In a year marked by federal funding cuts to climate initiatives, Portland shines as a beacon of localized environmental action through its Portland Clean Energy Community Benefits Fund (PCEF). Since its inception, the fund has managed to allocate a substantial $1.71 billion for projects aimed at combating climate change. This year, the fund plans to distribute over $60 million to climate-focused nonprofit organizations.
The latest funding round will support 59 projects that tackle various climate issues, such as enhancing home energy efficiency and reducing transportation emissions. Special priority is given to projects benefiting low-income and minority communities in Portland, who often face the most severe impacts of climate change.
Portland officials estimate these projects will collectively cut around 76,200 metric tons of carbon dioxide emissions over their lifetimes. This reduction is comparable to taking nearly 17,770 gasoline-powered vehicles off the road for a year. Beyond emission cuts, the projects are expected to enhance indoor air quality, offer living-wage jobs, and improve access to nutritious foods.
“Together, these community-led projects demonstrate the power of collective action to advance the City’s climate goals while creating lasting benefits for Portland’s communities,” noted PCEF Program Manager Sam Baraso in a press release.
PCEF originated as a 2018 voter-approved initiative, funded by a 1 percent tax on large retailers in the city. Initially projected to generate $40 to $60 million annually, the fund surpassed expectations, now bringing in about $200 million each year. With increased financial capacity, the fund’s reach has broadened.
PCEF now supports public agencies in executing large-scale climate projects. It has also been utilized to fill budget gaps within city departments, provided the funds are directed towards carbon reduction or environmental justice projects. This expansion has sparked debate among PCEF leaders, who aim to maintain the fund’s focus on climate initiatives. Concerns have arisen, especially given a ballot initiative aiming to redirect 25 percent of PCEF’s revenue to police hiring.
Despite these changes, the fund continues to support climate-focused nonprofits. Last year, it allocated nearly $92 million, while this year, about $64 million will be awarded to 59 organizations. Approximately $33.6 million will focus on energy efficiency and renewable energy initiatives. The remaining funds will be divided among projects aimed at transportation decarbonization, workforce development in the climate sector, and regenerative agriculture.
From 216 grant applications totaling over $260 million, two standout projects received the largest grants of $4.9 million each. The Williams and Russell Community Development Corporation (CDC) aims to create an energy-efficient Black business hub in the historically Black Albina district, while Self Enhancement, Inc. plans to build 31 net-zero emissions homes in Northeast Portland to address housing affordability and displacement.
Other noteworthy projects include Earth Advantage, Inc’s installation of 405 heat pumps in affordable housing units ($2.9 million), subsidies for electric car purchases by small businesses through the Black American Chamber of Commerce ($2 million), and Bike Bus PDX’s program to promote biking to school among children ($895,000).
Portland YouthBuilders received $1.5 million for a clean energy training and career development program targeting 100 young adults from underserved communities. Additionally, the Columbia Land Trust was granted nearly $1 million to enhance community spaces with landscaping services, trees, and plants to create habitats that also manage stormwater runoff.
The complete list of grant recipients can be found here.
The review process was conducted by program staff and a panel of volunteers consisting of PCEF committee members, community representatives, and subject matter experts. City Administrator Michael Jordan approved the grant allocations based on their recommendations.
This process marks a shift from previous cycles, where the City Council had the final say. Although the Council’s approval was typically seen as a formality, it offered a platform for PCEF leaders and grantees to engage with city officials publicly.
Councilor Steve Novick, co-chair of the Climate and Sustainability Committee, expressed his support for the administrative takeover of the grant approval process, suggesting that the Council should focus on broader initiatives. He stated, “It doesn’t make sense for Council to approve individual grants or even the slate of grants for a year.”
However, Novick acknowledged that moving the process out of public forums might reduce opportunities for dialogue between city leaders and residents. Despite not overseeing the grant decisions, he emphasized the importance of the Council staying informed about PCEF operations and spending.
“I think in broad parameters, the Council is pretty well-informed [about PCEF], but that doesn’t mean that there isn’t room for us to be more engaged,” Novick added. As the program faces external challenges, he plans to explore ways for the Council’s Climate Committee to maintain open communication with PCEF staff and grantees.
Novick concluded by highlighting the fund’s importance, stating, “The amount of money we have in PCEF to spend on climate issues is far less than a reasonable society would be spending to address climate issues. The fact that it’s bringing in more money than originally projected is a red herring.”
Original Story at www.portlandmercury.com