passed ordinance

*Authorize financial assistance grant agreements in support of the Clean Air Construction Program for five years not to exceed $100,000 per year

climate environment
health
grant

Introduced by: Former Mayor Ted Wheeler
Status: Passed

Impact statement

Purpose & background

Diesel pollution in the form of diesel particulate matter poses a public health risk by reducing air quality and contributing to climate warming. The Clean Air Construction Program aims to reduce diesel pollution on publicly funded construction projects in the Portland Metro region by requiring engines operating on construction sites to comply with emissions standards. The Clean Air Construction Compliance Financial Assistance Grants would help contractors pay for the cost to bring applicable diesel equipment into compliance with the Clean Air Construction Standard. There are seven public agencies that have adopted the Clean Air Construction Standard: the City of Portland, Multnomah County, Washington County, Port of Portland, Metro, TriMet, and Portland Community College. The Program is administered by the City of Portland, and Program costs are shared, as defined by intergovernmental agreements (IGAs). The Clean Air Construction Standard requires the phasing out of older engines for construction equipment (engines that are rated less than Tier 4 by the Environmental Protection Agency’s emissions standards). Contractors with equipment that does not meet the Clean Air Construction Standard can use grant funds to: a) cover the cost to permanently disable non-compliant diesel equipment, b) repower or retrofit an engine to bring it into compliance with the Clean Air Construction Standard, or c) upgrade to Tier 4 equipment. On December 13, 2018, Council passed Resolution 37403 to amend the City’s Sustainable Procurement Policy to incorporate the Clean Air Construction Standard. This Resolution also authorized Procurement Services to work with regional partner agencies through applicable intergovernmental agreements to establish a regional Clean Air Construction Program, with Procurement Services as the regional program administrator. The proposed legislation supports the existing Resolution 37403 by providing contractors with resources to help them comply with requirements associated with the Clean Air Construction Standard.

Financial impacts

The seven agencies that are part of the Clean Air Construction Collaborative all share costs and pay into the program, as dictated in IGAs. While the City of Portland pays into this cost-sharing model, grant program funds come from the surplus from the intergovernmental program budget; no changes to the existing IGAs are necessary. Therefore, there are no anticipated long-term financial impacts for the City, and no budget amendments or changes in expenses or future revenues are expected by offering these grants. Existing staffing (primarily the Clean Air Construction Coordinator) can also be utilized to support the administrative tasks of this new offering.

Community impacts

The Clean Air Construction small grant program will help: a) construction contractors meet compliance with Clean Air Construction requirements, particularly small businesses and b) increase City livability, particularly for communities of color, which tend to have greater cumulative health risks in the Portland Metro region from poor air quality, by promoting more widespread compliance with Clean Air Construction standards.

▸ Full text (the legislation as adopted)

The City of Portland ordains: Section 1. The Council finds: On December 13, 2018, Council passed Resolution 37403 to amend the City’s Sustainable Procurement Policy to incorporate the Clean Air Construction Standard. This Resolution also authorized Procurement Services to work with regional partner agencies through applicable intergovernmental agreements to establish a regional Clean Air Construction Program, with Procurement Services as the regional program administrator. Supported by applicable intergovernmental agreements, Procurement Services currently serves as the regional Clean Air Construction (CAC) program administrator on behalf of the Port of Portland, Metro, Multnomah County, Washington County, Portland Community College, and TriMet (Clean Air Construction Partner Agencies or CAC Partner Agencies). The CAC intergovernmental agreements established the CAC Regional Program Cost Share Model and an Intergovernmental Oversight Committee comprised of one representative from each participating agency to oversee the CAC Regional Program annual budget. Following the decision-making protocols defined in CAC intergovernmental agreements, on January 9 th , 2023, the CAC Intergovernmental Oversight Committee directed the CAC Program Coordinator to develop a grant program to assist contractors with their CAC related compliance costs using funds originating from the CAC Regional Program Cost Share. As the CAC regional program administrator, Procurement Services is also serving as the CAC grant administrator for CAC related grants. The CAC Program seeks to establish CAC Compliance Financial Assistance Grants to provide financial assistance to contractors to bring their applicable construction equipment and vehicles into compliance with the regional CAC Standard. Initial funding for the grants will be sourced from CAC Program funds designated for such purpose by the CAC Intergovernmental Oversight Committee per the decision-making protocols defined in the CAC intergovernmental agreements. Supplemental funding may be allocated to CAC Compliance Financial Assistance Grants by any of the CAC Partner Agencies. CAC Compliance Financial Assistance Grants shall be awarded according to the process and criteria outlined in Exhibit B. NOW, THEREFORE, the Council directs: The Chief Procurement Officer is hereby authorized to execute grant agreements in a form substantially similar to the agreement attached as Exhibit A with eligible recipients as defined in Exhibit B through FY 2026-27. The combined agreements will not exceed $100,000 per year. Amendments to the grant agreements, including grant agreement funding amount, may be executed by the Chief Procurement Officer up to the total amount authorized by this ordinance. The Chief Procurement Officer is authorized to accept supplemental funding from any of the CAC Partner Agencies for the purpose of funding the CAC Compliance Financial Assistance Grants through the duration of the associated CAC intergovernmental agreements with CAC Partner Agencies. All agreements authorized by this ordinance are subject to approval as to form by the City Attorney’s Office. The Mayor and City Auditor are hereby authorized to pay for the grants from the Bureau of Revenue and Financial Services – Procurement Services Division funds. Section 2. The Council declares an emergency exists because a delay in funding would delay reducing the harmful diesel particulate matter emissions from grant-eligible construction equipment. DPM is a known human carcinogen and one of the Portland metro area’s highest toxic air pollutants; therefore, this Ordinance shall be in full force and effect from and after its passage by the Council.

Tally

5 yea 0 nay