Three unlikely allies have joined forces to defend the Portland Clean Energy Fund (PCEF), the city’s climate tax on large retailers, which faces scrutiny from city councilors seeking to modify it to address budget shortfalls.
The coalition includes the Portland Metro Chamber, representing business interests; APANO, a nonprofit focused on the Asian American and Pacific Islander community; and the climate justice nonprofit Verde. On Monday afternoon, they sent a joint letter to city leadership, emphasizing the importance of keeping the PCEF intact, both against proposed tax increases and against its reallocation to cover the city’s budgetary shortfalls.
Their letter highlighted the original intent behind the PCEF tax, asserting that it is legally and ethically bound to fund clean energy and climate resilience initiatives, particularly in frontline communities.
“Diverting these funds undermines the integrity of the democratic process and the community trust that made PCEF possible,” the organizations stated.
This unusual alliance between the Metro Chamber and the two nonprofits illustrates how they can find common ground on specific issues, despite differing historical political alignments.
The Metro Chamber typically represents business interests that have often supported centrist political candidates, while APANO and Verde generally align with more progressive leadership within the city.
Each organization has distinct reasons for wanting to protect the PCEF. For APANO and Verde, both of which have benefitted from funding through the PCEF tax for climate resilience projects, the focus is on ensuring the revenue serves its original purpose.
These projects specifically create jobs for people of color while aiming to fortify the city against the impacts of climate change.
Conversely, the Metro Chamber’s concern is rooted in a recent proposal from Councilor Steve Novick, who has considered raising the tax from 1% to 1.333%.
This increase aims to generate additional funds to alleviate the city’s general fund deficit, a notion that raises alarms for the Chamber of Commerce.
The coalition’s efforts are also prompted by Councilor Eric Zimmerman of District 4, who has expressed intentions to tap into PCEF reserves for the upcoming fiscal year, contributing to the concerns raised by APANO and Verde about the potential exploitation of the tax.
The Portland City Council had previously authorized a substantial $580 million over the next five years for climate-related initiatives within its bureaus.
While some nonprofits were initially hesitant regarding this funding plan, they later came to accept the city’s broader interpretations of the ballot measure’s intent.
The alliance forged between the Metro Chamber, APANO, and Verde underscores a shared commitment to preserving the integrity of the PCEF.
In their letter, the organizations unequivocally stated their position: “Any changes to the structure or use of PCEF revenue must be brought back to the voters through a new ballot measure, just as it was originally established.”
They acknowledged the city’s current financial challenges and supported innovative and equitable strategies to address them.
However, they emphasized that altering a voter-approved funding mechanism through direct council action—especially one intended to serve historically marginalized communities—is not a viable option.
Concluding their message, the co-signees reinforced their role as representatives of “both the founders and the funders” of the tax, stating, “Through this partnership, we come together to protect and defend the will of voters.”
image source from：https://www.wweek.com/news/city/2025/04/28/portland-metro-chamber-and-two-social-justice-nonprofits-urge-city-to-leave-climate-tax-untouched/
