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Label:
Ordinance
Amend the Portland Clean Energy Community Benefit Fund Climate Investment Plan
Passed
Amended by Council
The City of Portland ordains.
Section 1. The Council finds:
- 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.
- In 2018, Portland voters created the Portland Clean Energy Community Benefits Fund (PCEF) program, which invests in community-originated climate action projects that advance social, economic, and climate justice.
- In Summer 2023, the PCEF Committee unanimously recommended City Council adopt the Climate Investment Plan (CIP), and Council unanimously adopted the CIP, authorizing BPS to implement the CIP's investment of $750 million through FY 2028-29 (Ordinance No. 191463).
- In December 2023, the City Budget Office issued a memo forecasting additional PCEF revenue through FY 2028-29. In response, and with guidance from City leadership, City bureaus developed a package of strategic programs collectively referred to as the 2024 City Climate Projects.
- In January and February 2024, the PCEF Committee received public testimony and deliberated on the 2024 City Climate Projects funding proposal. The PCEF Committee ultimately recommended a modified proposal to fund both City-led strategic programs and a competitive grant solicitation, Collaborating for Climate Action, to support high-impact, multi-stakeholder projects that deliver equitable climate action solutions.
- In fall 2024, the PCEF Committee recommended, and City Council approved, an amendment to the CIP to formalize the 2024 City Climate Projects and Collaborating for Climate Action.
- Meanwhile, in summer 2024, the PCEF program established an annual CIP review to incorporate lessons learned, align goals and outcomes, and optimize resource allocation. The PCEF Committee appointed members to an evaluation subcommittee to conduct the first annual review.
- During the first review, the evaluation subcommittee proposed adjustments in four categories: (1) funding adjustments, (2) goal adjustments and scope refinements to add clarity, specificity, and incorporate lessons learned, (3) technical changes, and (4) updates to align with the adopted City budget. A draft CIP amendment package was developed for public comment.
- In October and November 2025, community input on the draft CIP amendment package was gathered through a survey. In December, the evaluation subcommittee recommended an amendment to the CIP to the full PCEF Committee. On December 10, 2025, the PCEF Committee voted to recommend the amendment to City Council.
- The redlined CIP revisions recommended by the PCEF Committee are included in Exhibit A, titled, Redlined Adjustments to the Climate Investment Plan. A summary of those revisions is provided in Attachment A, titled Supplemental Information, Summary of Changes to the Climate Investment Plan.
- On July 31, 2025, Mayor Wilson issued Executive Order EO-2025-01, directing the City to adjust any programs or policies that may risk violating federal anti-discrimination laws to preserve federal funding for housing, transportation and other community priorities.
- With support from the City Attorney's office, BPS staff identified additional updates to the CIP to remain consistent with updated City practices and to comply with the Mayor's Executive Order. These updates are also included in Exhibit A.
NOW, THEREFORE, the Council directs:
- BPS to amend the CIP by incorporating the redlined changes as shown in Exhibit A. The amended CIP is in effect through June 30, 2029, for a total funding allocation of $1,591,590,328.
- Budgetary changes resulting from this amendment are subject to Council authorization through the annual FY 2026-27 budget process and subsequent budget cycles, as applicable.
- BPS staff to re-format the CIP for improved organization of content and accessibility.
- BPS staff to post this ordinance and associated exhibits on the PCEF website.
- Notwithstanding Portland City Code 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.
- 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.
Official record (Efiles)
An ordinance when passed by the Council shall be signed by the Auditor. It shall be carefully filed and preserved
in the custody of the Auditor (City Charter Chapter 2 Article 1 Section 2-122)
Passed as amended by Council
Auditor of the City of Portland
Simone Rede
Impact Statement
Purpose of proposed legislation and background information
The purpose of the Portland Clean Energy Community Benefits Fund (PCEF) is to provide a consistent, long-term funding source and oversight structure to invest in climate action projects, in alignment with the City's climate action goals, 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 (GHGs).
PCEF is guided by a five-year Climate Investment Plan (CIP), first adopted in 2023, that directs investments across strategic programs and community grants. The CIP also establishes performance measures and goals, provides transparency and public education, and offers greater certainty to businesses, nonprofit organizations, government partners, and residents who are critical to PCEF's success.
The PCEF Committee, a cohort of nine volunteers, guides program implementation and recommends the Climate Investment Plan, and amendments to it, to City Council for adoption.
City Council first adopted the CIP in September 2023 following extensive community engagement and multiple rounds of input from residents, businesses, subject matter experts, government partners, and community organizations. This engagement helped ensure the CIP's investment approach addresses the needs of Portland residents most impacted by climate change. In December 2024, City Council amended the CIP to include allocations for City-led strategic programs (the 2024 City Climate Projects) and to fund a competitive grant solicitation called Collaborating for Climate Action.
Following the 2024 CIP amendment, PCEF established an annual CIP review and update process to evaluate progress and recommend adjustments when appropriate. This process is intended to incorporate lessons learned, align outcomes and goals, and optimize resource allocation over time. Because implementation is still getting underway for several CIP programs, this initial update cycle emphasizes creating a replicable evaluation framework and making limited adjustments based on early implementation and performance data. The PCEF Committee recommends an amendment with adjustments in the following categories:
- Funding adjustments: increases or decreases to optimize allocations based on demand and program implementation status.
- Goal adjustments and scope refinements: updates to add clarity, specificity, and incorporate lessons learned
- Technical changes: revisions to correct errors or inaccuracies
- City budget adjustments: updates to align with adopted City budget
The ordinance directs BPS to implement the programs with changes as outlined in the amended CIP. The BPS Director is authorized to amend the budget allocations within the Climate Investment Plan, including related scopes of work, as recommended by the PCEF Committee, provided those amendments distribute no more than 10% of a given program's allocation while maintaining the overall allocations of funds across funding categories.
To date, PCEF has allocated $1.71 billion through Community Grants and Strategic Programs. The Cooling Portland program has provided over 20,000 lifesaving cooling units to low-income Portlanders in response to increasingly extreme heat events. 223 nonprofit organizations have been awarded funding for projects in energy efficiency, renewable energy, workforce and contractor development, transportation decarbonization, regenerative agriculture, and green infrastructure. The design and framework of the CIP is in strong alignment with City goals outlined in the Climate Emergency Workplan, the 100% Renewable Energy resolution, Prosper Portland's Advance Portland, as well as State of Oregon goals for 100% Clean Energy.
Financial and budgetary impacts
This amendment incorporates several City budget actions into the CIP, and shifts funding between strategic programs, but does not change the total amount of funding allocated in the CIP. Each of these changes, as described in Attachment A: Supplemental Information, Summary of Changes to the Climate Investment Plan, were included in either the City's FY 2024-25 or FY 2025-26 budget. The CIP is in effect through June 30, 2029, and directs a total funding allocation of $1,591,590,328. The funding is secured from the collection of the Clean Energy Surcharge by the Portland Revenue Bureau, as authorized in PCC Chapter 7.07.035. The amount is inclusive of revenue already collected as well as forecasted revenues generated during the FY 2023-2029 period.
Should the pilot programming under Strategic Program 14 (for financing office-to-residential conversions, commercial property assessed clean energy programs, and energy efficiency upgrades for anchor community destinations) be successful, this amendment will require an amendment to the IGA between BPS and Prosper Portland to allow for an increase in funding for SP14, up to $30M.
Changes to funding allocations to PHB-administered programs will be incorporated into the program scope agreements between BPS and PHB.
Economic and real estate development impacts
The increased investment in Strategic Program 1 (Clean Energy in Regulated Affordable Multifamily Housing) will support new affordable multifamily projects currently in the pipeline through both PHB and Oregon Housing and Community Services' Oregon Centralized Application (ORCA), which allocates loans, grants, and tax credits for affordable housing. Without PCEF funds, many of these projects may not achieve full financing and could be built only to minimum code standards, resulting in higher utility costs.
This increased investment will support a minimum of two new competitive solicitations, creating an estimated 580 additional units of high-performance affordable housing.
PCEF solicited feedback on the proposed funding reallocation of $15 million into Strategic Program 1 through a two-week public comment period. This additional investment in affordable housing was supported broadly by community members and organizations, including housing-sector entities.
The $30 million allocation designated in Strategic Program 14 (Access to Fair and Flexible Capital) will support the development of new housing and provide an opportunity to study the feasibility of office-to-residential conversions. It will additionally support economic revitalization and development through investing in local businesses that serve as anchor community destinations.
Community impacts and community involvement
The 2023 CIP was developed with deep community engagement, including multiple rounds of input from residents, businesses, subject matter experts, government partners, and community organizations.
The PCEF Committee, a volunteer advisory body that reflects the diversity of Portland, provides community oversight of the program and recommends the CIP, and amendments to it, to City Council. Through the annual review process, the Committee assessed progress, incorporated lessons learned, and recommended targeted adjustments in transparent, public meetings. The annual review process also ensured there was a structured way to measure progress, learn from results, and make timely adjustments.
Most of the annual update work was led by the Evaluation Subcommittee, a subcommittee of the PCEF Committee. Subcommittee members reviewed CIP programs and informed draft CIP amendment recommendations. The draft amendment recommendations were released for public comment from October 20, 2025, to November 5, 2025. Feedback was primarily collected through an online survey. Members of the public could also provide input via email or through verbal testimony at a PCEF Committee meeting. A synthesis of the public comment is available here:
100% renewable goal
The CIP invests over $1.5 billion over five years in clean energy projects and climate solutions, in direct support of the City's 100 percent by 2050 goal. This includes investments in energy efficiency and renewable energy, transportation decarbonization, green infrastructure, and regenerative agriculture. It additionally includes investments in climate jobs, workforce and contractor development, and organizational capacity building to ensure that the City has the workforce and capacity needed to support the transition to 100 percent renewable energy.
The annual update to the CIP provides a structured method to make adjustments to optimize PCEF climate and community benefits during the CIP period. It keeps PCEF's investments effective, responsive, and aligned with the City's climate goals and community priorities.
Through this amendment, PCEF will invest an additional $15 million in support of clean energy and energy efficiency in multi-family affordable housing, creating the highly efficient housing stock the City needs in order to achieve renewable energy goals.
Economic and real estate development analysis
Analysis provided by Prosper Portland
Prosper Portland staff has reviewed the Economic and Real Estate Development Impact Analysis submitted for this action and finds that it satisfies the requirements set forth in City Council Resolution 37664. The analysis is sufficiently detailed and complete to be considered a final statement for purposes of this action.
Financial and budget analysis
Analysis provided by City Budget Office
No fiscal impact.
Document history
Document number: 2026-022