A ONCE-IN-A-GENERATION OPPORTUNITY FOR OREGON

The state of Oregon has secured a historic $698 million dollar settlement against Monsanto for long term harm caused by the company’s polychlorinated biphenyls (PCB) chemicals to Oregon’s land, water, fish and wildlife. In 2024, Governor Kotek signed Senate Bill 1561 into law, creating the Oregon Environmental Restoration Fund (OERF or Fund), which will invest the proceeds of the settlement in projects and purposes that benefit Oregon’s environment and its communities.

Origin

From the 1930s to just before they were banned in 1979, Monsanto was the sole manufacturer of PCBs (polychlorinated biphenyls) in the United States. Multiple states have pursued legal action against Monsanto, alleging that since at least 1937, the company knew PCBs were harmful to the environment and human health. PCBs were primarily used for cooling and insulation effects in industrial and consumer applications. The chemicals were distributed throughout Oregon in a variety of products, including paint, caulking and electrical equipment.   

The Environmental Protection Agency classifies PCBs as a probable carcinogen, and they are known to harm immune, reproductive and nervous systems in humans and other living things. Experts say removing PCBs from the environment is the best way to prevent them from harming people, fish and wildlife. 

In 2018, the Oregon Department of Justice filed a lawsuit in state court. In it, attorneys for the state wrote that PCBs are highly toxic and can harm people’s immune systems.  Rather than go to trial, Monsanto settled with the state for $698 million dollars providing Oregon with a once-in-a-generation opportunity to restore ecosystems and provide restitution for Tribes and other communities across our state. This settlement award is by far the largest of its kind nationally. 

In 2024, Senate Bill 1561 was passed by the Oregon Legislature to establish the Oregon Environmental Restoration Fund and a Council to guide how these funds are to be used to benefit all Oregonians. 

FUNDING ALLOCATION

The Oregon Environmental Restoration Fund has been set up to function similarly to an endowment. The settlement dollars will earn investment and interest income, and, on a biennial basis, the Council will authorize OWEB to distribute that income to three sub-funds.  Moneys in those funds will be used to support projects and programs to improve Oregon’s environment and communities who have been harmed by PCBs and other toxins.