By Oregon Property Owners Association
April 8, 2025
You can always count on the Oregon Legislature to turn a well-intentioned idea into a fiasco for rural property owners. Case in point: SB 1154 -1. What started as a measure to ensure safe drinking water for rural Oregonians has spiraled into a land use bill that threatens the future of property owners who had no role in causing groundwater contamination.
Much like how our wildfire program was started back in 2021, SB 1154 is well-intentioned. It comes in response to a serious state of emergency that is unfolding in Eastern Oregon, and is intended to build off state agencies’ existing authority. Unfortunately, much like SB 762, the massive 83-page bill has three sections buried in the middle of the bill that target innocent property owners, and stands to hurt the very people it’s supposed to protect.
Specifically, SB 1154 allows counties to prohibit new residential construction in “Groundwater Quality Management Areas” (GWMAs) unless homes are connected to public water systems, which most are not. It goes further to give the Department of Land Conservation and Development (DLCD) carte blanche authority to create rules dictating where counties MUST prohibit new structures. Worse still, it permits the Department of Environmental Quality (DEQ) to enter onto private property in GWMAs without landowner consent to inspect subsurface sewage disposal systems — an invasive overreach with almost no checks and balances.
Meanwhile, property owners in these areas are likely to see their land values plummet and their ability to build or rebuild homes taken from them. And thanks to Measure 49’s exemption for public health and safety regulations, homeowners barred from building or improving their properties will likely have no recourse for compensation.
It’s a cruel twist: those suffering from industrial contamination are now penalized further, with no relief in sight. How’s that for fairness?
Before we explain our concerns in more detail, we need to understand how we got here and why the state is determined to take up this issue.
From Morrow County to Salem – prolonged groundwater fight hits the session.
For the last three decades, parts of rural Oregon have been entangled in a high-stakes battle over groundwater quality – specifically over elevated levels of nitrates.
It is well established that drinking water with high levels of nitrates can lead to serious health consequences like respiratory infections, thyroid dysfunction and stomach or bladder cancer. Most notoriously, it can cause “blue baby syndrome,” which decreases the blood’s capacity to carry oxygen, especially in infants drinking baby formula mixed with contaminated water.
There are many factors that contribute to elevated nitrate levels in groundwater, such as failing septic systems, urban runoff, and atmospheric deposition. However, studies show that certain commercial agricultural practices can cause high levels of nitrate contamination. For example, studies suggest that overusing chemical fertilizers and poorly managing nitrate-rich wastewater on farmland can allow excess nitrates to seep through the soil into aquifers and other groundwater sources.
In 2022, Morrow County declared a local state of emergency after private well testing showed high levels of nitrate contamination. Groundwater is the primary drinking water source for Morrow and Umatilla County residents. It was the first time an Oregon county had ever declared a state of emergency over water quality issues. After the declaration, the area was visited by U.S. Sen. Jeff Merkley, Oregon Gov. Tina Kotek, and many other high-ranking state and federal officials.
DEQ attempted to respond with fines and introduced the 2024 Nitrate Reduction Plan, but critics argued the plan lacked substance as clear deadlines and actionable strategies were glaringly absent. The legislature’s answer? SB 1154.
SB 1154 builds off of existing authority.
It’s important for folks to know that Oregon has an existing framework and program to identify areas of groundwater contamination. Under existing law, a “Groundwater Management Area” (GWMA) is a region designated by DEQ due to concerns about groundwater contamination, particularly from nitrates or other pollutants.
These areas are identified based on studies showing that groundwater quality fails to meet standards or is at risk of degradation. The purpose of a GWMA is to coordinate efforts among local communities, agencies, and stakeholders to address water quality issues and develop strategies for improvement.
In a GWMA, activities such as agricultural practices, waste management, and residential uses are closely monitored, guided, and sometimes regulated to mitigate groundwater contamination. However, public education, best practices, and voluntary community involvement are emphasized to ensure long-term protection of water resources, without causing unintended consequences for property owners in GWMAs.
A GWMA is created by DEQ when nitrate levels above 70% of the safety limit or other pollutants over 50% of the safety limit in a certain area. The results are double-checked by a second lab to make sure the findings are accurate. Once a GWMA is declared, DEQ works with local communities to create a plan to fix the issue. They also monitor the area over time to check progress and reduce pollution levels.
As of today, there are only three GWMAs in Oregon: the Lower Umatilla Basin GWMA, the Northern Malheur County GWMA, and the Southern Willamette Valley GWMA.
SB 1154: Improving processes, protecting the innocent, or hurting victims?
As talked about already, Oregon already has a framework in place for addressing groundwater contamination through GWMAs. SB 1154 with the -1 amendment purports to enhance this process and protect rural communities, but includes three heavy-handed sections that undermine this effort:
Section 17 – Empowers counties to bar residential dwelling (which includes replacement dwellings, farmworker housing, etc.) or accessory dwellings in GWMAs unless connected to public water, effectively freezing development in areas with limited public infrastructure.
Section 17 – Grants DLCD unfettered authority to create sweeping rules dictating where counties MUST ban new residential structures, even outside of GWMAs.
Section 19 – Section Authorizes DEQ to enter private properties for underground sewer system inspections with minimal limitations, and no clarity on the consequences for property owners if their sewage system fails the inspection or they cannot afford to make repairs.
CALL TO ACTION
SB 1154’s overreach is the definition of adding insult to injury. Instead of narrowly targeting polluters, this bill punishes homeowners and communities who had no hand in the contamination. Destroying property values, restricting land use, and denying compensation isn’t just shortsighted— it’s unjust.
It’s critical for property owners, rural communities, and stakeholders to speak up!
The bill is scheduled for a public hearing and possible work session TODAY on April 8th, 2025 at 1:00pm. However, we believe this bill is being moved to the committee on Rules for further amendment. That means there is more time to make your voice heard.
We encourage all potentially impacted property owners to write in and ask the Legislature to REMOVE Section 17 and Section 19 from the -1 version of the bill! You can write in HERE or watching the hearing HERE.
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