(1) As used in this section:
(a) “Compatible” is not intended as an absolute term meaning no interference or adverse impacts of any type with adjacent uses.
(b) “Exception” means a comprehensive plan provision, including an amendment to an acknowledged comprehensive plan, that:
(A) Is applicable to specific properties or situations and does not establish a planning or zoning policy of general applicability;
(B) Does not comply with some or all goal requirements applicable to the subject properties or situations; and
(C) Complies with standards under subsection (2) of this section.
(2) A local government may adopt an exception to a goal if:
(a) The land subject to the exception is physically developed to the extent that it is no longer available for uses allowed by the applicable goal;
(b) The land subject to the exception is irrevocably committed as described by Land Conservation and Development Commission rule to uses not allowed by the applicable goal because existing adjacent uses and other relevant factors make uses allowed by the applicable goal impracticable; or
(c) The following standards are met:
(A) Reasons justify why the state policy embodied in the applicable goals should not apply;
(B) Areas that do not require a new exception cannot reasonably accommodate the use;
(C) The long term environmental, economic, social and energy consequences resulting from the use at the proposed site with measures designed to reduce adverse impacts are not significantly more adverse than would typically result from the same proposal being located in areas requiring a goal exception other than the proposed site; and
(D) The proposed uses are compatible with other adjacent uses or will be so rendered through measures designed to reduce adverse impacts.
(3) The commission shall adopt rules establishing:
(a) That an exception may be adopted to allow a use authorized by a statewide planning goal that cannot comply with the approval standards for that type of use;
(b) Under what circumstances particular reasons may or may not be used to justify an exception under subsection (2)(c)(A) of this section; and
(c) Which uses allowed by the applicable goal must be found impracticable under subsection (2) of this section.
(4) A local government approving or denying a proposed exception shall set forth findings of fact and a statement of reasons that demonstrate that the standards of subsection (2) of this section have or have not been met.
(5) Each notice of a public hearing on a proposed exception shall specifically note that a goal exception is proposed and shall summarize the issues in an understandable manner.
(6) Upon review of a decision approving or denying an exception:
(a) The Land Use Board of Appeals or the commission shall be bound by any finding of fact for which there is substantial evidence in the record of the local government proceedings resulting in approval or denial of the exception;
(b) The board upon petition, or the commission, shall determine whether the local government’s findings and reasons demonstrate that the standards of subsection (2) of this section have or have not been met; and
(c) The board or commission shall adopt a clear statement of reasons that sets forth the basis for the determination that the standards of subsection (2) of this section have or have not been met.
(7) The commission shall by rule establish the standards required to justify an exception to the definition of “needed housing” authorized by ORS 197.303 (3).
(8) An exception acknowledged under ORS 197.251, 197.625 or 197.630 (1) (1981 Replacement Part) on or before August 9, 1983, continues to be valid and is not subject to this section. [1983 c.827 §19a; 1995 c.521 §3; 2005 c.67 §1; 2007 c.71 §68]
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