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Healthy Climate Fee

Information
The Healthy Climate Fee would establish a $25 per-ton fee on GHG emissions from facilities in Portland with emissions of 2,500 metric tons of CO2e (carbon dioxide equivalents) per year or greater.

Oregon law requires facilities with emissions above this level to report their GHG emissions annually to the Oregon DEQ Greenhouse Gas Reporting Program. The City would require reporting based on the level of emissions from the previous year, aligning with DEQ requirements to minimize the burden of compliance for covered entities.

View the Proposed Ordinance and Exhibits:

Based on publicly available 2019 data, approximately 35 facilities in Portland would be subject to the fee:

Covered facilities are primarily industrial plants, hospitals, food production facilities, and higher education campuses. Together, they released about 370,000 metric tons of CO2e in 2019. 

What would the Healthy Climate Fee support? 

The proposal for a Healthy Climate Fee will accelerate actions on climate and will enable the City to invest in a clean energy economy that will make our local economy stronger, more resilient and creates more jobs. 

Revenue generated through a Healthy Climate Fee would raise approximately $9 million per year to support projects, programs and policy development to meet the City’s decarbonization pathways and the actions in the City’s Climate Emergency Declaration and Climate Action Plan, including: 

  • Engagement across bureaus and with other jurisdictions (Multnomah County, State of Oregon, Metro), Black, Indigenous, and communities of color, and youth-led organizations to prioritize climate actions that deliver GHG reductions and direct community benefits to communities most vulnerable to the impacts of climate change, including helping to resource community organizations to engage with the City of Portland on climate policy development and implementation. 

Advancing the City’s decarbonization actions will include programs such as: 

  • Making thousands of existing commercial and residential buildings more efficient through deep retrofits; 

  • Ensuring that 100% of all energy used to power our homes and businesses is clean, renewable energy by 2030; 

  • Incentivizing and supporting the rapid transition to electric cars, bikes and trucks for freight delivery for Portland residents and businesses, including expanding EV infrastructure support by 2030; 

  • Expanding safe and affordable options for transit, biking and walking in all neighborhoods so that residents are reducing their trips by car; 

  • Increasing the tree canopy across the City, especially in East Portland, to reduce the urban heat island effect, improve air quality and livability for residents across the City;  

  • Improving energy affordability, and the health and safety of Portland residents, especially BIPOC communities, through investments and incentives in energy efficiency and decarbonization opportunities. 

  • Working with local jurisdictions, business and community partners to create new family-wage clean economy jobs across the community, especially for BIPOC communities, and in under-utilized industrial and commercial areas of the City. In Oregon, construction and manufacturing services make up the majority of clean energy jobs today.  

  • Improving local community resiliency and adaptive planning for residents and businesses to prepare for the local risks of climate change, including wildlife and smoke, heat waves, storms and flooding.