Oregon's 2025 legislative session marked a significant moment in the state's ongoing leadership on environmental protection and sustainability. Lawmakers considered a wide range of bills addressing climate change, waste reduction, emerging contaminants, permitting reform, and water resources.
With lawyers based in the Pacific Northwest, including Portland, Oregon, Beveridge & Diamond (B&D) closely tracks developments, upcoming deadlines, and business implications for companies with operations in Oregon. This article highlights the most significant environmental and sustainability-related legislation that Governor Kotek signed into law and explores impacts and next steps for Oregon's regulated community going forward.
- Climate
- Permitting Reform
- Waste Reduction
- Regulation of Per – and Polyfluoroalkyl Substances (PFAS)
- Ground Water
- Water Resources
Climate
HB 3477 did not make it out of committee, but stakeholders should nonetheless track this bill for future sessions. HB 3477 modifies Oregon's greenhouse gas reduction goals and replaces the term “global warming” with “climate change.” The bill seeks to reduce greenhouse gas emissions 45% below 1990 levels by 2030, 70% below 1990 levels by 2040, and 95% below 1990 levels by 2050. The bill states that Oregon intends to achieve net zero emissions as soon as practicable, but no later than 2050, and to maintain negative emissions thereafter. Passage of this bill would have significant impacts on myriad industry sectors that emit greenhouse gases, as it would likely trigger more aggressive substantive legislation to achieve these ambitious climate goals.
Permitting Reform
HB 3681 streamlines Oregon's energy facility siting process by imposing a 12-month deadline for the Energy Facility Siting Council (EFSC) to conclude contested cases and issue final orders (ORS 469.370(5)). The bill also establishes new standing requirements and judicial review procedures, requiring that appeals of EFSC final orders go directly to the Oregon Supreme Court (ORS 469.403(2)–(3), (6)–(9); ORS 469.405(1)). In addition, it narrows the Public Utility Commission's review of certificates of public convenience and necessity for transmission lines to focus on grid capacity and reliability. Petitioners no longer need land use approvals in advance (ORS 758.015(2)(a)). The law provides that a site certificate for a high-voltage transmission line constitutes conclusive evidence of public use and necessity in condemnation proceedings (ORS 469.401(4)). HB 3681 was passed on June 23, 2025 and will become effective on January 1, 2026.
HB 3918 requires state agencies to improve transparency and efficiency in permit application processes. Although this bill did not make it out of committee, industry groups identified permitting reform as a legislative priority, watch for the bill to be reintroduced in future legislative sessions. HB 3918, modeled on Washington Executive Order 25-03, would have required agencies to publish a catalog of all permits issued by the agency, the processes for issuing the permit, and an analysis of the time that it takes for the agency to process applications for the permit. Each agency would also be required to set a deadline within which it intended to process applications for each permit.
HB 3107 did not make it out of committee this session, but is one to watch. The bill amends the Oregon Department of Environmental Quality's (DEQ) ability to use its “receipts authority.” Under the current law, DEQ “may” enter an agreement with a regulated entity to pay for DEQ to hire additional staff or third parties to “expedite or enhance a regulatory process.” While the goal of receipts authority is to speed up the permitting process, the current law lacks clear guidelines as to when or how DEQ should use the authority.
To remedy this, the proposed amendments presume that an applicant may take advantage of receipts authority unless DEQ determines it would not be in the public interest to do so. Further strengthening an applicant's ability to take advantage of receipts authority, DEQ's determination will be a “final order” subject to judicial review. And, if DEQ denies an applicant's use of receipts authority and a year passes without completion of the corresponding regulatory process, the applicant is presumptively entitled to enter a receipts authority agreement.
The amendments also enhance public transparency in permitting, directing DEQ to publish on its website its receipts authority decisions, as well as information regarding the third-party contractors it hires. Finally, the proposed amendments clarify that an applicant's use of receipts authority does not alter DEQ's ultimate regulatory obligations or affect processing priorities or schedules.
These amendments aim to expedite DEQ permitting by allowing applicants to directly fund regulatory processes. While receipts authority is unlikely, the ultimate solution to address backlogs, it at least provides an additional option forward for motivated applicants—without cutting corners at DEQ.
Waste Reduction
SB 551 prohibits restaurants and retail establishments in Oregon from providing single-use checkout bags—a bag made of paper, plastic, or other material that is not a recycled paper checkout bag— beginning January 1, 2027. Retail establishments may provide recycled paper checkout bags if they charge a minimum of five cents per bag, with exceptions for customers using Women, Infants, and Children vouchers or electronic benefits transfer cards. Restaurants may provide recycled paper checkout bags at no cost but are otherwise restricted from offering single-use bags. “Recycled paper checkout bags” are paper bags made with at least 40% of their fiber content consisting of post-consumer recycled fiber, non-wood renewable fiber, or a combination of both. The law also limits the ability of local governments to impose bag-related rules that differ from state standards, although they may require higher fees than the state minimum. Oregon has previously enacted legislation aimed at reducing plastic waste and limiting the use of single-use packaging, and SB 551 reinforces the state's commitment to curbing plastic pollution through targeted product restrictions.
PFAS
The 2025 legislative session, following a trend among U.S. states, saw several bills introduced that would address PFAS in products through material restrictions and reporting requirements. The restrictions in these state laws typically focus on specified categories of products. Oregon, for example, previously enacted legislation restricting PFAS in foodware containers ( SB 543) and cosmetic products ( SB 546). However, some states—including Maine, Minnesota, and New Mexico—have enacted legislation restricting and requiring reporting on PFAS in all products.
HB 3512 if passed, would have phased out intentionally added PFAS in a wide range of products, including artificial turf, cleaning products, carpets and rugs, cookware, cosmetics, dental floss, fabric treatments, packaging, juvenile products, menstrual products, refrigerators, textiles, and ski wax. While HB 3512 did not make it out of committee, companies throughout supply chains should diligently watch for any future regulatory developments on this topic in Oregon and other jurisdictions.
Other legislation addressing PFAS did pass in this term:
PFAS in Firefighting Foams: SB 91 prohibits Oregon fire departments from using firefighting foam containing intentionally added PFAS, starting July 1, 2026. The prohibition applies except to the extent such uses of PFAS in firefighting foam are required by regulation of the Federal Aviation Administration or other federal law.
PFAS in Biosolids: HB 2947 directs the Oregon State University Extension Service and College of Agricultural Sciences of Oregon State University to conduct a statewide study of the occurrence and distribution of PFAS in biosolids applied to agricultural fields that produce crops not intended for human consumption. The study will identify and quantify PFAS concentrations in biosolids from wastewater treatment facilities, soils from agricultural fields, and crops not intended for human consumption. Oregon State University will submit a progress report by December 15, 2026, and the final report by September 1, 2028. This is a first step in evaluating the possible regulation of PFAS in biosolids. Several other states have similar laws, and the U.S. Environmental Protection Agency (EPA) took its first step in determining whether to regulate PFAS in biosolids when it released its Draft Sewage Sludge Risk Assessment for PFOA and PFOS earlier this year.
Proposed Rule Designating Certain PFAS as Hazardous Substances: On March 28, 2025, DEQ issued a proposed rule that would list six PFAS substances as hazardous substances under the Oregon Cleanup Law: PFOA, PFOS, PFHxS, PFNA, HFPO-DA (or GenX), and PFBS. The rule would give DEQ authority to address these substances at cleanup sites, which may include investigation and remedial action. DEQ presented the proposed rule for adoption at the September 11, 2025 meeting of the Oregon Environmental Quality Commission. Parties with potential environmental cleanup responsibilities in Oregon should continue to track DEQ's regulatory and enforcement approach to these PFAS substances.
Ground Water
SB 1154 updates Oregon's statutory framework for managing ground water contamination, with a focus on improving coordination among state agencies and enhancing protections for domestic well users and public water systems. The legislation renames and redefines key terms, shifts authority for area declarations, and expands agency powers to respond to contamination concerns. These changes are particularly relevant for municipalities, utilities, and agricultural operators who may be subject to new monitoring, permitting, and remediation requirements.
Key changes include:
- Terminology updates: “Ground water concern areas” and “ground water management areas” are now “ground water quality concern areas” (GWQCA) and “ground water quality management areas” (GWQMA). The bill also revises the definition of “contaminant of concern” to read “contaminant present in ground water at levels which have resulted in a declaration of a ground water quality concern area or a ground water quality management area.”
- Agency coordination: The Governor must appoint a lead agency and interagency team—including DEQ and the Oregon Water Resources Department (OWRD)—to assess contamination and develop outreach and action plans.
- Expanded committee roles: Ground water management committees are tasked with promoting voluntary local implementation plans. Each committee must include a domestic well user.
- Permit and inspection authority: DEQ may modify water quality permits and inspect sewage systems (with notice), while OWRD may limit ground water appropriations and classify aquifers as critical.
- Mandatory actions in GWQMAs: Action plans must identify required mitigation steps, including source control, public health outreach, and stewardship agreements.
- Public health protections: The Oregon Health Authority must assess risks to well users and public systems and prepare health response plans.
SB 1154 reflects a shift toward more structured and coordinated groundwater management in Oregon. As set forth above, regulated entities—including municipalities, utilities, and agricultural operators—may be subject to new requirements related to permitting, monitoring, and remediation in designated areas. Continued attention to agency actions and potential area designations under the revised framework will be important for compliance planning.
Water Resources
HB 3342 substantially modifies Oregon's water rights system. The bill strengthens OWRD authority, tightens deadlines, and implements reforms aimed to improve efficiency. Key changes include:
- Development deadline: HB 3342 imposes a seven-year development deadline for new water right permits (excluding municipal use permits). Permit holders now have seven years from permit issuance to complete construction and put water to a beneficial use. Water right permit holders may apply for a one or two-year extension, but OWRD will grant an extension only if the agency determines that fish-related conditions have been satisfied and the permittee can demonstrate good cause exists for the extension.
- Initial agency review: HB 3342 requires OWRD to undertake an initial review of an application and, upon completion of this review, notify the applicant of its preliminary determinations and identify outstanding necessary information. The bill does not provide a timeline for OWRD to undertake this initial review.
- Point of appropriation: HB 3342 authorizes OWRD to deny a transfer of a water right's point of appropriation if the proposed new point of appropriation is in a critical ground water area, in an area classified as subject to ground water restrictions, or in an area withdrawn from appropriation.
- Digital modernization: HB 3342 requires OWRD to accept electronic applications and payments and allows legal notices to be posted online via a centralized weekly public notice, replacing newspaper publications as the means of providing notice.
HB 3342 marks substantial reform to Oregon's water rights system. Water users should be aware of tighter timelines and reduced flexibility, which could require more proactive planning.
HB 3372 expands Oregon's ground water exemption rules to allow certain users to withdraw up to 3,000 gallons of water per day from exempt wells for irrigating lawns or gardens—whether non-commercial or commercial—on parcels not exceeding one-half acre. Previously, commercial garden irrigation required a water right; this bill adds a new exemption for small-scale commercial growers.
The exemption applies statewide, with two key limitations:
- Cannabis restriction: The exemption applies only to industrial hemp cultivation and not to other cannabis family plants unless licensed under ORS 571.281.
- Regional delay: In the Lower Umatilla Basin Groundwater Management Area, the exemption for commercial gardens is delayed until January 2, 2028, due to nitrate contamination concerns.
Additionally, the law caps total groundwater use at 5,000 gallons per day when combining commercial garden irrigation with other exempt commercial uses.
HB 3372 provides flexibility for small-scale growers and rural landowners by expanding access to ground water without requiring a formal water right. For municipalities and developers, the law may influence land use planning and water availability assessments, especially in areas where water rights are limited or contested.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
