UMATILLA, Ore.-Umatilla City Council declared a Local State of Emergency on October 20, in response to a data center permitting directive issued by Oregon Governor Tina Kotek.
On October 9, Governor Kotek issued a directive asking the Oregon Department of Environmental Quality (DEQ) to suspend the processing and issuing of air and water discharge permits for new or expanded data centers until July 1, 2027.
Before passing the resolution, Umatilla City Council determined that the proposed permitting suspension poses a significant threat to Umatilla’s economic stability, municipal finances, employment opportunities, and planned infrastructure investments.
“This is a about far more than data centers,” said Umatilla City Manager David Stockdale. “It is about the families whose livelihoods depend on these jobs, the local businesses that rely on a strong and stable economy, and the residents who trust us to make responsible, long-term decisions for our community’s future.”
Local economy and community could be impacted
Preliminary estimates indicate that the directive could have substantial economic consequences for both Umatilla and the surrounding region.
According to the City of Umatilla, potential losses go beyond delayed projects and unrealized revenue, and include local jobs, infrastructure projects, and opportunities to strengthen public services without passing costs on to residents.
“The concern is not an immediate budget shortfall, but rather the substantial disruption to carefully developed plans for near-future infrastructure investments, community improvements, and public services,” said Stockdale.
While future revenue projections are part of Umatilla’s economic planning and forecasting, the City does not rely on funds that have not yet been received to provide any services or operations, and the City’s General Fund reserves are at historically high levels, according to Stockdale.
“To be unequivocally clear, the City of Umatilla has not spent, obligated, or appropriated any of the anticipated future revenues potentially affected by the Governor’s directive,” said Stockdale.
Governor Kotek’s directive calls for a suspension until July 1, however, due to financing requirements, equipment procurement, and construction schedules, Umatilla believes delays could stretch two years, or longer.
Umatilla declares Local State of Emergency
Local governments in Oregon have the authority to declare a state of emergency in response to human-created circumstances that cause or threaten widespread financial loss, under revised statutes 401.025 and 401.309.
“We are not asking for special treatment, exemptions, or diminished environmental oversight,” said Stockdale. “We are asking for a lawful, transparent, and consistent permitting process, in which every application is evaluated on its individual merits and its compliance with established environmental standards, rather than simply the industry to which an applicant belongs.”
With Resolution 15-2027, the Umatilla City Council formally requested that Gov. Kotek “immediately reconsider, withdraw, or modify the October 9 directive and that DEQ continue processing permit applications in accordance with existing statutory and administrative requirements.”
The declaration of a local state of emergency took effect immediately and will remain in place only while the conditions that prompted it are present, or likely to continue.
The emergency declaration also authorizes Stockdale to Coordinate Umatilla’s response, including conducting an economic impact assessment, working with local governments and regional partners, looking for legal solutions, and identifying ways to protect municipal finances and services.
Umatilla City Council will review the emergency declaration every 90 days.
The October 20 Umatilla City Council meeting packet, including the full state of emergency resolution, is available online.
