Key Incentive Programs in Oregon

In Oregon, several state incentive programs stand out as a result of effective partnerships formed between agencies, strategic approaches to conservation, and adequate funding. These strong characteristics have led the way for very effective conservation efforts in the state. Oregon's key conservation programs are described below along with a table comparing them to the ten criteria for an effective program proposed by Defenders of Wildlife. Also included in the table is an assessment of the state's overall ability to meet the criteria given the current combined efforts of all programs in the state, including the five shown here. The statewide assessment is not an average of the performance of programs in the state, but rather an evaluation of state-led efforts to provide effective incentive programs.

Flexible Incentives Account

In 2001, the Oregon state legislature created the Flexible Incentives Account in the State Treasury. Funding can be provided by federal, state, regional, or local governments or by private sources and is administered by the Oregon Watershed Enhancement Board. The account's purpose is to facilitate strategic investments by financing projects that are consistent with statewide, regional, or local conservation plans. Unfortunately, the flexible incentives approach remains untested because it has not been funded. However, the overall approach of the Oregon Watershed Enhancement Board has placed a greater emphasis on strategic investments, and could ultimately be strategic enough to no longer need the flexible incentives account.

Oregon Watershed Enhancement Board grants

The Oregon Watershed Enhancement Board (the Board) acts as an umbrella organization that watershed councils and many other state organizations look to for direction, defining goals, and financial assistance. Watershed councils are non-regulatory, grassroots organizations run by a combination of staff and volunteers from local communities. The Board administers and distributes substantial funding for restoring, maintaining, and enhancing watersheds using funds from the Oregon State Lottery and federal money. Although not all of the Board's investments go toward funding incentives, the capability is there and it currently supports numerous private landowner conservation projects. The funding is reasonably reliable and offers stability for the agency, thus allowing it to become more strategic, focusing more and more on statewide and regional conservation goals through the years. Programs are tracked by a participant survey upon completion of a project. The Board uses survey responses to map their conservation efforts across the state. The Board currently has a project to identify conservation priorities in the Willamette Basin. Once the priority areas are identified, it hopes to direct funding and conservation efforts there. Ideally, the Board will use its funds more broadly in terms of habitat conservation rather than focus narrowly on water quality issues and aquatic species.


One strong partnership formed in the state is between the Board and watershed councils. The councils work closely with other agencies and organizations to inform private landowners about incentive program options as well as provide them with technical assistance. They also help to develop and define local conservation priorities. A recent Oregon Watershed Enhancement Board grant will allow more coordination of efforts between watershed councils with the formation of the statewide Network of Watershed Councils.

Tualatin Basin Enhanced-Conservation Reserve Enhancement Program and Vegetated Buffer Areas for Conservation and Commerce

CleanWater Services and the Tualatin Soil and Water Conservation District form another exemplary partnership in Washington County, Oregon. The two agencies are working together to enhance the federal/state Conservation Reserve Enhancement Program (CREP), which has low participation in the state and no participants in the Tualatin River Basin. The agricultural land in the Tualatin River Basin is very rich and rental payments offered by CREP to take land out of production are not high enough of an incentive for landowners to participate. In response, the agencies developed Enhanced-CREP by using local ratepayer funds to increase rental payments. They also formed the Vegetated Buffer Areas for Conservation and Commerce (VEGBACC) program to provide more flexibility for landowners who don't qualify for CREP or prefer not to participate in a federal program. These two programs are evaluated together as the Tualatin Basin Enhanced Conservation Reserve Enhancement Program in the table.


Both programs are well funded. The majority of Enhanced-CREP's funding comes from the federal and state government. The remainder, as well as all of VEGBACC funding, comes from mandatory sewage fees paid by constituents in the CleanWater Services district. The partnership has tried to make administration as efficient as possible by coordinating their application with the CREP paperwork. Participants in the programs are allowed to coordinate their efforts with other stream buffer programs as well as pursue property tax benefits. The programs are delivered by the Tualatin Soil and Water Conservation District in hopes that their history of working with rural landowners in the area will increase program participation. CleanWater Services has also identified priority areas on which to focus conservation efforts. Through these partnership programs, CleanWater Services hopes to meet the water quality standards in the basin set by the Department of Environmental Quality. The programs are tracked in a Geographic Information Systems database which includes information about the location, size and vegetation of each project. In the future, they hope to develop a similar program that applies to forested land in the area and a rewards program for those who currently conserve intact habitat.

Wildlife Habitat Conservation and Management Program

This program provides property tax benefits and technical assistance to eligible landowners who develop a wildlife plan that is approved by the Oregon Department of Fish and Wildlife. The property receives a wildlife habitat special assessment, and is assessed for property taxes as if the land was being farmed or used for commercial forestry. Farming and forestry may continue on the land, as long as they are compatible with wildlife objectives of the plan. Leaving the program may result in back taxes being owed, if the property is not eligible for another special assessment category. Counties and cities can request the Oregon Department of Fish and Wildlife to designate land for this program, including farmland, forestland, and/or other significant habitats. Each county can choose to participate in the program (14 counties), or not participate (22 counties). This non-participation by counties significantly limits the potential conservation benefits this program could provide across Oregon. Landowner participation is determined largely by volunteering rather than strategic approach.
This program defines habitat conservation goals widely, and is therefore not very strategic by design. The program is also limited by the fact that only 14 counties in Oregon are currently participating. However, recent statutory changes authorized the eligibility for this program so it is no longer limited to lands zoned for agriculture or forestry. Now eligible lands include significant habitats that are identified at the county level. This change creates an opportunity for a formerly non-participating county to participate on a limited basis, focused on high priority areas rather than all possible agriculture, forest, or significant habitat lands.

Wetlands Reserve Program

The Wetlands Reserve Program allows landowners to voluntarily retire farmed wetlands from production and protect, restore, and enhance the land for fish and wildlife habitat. This federal program uses conservation easements to ensure long-term protection of the land, while retaining it in private ownership. The land can be used for hunting, fishing, and other uses that are compatible with providing wetland functions. For landowners with a permanent conservation easement, the program covers the easement price and restoration costs. For landowners with a 30-year easement or restoration only, the benefits are reduced.


In Oregon, the Wetlands Reserve Program is well-funded, with about $7 million distributed each year. The Oregon program is focused on these priorities: restoring the functional role of wetlands in agricultural ecosystems, developing habitat for migratory birds, restoring and preserving ancient crop areas for traditional cultural practices and subsistence, and restoring and connecting aquatic and riparian habitat for endangered species. Projects have been funded in coastal estuaries, mountain meadows, and the Willamette Valley. Significant investment has been made in the Klamath Basin to restore wetland hydrology. A Wetlands Reserve Enhancement Program is currently in the development stages with a structure similar to the federal/state partnership of the Conservation Reserve Enhancement Program. The program will be tailored to Oregon's specific needs and bring additional money to Oregon rather than diverting existing Wetlands Reserve funding. The new funding would be designated for Willamette floodplain restoration.