct services awarded in an amount of $100,000 or less.
(B) Five percent of a grant or the cost of direct services awarded in an amount greater than $100,000.
“(B) Five percent of a grant or the cost of direct services awarded in an amount greater than $100,000.
(b) Incorporated cities with a population greater than 5,000 but not greater than 7,500 may be required to provide matching funds in an amount not greater than seven percent of the amount of the grant or the cost of direct services awarded.
“(b) Incorporated cities with a population greater than 5,000 but not greater than 7,500 may be required to provide matching funds in an amount not greater than seven percent of the amount of the grant or the cost of direct services awarded.
(c) Incorporated cities with a population greater than 7,500 but not greater than 10,000 may be required to provide matching funds in an amount not greater than nine percent of the amount of the grant or the cost of direct services awarded.
SB 1585-2 2/10/26 Proposed Amendments to SB 1585 Page 10 “(c) Incorporated cities with a population greater than 7,500 but not greater than 10,000 may be required to provide matching funds in an amount not greater than nine percent of the amount of the grant or the cost of direct services awarded.
(d) Incorporated cities with a population greater than 10,000 but not greater than 20,000 may be required to provide matching funds in an amount not greater than 12 percent of the amount of the grant or the cost of direct services awarded.
“(d) Incorporated cities with a population greater than 10,000 but not greater than 20,000 may be required to provide matching funds in an amount not greater than 12 percent of the amount of the grant or the cost of direct services awarded.
[(5)] (6) Grants and the cost of direct services provided under this section must be paid from moneys available in the Water Project Feasibility Fund.
“[(5)] (6) Grants and the cost of direct services provided under this sec- tion must be paid from moneys available in the Water Project Feasibility Fund.
[(6)] (7) In evaluating above ground storage projects for awards of grants or payments for direct services under this section, the department shall give priority to projects that include provisions for using stored water to augment in-stream flows to conserve, maintain and enhance aquatic life, fish life or other ecological values.
“[(6)] (7) In evaluating above ground storage projects for awards of grants or payments for direct services under this section, the department shall give priority to projects that include provisions for using stored water to augment in-stream flows to conserve, maintain and enhance aquatic life, fish life or other ecological values.
SECTION 9.
“SECTION 9.
541.666.
“541.666.
(1) Applications for a loan or grant from the Water Supply Development Account must:
(1) Applications for a loan or grant from the Water Supply De- velopment Account must:
(a) Be in a form prescribed by the Water Resources Department.
“(a) Be in a form prescribed by the Water Resources Department.
(b) Include any information required by the department.
“(b) Include any information required by the department.
(c) Be filed with the department.
“(c) Be filed with the department.
(2) The department may require an application to include the following:
“(2) The department may require an application to include the following:
(a) A description of the need, purpose and nature of the project, including what the applicant intends to complete and how the applicant intends to proceed.
“(a) A description of the need, purpose and nature of the project, includ- ing what the applicant intends to complete and how the applicant intends to proceed.
(b) Sufficient information to allow evaluation of the application based upon the public benefit scoring and ranking of the project.
“(b) Sufficient information to allow evaluation of the application based upon the public benefit scoring and ranking of the project.
(c) Current contact information for the principal contact, fiscal officer and involved landowners.
“(c) Current contact information for the principal contact, fiscal officer and involved landowners.
(d) For applications involving physical changes or monitoring on private land, evidence that landowners are aware of and agree to the proposal and are aware that monitoring information is a public record.
SB 1585-2 2/10/26 Proposed Amendments to SB 1585 Page 11 “(d) For applications involving physical changes or monitoring on private land, evidence that landowners are aware of and agree to the proposal and are aware that monitoring information is a public record.
(e) The location of the proposed project, using public land survey reference points, latitude and longitude, county, watershed, river and stream mile, if appropriate.
“(e) The location of the proposed project, using public land survey refer- ence points, latitude and longitude, county, watershed, river and stream mile, if appropriate.
(f) An itemized budget for the project, including fiscal and administrative costs.
“(f) An itemized budget for the project, including fiscal and administrative costs.
(g) A description of funds, services or materials available to the project.
“(g) A description of funds, services or materials available to the project.
(h) A project schedule, including beginning and completion dates.
“(h) A project schedule, including beginning and completion dates.
(i) Any conditions that may affect the completion of the project.
“(i) Any conditions that may affect the completion of the project.
(j) A completed feasibility analysis if appropriate.
“(j) A completed feasibility analysis if appropriate.
(k) Suggestions for interim and long-term project performance benchmarks.
“(k) Suggestions for interim and long-term project performance benchmarks.
(L) Except as provided in subsection (3) of this section, if the application is for a grant, demonstrated in-kind and cash cost match of not less than 25 percent of the amount of the grant sought from the account.
“(L) Except as provided in subsection (3) of this section, if the ap- plication is for a grant, demonstrated in-kind and cash cost match of not less than 25 percent of the amount of the grant sought from the account.
(m) If the application is for a loan, evidence demonstrating ability to repay the loan and provide collateral.
“(m) If the application is for a loan, evidence demonstrating ability to repay the loan and provide collateral.
(n) Letters of support for the proposed project.
“(n) Letters of support for the proposed project.
(o) If required by the department, a description of consultations with affected Indian tribes re- garding the project.
“(o) If required by the department, a description of consultations with affected Indian tribes regarding the project.
(p) Any other information required by the department.
“(p) Any other information required by the department.
Enrolled Senate Bill 1585 (SB 1585-A) Page 6 (3)(a) A cost match for grants sought by incorporated cities with a population not greater than 20,000 shall be required as follows, based on population according to the most recent federal decennial census:
“(3)(a) A cost match for grants sought by incorporated cities with a population not greater than 20,000 shall be required as follows, based on population according to the most recent federal decennial census:
(A) Incorporated cities with a population not greater than 5,000 may be required to pro- vide a cost match in an amount not greater than:
“(A) Incorporated cities with a population not greater than 5,000 may be required to provide a cost match in an amount not greater than:
(i) Three percent of the amount of a grant sought for $100,000 or less.
“(i) Three percent of the amount of a grant sought for $100,000 or SB 1585-2 2/10/26 Proposed Amendments to SB 1585 Page 12 less.
(ii) Five percent of the amount of a grant sought for more than $100,000.
“(ii) Five percent of the amount of a grant sought for more than $100,000.
(B) Incorporated cities with a population greater than 5,000 but not greater than 7,500 may be required to provide a cost match in an amount not greater than seven percent of the amount of the grant sought.
“(B) Incorporated cities with a population greater than 5,000 but not greater than 7,500 may be required to provide a cost match in an amount not greater than seven percent of the amount of the grant sought.
(C) Incorporated cities with a population greater than 7,500 but not greater than 10,000 may be required to provide a cost match in an amount not greater than nine percent of the amount of the grant sought.
“(C) Incorporated cities with a population greater than 7,500 but not greater than 10,000 may be required to provide a cost match in an amount not greater than nine percent of the amount of the grant sought.
(D) Incorporated cities with a population greater than 10,000 but not greater than 20,000 may be required to provide a cost match in an amount not greater than 12 percent of the amount of the grant sought.
“(D) Incorporated cities with a population greater than 10,000 but not greater than 20,000 may be required to provide a cost match in an amount not greater than 12 percent of the amount of the grant sought.
(b) Notwithstanding any other provision of law restricting the use of the grant award moneys, incorporated cities with a population not greater than 20,000 may use grant moneys awarded for capital construction or municipal infrastructure for all phases of a funded project in addition to construction, including, but not limited to, engineering, planning and support.
“(b) Notwithstanding any other provision of law restricting the use of the grant award moneys, incorporated cities with a population not greater than 20,000 may use grant moneys awarded for capital con- struction or municipal infrastructure for all phases of a funded project in addition to construction, including, but not limited to, engineering, planning and support.
SECTION 10.
“SECTION 10.
This 2026 Act takes effect on the 91st day after the date on which the 2026 regular session of the Eighty-third Legislative Assembly adjourns sine die.
This 2026 Act takes effect on the 91st day after the date on which the 2026 regular session of the Eighty-third Legislative Assembly adjourns sine die.”.
Passed by Senate February 19, 2026 Received by Governor:
SB 1585-2 2/10/26 Proposed Amendments to SB 1585 Page 13
........................M.,........................................................., 2026 ..................................................................................
Approved:
Obadiah Rutledge, Secretary of Senate ........................M.,........................................................., 2026 ..................................................................................
Rob Wagner, President of Senate ..................................................................................
Tina Kotek, Governor Passed by House March 6, 2026 Filed in Office of Secretary of State:
.................................................................................................................................., 2026 Julie Fahey, Speaker of House ..................................................................................
Tobias Read, Secretary of State Enrolled Senate Bill 1585 (SB 1585-A) Page 7