Portland’s Community Solar Project and Climate Fund Success

The PDX Community Solar project thrives thanks to over $4 million from the Portland Clean Energy Fund. This initiative generates power for disadvantaged residents in Portland’s Cully neighborhood.

NPR’s Climate Coverage

NPR dedicates a week to exploring community-driven climate solutions amid political challenges. While federal climate action stalls, states, cities, and neighborhoods are stepping up to cut climate pollution and adapt to extreme conditions. Portland, Oregon, offers a prime example of these efforts.

Portland’s Climate Initiatives

Over the last seven years, Portland has constructed a community solar project, benefiting 150 low-income families with reduced emissions and energy costs. The city has distributed more than 20,000 free air conditioning units to vulnerable households. Energy efficiency upgrades have been completed for 3,100 homes. Moreover, 2,000 individuals have received training in renewable energy and construction.

Funding Through the Portland Clean Energy Fund

These projects were realized through an innovative climate fund, a first-of-its-kind racial, social, and climate justice initiative. In 2018, a 65% majority voted for it, and a 1% retail sales tax was imposed on large corporations within city limits in 2019. Unlike consumer-paid sales taxes, the city collects a small percentage of each sale from businesses.

The fund has reached about $1 billion, aiming for $1.6 billion by mid-2029. Sam Baraso, the program manager, emphasizes the fund’s goal to enhance local climate solutions, addressing both climate realities and economic resilience.

Origins of the Fund

A decade ago, leaders from nonprofits, particularly from communities of color, explored ideas to fund climate action due to limited resources and urgent needs. They proposed a corporate tax to support those most affected by climate change.

The Portland Clean Energy Community Benefits Fund was born from the experiences of front-line communities historically excluded from decision-making, Baraso said. The fund asks, ‘What if those most impacted by climate change were the ones designing solutions?’

Achievements and Community Impact

Projects underway include over 20,000 free air conditioning units, a solar project lowering emissions for 150 families, planting 15,000 trees in heat-prone areas, and transforming six concrete lots into green spaces.

Since 2021, four grant rounds have distributed $262 million, benefiting projects reducing greenhouse gas emissions. Baraso notes the fund’s sustainability due to community involvement and multigenerational impact.

The city’s budget office reports that past project grants reduced carbon emissions by 25,500 metric tons, equivalent to taking 6,000 gas-powered vehicles off the road annually.

Debate and Broader Influence

As the fund surpassed financial projections, debates arose regarding spending priorities. Proposals include remodeling the Moda Center with green tech and using funds to hire police officers, which could reach voters soon.

The fund’s success has inspired cities like Ann Arbor, Denver, and Seattle. Denver’s Climate Protection Fund, for instance, resulted from a 0.25% sales tax, generating $41 million in its first year. Ann Arbor opted for a property tax increase to fund climate efforts.

Amruta Nori-Sarma, a Harvard public health professor, highlights the importance of local input in fund creation to identify impactful solutions. She notes the Portland fund’s unique structure, well-suited for robust funding.

The Portland Clean Energy Fund expects to invest $1.6 billion back into the city by mid-2029, completing its initial five-year plan.