The city of Umatilla, Ore., has declared a local state of emergency in response to Gov. Tina Kotek's directive pausing state environmental permits for new and expanded data centers. The declaration came on Oct. 20, 2026, when the City Council adopted Resolution No. 15-2027. In it, the city questions whether the directive is legal, asks the state to reconsider it immediately, and authorizes the city manager to pursue administrative and judicial remedies.

The resolution cites ORS 401.025, which defines an emergency, and ORS 401.309, which authorizes a city's governing body to declare a local state of emergency, according to the city agenda bill prepared by City Manager David Stockdale. Five of six council members present voted for the declaration, the Oregon Capital Chronicle reported.

This site has covered the governor's directive itself. This article covers the response from one of the Oregon cities most exposed to it.

What the Governor's Directive Does

Kotek sent the directive to Department of Environmental Quality Director Leah Feldon on Friday, Oct. 9, OPB reported. It pauses air and water pollution permits for new or expanding data centers until July 2027. It also tells DEQ to stop processing applications from cities and counties seeking to renew or modify wastewater permits to accommodate data centers. OPB reported that the governor had already halted data center construction on state lands.

The city's agenda bill lists the permits involved: National Pollutant Discharge Elimination System (NPDES) permits, Water Pollution Control Facilities (WPCF) permits, Air Contaminant Discharge Permits (ACDP) and Title V air quality permits for new or expanded data centers, plus certain municipal wastewater treatment facility permit renewals or modifications. Under the city's reading, the suspension of processing and issuance runs until July 1, 2027.

OPB reported that Kotek wrote the pause would give her time to evaluate recommendations from a Data Center Advisory Committee and to allow space for policy or regulatory reforms that may be considered in the 2027 legislative session.

The City's Case

The agenda bill puts numbers on the harm Umatilla expects. All of the following figures are the city's own preliminary estimates, and the resolution says they are subject to further evaluation:

  • More than $5 billion in anticipated private industrial investment delayed.
  • At least 1,000 construction jobs threatened, along with hundreds of permanent jobs.
  • More than $6 million in potential direct financial losses to the city.
  • About $12 million in developer-funded water infrastructure improvements potentially canceled.

The resolution also itemizes some of the city's expected losses: about $1.075 million in one-time payments and about $1.507 million in annual payments tied to Sabey Data Centers, about $2.07 million in annual payments tied to Amazon Web Services development scheduled to begin in 2028, about $216,000 a year in anticipated contributions toward the city's voter-approved Police Station bond in 2027 and 2028, and an estimated $1 million in franchise fee revenue potentially lost over 2028 and 2029. The city also says the pause could cause construction and operational delays of up to two years or longer.

The city also raises three legal concerns. It says the directive may exceed DEQ's statutory authority, may violate Oregon's Administrative Procedures Act, and may infringe on the city's Home Rule authority. The resolution directs a comprehensive economic impact assessment and formally requests that the governor immediately reconsider and withdraw or modify the directive. It also authorizes the city manager to coordinate with other governments and with legal counsel on administrative remedies and judicial relief. The resolution states that it does not seek exemption from any valid state or federal environmental law.

The declaration authorizes the city manager to pursue possible legal action. It does not file a lawsuit. The materials reviewed do not say whether the city has gone to court.

Questions From the Dais

Mayor Caden Sipe was the only official at the meeting to question city staff, according to the Oregon Capital Chronicle. He asked whether other counties were considering similar declarations, whether the city was at risk of bankruptcy, and whether there was legal precedent establishing that an emergency declaration applied to the governor's order. The answer to each was no, the outlet reported.

Why Umatilla Is Exposed

Umatilla has four data centers operating and one under construction, according to the city's resolution and the Oregon Capital Chronicle. Two more, from Amazon and Sabey, are anticipated under existing agreements. Citing the consulting firm ECOnorthwest, the outlet reported that Umatilla County holds 22 of Oregon's more than 100 data centers.

The city says it has relied on long-term economic development agreements and infrastructure planning built around continued industrial development. Its figure for threatened water infrastructure is about $12 million in developer-funded improvements. The resolution also says the revenue delays would affect the city's strategy for financing its new police station, and that Umatilla County, the school district, the rural fire protection district and the hospital district face financial consequences as well.

The State's Position

The governor's office did not back away from the directive. Kotek spokesperson Luke Harkins said the governor supports a pause, according to the Oregon Capital Chronicle. DEQ spokesperson Carisma Sanchez told the outlet that the agency has paused all permitting work for data centers until July 2027.

Stockdale told the outlet that the alternative to the emergency declaration would be to bypass the state and work directly with the U.S. Environmental Protection Agency, which he called highly unusual and not something the city wants to do.

Industry has also objected. In a statement reported by OPB, Amazon Web Services Vice President Shannon Kellogg said the directive was issued abruptly and without meaningful stakeholder engagement.

Key Questions

Does the emergency declaration lift the pause? No. Nothing in the reviewed materials says a local declaration suspends a state agency's permitting decisions. The resolution asks the state to reconsider and authorizes the city to look at legal options.

Which permits are affected? NPDES, WPCF, ACDP and Title V permits for new or expanded data centers, plus certain municipal wastewater treatment facility permit renewals or modifications, according to the city. OPB reported that the pause also stops processing of city and county wastewater permit renewals or modifications for data centers.

Are other local governments joining? At the meeting, the mayor was told no other counties were considering similar declarations, according to the Oregon Capital Chronicle. The resolution authorizes the city manager to coordinate with other governments.

What Happens Next

The pause is set to run until July 1, 2027, unless the state changes it. The Oregon Capital Chronicle reported that Kotek is expected to propose regulatory reforms during the 2027 legislative session, which begins in late January. Under the resolution, the city manager must give the City Council a status report by Jan. 31, 2027, and every six weeks after that, and the council must review the declaration at least every 90 days. Umatilla has formally requested an economic impact assessment and immediate reconsideration from the state. The sources do not give a date for any court filing or state response.

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