Under the proposal, covered buildings would submit annual progress reports. Owners whose buildings fall short of the targets would pay a “carbon pollution impact fee” for each metric ton of emissions above the limit.

Avalos said the policy would improve health, affordability and climate resilience, particularly for Portlanders most exposed to climate harms.

The proposal drew opposition at an Oct. 20 meeting of the City Council’s Housing and Permitting Committee. Many people who testified—including representatives of industry, landlord and building groups, as well as universities and hospitals—said the rules were moving too quickly and had been developed without enough stakeholder input.

Multifamily NW representative Jonathan Clay warned that the ordinance could create uncertainty and financial liabilities for rental housing providers. He argued that building retrofits could be unaffordable for both landlords and renters.

Twenty business and real estate organizations, including the Portland Metro Chamber, also asked the committee in an Oct. 20 letter to pause consideration. They called for more stakeholder engagement, updated analysis and an assessment of existing state requirements, saying the proposal needed further review to ensure housing and energy remain affordable and reliable as they decarbonize.

Climate advocates supported moving ahead. Samantha Hernandez, advocacy manager for the Coalition of Communities of Color, said reducing building emissions is important to the health and well-being of people who live and work in them.

Avalos defended the process after the testimony, saying her office and city staff had conducted extensive outreach. The committee is scheduled to continue discussing the policy Dec. 1.