What Changes on January 1, 2026? A limited but meaningful change for small-scale growers.
HB 3372 expands exempt well use in Oregon in a narrow way. Beginning January 1, 2026, exempt groundwater users may use up to 3,000 gallons per day to water a lawn, a noncommercial garden, or a commercial garden that does not exceed one-half acre. Oregon’s exempt-use guidance reflects that change and states that commercial gardens of one-half acre or less using no more than 3,000 gallons per day will qualify as exempt starting on that date.
What the new rule does and does not allow
This is not a broad new exemption for farming. The one-half-acre size limit still applies, and the 3,000 gallon per day cap applies to lawn and garden watering. Oregon’s guidance also states that exempt industrial or commercial use remains capped at 5,000 gallons per day total, including any commercial garden use. The legislative materials further indicate that the bill excludes cannabis plants from the commercial-garden definition.
Why this matters for small farms
For some small farms, market gardens, and similar operations, HB 3372 creates a clearer path for limited production from an exempt well without first obtaining a permit. That matters most for operations that truly fit inside the acreage and daily-use caps. For others, especially where actual irrigation demand runs above those limits or where other commercial uses are part of the same water system, the exemption may not be enough on its own.
Why planning still matters before relying on exempt use
Even with HB 3372, small farms still need to confirm that the whole operation fits Oregon’s exempt-use framework. The legal question is not only whether a garden is small enough, but also whether the source, acreage, and total daily water use remain within the statutory limits throughout the season. That makes water budgeting, realistic demand estimates, and site-specific review important before a grower relies on the exemption.