Assessing the state's "inadequate water supply," identifying potential storage sites and analyzing conservation opportunities would be part of the Oregon Water Supply and Conservation Initiative in a policy option package proposed by the Oregon Water Resources Department.

Gov. Ted Kulongoski's proposed budget includes $900,000 for the five-component statewide assessment, which also would include an inventory of the water-storage capacity of watersheds in Oregon , and a matching-fund program for community and regional water-supply planning.

The Oregon Water Supply and Conservation Initiative proposed by the Oregon Water Resources Department heeds findings in the 2000 State of the Environment Report by Oregon 's Progress Board.

That report noted that one of the state's major environmental challenges is inadequate water supply. Surface waters in most of Oregon during non-winter months are fully appropriated by existing out-of-stream and in-stream uses. The report said groundwater resources are showing signs of overuse and are becoming unstable in many areas. Conflicts between in-stream and out-of-stream needs, exacerbated by listings of aquatic species under the Endangered Species Act, have become increasingly divisive and expensive to resolve.

The Water Resources Department initiative will be discussed this spring during the legislative budget process.

Meanwhile, Senate Bill 600, introduced by Sen. David Nelson, R-Pendleton, mostly mirrors the Water Resources Department's proposal, but emphasizes water availability from the Columbia River for possible use in Oregon .

In that vein, the Oregon Legislature's Committee on Business, Transportation and Worforce Development has introduced SB 483, which would authorize withdrawal of up to 500,000 acre feet of water from the Columbia River each year for 25 years.

SB 483 would direct the Water Resources Department to issue permits to appropriate water from the upper Columbia River for use in the Columbia Basin , particularly the region in Umatilla and Morrow counties between Hermiston and Boardman.

According to the summary for SB 483, the Water Resources Department would allow permits only to persons who would use water in lieu of using groundwater from critical groundwater areas, to recharge or replenish groundwater in critical groundwater areas, to support business development projects or to provide additional water for use by municipalities.

SB 483 would also establish a Columbia River Water Account, which would be used to administer components of the bill, and would develop in-stream water conservation projects managed in coordination with federally recognized Indian tribes in Oregon whose reservation or trust lands include the Columbia River or Columbia Basin .

Nelson said a comprehensive assessment of Oregon 's water needs now and in the future is long overdue.

"It is clear we have huge problems developing statewide and we must embark on a process to address these critical issues. Washington started planning a number of years ago; Oregon can't afford to wait longer," said Nelson.

A field hearing on SB 600 is scheduled for Feb. 23 in Medford with the Senate Environment and Natural Resources Committee.

Among 18 western states, Oregon is one of two that do not yet have a water resources plan.

"We've been working a couple of years to develop the initiative," said Debbie Colbert, public information officer for the Oregon Water Resources Department. "It's all about how we prepare to meet the future water supply needs for the state."

The concept of assessing the state's water supply has been bandied about for even longer. However, Colbert said, this initiative takes a more comprehensive look at Oregon 's water needs and how best to meet those needs.

The key components of the Oregon Water Resources Department would:

-- assess existing and future water needs in Oregon . The assessment would include in-stream and out-of-stream water needs and would be completed through a contract with an outside entity. (budget $230,000).

-- complete a statewide inventory of potential storage sites. The inventory would be completed by Department employees and include both above-ground reservoirs, and below-ground sites for artificial recharge projects. ($248,500).

-- analyze statewide conservation opportunities. The assessment would be completed by contract with an outside entity and would include an analysis of supply to be gained through greater adoption of efficient water-use practices and other conservation opportunities including water reuse. ($100,000).

-- complete a statewide investigation of basin yield estimates. Basin yield is the amount of runoff that can be expected each year, or by season, for a drainage basin. This investigation would be completed by a Department employee. ($113,000).

-- match funding for community-based and regional water supply planning. This component would provide incentive funding for those communities that are looking to develop strategies to meet long-term water supply needs using data developed under the initiative and from other sources. ($200,000).

"We're excited about this," Colbert said of the matching fund component. "Especially over the last year or so, different communities are struggling. They'd like to be thinking about the future and this inventive funding can help do this kind of work."

The Water Resources Department, in the concept draft for the initiative proposal, said that, "As a whole, this information is critical to the state of Oregon to ensure sufficient water supplies to meet existing and future beneficial uses of water. Combined, this information will allow the state to prioritize future storage and conservation projects and pursue those opportunities in order of water need."

In his efforts, Nelson says his WATERS (Way Ahead To Ensure Resource Sustainability) campaign would address five challenges:

-- dwindling groundwater.

-- population growth.

-- insufficient crops for alternative fuels.

-- global warming.

-- preservation of anadromous habitats and tribal culture.

SB 483, referred to as the Oregon Oasis Project, includes language that backs up the challenges listed in Nelson's WATER campaign.

According to the bill, the agricultural region of northeast Oregon along the Columbia River has some of the richest soils in the world but, due to restrictions on the use of water, this land is underutilized and the area's vast potential for economic development has remained largely untapped.

Further, the groundwater level in the Columbia Basin is receding and even severe restrictions on the withdrawal of groundwater have not replenished critically low groundwater levels. Farmers in the Columbia Basin , the bill states, are forced to plant low-return crops because of the lack of groundwater and, in many cases, have allowed rich farm lands to sit idle.

SB 483 says that Oregon uses only 2 million acre-feet of some 30 million acre feet of Columbia River water reserved for economic use in the state.

"Withdrawing reserved water from the upper Columbia River for recharging groundwater and irrigation, Oregon can create a thriving agricultural oasis on the rich soils of northeastern Oregon, allowing farmers to cultivate high-value fruits and vegetables on an additional 100,000 acres which, when processed locally, will create a substantial number of new jobs and add millions of dollars in revenue and increase property values to the state's economy," the bill states.

More than 5,500 jobs could be created in the process, Steve Eldrige, president of the Oregon Oasis Project, told the East Oregonian in the Feb. 8 edition of that Pendleton newspaper.

In addition to SB 600, Nelson has introduced SB 601, which would assess the feasibility of a pilot-project dam and reservoir in Juniper Canyon, near the Columbia River about 25 miles northeast of Pendleton; and SB 602, a bill that calls on Oregon to "catch up with Washington state" in addressing water supply needs.

Nelson said that although the statewide assessment would identify a number of potential storage sites, he introduced his Juniper Canyon legislation as a ready-to-go pilot project in the event the statewide study suggests moving forward with reservoir options.