Frequently asked questions

Measure 20-388 would require “Large Retailers” – corporations making both $1 billion or more in gross profits nationally, and $500,000 or more in gross profits within Eugene – to pay 2% of their gross profits annually to the City of Eugene, specifically earmarked for the Eugene Clean Energy Fund. Typical large retailers include big banks (e.g. Chase, Wells Fargo), big box stores (e.g. Walmart, Home Depot), and big tech (e.g. Amazon). Gross profits from groceries, medicines, residential garbage and recycling services, and health care services would be excluded. The fee does NOT apply to small businesses or Eugene residents.

The threshold of $1 billion in gross profits nationally ensures we are only targeting the largest, national or multinational corporations operating in Eugene. These corporations have posted record profits while paying very little in taxes. They also have lobbied aggressively for tax cuts and environmental and climate deregulation, such as the corporate tax cuts in the Trump Administration’s “Big Beautiful Bill” and recent dismantling of federal climate change policy. These corporations also take money out of Eugene’s economy: on average, for every dollar spent at a national retail store, only 14 cents gets recirculated back into the community, compared with 53 cents of every dollar spent at a locally-owned store.

These corporations have amassed extraordinary wealth at a time of widening income inequality: since 2019, corporate profits have increased by 50%, while hourly wages have increased by just 3%. Measure 20-388 would require these mega-corporations to pay their fair share towards funding clean energy, good jobs, and a more resilient future for Eugene.

No. The large retailers that would be affected by the fee determine the prices of their goods and services at a national level, based on national trends. There is no credible argument that the Eugene Clean Energy Fund would meaningfully affect demand or hurt consumers, or raise prices. And there has been no evidence of this occurring with the Portland Clean Energy Fund that was passed 8 years ago. 

Try it yourself: go to Amazon or any other large online retailer, and change your shipping or pickup address between Eugene and Portland. You won’t see a difference.

No. A sales tax is a broad-based regressive tax on all businesses in a city or state, itemized on every transaction and receipt. Local sales taxes routinely exceed 5% or even 10% in states where they exist (e.g. California). Measure 20-388’s Large Retailer License applies only to the gross profits of a narrow subset of the very wealthiest businesses operating in Eugene. Several categories of sales (e.g. groceries; medicines or drugs; residential garbage and recycling services; and health care) and retailers (e.g. contractors, utilities, cooperatives, and credit unions) are exempt. 

Big corporations pay sales taxes all the time, in states that have them, without complaint. But they are fighting Measure 20-388 because they know it applies only to them. And because, unlike a sales tax, this fee can’t be passed on to consumers (for the reasons discussed above).

Big banks lend enormous amounts of money to the fossil fuel industry, with the world’s 65 largest banks lending $869 billion dollars in 2024 alone, an increase of $162 billion from 2023. JP Morgan Chase, Bank of America, and Wells Fargo are the United States’ first, third and fifth largest fossil fuel industry funders, respectively. 

Big box stores have long supply chains, massive climate and environmental footprints, very often don't account for greenhouse gases in the production and distribution of their products, and rely on a business model based on low-quality goods, ever-increasing consumption, and eroding labor standards. 

Big tech companies have quietly abandoned their climate commitments in recent years, with AI-driven data center construction expanding fossil fuel use and producing massive greenhouse gas emission increases by many of these companies. Amazon, for example, has tripled its greenhouse gas emissions since 2019.

Gross profits – also known as sales profit or gross income – is a standard accounting term defined as a business’ gross receipts (revenues) minus that business’ “cost of goods sold” or “COGS.” COGS is also a standard accounting term, referring to the direct costs associated with producing a business’ goods and/or services. 

The billion-dollar corporations that would be subject to the fee have large accounting teams at their disposal, and meticulously track their revenue and expenses at a store level. These corporations also routinely report their gross profits publicly, because this is one indicator investors use to assess a business’ performance. Calculating gross profits is a simpler calculation for these businesses than filing state and federal income tax returns, and calculating Oregon’s Corporate Activity Tax.

No. While it is true that some of America’s largest corporations manage to pay an extremely small amount of tax, relative to their income, this is due to a combination of income tax credits, as well as indirect expenses that reduce those corporations’ net income. Assessing a fee on gross profits does not allow for corporations to factor in those indirect expenses, or tax credits. Also, because these corporations publicly report their gross revenue and gross profits – including on a store average and/or per sq. ft. basis – the City of Eugene and others will be able to estimate what fee these corporations should be paying.

No, unless your business also makes more than $1 billion in total (national) gross profits. Measure 20-388 affects only the very wealthiest corporations operating in Eugene, rather than small, local businesses. And the programs funded by Measure 20-388 may even help small businesses like yours to become more energy efficient in your operations (helping you lower your utility costs and saving you money in the long run).

No. Franchises are contractual agreements. While Company A provides revenue to Company B via the franchise agreement, Company A and Company B are separate legal entities. Company A does not pay the fee, because its gross profits are less than $1 billion. Company B would be subject to the fee separately, provided Company B’s gross profits (from both company-owned stores and from franchise fee revenue) in Eugene exceeds $500,000.

In short, the main opponents of this measure are the large retailers who would have to pay the fee, hiding behind trade associations of which they are members. These trade associations are dominated by their wealthiest members, who pay the most dues.

We are proud that Measure 20-388 has been endorsed by over 20 local businesses, and counting. These small businesses are the backbone of our community. Measure 20-388 would help to level the playing field for local Eugene small businesses who are struggling to compete with huge, multinational retailers.

Oregon already has an effective price on greenhouse gas emissions: the State’s Climate Protection Program. Policies that place a price on greenhouse gas emissions need to be enacted at the state and federal level to capture as many emitters as possible. Opponents of Measure 20-388 have also opposed the Climate Protection Program, and frequently have opposed other local and state efforts to price pollution.

Absolutely. Portland’s Clean Energy Fund has reduced Portland’s greenhouse gas emissions by approximately 35,000 tons of carbon dioxide-equvalents to-date, as well as achieving a host of additional community benefits, with annual emissions reductions increasing year-to-year. Learning lessons from Portland, and thanks to EWEB’s 90% carbon-free electricity supply, we think we can do even better in Eugene. And the requirement of performance audits would ensure we know exactly how well the fund is doing in reducing emissions. 

No. Rather than going into the pockets of executives and institutional shareholders, revenues from the 2% fee would be paid into the Eugene Clean Energy Fund that would be reinvested in the community through programs that improve energy efficiency and lower energy bills, particularly for households on lower incomes and other vulnerable populations.

Non-profits and other IRS tax-exempt organizations – such as schools and charitable organizations – can apply for funding either as the sole applicant, or in partnership with other non-profit entities, government entities (e.g. City of Eugene, EWEB, Lane County, Lane Transit District, etc.), or for-profit businesses. In Portland, this has led to a broad range of community groups and partnerships applying for and/or receiving funding to-date.

Measure 20-388 outlines four broad categories of projects that funds can be used to support: 

• Renewable energy and energy efficiency (40-60%); 

• Clean energy jobs training (25-30%); 

• Green Infrastructure (5-10%); 

• Future Innovation (5%). 

Weatherization and efficiency upgrades for households, bike lanes, rooftop solar, and pre-apprenticeship programs in the clean energy sector are all examples of the types of programs Measure 20-388 could support. Ultimately, the specific programs would be developed by community organizations, and chosen by the committee of experts and approved by City Council. 

Examples of the kinds of programs Portland’s Clean Energy Fund has received applications for and funded can be viewed here and here.

Measure 20-388 contains strong guardrails to ensure funds are used appropriately. Administrative costs would be limited to 10% of the annual fund, once it is up-and-running. A nine-person grant Committee made up of community experts would decide on which projects get funded and ensure accountability. City Council would make the final decision on funding. The Committee would be required to evaluate the fund’s effectiveness in achieving the City’s climate goals and plans, and the fund would be subjected to regular financial and performance audits.

Hundreds and millions of dollars in recent federal and state funding cuts have severely limited the amount of funding and other incentives available for clean energy and other climate programs locally. Other state programs that received one-time funding have recently expired or exhausted that funding. State budget challenges may worsen in the next few years, leading to state agencies working on clean energy becoming understaffed. 

Eugene needs a stable, local, long-term funding source that meets the scale of our challenges related to climate change and economic inequality. Unlike many of the rebate and tax credit programs offered by the State, which require families to have disposable income to spend upfront, ECEF can work to eliminate upfront costs for improving home energy efficiency and climate resilience. Measure 20-388 would empower Eugene residents to build a sustainable and resilient future for ourselves.

The Eugene Water and Electricity Board (EWEB) does have subsidies and zero-interest loans to support weatherization and the installation of energy efficiency appliances. These subsidies are limited in who and how much they cover. Homes with gas as their primary heating source cannot access EWEB support programs, and customers must choose between the zero-interest loans or rebates. The strongest incentives are income-restricted. 

At the same time, a high proportion (65%) of Eugene’s housing stock was built before 1990, when energy efficiency improvements were made to Oregon’s building code. This means there is a huge need to improve energy efficiency and weatherization in Eugene’s homes, particularly in the face of a changing climate. The Eugene Clean Energy Fund would complement, not duplicate, existing programs by expanding upon and filling gaps in eligibility, and removing upfront cost barriers, to ensure that clean energy upgrades are as accessible as possible in our community.

Oregon’s Solar & Storage Rebate program was fully allocated as of May 2024, and there is no more funding left in the program. EWEB has some limited solar incentives, but EWEB has yet to meaningfully invest in community- or utility-scale solar. PCEF has funded a significant amount of community solar so far, and our intention is that the Eugene Clean Energy Fund would help to bring community and utility-scale solar and storage to Eugene, increasing community resilience to extreme weather and helping to further clean up Eugene’s grid.

The vast majority of revenue generated by the Portland Clean Energy Fund (PCEF) has been spent on clean energy and climate-focused projects. In fact, PCEF is currently on track to spend over $1.6 billion on reducing greenhouse emissions by 2029. If ECEF revenues greatly exceed forecasts, then it would be up to the grant Committee, City Council, and ultimately voters to decide whether a portion of funding can or should be used for other purposes. This is a strength of the fund’s design, not a weakness.

Beyond Toxics, Breach Collective, Oregon Just Transition Alliance, the Oregon Chapter of the Sierra Club, and Oregon League of Conservation Voters have steered the development of Measure 20-388, in consultation with a broader coalition of environmental and climate change organizations, other community groups, and labor unions.