Agenda Item 4 - UGB Rulemaking <br />December 3-4, 2015 - LCDC Meeting <br />Page 5 of 56 <br />Unlike many statutes enacted in the 2013 legislative session, HB 2254 did not take effect on <br />January 1, 2014. Instead, the commission was provided with two plus years to adopt the rules: the <br />law (codified at ORS 197A) goes into effect January 1, 2016. This time frame was in recognition <br />of the complexity of the rulemaking task, including the need for substantial new research by the <br />department in order to determine "ranges" and provide other policy choices within the rules. <br />Importantly, and with regard to this agenda item, the law requires that LCDC must adopt new <br />and amended administrative rules to implement the new optional simplified process (see <br />ORS 197A.305, which requires the commission to adopt rules before the operative date of the <br />statute). The new rules must include the "ranges" described above, and must provide for <br />simplified buildable lands inventories (BLIs), and other components of the new process in the <br />statutes. <br />One of the new laws, ORS 197A.320 concerning "locational aspects" of a UGB expansion, <br />applies not only to the new simplified UGB process but also to the current traditional process for <br />cities outside of Metro that expand a UGB. The new location statute amends previous state law <br />(ORS 197.298) concerning the priorities for selecting land for a UGB expansion. Therefore, to <br />implement this particular law, LCDC must also amend current rules in OAR chapter 660, <br />division 24, and include new provisions similar to those required in the simplified process rules <br />pertaining to UGB study areas and priorities of land for UGB amendments. We note that the new <br />locational requirements of the law will go into effect whether or not LCDC adopts implementing <br />rules. If new rules are not in effect to interpret these requirements when they take effect, it is <br />possible that local amendments to UGBs will provide widely varying interpretations of the law, <br />and interpretations by LUBA and the courts, rather than by LCDC, will shape the meaning of <br />terms and requirements in the law. <br />Because of the new laws, LCDC must also adopt minor amendments to Statewide Planning <br />Goal 14 (goal) to conform the goal to the new statutes. First, where the goal currently indicates <br />that a UGB must be based on a 20-year coordinated population forecast, the amended goal would <br />indicate that cities applying the simplified process under ORS 197A should base the UGB on a <br />14-year forecast. Second, where the goal currently references ORS 197.298 regarding UGB <br />location priorities, the amended goal would also reference ORS 197A.320, the new priorities <br />statute applicable to all UGBs except Metro. These changes to the goal may be considered and <br />adopted by LCDC in one hearing, as authorized by ORS 197.235(4). <br />Other important elements of the laws are as follows: cities that follow the new simplified process <br />will not be required to submit UGB amendments for LCDC approval. Instead, UGB amendments <br />would be reviewed in the same manner as other post-acknowledgment plan amendments, and <br />thus would be "deemed acknowledged" after 21 days unless appealed to LUBA. The law <br />includes new "standards of review" for LUBA in review of such appeals. The intent of the new <br />process is that cities should be able to evaluate and, if necessary, amend a UGB with <br />considerably lower expense, time and effort compared to the traditional process. Appeals of local <br />UGB decisions will be considered in a more expedited manner by the courts, in part due to new <br />LUBA standards of review and since the Court of Appeals is required to expedite any appeals <br />