Until the passage of Senate Bill 1566 during the 2024 short session, Oregon law prohibited counties from charging fees for permits issued to water, gas, electric, and communications utilities for construction, repair, or maintenance work in the county right of way. The statutory preemption on permit fees meant that precious State Highway Fund dollars intended for county road improvements and maintenance were instead subsidizing public and private utility operations.
SB 1566 removed the preemption and allows counties to charge cost-recovery fees for permits issued to the utilities that could previously operate in the county right of way free of charge. This month, Multnomah County became the first to pass an ordinance to implement the bill and begin to recover the costs incurred by utility permit review and administration.
Multnomah County’s ordinance updates Multnomah County Code Chapter 29 Building Regulations to include a code section § 29.503(E) which states that the Director can set fees consistent with SB 1566 (2024). While this is a small change to the code, it effectively removes the preemption against charging utilities. Now that the preemption is removed Multnomah County can apply the fee structure it already has in place. SB 1566 allows Counties to charge on Jan. 1, 2025. However, Multnomah County plans to begin charging permit fees on July 1, 2025. Between now and then the Transportation Development program (which is responsible for permitting) will be updating their permit forms, doing some outreach to the utility companies and their contractors, and updating the online permit portal to make it easier for utility companies and their contractors to both apply and pay the fee.
Negotiated language in SB 1566 includes a fee cap, permit fee exemptions for vegetation management, routine maintenance, and emergencies, and requires that completed fee-eligible permits must be approved or denied by the county within 15 business days. SB 1566 sunsets in 2031, so the legislature will have to review and renew the authority it provides to counties in a future session.
SB 1566 contains language that allows a county to begin ordinance development now, with operative date no earlier than Jan. 1, 2025. The Association of Oregon Counties (AOC) encourages county boards of commissioners and county courts to work with county road departments and county counsels, and consider adopting an ordinance.
Submitted by: Mallorie Roberts | Legislative Affairs Director