January 15-16, 2019 OWEB Board Meeting Executive Director Update E-1: Focused Investment Partnership (FIP) Monitoring This report provides the board an update about two areas of work associated with FIP monitoring: supplemental monitoring and reporting funding, and the FIP Progress tracking report.

Background OWEB has engaged with Bonneville Environmental Foundation (BEF) to develop a progress monitoring framework for each of the current six Implementation FIPs. The framework helps the FIPs communicate progress toward desired ecological outcomes, and includes a detailed results chain. In April 2018, the board awarded supplemental funding for the six FIPs to fill monitoring gaps and/or reporting needs identified from the results chain work. Also in April 2018, staff described upcoming collaborative work among OWEB, BEF and the implementation FIPs to develop a reporting template to visualize progress to the board and other funders through time.

FIP Supplemental Funding for Monitoring and Reporting Working within the context of the progress monitoring framework, each of the six FIPs has identified or is in the process of identifying the top 1-2 priorities for supplemental funding, ranging between $75,000 and $125,000, to help each FIP describe and communicate holistically about progress being achieved by their work. The first application for this funding has been received and awarded, with others in development. Each application receives a technical review. Gaps to be addressed by the FIPs are outlined below: • Oregon Model to Protect Sage-Grouse, All Counties: Candidate Conservation Agreements with Assurances database to assist with planning, monitoring, reporting and implementation. • Upper Grande Ronde Initiative: Effectiveness monitoring of fish populations in reaches where FIP restoration actions have occurred. • Ashland Forest All-Lands Restoration Initiative: Social and ecosystem services monitoring. • Deschutes Partnership: Watershed-scale monitoring application in support of the results chain that was created for the partnership’s work in McKay Creek. • Upper and Middle Willamette Mainstem Anchor Habitats: Monitoring of fish populations, physical habitat, and aquatic invasive species. • Harney Basin Wetlands Initiative: Prioritization underway.

FIP Progress Tracking Report Staff are working with BEF to develop a report template to track incremental progress of the Implementation FIPs toward meeting their initiative’s ecological objectives. These reports will align strategies presented in each partnership’s results chains with work completed to implement strategic action plans. The reports are expected to be brief documents that feature easy-to-understand graphics interpreting the approach guiding the partnership’s effort to achieve their goals using data for restoration outputs and outcomes. The Ashland Forest All-Lands Restoration Initiative is piloting the template structure and report content. Staff have met with the partners and will finalize the progress tracking report this winter. OWEB and BEF staff will then work individually with the other partnerships to customize reports for each FIP, with a goal of completing all six Implementation FIPs next summer.

Staff Contact If you have questions or need additional information, contact Renee Davis, Deputy Director, at [email protected] or 503-986-0203.

1 January 15-16, 2019 OWEB Board Meeting Executive Director Update E-2: Salmon License Plates This item describes the plan to update Oregon’s Salmon License Plate in partnership with the Oregon Parks and Recreation Department.

Background Oregon’s current salmon license plates were approved in 1999. Salmon license plate revenues are distributed equally between the Oregon Parks and Recreation Department (OPRD) and OWEB. Over the last few biennia, salmon plate revenues to OWEB have averaged $483,000, which is invested directly in OWEB grants that support salmon habitat, or removing barriers to salmon migration.

Developing a New Salmon License Plate To coincide with the 20th anniversary of the Salmon License Plate, OWEB and OPRD staff will be working with the Oregon Department of Transportation’s Department of Motor Vehicles and the Oregon Lottery to develop and promote a new salmon license plate design. Next steps Staff are working to finalize the design approach for the new license plates and will be proceeding into the design phase in the new year, with a plan to have a final design ready to unveil next summer.

Staff Contact If you have questions or need additional information, contact Jillian McCarthy ([email protected]) or 503-986-0033.

1 January 15-16, 2019 OWEB Board Meeting Executive Director Update E-3: Budget and Legislative This report provides the board an update about the Governor’s Recommended Budget and preparations for the 2019 Legislative Session.

Background The Oregon Legislature approves budgets for state agencies on a biennial basis. Budgets are structured so that each agency’s current (or “base”) budget is recalibrated and submitted without need for specific policy description or justification. Any resources requested to be added to the base budget by agencies must be identified separately with policy narratives and justification. The requested additions to an agency’s base budget are called “policy option packages,” or POPs. The board approved OWEB’s POPs at the June 2018 meeting that addressed internal staffing and resource needs, while reflecting needs associated with broader initiatives coordinated with the Governor’s Office and other agencies. These POPs were included in OWEB’s Agency Request Budget (ARB) that was submitted in August 2018. The Oregon Legislature will meet for the 2019 Legislative Session beginning January 22. On January 14-16, the Legislature will hold Organizational Days to organize and prepare for the session. In addition, the Legislative Leadership has established committees and assigned members. Attachment A includes a list of relevant natural resources committees including chairs and members.

The Governor’s Recommended Budget The November 2018 economic forecast projects that the economy will continue to grow at a modest, but slower pace than in recent years. Lottery revenues to OWEB in 2019-21 are expected to be higher than budgeted in 2017-19, and the 2017-19 biennium will have an ending balance for use in 2019-21. While overall state revenues are anticipated to increase, the amount is not expected to keep up with increasing state payroll costs and other cost increases associated primarily with health care, education, and corrections. In addition, revenues are expected to continue to be impacted by the roll-back associated with the PERS reform implemented last biennium. With this information as context, after agencies submitted their ARBs, the Governor’s Office developed state budget recommendations in partnership with agencies. This budget proposal— known as the Governor’s Recommended Budget, or GRB—also includes additional POPs that reflect the Governor’s priorities and initiatives. The GRB is the starting point for agency budget discussions at legislative hearings. During the legislative session, agencies may advocate for their individual Policy Packages only to the extent that they are included in the GRB. The Governor’s budget was released on November 28, 2019. The GRB retains all of the following requests from OWEB’s ARB: • Program Continuity package (Conservation Outcomes Coordinator and Conservation Outcomes Specialist positions); • Program Enhancement package (Partnerships Coordinator and Online Systems Project Manager positions and contracted services); • Conservation Policy and Strategy Coordination package (contracted services); and • Grant funds for: Measure 76 lottery funds; carryforward of federal grant funds and other funds; forest collaborative grant funds; federal funds from Natural Resources Conservation Service; loan funds from the Clean Water State Revolving Loan Fund; and funds for Upper Klamath Basin grants associated with salmon reintroduction. Along with 12 other agencies, the Governor’s Office added funding for an internal auditor position to OWEB’s budget, as part of her ‘Smart Government’ emphasis area.

1 Policy packages requested by OWEB, but not included in the GRB, are both operations and grant funding related to the Oregon Agricultural Heritage Program (OAHP). OWEB’s current service level did not take any reductions. However, the agency still is required to submit a report that lists 10 percent reduction options from current service level by priority for all fund sources. Despite this, full reductions have not been taken in the past few budget cycles. Depending on future revenue outlooks and the level of remaining ending balances from the 2017-19 biennium, the upcoming legislative budget cycle may or may not require the implementation of some degree of reductions. Staff are updating budget documents to reflect the Governor’s Budget. During the legislative session, the first phase of the budgeting process—agency budget presentations during legislative hearings—occurs between February and early April. As needed, additional discussion of budgetary issues may occur beyond this time. Work sessions with the Natural Resources Subcommittee of the Ways and Means Committee may occur any time after agency budget hearings are completed. Staff will update the board as OWEB’s budget progress through the legislative budgeting process.

Legislative OWEB has developed one legislative concept that if approved, will provide technical corrections to OAHP statutes. Proposed statutory changes include: 1) Shifting language in ORS 541.982 to remove requirement that continued agricultural use be an affirmative obligation of a conservation easement. 2) Providing a more accurate description of the individuals who would be eligible to participate in succession planning programs in ORS 541.984. 3) Changing wording regarding conservation management plans from ‘purchasing’ plans to ‘developing’ plans in ORS 541.981 and ORS 541.984. 4) Revising technical assistance grant use in 541.984 to more accurately reflect the purpose of the grant funds, and to expand the eligible applicants to all organizations that are eligible to enter into conservation easements or covenants. 5) Changing language to be consistent throughout the statute regarding the relationship between the commission and the board in ORS 541.988. 6) Revising language to match OWEB’s process where technical committees can either advise staff who make recommendations to the board/commission or can advise the board/commission directly in ORS 541.988.

Staff Contact If you have questions or need additional information about budget topics, contact Renee Davis, Deputy Director, at [email protected] or 503-986-0203. If you have questions or need additional information about legislative topics, contact Eric Hartstein, Senior Policy Coordinator, at [email protected] or 503-986-0029.

Attachments A. List of relevant natural resources committees including chairs and members.

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2018-2019 Oregon Interim Legislature OWEB-Related Committee Assignments

Table 1: Senate Environment and Natural Resources Committee Member District Area (Basin) Sen. Michael Dembrow, Chair (D) 23 Portland (Willamette) Sen. Alan Olsen, Vice-Chair (R) 20 Canby (Willamette) Sen. Cliff Bentz (R) 30 Eastern/Central Oregon (Multiple) Sen. Floyd Prozanski (D) 4 South Lane and North Douglas Counties (Willamette/Umpqua) Sen. Arnie Roblan (D) 5 Coos Bay (Oregon Coast)

Table 2: House Agriculture and Land Use Committee Member District Area (Basin) Rep. , Chair (D) 21 Salem (Willamette) Rep. Susan McLain, Vice Chair (D) 29 Hillsboro (Willamette) Rep. , Vice Chair (R) 25 Keizer (Willamette) Rep. (R) 15 Linn County (Willamette) Rep. (D) 34 Washington County (Willamette) Rep. David Brock Smith (R) 1 Gold Beach (South Coast) Rep. Anna Williams (D) 52 Hood River ( Columbia)

Table 3: House Energy and Environment Committee Member District Area (Basin) Rep. Ken Helm, Chair (D) 34 Washington County (Willamette) Rep. , Vice Chair (D) 27 Beaverton (Willamette) Rep. E. Werner Reschke, Vice Chair (R) 56 Klamath Falls (Klamath) Rep.() Lynn Findley () (R) 60 Eastern Oregon (multiple) Rep. (D) 38 Lake Oswego (Willamette) Rep. (D) 30 Hillsboro (Willamette) Rep. (D) 11 Lane/Linn Counties (Willamette) Rep. Anna Williams (D) 52 Hood River ( Columbia) Rep. (R) 53 Deschutes County (Deschutes)

Table 4: Natural Resources Committee Member District Area (Basin) Rep. , Chair (D) 31 Clatskanie (Lower Columbia) Rep. Chris Gorsek, Vice Chair (D) 49 Gresham (Sandy) Rep. Sherrie Sprenger, Vice Chair (R) 17 Scio (Willamette) Rep. Greg Barreto (R) 58 Cove (Umatilla) Rep. Caddy McKeown (D) 9 Coos Bay (South Coast) Rep. Jeff Reardon (D) 48 E. Portland (Willamette) Rep. David Brock Smith (R) 1 Gold Beach (South Coast)

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Table 5: Joint Ways and Means Natural Resources Subcommittee Member District Area (Basin) Sen. Kathleen Taylor, Co-Chair (D) 21 Portland (Willamette) Rep. Jeff Reardon, Co-Chair (D) 48 E. Portland (Willamette) Sen. Fred Girod (R) 9 Stayton (Willamette) Sen. Lew Frederick (D) 22 Portland (Willamette) Rep. Cedric Hayden (R) 7 Roseburg(Umpqua) Rep. Paul Hovey (D) 8 Eugene (Willamette) Rep. (D) 26 Wilsonville (Willamette) Rep. David Brock Smith (R) 1 Gold Beach (South Coast)

Table 6: Joint Committee on Carbon Reduction Member District Area (Basin) Sen. Michael Dembrow, Co-Chair (D) 23 Portland (Willamette) Rep. , Co-Chair (D) 41 Milwaukie (Willamette) Sen. Cliff Bentz, Co-Vice Chair (R) 30 Eastern/Central Oregon (Multiple) Rep. David Brock Smith, Co-Vice Chair (R) 1 Gold Beach (South Coast) Sen. Lee Beyer (D) 6 Springfield (Willamette) Sen. Fred Girod (R) 9 Stayton (Willamette) Sen. Kathleen Taylor (D) 21 Portland (Willamette) Sen. Alan Olsen (R) 20 Canby (Willamette) Sen. Jeff Golden (D) 3 Ashland (Rogue) Rep. (R) 59 Central Oregon(Columbia/Deschutes) Rep. Shelly Boshart Davis (R) 15 Linn County (Willamette) Rep. Ken Helm (D) 34 Washington County (Willamette) Rep. John Lively (D) 12 Springfield (Willamette) Rep. (D) 5 Ashland (Rogue)

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