2026’s Oregon legislative session featured many bills affecting land use, with a particular focus on housing and Exclusive Farm Use zoning. Jordan Ramis’ Land Use and Real Estate team tracked each bill and analyzed how they might affect current and future clients. The following is the second in our series summarizing the effects of the most impactful bills of the 2026 short session.
SB 1586 – Failed.
The demand for industrial land in Hillsboro seems relentless, and SB 1586 sought another 1700 acres for more industrial development along Highway 26 heading west toward North Plains. SB 1586 ran into opposition from land use advocates as well as the growing number of citizens concerned about the impact of data centers, and their voracious appetite for water and electricity. Some of Hillsboro’s water comes from the Coast Range via the Tualatin River, and some from Scoggins Reservoir – also known as Hagg Lake – and from Barney Reservoir. Later in 2026, Hillsboro will begin receiving water from the Willamette River via Wilsonville. None of these sources are bottomless, and all Oregonians have seen dramatic increases in their electric bills as PGE and Pacific Power struggle to keep up with growing demand, costly clean energy initiatives, and jury verdicts from the 2020 Labor Day Wildfire. Apparently, the legislature decided the City of Hillsboro does not merit a special exemption from the land use laws reserving this area for rural uses.
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Matthew Borghard
