Portland's Clean Energy Fund Awards Nearly $64 Million Amid National Climate Investment Concerns

This year, the Portland Clean Energy Community Benefits Fund, known as PCEF, is set to distribute nearly $64 million in grants to nonprofits focused on climate projects. This funding is part of a larger effort by the city to address climate change, particularly in low-income communities and among Portlanders of color, who face heightened vulnerabilities to climate impacts.

The projects supported by this funding aim to reduce carbon emissions, improve indoor air quality, create living-wage jobs, and increase access to fresh food. PCEF has already allocated $1.71 billion in grants since its inception, with this year's funding going to 59 nonprofit-led projects.

The fund is financed by a 1 percent tax on large retailers in Portland, generating around $200 million annually, significantly more than the original estimates of $40 to $60 million. This year’s grants include $33.6 million for energy efficiency and renewable energy initiatives, $8.1 million for transportation decarbonization, $9.3 million for climate workforce development, and $7.5 million for regenerative agriculture and green infrastructure.

The program received 216 applications requesting over $260 million, highlighting the high demand for climate funding. Notable awards include $4.9 million each to the Williams and Russell Community Development Corporation and Self Enhancement, Inc. for energy efficiency projects, and $2.9 million to Earth Advantage, Inc. for heat pump installations in affordable housing.

The decision-making process for grants has shifted from City Council approval to administrative staff, a change that has raised questions about public engagement. PCEF leaders are concerned about maintaining the program's focus amid pressures to allocate funds to other city needs, such as police hiring.

Councilor Steve Novick emphasized the importance of the Council's engagement with PCEF, especially as it faces challenges in meeting the climate funding needs of the community. The current round of funding aims to play a critical role in advancing local climate initiatives amidst a tough national landscape for climate investments, particularly following cuts from the previous administration.

According to the city, grant-funded projects are expected to result in a lifetime reduction of approximately 76,200 metric tons of carbon dioxide equivalent, equivalent to the annual emissions of about 17,770 gas-powered cars.