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83rd OREGON LEGISLATIVE ASSEMBLY--2025 Regular Session
Senate Bill 398
Sponsored by Senator GIROD (Presession filed.)
SUMMARY
The following summary is not prepared by the sponsors of the measure and is not a part of the body thereof subject
to consideration by the Legislative Assembly. It is an editor’s brief statement of the essential features of the
measure as introduced.The statement includes a measure digest written in compliance with applicable readability
standards.
Digest: This Act says that fees from programs to reduce greenhouse gas must go to the State
Highway Fund. (Flesch Readability Score: 85.1).
Requires state agencies that administer programs to reduce greenhouse gas emissions to deposit
fees, assessments or other charges imposed pursuant to the program in the State Highway Fund.
Directs the Governor to include in the Governor’s budget an estimate of the amounts to be
transferred in the coming biennium and recommendations for alternative revenue sources.
Declares an emergency, effective on passage.
A BILL FOR AN ACT
Relating to greenhouse gas emissions; creating new provisions; amending ORS 291.216; and declaring
anemergency.
Be It Enacted by the People of the State of Oregon:
SECTION 1. (1) As used in this section, “greenhouse gas reduction program” means any
program or policy administered by an agency of the executive department, as defined in ORS
174.112, for the purpose of reducing greenhouse gas emissions, as defined in ORS 468A.210.
(2) Notwithstanding any other provision of law, any fee, assessment or other charge im-
posed by state statute or administrative rule pursuant to a greenhouse gas reduction pro-
gram shall be dedicated for highway purposes and transferred by the agency that collected
the fee, assessment or other charge to the State Highway Fund established under ORS
366.505.
(3) An agency required to transfer amounts under subsection (2) of this section shall
make the required transfers each calendar quarter.
(4) The Governor shall include in the Governor’s budget an estimate of the amount re-
quired to be transferred under this section in the coming biennium and make recommen-
dations for whether the amount transferred by each agency should be wholly or partially
replaced with revenue from any other source.
SECTION 2. ORS 291.216 is amended to read:
291.216. (1) The Governor’s budget shall include a budget message prepared by the Governor,
including recommendations of the Governor with reference to the fiscal policy of the state govern-
ment for the coming biennium, describing the important features of the budget, embracing a general
budget summary setting forth the aggregate figures of the budget so as to show a balanced relation
between the total proposed expenditures and the total anticipated income, with the basis and factors
on which the estimates are made, the amount to be borrowed, and other means of financing the es-
timated expenditures for the ensuing biennium, compared with the corresponding figures for at least
the last completed biennium and the current biennium.
(2) The Governor’s budget shall be supported by explanatory schedules or statements, classifying
NOTE:Matter in boldfaced type in an amended section is new; matter [italic and bracketed] is existing law to be omitted.
New sections are in boldfaced type.
LC 2104 SB398
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the expenditures reported in the budget, both past and proposed, by organization units, objects and
funds, and the income by organization units, sources and funds, and the proposed amount of new
borrowing as well as proposed new tax or revenue sources, including a single comprehensive list
of all proposed increases in fees, licenses and assessments assumed in the budget.
(3) The Governor’s budget shall be submitted for all dedicated funds, as well as the state Gen-
eral Fund, and shall include the estimated amounts of federal and other aids or grants to state
agencies or activities provided for any purpose whatever, together with estimated expenditures
therefrom.
(4) The Governor’s budget shall embrace the detailed estimates of expenditures and revenues.
It shall include:
(a) Statements of the bonded indebtedness of the state government, showing the actual amount
of the debt service for at least the past biennium, and the estimated amount for the current
biennium and the ensuing biennium, the debt authorized and unissued, the condition of the sinking
funds and the borrowing capacity.
(b) The Governor’s recommendations concerning tax expenditures identified under ORS 291.214.
(c) Any statements relative to the financial plan which the Governor may consider desirable or
which may be required by the Legislative Assembly.
(5) The Governor’s budget shall use the estimated revenues under ORS 291.342 for the fiscal
year in which the budget is submitted as the basis for total anticipated income under subsection (1)
of this section, subject to adjustment as may be necessary to reflect accurately projections for the
next biennium.
(6)(a) The Governor’s budget shall present information regarding the expenses of the state in the
followingcategories:
(A) Personnel expenses, including compensation and benefits for state employees, but excluding
costs of services contracted out and temporary service costs.
(B) Supplies, equipment and the costs of services contracted out.
(C) Special payments.
(D) Capital construction.
(E) Capital outlay.
(F) Debt service.
(b) For each category described in paragraph (a) of this subsection, the budget shall show actual
expenditures for the prior biennium and estimated expenditures for the current biennium.
(c) As supplemental information to the budget, the Governor shall include an estimate of the
projected costs of continuing currently authorized programs in the next biennium. The estimate shall
include, but is not limited to the projected costs of:
(A) Removing one-time expenditures;
(B) Program phase-ins and phase-outs;
(C) Personnel expenses compared to existing compensation plan agreements, including position
vacancy experience calculations;
(D) Inflation for services, supplies and medical costs;
(E) Transfers between state funds or accounts;
(F) Mandated caseload changes; and
(G) Debt service for previously issued debt.
(d) The budget shall show the total increase in the cost of salaries and benefits for all state
positions.
[2] SB398
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(7) The Governor’s budget shall include:
(a) The total number of positions and full-time equivalent positions included in the budget.
(b) The average vacancy rate in the present biennium.
(c) The number of permanent, full-time equivalent vacancies as of July 1 of even-numbered years.
(8) The Governor’s budget shall include computations showing budget figures as a percentage
of the total General Fund, federal fund, fee or other source category, as may be appropriate.
(9) The Governor’s budget shall include, in a format that provides side-by-side comparison with
the State Debt Policy Advisory Commission report of net debt capacity, a six-year forecast, by debt
type and repayment source, of:
(a) That portion of the capital construction program required to be reported by ORS 291.224 that
will be financed by debt issuance.
(b) The acquisition of equipment or technology in excess of $500,000 that will be financed by
debtissuance.
(c) Other state agency debt issuance for grant or loan purposes.
(10) The Governor’s budget shall include the outcomes-based budgeting information required by
ORS 291.217 (2) and (3).
(11) The Governor’s budget shall include recommendations regarding available funds that could
be used to make lump sum payments to the Public Employees Retirement System under ORS 238.229.
(12) The Governor’s budget shall include a narrative summarizing the racial impact statements
required under ORS 291.206.
(13) The Governor’s budget shall include the estimate and recommendations required by
section 1 of this 2025 Act.
SECTION 3. This 2025 Act being necessary for the immediate preservation of the public
peace, health and safety, an emergency is declared to exist, and this 2025 Act takes effect
on its passage.
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