Climate fund is essential to Portland’s budget

“I think as a whole, the committee saw a lot of alignment with the funding and advancement of PCEF’s mission and values and its benefits to PCEF’s priority communities.” (Megan Horst, PCEF Community Advisory Committee, as quoted by OPB)

“The Portland Clean Energy Fund could be the saving grace, filling gaps that COVID money left…. Larger cuts are mostly saved because of funding from the Portland Clean Energy Fund.” (KOIN)

Dear Friends:

Portland is facing a challenging budget year, but I want to highlight and celebrate the role of the Portland Clean Energy Community Benefits Fund. Due to the foresight of the changes I passed at City Council in November 2022 and the thoughtful work of the PCEF Committee, PCEF was able to step in and fund climate work across the entire city enterprise.

As I said at the time, we are constantly seeing new evidence that climate change is accelerating — and our opportunity to respond is closing. Through PCEF, we can complete big climate projects that help to reduce carbon from our two largest sources of emissions — transportation and housing — and make historic investments in our city’s tree canopy. We must make these investments happen as quickly as possible — and we can do so without compromising oversight, accountability, or community-driven values.

Thanks to PCEF’s unanticipated revenue, Portland will see immediate budget relief for the General Fund, ratepayers, and backfill losses in other funds, such as declining gas taxes. None of this would have been possible without PCEF.

PCEF freed up a whopping $38.4 million in General Fund dollars that will largely support public safety investments — making this budget the largest investment in public safety in the city’s history.

In addition, PCEF will invest $219 million for climate work across city bureaus for the next fiscal year, including:

• $73.9 million for Parks and Recreation

• $49 million for Transportation

• $33 million for Housing

• $20 million for Planning and Sustainability

• $14 million for Environmental Services

• $12.3 million for Fleet

• $8.5 million for Prosper Portland

• $7.2 million for Water/Hydro

PCEF will also invest more than $600 million for climate work across city bureaus over the next 5 years, including:

• $29 million for City Operations, which will help increase the electric vehicles and support EV charging infrastructure within the city fleet.

• $176 million for Community & Economic Development, which will help fund community-based renewable energy adoption, climate-friendly infrastructure investments for 82nd Avenue, and preservation and rehabilitation of low-income multifamily housing.

• $235 million for Public Works, which will help fund watershed and natural system restoration, LED streetlighting, and street tree expansion along 82nd Avenue.

• $167 million for Vibrant Communities, which will help fund street tree protection and care, equitable tree canopy, and energy efficiency upgrades for community centers.

Mayor Wheeler’s budget proposal also includes key investments that will expand services and support for small businesses, continues to fund event activation to increase foot traffic, and fully funds the incoming team members of the single permitting authority, recently named Portland Permitting and Development. Come July 1st, for the first time in the city’s history, all permitting teams work within one bureau and report to one director.  

The proposal will now go before City Council and the public for review over the next six weeks. Final passage is expected to occur during the week of June 17.