191463

The City of Portland ordains:

Section 1. The Council finds:

1. The Bureau of Planning and Sustainability (BPS) shapes Portland’s future and advances climate protection for a more prosperous, healthy, equitable, and resilient city now and for future generations.
2. Frontline communities in Portland and worldwide – including Black and Indigenous people, communities of color, immigrants, refugees, low-income individuals, labor and workers, people living with disabilities, youth, and individuals experiencing homelessness – are often the communities least responsible for contributing to climate change, yet frontline communities are disproportionately affected by climate change impacts and will continue to bear a disproportionate burden.
3. Portland’s historically racist land use policies and discriminatory real estate, planning, and infrastructure investment practices mean frontline communities may experience significantly higher ambient temperatures, higher utility bills, poorer air quality, and greater risk to health than predominantly white or affluent neighborhoods.
4. Low-income populations and communities of color have been historically underserved by clean energy programs and investments and underrepresented in decision making on climate policy.
5. To meet Portland’s climate action goals there is an urgent need to fund and accelerate greenhouse gas emissions reductions and sequestration, especially within low-income communities and communities of color.
6. In November 2018, Portland voters created the Portland Clean Energy Community Benefits Fund (PCEF) program, which invests in community-originated climate action projects that advance racial and social justice (Ballot Measure 26-201). City Council codified non-taxation elements of Ballot Measure 26-201 in Portland City Code Chapter 7.07.
7. Ballot Measure 26-201 is the first time a Portland environmental ballot measure was led by communities on the frontlines of climate change, including low-income communities and communities of color. The ballot initiative’s success was the result of community organizing, frontline advocacy and volunteer efforts throughout Portland.
8. The purpose of PCEF is to provide a consistent, long-term funding source and oversight structure to invest in climate action projects that align with Portland’s climate action goals and that support environmental justice and environmental, social, and economic benefits for all Portlanders, including the development of a diverse and well-trained workforce and contractor pool to perform work that reduces or sequesters greenhouse gases.
9. In 2020, City Council declared that a human-made climate emergency threatens our city, our region, our state, our nation, humanity, and the natural world, and that such an emergency calls for an immediate mobilization effort initiating greater action, resources, and collaboration that prioritizes frontline communities to restore a safe climate (Resolution No. 37494, as amended “Climate Emergency Declaration”).
10. In its Climate Emergency Declaration, City Council also resolved to advance climate justice and climate action initiatives that are led by the community, especially frontline communities and youth from frontline communities, and accelerate investments in projects that benefit these communities in ways that are restorative, reparative, and build present and future well-being and wealth.
11. In March 2022, the City Auditor released audit findings related to the PCEF program’s start-up phase and recommended that City Council adopt guidance on climate goals, capacity-building, and oversight elements, as well as clarification on the limits of administrative expenses.
12. Commissioner Rubio, the PCEF Committee, and BPS staff responded to the audit with commitments to define performance metrics, establish performance goals, develop recommendations to Council offering clear strategic direction on climate goals, options to amend program budgeting requirements and PCEF’s limit on administrative expenses, and continue to assess the PCEF Committee’s governance structure.
13. In July 2022, City Council adopted the Climate Emergency Workplan to implement its Climate Emergency Declaration (Resolution No. 37585).
14. In October 2022, City Council amended the PCEF code to strengthen and streamline the PCEF program based on insight from early program implementation and audit recommendations. The amendment broadened eligible funding recipients and funding areas and required the development of a 5-year Climate Investment Plan (CIP) to direct PCEF’s investments (Ordinance No. 191046, the CIP is defined in PCC 7.07.030(D)).
15. The CIP outlines PCEF’s planned investments to ensure funding decisions will have a lasting impact on Portland’s greenhouse gas emissions and frontline communities.
16. From December 2022 through July 2023, BPS staff worked with the PCEF Committee to develop the inaugural CIP.  Development involved extensive community outreach, public workshops, and focused roundtable sessions to gather input from subject matter experts and community members. BPS staff received over 1,000 unique comments across the community visioning and public comment periods. 
17. The CIP guides investment of $750 million between 2023 and 2028. The CIP serves to outline performance measures and goals, educate community members, and provide certainty to businesses, nonprofit organizations, government, and residents who are critical to PCEF’s success. It includes 16 strategic programs, the Tree Canopy Maintenance Reserve, and allocations for community responsive grants in accordance with PCC Chapter 7.07. The CIP also allocates $1.3 million ($260,000 annually) to the Mini Grant program to fund low-risk (less than $5k each) climate change-related projects. The CIP supports actions identified in the Climate Emergency Workplan.
18. An ECONorthwest study commissioned by PCEF found that completing all clean energy and green infrastructure projects benefiting PCEF priority populations would require approximately $18 billion and take over 120 years. ECONorthwest concluded it would cost approximately $49 billion to complete all clean energy and green infrastructure projects identified in the study.
19. In July 2023, the City Auditor found that PCEF has made clear progress to address issues identified in the 2022 audit. Two out of six recommendations had been implemented, with four others in progress and on track. City Council’s adoption of the CIP, with its clear and measurable performance goals, will address the remaining recommendations.
20. On July 20, 2023, the PCEF Committee unanimously recommended the CIP to City Council for adoption.

NOW, THEREFORE, the Council directs:

1. BPS will implement the CIP, as shown in Exhibit A. The CIP is in effect through October 31, 2028.
2. BPS staff will prepare competitive procurement and grant solicitations in accordance with City Code to implement the CIP.
3. The BPS Director is authorized to negotiate, execute, and amend interagency agreements to implement the CIP.
4. The BPS Director is authorized to execute grant agreements, with individual grants capped at $5,000 and for a total amount not to exceed $1,300,000, for grants that meet the objectives of the Mini Grant program described in the CIP.
5. Notwithstanding PCC Subsection 7.07.060 C., limited-purpose grant agreements equal to $5,000 or less do not have to include terms related to renewable energy products, workforce and contractor equity agreements, or family wage standards.
6. If funding adjustments are recommended by the PCEF Committee, the BPS Director is authorized to amend funding allocations within the CIP, including related scopes of work, provided those amendments reflect the PCEF Committee’s recommendations and distribute no more than 10% of a given program’s allocation while maintaining the overall allocations of funds across funding categories. This authorization allows for minor adjustments based on program needs while preserving the funding allocations and CIP intent across funding categories. If PCEF funding projections increase, funding adjustments may include an increase in the total allocation of funds in the CIP, up to 10% of $750 million. The minimum funding category allocations are as follows:

• Energy efficiency and renewable energy: $474 million
• Transportation decarbonization: $128 million
• Green infrastructure: $70 million
• Climate jobs, workforce, and contractor development: $41 million
• Regenerative agriculture: $20 million
• Organizational capacity building projects: $15 million
• Other projects that reduce or sequester greenhouse gases: $2 million

Section 2. This ordinance is in full force and effect on October 31, 2023.