Businesses, Labor Unions File Suit over Oregon Climate Rules
CPP lawsuit filed: On Thursday, OBI and other members of a broad coalition of state employers, labor unions and trade associations filed a lawsuit challenging the validity of Oregon’s Climate Protection Program, which is projected to increase energy costs for state residents and businesses by nearly $5 billion over the next decade.
Critical concerns: OBI supports the goal of decarbonization, but programs to that end must be affordable, accountable and legally sound. The CPP is none of these. Compliance costs are two to three times as high as those faced by businesses in other states. The CPP was initiated by an executive order issued by former Gov. Kate Brown and developed by a state agency, the Department of Environmental Quality. Because it was created by executive order rather than statute, the program will handle hundreds of millions of dollars without direct legislative oversight. Finally, it is not clear that DEQ had the authority to create the program in the first place.
A better solution: The CPP must be replaced by a legislatively adopted program that is transparent, links to programs in other states and employs market mechanisms to set carbon pricing. Fortunately, legislators from both parties agree that the CPP misses the mark and lacks accountability. Replacing the CPP with a true cap and trade program will help create the stability Oregon businesses need to operate.
Learn more: Read the full coalition statement on OBI’s website here. The legal filings can be accessed here as well.
Media coverage: Read coverage of the lawsuit by the Oregon Journalism Project (here), the Portland Business Journal (here), The Oregonian (here) and Oregon Public Broadcasting (here).
Register Now: Oregon Economic Summit on May 28
Join OBI for its first annual Oregon Economic Summit on May 28 at the Salem Convention Center. The event is a rebrand of our Annual Meeting event. Visit the event web page here to register.
The theme of the inaugural summit is Changing Our Trajectory: Prioritizing Economic Growth and Private Sector Job Creation.
The program will begin at 3:30 p.m. A reception with political leaders will follow at 5 p.m.
Program
The Economic Imperative
The need is clear, and it’s time to act. Where does Oregon stand relative to other states, and what are those states doing to move even further ahead?
Ted Abernathy, managing partner of Economic Leadership
Panel Discussion
A conversation among thought leaders about the conditions in Oregon, the need for urgency and what the state needs for economic growth.
Monique Cardwell, president and CEO, Greater Portland Inc.
John Horvick, senior vice president, DHM Research
Tim Inman, chief policy and public affairs officer, The Ford Family Foundation
Mike Wilkerson, partner and director of economic research, ECOnorthwest
Call to Action
Driving change together.
Angela Wilhelms, president and CEO, Oregon Business & Industry
A Conversation with Hillsboro Hops President KL Wombacher
Just weeks ago, the Hillsboro Hops debuted the team’s new ballpark. The team’s president and general manager, KL Wombacher, joins the podcast to discuss the Hops’ history in Oregon, its role in the community, how the team financed its new stadium, the facility’s future as a concert venue, and much more. Listen to the interview here.
In case you missed them, check out our recent interviews with Looptworks founder Scott Hamlin and Trevor Giroux, president of ATI‘s Specialty Alloys and Components Division in Millersburg. Visit the Oregon Business Matters website to listen.
Oregon Scorecard Updates: ‘Best States’ Ranking, GDP, More
The Oregon Scorecard, OBI’s online data dashboard, received several updates during the first half of April:
‘Best States’ ranking: Chief Executive released its annual Best and Worst States for Business ranking, and Oregon dropped two positions to 46, topping only Washington, Illinois, New York and California. In addition to the ranking itself, the accompanying analysis is worth reading.
GDP growth: Oregon’s economy grew only 1% in 2025, less than half the national rate of 2.1%, according to the Bureau of Economic Analysis. Not since 2020, when the state’s GDP shrank 1.3% during the COVID pandemic, has Oregon’s economy experienced such weakness.
GDP growth rank: OBI added this data point to the Oregon Scorecard in April. Oregon’s 1% rate of economic growth in 2025 ranked the state only 44th nationally, according to the Bureau of Economic Analysis. This is the lowest ranking in at least 20 years. Oregon’s ranking has decreased steadily since 2015, when Oregon’s economy grew at the nation’s fastest rate.
Employment: Oregon’s average monthly total nonfarm employment fell by 0.5% in 2025 while nonfarm employment grew by 0.5% nationally. This represents the sixth consecutive year in which Oregon employment growth has trailed the national average.
Private sector employment: Oregon’s average monthly private sector employment fell by 0.8% in 2025 while private sector employment grew by 0.5% nationally. As with total employment, this represents the sixth straight year in which Oregon employment growth has trailed the national average.
Industry sector employment: OBI updated 2025 employment statistics for eight industry sectors. Go to the Oregon Scorecard Economy & Employment page to see these. Notable declines occurred in manufacturing, which saw employment fall 3.7% while manufacturing employment fell 1.2% nationally; and construction, in which employment fell by 3.5% compared with an increase of 0.7% nationally. In only two of the eight sectors did Oregon employment growth top the national average: private education and health services (3.5% in Oregon vs. 3.2% nationally) and government (1.1% in Oregon vs 0.6% nationally).
Labor force participation: Oregon’s labor force participation rate increased to 62.9% in 2025 from 62.6% in 2024. The national average rate in 2025 was 62.4%.
Unemployment rate: Oregon’s average monthly unemployment rate increased to 5.2% in 2025, topping the national average rate of 4.3% as well as the state’s 2024 rate, 4.3%.
State, local taxes per capita: Oregon ranked 16th in fiscal year 2023 for state and local taxes per capita, two places higher (meaning higher per-capita taxes) than in fiscal year 2022, when the state ranked 18th. The state collected $7,604 in state and local taxes in 2023, a 9.9% annual increase.
State revenue per capita: Oregon collected $12,143 in state revenue per capita in fiscal year 2023, a 7.6% increase over fiscal year 2022. By that measure, Oregon ranked 9th among states, rising from 11th in 2022. Revenue includes both taxes and non-tax funds like fees.
State, local revenue per capita: Oregon collected $16,570 in state and local revenue per capita in fiscal year 2023, a 7.5% increase over fiscal year 2022. By that measure, Oregon ranked 8th, rising from 10th in 2022. Revenue includes taxes as well as non-tax funds like fees.
Oregon Leadership Academy Accepting Applications
Applications are open for OBI’s inaugural Oregon Leadership Academy. The program is designed for early- to midcareer professionals interested in public policy and civic engagement.
The initial cohort will run from September 2026 through March 2027, with in-person sessions in Salem, Portland and Newberg. Applications are due May 31, 2026. Learn more on the academy’s web page here.
Policy and Rulemaking Updates
Bespoke fabrication rules: The Bureau of Labor and Industries published proposed rules implementing HB 2688 on April 14. Passed during the 2025 session, HB 2688 requires the payment of prevailing wages for the manufacture of bespoke items for public works projects. The law goes into effect on July 1. The Legislature left many details of the law’s implementation for BOLI to determine through the adoption of administrative rules. This law will have a significant impact on manufacturers of HVAC and refrigeration systems and other ducting and piping systems and components. It also will affect manufacturers of the following: electrical systems and components; boiler systems and components; ornamental and structural iron work; masonry and plaster systems and components; roofing, flashing and architectural panel systems and components (other than glazing systems and components); and mechanical insulation. OBI plans to submit comments and urges members to review the rules carefully and comment or provide feedback to Duke Shepard (dukeshepard@oregonbusinessindustry.com). There will be a rulemaking hearing on May 27 at 10 a.m. The comment deadline is 5 p.m. on May 31. BOLI has created a rulemaking comment form that you can use to submit comments.
Data centers: The Data Center Advisory Committee convened by Gov. Kotek held a listening session Friday to gather public input. The committee’s purpose is to develop recommendations for a comprehensive regulatory framework for data center development that is aligned with the governor’s Prosperity Roadmap, while ensuring that utility costs, infrastructure investments and environmental impacts remain sustainable for Oregonians, particularly low-income and working families. OBI presented comments on the importance of data centers, noting that they enable services such as 911 emergency dispatch and emergency alert systems, including those used during wildfires, in addition to the cloud infrastructure essential to businesses, hospitals, schools and governments. OBI also highlighted the substantial planned data center growth in the U.S., noting that Oregon will see very little of this expansion due to stringent regulations and unfavorable tax policy. The committee has held two meetings with four to come focused on land use, energy, affordability and taxation, and a review of the final policy recommendation. OBI will continue to engage in the committee’s work, which is scheduled to run through July.
HECC studying reforms: The Oregon Higher Education Coordinating Commission has invited OBI to participate in stakeholder engagement as it develops recommendations to reform the state’s higher education system under HB 4124 (2026). The commission is partnering with Oregon Consensus on the effort, which will focus on improving student access, supporting workforce and economic development and strengthening the financial viability of public institutions. A final report is due to the Legislature by April 1, 2027.
Help Inform Legislative Effort to Improve Regulations
Business survey: The Legislative Policy Revenue Office (LPRO) has produced a survey of Oregon business owners and operators at the request of Rep. Nathan Sosa, D-Hillsboro, who chairs the House Committee on Commerce and Consumer Protection. The results will inform research LPRO is conducting for Sosa, which may inform legislation considered during the 2027 session.
Survey focus: The survey asks participants to identify the state laws or regulations that most affect their businesses and suggest potential changes. The survey is anonymous, and participants will not be asked to share their names or those of their businesses.
Consider responding: We understand that business owners are reluctant to fill out such surveys, but we encourage you to participate in this one. It is anonymous, and we are glad to see a new interest from legislators in regulatory relief. You can find the survey here. The participation deadline has been extended to May 1.
Help Inform Legislative Efforts to Improve Regulations
Business survey: The Legislative Policy Revenue Office (LPRO) has produced a survey of Oregon business owners and operators at the request of Rep. Nathan Sosa, D-Hillsboro, who chairs the House Committee on Commerce and Consumer Protection. The results will inform research LPRO is conducting for Sosa, which may inform legislation considered during the 2027 session.
Survey focus: The survey asks participants to identify the state laws or regulations that most affect their businesses and suggest potential changes. The survey is anonymous, and participants will not be asked to share their names or those of their businesses.
Consider responding: We understand that business owners are reluctant to fill out such surveys, but we encourage you to participate in this one. It is anonymous, and we are glad to see a new interest from legislators in regulatory relief. You can find the survey here. The participation deadline is April 17.
U.S. Chamber Provides Importer Guidance for Tariff Refunds
U.S. Customs and Border Protection is launching a portal today for businesses to claim tariff refunds followng the U.S. Supreme Court’s February decision striking down tariffs imposed under the International Emergency Economic Powers Act (IEEPA). However, it can be difficult to determine whether your business qualifies and, if so, how to proceed.
The U.S. Chamber of Commerce has released an online article that provides updates on the refund process and a step-by-step guide for importers to procure refunds.
Go here to learn more.
Check Out and Share OBI’s New Newsletter
On April 1, OBI launched Oregon Business Insider, a monthly subscription newsletter intended for anyone who’s interested in Oregon’s business environment. Membership in OBI is not required to subscribe, so please feel free to share widely.
Each edition will include information about noteworthy events, legal and regulatory updates, timely data and rankings, links to recent Oregon Business Matters podcast episodes, policy explainers and more.
Go to OBI’s newsletters web page to subscribe and check out the inaugural edition. You can download a pdf of the first edition here.
Notable News
Prosperity Council recommendations: Months before a high-profile group appointed by Gov. Tina Kotek is due to release recommendations for juicing Oregon’s sluggish economy, disagreements are spilling into the open (Oregon Public Broadcasting).
Oregon demographics: Oregon’s “natural population growth” — that’s the number you get when you subtract deaths from births — turned negative in 2020. Cumulatively, Oregon deaths have outnumbered births by 19,000 since 2020 (The Oregonian).
Education executive order: Oregon school districts would no longer be able to cut school days or hours from the calendar to balance their budgets, under a directive issued April 16 by Gov. Tina Kotek that’s under immediate, emergency consideration by the state Board of Education (The Oregonian).
Data center politics: As candidates for the Oregon Legislature meet with Willamette Week’s editorial board for endorsement interviews prior to the May 19 election, one topic is emerging as a hot button: data centers, and how they affect the communities where they sprout (Willamette Week).
Employee productivity: For the past year, two prominent indicators have told opposite stories of the economy’s health: The economy itself grew in 2025, but despite a solid March, jobs didn’t. This puzzle could have an encouraging explanation: Productivity, which means workers are producing goods and services more efficiently, has revived at just the right time (The Wall Street Journal).
School funding formula: Gov. Tina Kotek said April 16 that she believes the state should reevaluate how it accounts for student poverty levels in the complicated, decades-old funding formula used to determine how much state money each of Oregon’s 197 school districts receives every year (The Oregonian).
Multnomah tax flight: A new study co-authored by a Reed College professor suggests the six-year-old, controversial Preschool for All Tax has driven some higher-income households to leave Multnomah County (Portland Business Journal).
Portland VC capital: First-quarter venture capital activity in the Portland metro dropped nearly 65% compared to first quarter activity last year. Investors put just $69.7 million into metro-area companies across 15 deals. That’s down from $197.2 million invested across 34 deals in the same quarter last year (Portland Business Journal).
Oregon research corridor: Last September, a delegation of university, business and civic leaders from Oregon embarked on a fact-finding mission to Durham, North Carolina. The three-day visit featured tours of and presentations about Research Triangle Park, the granddaddy of U.S. research hubs. The Oregon group hopes to replicate that success (Portland Business Journal).
Tax bill referral: A battle over Oregon gas taxes dominated much of state politics over the past year. Now voters might be in for a sequel. Gov. Tina Kotek signed a bill this month that will functionally hike taxes by more than $300 million. A campaign to refer that bill back to voters kicked into gear immediately (Oregon Public Broadcasting).
Winery bankruptcy: A company that owns a Polk County winery and vineyard — and owes Oregon grape growers $100,000 — has filed for bankruptcy. Pacific Rim Winemakers Inc. and associated debtors told a bankruptcy court they intend to “liquidate inventory, equipment and real estate … in an orderly fashion to maximize recovery for creditors.” Assets include the Rainstorm winery and an adjacent vineyard about 10 miles west of Salem (Portland Business Journal).
Winery sale: Four months after it divested its vast Washington wine portfolio, Sycamore Partners has jettisoned a piece of its Oregon holdings. The private equity firm, which owns A to Z Wineworks, Erath Winery and Rex Hill in Oregon — making it one of the state’s biggest wine players — sold the Knight’s Gambit Vineyard in the Dundee Hills (Portland Business Journal).
Wildfire damages trials: The Multnomah County judge in the wildfire class action against PacifiCorp put further damages trials on hold on April 9, a day after the utility won a critical Court of Appeals ruling. Judge Steffan Alexander granted PacifiCorp’s expedited emergency motion for a stay and called for a full briefing of the matter ahead of a hearing set for May 22 (Portland Business Journal).
Legacy Health: network after the two failed to reach agreement on reimbursement rates before their contract expired. The situation affects 150,000 policyholders, though Regence says members in an active course of treatment can continue to receive in-network benefits for a limited time, regardless of the provider or facility (Portland Business Journal).
Oregon business failures: Businesses are failing faster in Oregon than the U.S. overall, at least in the short term. A recent LendingTree study found that 26.7% of the state’s businesses weren’t around to see their first birthday, compared to 22.1% nationwide (Portland Business Journal).
Health coverage ruling: A federal judge in Oregon ruled April 14 that a state law requiring insurance plans to cover abortions and contraception violates the Constitutional rights of Oregon Right to Life (Oregon Public Broadcasting).
Alpenrose plant sale: Alpenrose Dairy has sold its butter production operations to a national buyer ahead of a planned shutdown. Massachusetts-based Plant Based Innovations plans to continue operations at Alpenrose’s Clackamas butter production facility and retain 35 jobs there. Alpenrose said in January it would close the plant and consolidate its dairy production (Portland Business Journal).
Hydropower forecast: U.S. energy analysts forecast an uptick in hydropower generation in the Northwest this year, despite miserable snowpack conditions in much of the West. The Energy Information Administration said April 14 that reservoir levels “mostly near capacity” were a factor in the forecast (Portland Business Journal).
Check Out OBI’s Member Benefits
OBI offers members a range of programs that can save money or help small businesses offer benefits normally available only to much larger companies. Benefit programs include:
- HealthChoice: Helps businesses with fewer than 100 employees offer comprehensive health-care benefits through our partnership with Regence BlueCross BlueShield of Oregon.
- Partners Retirement Plan: Allows multiple employers to offer a 401(k) benefit to employees through a group structure while maintaining individual company design and control over the benefit – such as eligibility, employer match, and vesting.
- CompSAFE: Helps eligible companies enjoy workers’ compensation discounts through SAIF Corporation.
- Fuel Program: Helps members save fuel costs through our partnership with Ed Staub & Sons.
- LegalPLUS: OBI members receive 15 minutes of free legal consulting per month from Innova Legal Advisors.
Go here to learn about all of OBI’s member benefits.