TL;DR
Get backup power and energy gear delivered free with Prime
- Fast, free delivery on millions of items
- Prime Video, Amazon Music and more included
- Member-only deals all year
Eugene, Oregon, voters will decide in November whether to charge qualifying large corporations a 2% fee on profits earned in the city and direct the money to clean-energy and climate programs. Supporters estimate the fund could raise $15 million to $37 million a year; the final revenue and the measure’s outcome are uncertain.
Eugene, Oregon, voters will decide this November whether to create a local climate fund financed by a 2% fee on qualifying large corporations’ profits earned in the city. The proposal would direct revenue to clean-energy and efficiency programs, job training and green infrastructure, making Eugene the second U.S. city to put a fee on billion-dollar firms for climate funding if voters approve it.
Under the initiative, companies would qualify if they make at least $1 billion in gross profits nationally and at least $500,000 in gross profits within Eugene. The fee would apply to profits made within city limits. The proposal exempts gross profits from groceries, medicines, residential garbage and recycling, and healthcare services. Amazon, Chase, Home Depot, Walmart and Wells Fargo are among the types of companies cited in reporting on the measure; whether particular firms would owe the fee would depend on how the rules apply to their Eugene operations.
Supporters estimate the fund could collect $15 million to $37 million annually. The money would support renewable energy, energy-efficiency upgrades, clean-energy job training and projects such as tree planting. The initiative would prioritize projects benefiting low-income and historically marginalized communities. The source report describes restaurant retrofits as one possible use: local restaurant owner Amy Winton said she cannot afford to replace the gas appliances and heaters at her taquería with electric equipment.
The proposal has support from a coalition of more than 100 groups, according to Sierra Club adviser Dylan Plummer, including environmental organizations, labor unions, local businesses and elected officials. Opposition includes business and banking groups. An opposition campaign argues the fee could raise retail prices; its spokesperson, Laura Sedwick, said, “We will see increased costs.”
How Eugene’s Climate Fund Could Work
If approved, the measure would give Eugene a local revenue source for climate investments at a time when federal climate funding has faced cuts, as described in the source report. That could help pay for upgrades that individual households and small businesses might not be able to finance themselves, alongside larger renewable-energy and infrastructure projects.
The policy also puts a practical question before voters: can a city raise substantial climate revenue by charging the largest firms operating locally, and what effects would that have on businesses and consumers? The answer matters beyond Eugene because other municipalities may weigh similar approaches. The fund’s eventual reach would depend on voter approval, the revenue collected and how programs are administered.
As an affiliate, we earn on qualifying purchases.
Portland’s Earlier Corporate Fee
Portland, Oregon, launched a related clean-energy fund in 2018, using a 1% fee on local sales revenue from the largest corporations. The original annual revenue estimate was $30 million to $90 million, but the city has collected nearly $200 million per year, according to Canary Media’s report. A city representative said the fund had collected $1 billion in total by June; the report does not specify the year for that June milestone.
Portland says the money has supported more than 400 community grants, workforce training for about 1,500 people, and projects that include community solar, energy-efficient affordable housing and heat relief. The report says Portland-funded efforts have increased annual renewable generation by more than 500 megawatt-hours and reduced nearly 35,000 metric tons of greenhouse gas pollution. Those reported results are Portland’s; they do not establish what Eugene’s fund would raise or achieve.
Other cities have dedicated revenue to climate work through different taxes, including utility, sales, property and payroll taxes. The Building Decarbonization Coalition told Canary Media it was not aware of another city besides Portland using a clean-energy fee on billion-dollar corporations.
““We just don’t have the funds” to switch to electric equipment. “If we had the financial backing for it, we could do it.””
— Amy Winton, owner of Mexican taquería Pandita in Eugene
As an affiliate, we earn on qualifying purchases.
Revenue and Price Effects Remain Open
The measure has not yet been approved, so Eugene’s voters will determine whether the fund is created. The $15 million to $37 million annual figure is a supporter estimate, not guaranteed revenue. Portland’s higher-than-forecast collections show that estimates can differ from actual results, but Portland’s tax structure and local sales are not identical to Eugene’s proposal.
It is also unclear which specific companies would meet the Eugene thresholds once the rules are applied, how the city would assess and collect the fee, and how much revenue would go to each type of project. The opposition says costs could rise for shoppers, while the supplied report does not provide an independent estimate of any price increases or establish whether companies would pass the fee on to customers.
As an affiliate, we earn on qualifying purchases.
Eugene Voters Decide in November
The next key milestone is the November ballot vote. If voters approve the initiative, the city would then need to implement the fee and establish the processes for collecting revenue and funding projects. The source material does not provide an implementation schedule or details on the city’s planned oversight and reporting procedures.
Until the vote and any subsequent rollout, the proposed fund’s revenue, beneficiaries and effects on local prices remain unsettled. The campaign and its opponents are likely to continue presenting competing arguments about the fee’s climate benefits and economic costs as voters consider the measure.
As an affiliate, we earn on qualifying purchases.
Key Questions
What are Eugene voters being asked to approve?
They will vote on a proposal to create a climate fund, financed by a 2% fee on qualifying large companies’ profits earned in Eugene. The money would support clean-energy, efficiency, job-training and green-infrastructure programs.
Which companies would have to pay?
The proposal sets two thresholds: at least $1 billion in gross profits nationally and at least $500,000 in gross profits within Eugene. The fee would apply to profits earned in the city, with specified exemptions including groceries, medicines and healthcare services. The source does not identify a final list of liable companies.
How much money could the fund raise?
Supporters estimate $15 million to $37 million per year. That is a projection, not a confirmed amount; actual collections would depend on the measure’s implementation and qualifying companies’ profits in Eugene.
Could the fee raise retail prices?
The opposition campaign says the fee could increase costs and argues that businesses may pass them on to customers. The supplied report does not provide an independent estimate of price changes, so the effect on shoppers remains uncertain.
Has another city used a similar policy?
Portland, Oregon, established a clean-energy fund in 2018 with a 1% fee on local sales revenue from large corporations. Eugene’s proposal uses a different base—a fee on qualifying profits earned within city limits—and voters have not yet decided whether to adopt it.
Source: rss
Halloween Picks
halloween
As an affiliate, we earn on qualifying purchases.
