Oregon Container Terminal Celebrates Future
What happened: On Jan. 7, Harbor Industrial Services, an OBI member, hosted political leaders, business partners and unions at the Port of Portland’s Terminal 6 to celebrate the pending restoration of five-day weekly container service for the first time in many years. Rep. Shelly Boshart Davis, R-Albany, whose work was instrumental in restoring service, called it “a day of profound importance to our state’s future.”
Turbulent history: Terminal 6 has served for decades as the state’s only high-volume international container port for imports and exports. It should be noted that for most of that time, the operation has been a money loser for the port (the port cannot divert airport revenue to non-airport operations). In 2010, the port secured a private operator for the terminal. But during the ensuing years, the terminal found itself at the center of labor and legal disputes involving the International Longshore Workers Union (ILWU), some between the ILWU and the operator and others between the ILWU and other unions. The disputes led to well-documented slowdowns and disruptions of service, and the port eventually resumed control of the terminal. It announced in April 2024 that container handling would end.
Returning service: The port worked diligently to reset business and labor relations at the terminal. And at the legislative level, Rep. Boshart Davis worked with the port and businesses around the state to restore container service. The last year has seen success on all fronts. In 2024, the port secured an agreement with Harbor Industrial Services to assume operations at the terminal, which was rebranded recently as the Oregon Container Terminal. Gov. Kotek’s 2025 proposed budget sought, and the Legislature approved, $20 million for improvements to this critical public asset. And on Jan. 7, many in Oregon celebrated what Boshart Davis called “a tremendous opportunity to revitalize this essential asset, secure economic growth, protect jobs, and reaffirm Oregon’s position in global trade.”
Oregon Business Tax Burden Continues to Top U.S. Average
Oregon tax trend: Before fiscal year 2021, Oregon had one of the nation’s lowest business tax burdens, a competitive advantage that helped offset various disadvantages. These include the state’s high personal income tax rates, its difficult regulatory environment, its scarcity of shovel-ready land for industrial and commercial development, and its high housing costs. Between 2019 and 2023, however, Oregon’s business tax burden soared by 33%, according to a study sponsored by the OBI Research and Education Foundation. Oregon’s business tax burden is now a competitive disadvantage. Go here to see Oregon’s business tax burden over time and here to see its business tax burden ranking over time.
Why it matters: The sudden rise in Oregon’s business tax burden is one of several factors that in recent years have pushed state businesses to invest and grow in other states. As a result, Oregon’s economy has weakened and job creation has happened increasingly elsewhere. Put simply, Oregon’s corporate tax structure – which the nonpartisan Tax Foundation ranks as the nation’s second worst – is preventing Oregon from living up to its potential as a state in which people thrive and businesses innovate and grow.
What’s new: On Jan. 8, the Council on State Taxation (COST) released its annual calculation of state business tax burdens, which further solidifies Oregon’s recently attained status as a high-tax state for businesses. The report applies to fiscal year 2024. For the fourth consecutive year, Oregon’s business tax burden exceeded the national average. At 4.7%, Oregon’s business tax burden in FY 2024 topped the national average (4.5%) by 0.2 percentage points, just as it did in FY 2023. Oregon’s business tax burden in FY 2024 was the nation’s 21st highest, one place lower than in FY 2023 (20th).
The takeaway: From a competitive standpoint, Oregon has dug itself a deep hole in business tax territory since 2019. Between 2020 and 2026, Oregon dropped 27 places in the Tax Foundation’s State Tax Competitiveness Index, falling from 8th to 35th. No state fell further during that time. To improve the state’s economy, legislators must stop digging the hole.
Learn more: Go here to read the COST report. Visit OBI’s Oregon Scorecard for regularly updated competitiveness data and rankings.
PBJ Women of Influence Honorees Include OBI Members
What happened: On Jan. 6, the Portland Business Journal released its 2026 Women of Influence honorees. The award recognizes women “who are making an impact, cultivating change, and bringing the community together.” This year’s honorees include eight women who work for OBI member companies:
- Teresa Carr, director of marine and commercial development, Port of Portland
- Liz Fuller, president and CEO, Gard Communications
- Suzan Huntington, chief operating officer, Perkins & Co.
- Anita Iyenger, senior vice president and chief strategy officer, interim chief information officer, Legacy Health
- Kecia Kelly, senior vice president, chief nurse and philanthropy officer, Legacy Health
- Shannon Parker, partner and vice president of organizational development, Pence Contractors
- Jennifer Price, principal, Baker Tilly
- Karis Stoudamire-Phillips, vice president of community and DEI initiatives, Moda Health
What’s next: This year’s Women of Influence will be recognized at an event in Portland March 11. Go here to learn more and buy tickets. Congratulations to all of the honorees.
OBI, The Partners Group Team Up for Pooled 401(k) Plan
Retirement plan option: OBI has teamed up with The Partners Group to offer OBI members discounted access to The Partners Retirement Plan – an innovative pooled 401(k) solution. A pooled employer plan (PEP) 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. This shared structure is designed to help reduce administrative burden, fiduciary risk and overall plan costs. Through this partnership, OBI members will see even more savings because TPG offers special pricing to OBI members!
Why a PEP makes sense: Oregon law requires employers to offer a retirement savings plan to their employees. Employers can do this through a government-sponsored program (OregonSaves) or through a qualified retirement plan like a 401(k). Many employers are looking for opportunities to reduce costs across their organizations. Many other employers struggle to keep up with the ongoing requirements needed to keep their plans compliant in an ever-changing legislative environment. With The Partners Retirement Plan, the majority of those responsibilities are outsourced to a dedicated team of professionals.
Learn more: Check out a fact sheet about The Partners Retirement Plan here, and contact The Partners Group here. Register here for a webinar with The Partners Group, which will take place on Jan. 22 from 10-10:30 a.m.
Policy and Rulemaking Updates
Governor’s Prosperity Council: On Jan. 8, Gov. Kotek announced the full membership of the newly formed Governor’s Prosperity Council, having previously announced that Ampere Computing founder Renée James and Port of Portland Executive Director Curtis Robinhold would serve as co-chairs. The position of chief prosperity officer, which the governor announced last year with her Oregon’s Prosperity Roadmap, has not yet been filled. Details about process and deliverables for the council have not yet been announced, though the governor’s original statement indicated a six-month time frame. OBI will provide members with opportunities to shape the information OBI will present to the council.
Transportation package repeal: Gov. Kotek announced at the Oregon Transportation Forum’s annual meeting Jan. 7 that she will seek a repeal of HB 3991, the transportation funding package that passed during the September special legislative session she called. News of the repeal follows the secretary of state’s announcement that a referendum on the revenue-raising elements (increases in the state gas and transit taxes as well as DMV fees) of HB 3991 had qualified to appear on the November ballot. Collection of new revenue has been paused pending the outcome of the election. The governor said that it would be irresponsible to leave a bill in place that requires money to implement without new funding. She now plans to redirect funding from the previous transportation package, HB 2017, to operations and maintenance activities until a new funding package can be considered during the 2027 legislative session. The practical effect of redirecting HB 2017 funding for operations and maintenance is that hundreds of millions of dollars earmarked for large infrastructure projects such as the Rose Quarter interchange and replacement of the I-5 bridge would not be spent as intended. Repeal also would irresponsibly eliminate components voters did not refer to the ballot, including improved accountability measures and an important provision that aligns historically overcharged freight rates with constitutional requirements. Read more about the governor’s announcement in OPB’s story published Jan. 7.
Unemployment for striking workers: In rules proposed last fall to implement SB 916, which makes striking workers eligible to receive unemployment insurance benefits, the Oregon Employment Department proposed to exempt such recipients from the federal Social Security Act provision that requires unemployment insurance claimants to search actively for work. In early December, OBI submitted comments arguing that such a rule would violate federal law and likely put Oregon at risk for losing federal funds. Before the employment department filed a final rule, the U.S. Department of Labor (USDOL) reached out with concerns, and the rule was put on hold. On Jan. 8, the USDOL sent a memo sent to all states expressing the same concerns OBI had raised. The memo says that “an individual who is on strike must engage in activities that demonstrate to the state UI agency that he or she is able and available for work and actively seeking work under State law … States may not provide blanket exemptions from the work search requirements.” OBI will continue to work with the employment department and USDOL and will monitor the implementation of this new law closely.
Lost competitiveness opportunity: Throughout the 2025 legislative session, OBI led an effort to extend and expand a program that provides federal tax savings to pass-through businesses (entities that pass income, losses and related items through to owners as individuals), which are often among Oregon’s smallest. The program imposes an entity-level tax on pass-through businesses and allows their owners to claim a tax credit equal to the amount of the tax imposed on the business. Allowing the owners of eligible businesses to pay at least some of their state taxes in this way lowers their federal tax burden without reducing Oregon revenue. It also enables businesses to use the money they save to hire workers, increase wages or invest in their Oregon operations. During the 2025 session, OBI advocated for a bill that would have extended eligibility to businesses that are currently excluded, including many in agriculture and manufacturing. Unfortunately, the bill died, and the program expired at the end of 2025. OBI raised the matter with the governor’s office and received assurances from influential legislators that it would be restored, but a renewal of the program was not included among the bills the revenue committees have published for introduction during the 2026 session. Failing to renew the program would represent a missed opportunity to help Oregon’s businesses and improve the state’s economy. To keep that from happening, OBI is working to grow its coalition in support of program renewal.
Air toxics rulemaking: The Department of Environmental Quality has indicated that it will initiate rulemaking today (Jan. 12) to modify the Cleaner Air Oregon (CAO) program, which regulates emissions of toxic air contaminants from industrial and commercial facilities. Adopted in 2018, CAO is considered one of the nation’s most stringent air toxics regulatory programs and has contributed to the shuttering of at least four Oregon-based manufacturing entities. The rulemaking effort contemplates changes to toxicity reference values (TRVs) for more than 300 chemicals, which will establish many new or more conservative health-based benchmarks for a program that is already extremely protective. A TRV is a conservative benchmark used to evaluate potential chemical exposures. The rulemaking effort also is expected to significantly increase the program’s stringency, complexity and cost of compliance.
Last year, OBI pointed to several problems with the rulemaking that prompted changes to DEQ’s approach. The rulemaking timeline was lengthened to provide greater analysis of the scientific underpinnings of the proposal, many of which are weak or inaccurate. In response to OBI’s requests, DEQ agreed to allow facilities already called in to CAO to complete the process under existing rules. It also agreed not to engage additional facilities in the program until the new rules are adopted. OBI appreciates DEQ’s willingness to accommodate these requests, which will provide greater regulatory certainty for affected businesses, though OBI remains concerned about the overarching rulemaking’s scope and scientific basis. OBI is serving on the rulemaking advisory committee.
I-5 bridge height: On Jan. 9, OBI submitted a letter to the U.S. Coast Guard in support of a design for an I-5 bridge replacement that would not include a lifting span. Though the planning effort to replace the bridge has been underway for several years, the maximum height of the bridge has not been determined. The current bridge includes a lifting span, which acts as a randomly occurring stop sign on a major interstate. OBI argues in favor of a single span, as a lifting span would continue to stop freeway traffic periodically. It also would be more expensive to operate and maintain, as it would have to be staffed continuously and include moving parts that require significant upkeep.
Camping law repeal: OBI’s ballot initiative to repeal HB 3115, an outdated law that restricts local governments’ ability to respond to unsanctioned public camping, continues to make progress toward the November ballot. The attorney general’s office issued a draft ballot title on Dec. 19, 2025, and accepted public comments on the draft through Jan. 6. OBI submitted comments suggesting improvements to the title, alongside several opponents of the initiative. Next, the attorney general’s office will issue a final, possibly revised, ballot title based on public comments.
In the meantime, OBI’s strategic priority remains passing a repeal or modification of HB 3115 during the 2026 legislative session. Sen. Mark Meek, D-Gladstone, is drafting legislation to that end, and OBI is coordinating with local government representatives and other allies to make a strong push for the bill when the Legislature convenes later this year. For more information about this effort, go here.
Manufacturing prevailing wage: The Bureau of Labor and Industries has published an initial draft of rules related to HB 2688, which requires manufacturers to pay the prevailing wage rate for the production of custom – or “bespoke” – items for specific public works projects. Among other things, the draft rules define “bespoke” and create exemptions for that definition. There are still many questions to address involving work processes in affected facilities. The rules advisory committee will meet on Jan. 20 and Jan. 28.
Paid leave rules: The Oregon Employment Department has filed final rules for the latest update to the state’s paid family and medical leave program, Paid Leave Oregon. By and large, the new rules implement statutory changes. However, they also require employers with equivalent plans to update notices whenever the employment department updates the notice requirements. This same update requirement does not apply to employers covered by the state plan, however, which seems fundamentally unfair. Meanwhile, employers should carefully review the rules for information involving contributions and place of performance.
Cost growth target: The Oregon Health Authority has set the health care cost growth target at 3.75% for the 2026–30 period. This percentage reflects a blend of historic Oregon median wage growth and inflation over a five-year period, with a one-point subtraction intended to slow the rise in costs. Most members of the 2026–30 cost growth work group recommended a 5.5% target for acceptable growth. However, OHA adopted a lower target supported by a minority of the group’s membership. Health care payers and providers regulated by the cost growth program may incur fines as early as 2028 if they exceed the target without a reasonable explanation.
Health market oversight: The Oregon Health Authority’s Health Care Market Oversight Program is proposing new rules and fees that would significantly increase the cost of mergers and acquisitions involving state health care entities. The proposed rules would increase the cost of a preliminary review of a potential transaction from $2,000 to $30,000 and the cost of a comprehensive review from $100,000 to $350,000. Additionally, the program seeks a new follow-up review fee and new civil penalties for failing to provide documentation in a timely manner. OBI plans to submit a comment letter to the agency. The public comment period closes Jan. 16. According to OHA, the program “reviews proposed health care business deals to make sure they support Oregon’s goals of health equity, lower costs, increased access, and better care.”
Primary care committee: OHA announced this month it is launching a Primary Care Strategy Committee to lead a “coordinated effort to stabilize, strengthen and align Oregon’s primary care system.” The committee will examine workforce, payment and affordability, and delivery system issues. It is seeking payers, providers, purchasers and employers to serve as members. Applications are open through Feb. 6. Go here to learn more.
Notable News
Transportation package repeal: Gov. Tina Kotek asked lawmakers Jan. 7 to repeal the controversial transportation funding package they passed along party lines with her support last fall. At the same time, she called on legislators to take “emergency action” to prevent layoffs at the state transportation agency (The Oregonian).
Hidden bridge numbers: At a Dec. 15 public hearing on the Interstate Bridge Replacement project, government employees who have been working for years to replace the I-5 bridge over the Columbia River told a bistate committee of lawmakers they did not have new cost estimates for the project. Documents recently obtained by the Oregon Journalism Project, however, show the staff’s claim it couldn’t provide new cost estimates was false (Oregon Journalism Project).
Data center demand: While consumer and commercial power demand in Oregon has remained relatively constant for more than a decade, data centers sent electricity consumption soaring from one side of the state to the other (The Oregonian).
Bogus climate claims: Washington state officials have issued a correction after they were caught exaggerating the benefits of state spending to curb climate change. Proceeds from the state’s quarterly auctions of carbon dioxide permits are keeping far less pollution out of the air than officials have been claiming (KUOW).
November unemployment: Oregon’s unemployment rate, revealed after delays caused by the federal government shutdown, remained steady between September and November. The rate was 5.2% in November, the same level posted in September. Oregon’s figure exceeded that of the U.S., which logged a 4.6% unemployment rate in November (Portland Business Journal).
Campaign finance law: The Secretary of State’s Office is asking lawmakers for an initial $25 million to stand up key provisions of a law that will limit political contributions and increase the transparency of spending in Oregon politics – even as agency leaders concede they cannot say what implementation will ultimately cost (The Oregonian).
Trail Blazers request: When legislators convene in Salem next month for the biannual short session, they will be met with a proposal from Trail Blazers leaders that should look familiar. Familiar because lawmakers passed nearly identical legislation last year in support of Portland’s pursuit of Major League Baseball. The Trail Blazers are prepared to ask that state income tax on all players and team employees and those with visiting teams — an estimated $20 million per year — be redirected from the state’s general fund toward a $600 million Moda Center renovation that is seen as critical to keeping the franchise in Portland (The Oregonian).
Vacuum company layoffs: Industrial vacuum company Vacuum Technique will close its Clackamas facility and lay off 78 workers there (Portland Business Journal).
Marion County incinerator: A potential deal to sell the shuttered Reworld Marion municipal waste incinerator to Houston-based Peaker Energy has fallen through (Salem Statesman Journal).
Data center dispute: PacifiCorp, defending itself in a high-profile dispute with Amazon, is invoking a new Oregon law that’s intended to ensure data center operators pay their fair share of the costs of delivering them power. The dispute revolves around four Amazon Data Services facilities in Oregon (Portland Business Journal).
Deschutes County growth: Population growth in Deschutes County has slowed since the COVID-19 pandemic, but it was still the second-fastest growing county in Oregon (The Bulletin).
TriMet cuts: On Jan. 5, TriMet unveiled the specifics of a plan to reduce bus and train service in the Portland metro area to help fill a gaping budget hole. The upshot? Twenty bus routes altered, another 15 eliminated, and a light rail line that will stop at its halfway point, requiring a transfer to get from Clackamas Town Center to downtown Portland (Willamette Week).
Preschool for All: Multnomah County officials have tapped a community college child care director to lead its Preschool for All program, amid a potential sea change in how the tuition-free preschool effort is run (The Oregonian).
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.
- ODP Business Solutions: Helps OBI members save money on office furniture, supplies and other services.
- 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.