During the 2026 legislative session, Oregon lawmakers are reviving efforts to pass Senate Bill 1541, a measure that would seek to hold major fossil fuel companies financially responsible for climate-related damages suffered by Oregonians.

It’s the second year that the Oregon legislature has tried to pass a law to “Make Polluters Pay.” Following the measure’s failure during the 2025 legislative session—where it died in the Senate Energy and Environment Committee—Senator Jeff Golden, a Democrat from Ashland, is once again championing the bill as its primary sponsor.

SB 1541 would establish a Climate Resilience Superfund funded through fees levied on large multinational corporations based on their historical greenhouse gas emissions accumulated between January 1, 1995, and December 31, 2024. The measure directs the Oregon Department of Environmental Quality to calculate each company’s share of emissions and assess proportional cost-recovery fees. Key funding allocations include 30% for the Department of the State Fire Marshal to support wildfire response and 40% for climate change resilience projects benefitting environmental justice communities.

The “Make Polluters Pay” campaign is supported by a coalition of more than 40 organizations, including environmental and activist groups such as Third Act Oregon, Oregon League of Conservation Voters, and 350PDX. Proponents argue that companies responsible for environmental harm should contribute directly to the recovery of affected Oregon communities, thereby reducing the burden on taxpayers.

Meanwhile, Oregon Business and Industry, the state’s largest business lobbying organization, and other industry lobby groups oppose the legislation, labeling it as “sweeping,” impractical, and harmful to the state’s economy. Opponents argue that the measure would lead to higher energy prices for consumers and businesses, negatively affecting Oregon’s economic growth and competitiveness, particularly in industries such as manufacturing, logging, and agriculture.

Notably, the measure is modeled after laws in New York and Vermont that have faced immediate lawsuits from the federal government alleging that the laws violate the Constitution by regulating interstate emissions and taxing out-of-state companies. If passed, Oregon’s “Make Polluters Pay” would likely face similar challenges in court.

Article by Lily Yao