Adopt the Portland Clean Energy Community Benefits Fund Climate Investment Plan in effect through October 31, 2028

Portland voters passed the Portland Clean Energy Community Benefits Fund (PCEF) in November 2018. Subsequently in 2019, City Council seated the PCEF Committee, a cohort of nine volunteers that reflect the racial, ethnic, and economic diversity of our city and makes recommendations to the Mayor and City Council. The purpose of PCEF is to provide a consistent, long-term funding source and oversight structure to invest in climate action projects, in alignment with the City’s climate action goals, that support environmental justice and environmental, social, and economic benefits for all Portlanders, including the development of a diverse and well-trained workforce and contractor pool to perform work that reduces or sequesters greenhouse gases (GHGs). From 2020 through 2023, PCEF has awarded community responsive grants, launched the Cooling Portland program, and started implementation of the two fast-tracked programs, as directed by City Council. The creation of the Climate Investment Plan (CIP) leveraged deep community engagement and lessons learned from developing and implementing multiple requests for proposals (RFP) soliciting over 300 applications and awarding and managing over 110 grants totaling over $145 million. In October 2022, City Council amended the PCEF code to strengthen and streamline the PCEF program based on insight from early program implementation and audit recommendations. The amendment broadened eligible funding recipients and funding areas and required the development of a 5-year CIP to direct PCEF’s investment s . The CIP is grounded in climate research, deep community engagement, and multiple rounds of input from residents, businesses, subject matter experts, government partners, and community organizations to ensure the proposed solutions address the needs of Portland residents most impacted by a rapidly changing climate. All programs are evaluated with PCEF’s equity + climate framework, which considers benefits to frontline communities, community leadership, implementation feasibility, GHG emissions reductions, and accountability. The CIP serves to outline performance measures and goals, educate community members, and provide certainty to businesses, nonprofit organizations, government, and residents who are critical to PCEF’s success. The programs in the CIP leverage existing and projected additional funding sources focused on climate action, including from Energy Trust of Oregon, Oregon Department of Energy, utilities, and federal incentives. Coordination with these programs will bring maximum benefit to Portlanders, lower emissions, and make our communities more energy efficient and climate resilient. The design and framework of the CIP is in strong alignment with City goals outlined in the Climate Emergency Workplan, the 100% Renewable Energy resolution, Prosper Portland’s Advance Portland, as well as State of Oregon goals for 100% Clean Energy. The funding category allocations the CIP are as follows: Energy efficiency and renewable energy, $474 million; Transportation decarbonization, $128 million; Green infrastructure, $70 million; Climate jobs, workforce, and contractor development, $41 million; Regenerative agriculture, $20 million; Capacity building, $15 million; Other projects that reduce or sequester greenhouse gases, $2 million. The ordinance directs BPS to implement grant and contract solicitations to deploy the programs outlined in the CIP. The BPS Director is authorized to amend the budget allocations within the Climate Investment Plan, including related scopes of work, as recommended by the PCEF Committee, provided those amendments distribute no more than 10% of a given programs’ allocation while maintaining the overall allocations of funds across funding categories.

The CIP directs the allocation of $750 million over a 5-year period into 16 strategic programs, the Tree Canopy Maintenance Reserve, and community responsive grants in accordance with PCC Chapter 7.07. The funding is secured from the collection of the Clean Energy Surcharge by the Portland Revenue Bureau, as authorized in PCC Chapter 7.07.035. The amount is inclusive of revenue already collected as well as projected revenues generated during the FY 2023-2028 period. Several strategic programs in the CIP will be implemented in collaboration with other City bureaus, requiring the development of Interagency Agreements (IAAs) or Intergovernmental Agreements (IGAs) to transfer funding. The following bureaus will engage in program delivery through IAAs in the following amounts as a part of CIP-defined strategic programs and support functions. Portland Housing Bureau: $60 million; SP 1: Clean energy in regulated multifamily affordable housing Portland Parks and Recreation: $40 million; SP 8: Equitable Tree Canopy $5 million; Tree canopy maintenance reserve Portland Bureau of Transportation: $25 million; SP 7: Equitable clean transportation access $5 million; SP 12: 82nd Avenue street tree expansion (also involving PP&R) Prosper Portland: $2.5 million; SP 11: 82nd Avenue climate infrastructure and community resilience grant program Multiple bureaus: $20 million; SP 15: Federal climate and equity funding opportunities Supplemental IAA funding to support PBOT staff providing review and technical assistance for transportation decarbonization-related community responsive grants is also planned. Additional roles and responsibilities for these and other bureaus may arise in the development of other strategic programs in the CIP and will be funded through IAAs authorized by Bureau Directors. City bureaus will additionally be eligible to receive direct funding or administer the following programs defined within the CIP: Community responsive grants - climate jobs, workforce development, and contractor support ($30 million) SP 4: Clean energy in small commercial buildings ($25 million) SP 6: Comprehensive e-bike access and support ($20 million) SP 14: Access to fair and flexible capital ($45 million) The implementation of the CIP will also require significant contracting solicitations through competitive Requests for Proposals (RFPs), and deployment of community responsive grant solicitations. RFPs for contracted roles in CIP strategic programs will be coordinated in partnership with Procurement Services staff from Office of Management and Finance. Solicitations for community responsive grants will be conducted with BPS staff. Contracts amounts over $1 million and grants over $5,000 will have subsequent City Council action as part of program implementation. BPS staff will administer the implementation of the CIP with both existing authorized and budgeted positions and additional positions that will be requested in the FY 2024-25 budget.

The investments and programs outlined in the CIP are responsive to community needs, informed by significant community input, and include evaluation of disparities in past programs focused on climate action. The PCEF Committee guiding principles informed the CIP development and an equity + climate framework was used in evaluating strategic program opportunities, ensuring that the following values were elevated in design and implementation: Benefits to frontline communities. Will the program create clear, significant, and measurable benefit to frontline communities? Community leadership. Are there meaningful opportunities for community members to participate in decision making and/or provide leadership in program implementation? Does the program invest in building capacity within communities most impacted? Implementation feasibility. Can the program be realistically implemented at scale with existing City staff, partners, or contractors over five years? Climate impact: GHG reductions. Will the program result in meaningful and measurable GHG reductions/sequestration? Accountability. Do accountability mechanisms exist to ensure that communities of color, low-income populations, people with disabilities, and other vulnerable communities benefit from the strategic program? Is this program additional to existing or planned efforts? The development and refinement of the CIP reflects thousands of hours of staff and community members’ time spent in visioning sessions, roundtable discussions, public input events, and info sessions. Over 120 community members and subject matter experts, including small business and City bureau staff, provided input to the development of the CIP through topic-specific roundtable discussions. There were a total of 25 roundtable meetings on the following topics: Low-carbon 82nd Avenue Access to fair and flexible capital Building upgrades for community severe weather response Clean energy in regulated multifamily affordable housing Clean energy in unregulated multifamily housing Clean energy improvements in single-family homes Clean energy in small commercial buildings Climate-friendly public schools Equitable tree canopy Organizational capacity building Regenerative agriculture Transportation decarbonization The CIP development process also included review by a panel of frontline community members and a panel of youth, with over 20 community members participating in feedback and review on elements of access, community benefit, and intergenerational equity. A list of all participants in roundtables and panels is included in the CIP (Exhibit A). During the CIP development process, there were 5 in-person public workshops and 4 virtual online information and visioning sessions held from January through June 2023. Two drafts of the CIP were released for public comment, a preliminary draft CIP on March 14, 2023, and a full draft CIP on May 16, 2023. Following those drafts, formal public comment periods were opened for feedback. BPS staff received input through in-person events, online surveys, and letters written by community members, City bureaus, elected officials, nonprofit organizations, and local businesses. In total, BPS staff received over 1,000 unique comments through the public input process. All public input was categorized into spreadsheets and narrative documents. Comments were considered during each stage of CIP development, with modifications made based on the equity + climate framework. Summaries of changes were provided at each step to the PCEF Committee and made available for public review. The CIP reflects the priorities and needs articulated through that process and delivers benefits and opportunities that prioritize Portland’s frontline communities. Collectively, strategic programs focused on housing will make energy-related improvements in the homes and apartments of over 7,200 Portland households, reducing their energy use and making their dwellings healthier, more comfortable, and affordable. Low-income Portlanders are prioritized throughout these programs, with strategies to ensure that benefits go to historically under-resourced communities that have not previously benefited from climate action opportunities. Investments in green infrastructure and urban tree canopy are distributed throughout the City with particular focus on areas with historical underinvestment. Strategic Program 8, Equitable Tree Canopy, will focus on planting and 5-year establishment of trees on public and private property in areas of low existing canopy, urban heat islands, and greater PCEF priority populations. The Tree Canopy Maintenance Reserve will create an income-qualified program available citywide for homeowners to pay for necessary tree pruning and care, extending the life of those trees and maintaining the value of the City’s tree canopy. There are some targeted investments in geographically specific communities, with SP 11 and 12 focused on improvements around 82nd Avenue, including street tree planting and establishment along the corridor and support for climate resilience and infrastructure for local businesses. Workforce and contractor-related programs and allocations within the CIP are intended to grow and diversify the number of workers and businesses that produce goods or services that reduce or sequester GHGs with a focus on individuals who have been historically marginalized in the workforce. These investments will be critical given funding available from the Inflation Reduction Act, among other non-PCEF funding streams. Community responsive grants continue to provide funding for creative and innovative climate solutions by nonprofit organizations. Funds will prioritize proposals demonstrating climate expertise and experience serving frontline communities At least two advisory workgroups will be created to provide ongoing stakeholder input and subject matter expertise to guide implementation. Workgroups for the Equitable Tree Canopy and Transportation Decarbonization will provide input on relevant topics related to the CIP. See the CIP, as shown in Exhibit A, for additional details on community benefits in different strategic programs and community responsive grant opportunities.