How Oregon Can Lead the Clean-Energy Boom — Without Raising Taxes

 


By Alexander Ziwahatan
Founder, Omnithion | Candidate for Governor of Oregon

1. Why This Moment Matters

Oregon is already a clean-energy leader—but our progress masks a deeper urgency.

  • In 2024, renewable sources accounted for 62% of Oregon’s electricity, led by hydro (41%) and wind (15%).

  • Solar generation exploded—from 104 GWh in 2014 to 2,401 GWh in 2023, putting the state 17th nationally.

  • Demand is soaring: data centers, EVs, green hydrogen and electrification projects could double electricity demand in the Northwest by 2046.

Meanwhile, threats loom:

  • A persistent drought in 2024 reduced hydro output to a 23-year low, lowering clean dispatchable capacity and increasing reliance on gas.

  • Federal tax credits under the Inflation Reduction Act—with deadlines before mid‑2026/2027—are driving a race to deploy wind and solar projects before they expire.

2. A Funding Challenge Without New Taxes

Oregon’s unique tax landscape complicates growth:

  • We have no sales tax, rely heavily on income and property tax, and refund surpluses through the kicker law.

  • As EV adoption rises, gas tax revenue is plummeting—creating a $350 million shortfall in transportation funding alone.

Without new taxes—or smarter revenue strategies—growth-friendly infrastructure risks grinding to a halt.

3. The Solution: Revenue from Clean Energy Itself

We don’t need more taxes. We need revenue models built from clean-energy innovation.

A. Grant & Auction-Based Incentives

Oregon pioneered programs like the Renewable Energy Development Grant—funded via state tax-credit auctions rather than general funds, supporting dozens of renewable projects statewide without raising taxes.

B. Property-Taxed Clean Energy

Since 2017, privately owned renewables have generated growing county revenue—over $32 million in property taxes in 2017–18 alone.

C. Federal Leverage

The Inflation Reduction Act currently offers hundreds of millions in tax credits. We must accelerate project approvals before deadlines begin removing eligibility.

4. Oregon’s Unique Position to Lead

1. Natural Assets

  • We already generate 62% clean electricity—built on hydro, wind, solar, biomass, and geothermal.

  • Offshore wind and wave-energy zones off the coast could generate 2.4 GW, powering almost 800,000 homes once developed.

2. Policy Infrastructure

  • Oregon's RPS requires utilities to reach 50% renewable energy by 2040, giving regulatory certainty.

  • Existing rebate and credit programs support adoption by individuals, businesses, tribes, and public bodies.

3. Economic Engine

  • Tech giants are building data centers here—with energy demand growing at 95%—straining grid resources but also presenting opportunity.

  • Clean power co-located with these facilities (solar, wind, storage) can unlock new revenue while powering economic growth.

5. A Blueprint for Clean Growth—No Tax Hikes Needed

Phased Strategy:

  1. Speed up clean energy project approvals to secure tax credits before IRA deadlines.

  2. Expand auction-based grant funding, scaling the RED model via state clean-energy revenue pools.

  3. Capture property tax revenue from private clean-energy developers and reinvest locally.

  4. Leverage economic zones around data centers and clean industry to fund infrastructure.

  5. Promote community energy resilience by partnering with tribes and municipalities under grant structures.

6. Why This Works

  • It funds itself — grants and incentives come from clean energy revenue, not general funds.

  • It accelerates growth — cutting red tape before federal programs sunset.

  • It protects taxpayers — no new taxes, just smarter economic structure.

  • It creates resilience — Oregon builds energy infrastructure, jobs, and clean power in parallel.

7. Leadership in Action

If elected governor, I will champion:

  • The Clean Energy Growth Task Force, uniting state, tribal, utility, and industrial partners.

  • A Sovereign Revenue Bond Program—issuing clean energy bonds backed by predictable power-sale revenue from renewable assets.

  • Brownfields-for-Clean Energy Initiatives — converting underused plots into solar, battery, or microgrid sites.

8. Oregon’s Moment

The clean energy boom isn’t coming—it’s here. The only question: will Oregon lead it or watch it pass by?

We can grow our economy, lower our energy mix carbon footprint, support global climate progress, and build sustainable infrastructure—all without raising taxes.

Oregon can become a global model for how to fund innovation—not by taxing it—but by letting clean growth pay for itself.

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