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Oregon’s largest natural gas company said it was going green. It sells as much fossil fuel as before.

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Oregon’s largest natural gas company said it was going green. It sells as much fossil fuel as before.


Seven years ago, Oregon’s biggest natural gas company set out to convince lawmakers and residents that an abundant new source of green energy was out there, just waiting to be tapped.

Renewable natural gas is derived from decomposing organic waste at sites like landfills or dairy farms. It could, in theory, replace fossil natural gas in our pipelines with something far better for the environment.

The company, NW Natural, sent a bow-tied lobbyist to the state capital to talk up renewable natural gas, and it helped write a new law promoting development of the new fuel. The company worked with the Oregon Department of Energy to prepare a statewide inventory of potential resources. And, with more than $1 million in customer money, the company targeted those customers with ads, introducing a slogan that highlighted its commitment to lowering carbon emissions: “Less We Can.”

These and subsequent efforts became a template for NW Natural’s industry peers — and effectively tamped down a growing push by climate activists to phase out gas use in Oregon homes and electrify everything instead.

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Seven years on, the utility has not delivered on its clean-energy sales pitch. NW Natural has more retail gas customers than ever. It supplies them little, if any, renewable natural gas. It sells them as much fossil natural gas in an average year as it did before. And it wages steady battles in the courts and in local city halls to keep the gas flowing.

Internal industry documents obtained by ProPublica, coupled with an analysis of regulatory filings and testimony before the state Legislature, reveal how NW Natural pursued an approach that perpetuated its core fossil fuel business while the company painted a picture of going green.

“The story they’re telling us is simply not possible,” said former state Rep. Phil Barnhart, a Democrat who voted for some of the company’s legislation when in office.

“What they’re trying to do,” Barnhart said, “is to prevent being put out of business.”

NW Natural, for its part, says that its renewables goals remain attainable and that it firmly believes in them. But “uncertain support from policy makers and regulators along with ongoing barriers demanded by certain climate advocates” have made the company’s path needlessly difficult, spokesperson David Roy wrote in an email. “It’s baffling how a relatively small but loud group of stakeholders have been in opposition to our many efforts to lower system emissions,” he continued. Roy defended the “Less We Can” campaign as “providing customers with valuable information.”

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NW Natural operates in a state where residents and their Democratic leaders demand real action on climate change. Unlike many other public utilities, it does not sell electricity in addition to gas; if a home switches from gas ranges and furnaces to electric, the company likely loses that customer.

As it navigates the new climate economy, the utility has followed a course that other companies, especially energy companies, have taken in the face of public pressure: a loud embrace of environmental goals; then a complicated, often unproven solution; then a continuation of the status quo if and when that solution falls short. The company’s actions ensured that even as it has failed to hit its targets on renewables, and as the planet has kept heating up, it has faced few consequences.

An early ad from the “Less We Can” campaign suggested that Oregonians — and maybe NW Natural itself — could save the world with little in the way of personal sacrifice. It shows the sun emerging from a cloud. “Renewable Natural Gas is on the way home,” it reads. “Change for the better. Without changing a thing.”

Ads from NW Natural’s “Less We Can” campaign, from a 2022 filing with the Oregon Public Utility Commission.

Obtained by ProPublica

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***

The story of NW Natural’s long fight against the movement to phase out gas emerges from a trove of more than 100 insider documents from the Northwest Gas Association, a trade group that includes the company and five of its regional peers. The utility watchdog Energy and Policy Institute obtained the documents — four years’ worth of meeting minutes, strategy papers and PowerPoint presentations from 2017 through 2020 — and recently shared them with ProPublica.

The documents capture a moment when the natural gas industry realized it was becoming a target. Barely a decade before, fossil natural gas had been hailed as a bridge to a low-carbon future. The Obama administration promoted it as a cleaner alternative to coal and diesel, an energy source to rely on until more wind and solar could come online. Until 2010, even the Sierra Club supported it.

But pipelines carrying natural gas leaked more than was first understood, releasing uncombusted methane, a greenhouse gas more than 28 times as harmful as carbon dioxide. And North America’s fracking boom was making fossil natural gas so plentiful and cheap that environmentalists increasingly worried the world would get stuck on this energy bridge forever. Going all-electric, they argued, was the way forward.

The Northwest Gas Association decided it had to confront what internal documents alternately called the “anti-fossil fuel chorus,” “zero fossil fuel paradigm,” “zero carbon threat” or, simply, an “existential challenge.”

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Board members met to plan their response one June morning in 2017 at Washington state’s Skamania Lodge, where floor-to-ceiling windows frame the Cascade Mountains and Columbia River Gorge, then again for two days in September at another luxury lodge, Cedarbrook, set on 18 acres of gardens and wetlands outside Seattle.

The gas executives agreed that climate change needed to be addressed but that climate policies in the Northwest should not penalize natural gas utilities or their customers.

They adopted a new strategic plan to push a unified message: Natural gas can be compatible with a low-carbon Northwest economy, thanks in part to emerging concepts like renewable natural gas. (Today, the association and NW Natural say more specifically that policies favoring electric stoves and heat pumps won’t necessarily cut emissions because the region’s strained electrical system relies increasingly on gas-fired power plants.)

To sell the idea of continued gas use, the strategic plan said the industry should adopt a more “assertive advocacy style” that borrows insights from psychological research. People first make value judgments “via intuition and emotion,” the strategic plan noted, not facts. So the association would place “greater emphasis on the heart, in the public battle for the ‘hearts and minds.’”

NW Natural’s representative at the trade association, an executive named Kim Rush (Kim Heiting, at the time), gave her industry colleagues a look inside “Less We Can.” It was just the kind of play for the heart the strategic plan envisioned.

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“It’s a theme line,” Rush’s slideshow, dated July 2017, explained. “A rallying cry. A movement. A coalition with customers. A celebration. A call to action. A clean energy stake-in-the-ground… in 3 words or less.”

NW Natural had already road-tested the new slogan across four focus groups, via a consumer survey with 864 respondents and through television-ad concepts shown to 100 customers and 100 noncustomers. It had readied a new website, www.lesswecan.com, which featured cows and green fields and a FAQ about renewable natural gas.

One of Rush’s slides contained the campaign’s takeaways. Among them: “NW Natural and natural gas have an important, long-term role to play in our energy future”; “NW Natural has a plan, a goal and a running start”; and “Renewable natural gas is an exciting part of that plan.”

The campaign went live in fall 2017. Residents of Portland and other Oregon cities saw “Less We Can” TV spots, “Less We Can” YouTube videos, “Less We Can” newsletters, “Less We Can” billboards and “Less We Can” water bottles.

“Can a natural gas company be serious when it says it wants us to use less gas?” one video asked before showing a scene of a couple chopping vegetables together in the kitchen. “Can we really raise our families and lower emissions? Can we heat our homes and fight climate change? Can we expand our economy and use less?”

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“Yes,” a narrator answered, as the video cut to an image of free-range cows and hand-drawn arrows pointing to the words “renewable natural gas.”

Stills from a NW Natural "Less We Can" video ad.

Stills from a NW Natural “Less We Can” video ad.

Screenshots by ProPublica

***

At the time the “Less We Can” campaign was getting off the ground, not a single public utility in the United States regularly piped renewable natural gas to customers’ homes. The market for such organics-based gas was mainly clean fuels programs for vehicle fleets. Residential use would be pioneering, even experimental.

But if NW Natural’s ads had gotten ahead of reality, the company was already backing legislation that seemed to portend widespread use of the alternative fuel.

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It started earlier in 2017 with a bill in the Oregon Legislature that put forward a seemingly straightforward proposition. Oregon would take stock of its every landfill, every dairy farm, every sewage plant and every conceivable pile of woody debris: sites that could emit methane as organic matter broke down. Why not study how much was out there? The bill, a precursor to similar bills in other states, including Washington, sailed through with little opposition.

The ensuing inventory was a rigorous, yearlong process led by the Oregon Department of Energy that produced a 110-page report to the Legislature in September 2018 — which NW Natural quickly turned into a valuable talking point.

The report’s authors found that Oregon’s “technical potential” for renewable natural gas was significant: nearly 50 billion cubic feet. “That’s equivalent to the total amount of natural gas used by all Oregon residential customers today,” read a NW Natural press release. The company would go on to use variations of this phrase on its website, in annual sustainability reports and in statements to lawmakers.

But “technical potential” represents the amount Oregon could produce if money was no obstacle. NW Natural said little about another, more problematic finding: Using currently available technologies and waste streams, the state could produce just 10 billion cubic feet of gas from organic sources.

Barnhart, the former state lawmaker, says the utility’s selective interpretation of the study not only overstated the size of the resource, it left out “the real denominator” by ignoring industrial and commercial gas use. Including those and transportation customers in the equation would put total gas demand in Oregon at three times the figure NW Natural cited; the state’s potential renewable natural gas resources, using current technology, could meet less than 7% of that demand.

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“NW Natural has done a very, very good job of saying true things in a way that is grossly misleading,” Barnhart said.

Roy, the company spokesperson, said it was reasonable to call out Oregon’s full theoretical capacity to make the biogas, noting that all renewable energy sources have required innovation to bring them to market. As for focusing on residential use alone, NW Natural said highlighting a single sector was a useful way to “help people understand the magnitude of the resource.”

The company leaned on the state’s most optimistic numbers in early 2019 when it returned to lawmakers with a second, far more expansive bill that was the first of its kind in the country.

The new bill aimed to address another key barrier to NW Natural’s plans for renewable natural gas. Under existing state rules, utilities had to purchase gas for their customers at the lowest available price, and gas made from biomass could be 10 times more expensive than fossil natural gas. But the bill would allow NW Natural to pursue renewable natural gas and recoup the added cost from its customers. It would be able to spend up to 5% of its annual revenues, some $40 million or more, to secure a dedicated supply.

The legislation also set out ambitious but voluntary goals for NW Natural and other large gas utilities: to produce or acquire renewable natural gas equivalent to 5% of deliveries to retail customers by 2024, 10% by 2029 and 30% by 2050.

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Renewable natural gas is a small fraction of NW Natural’s supply for retail customers

Sources: NW Natural 2023 Annual Renewable Natural Gas Compliance Report; Oregon Senate Bill 98 (2019); 2022 NW Natural Integrated Resource Plan.

Sources: NW Natural 2023 Annual Renewable Natural Gas Compliance Report; Oregon Senate Bill 98 (2019); 2022 NW Natural Integrated Resource Plan.

Lucas Waldron/ProPublica

The company sent an executive named Anna Chittum to testify before an Oregon Senate committee, and she cited the inventory almost immediately. “They found about 50 billion cubic feet of potential in the state of Oregon,” she said.

Chittum emphasized that this would be a boon not only for the planet but for Oregon businesses.

“Renewable natural gas is a local resource, first and foremost,” she continued. “We believe that Oregon entities like wastewater treatment plants and landfills, some of the dairies in our region and other companies, as well as our natural gas customers, will directly benefit.”

The bill passed easily and with support from both parties just a day before a partisan meltdown tanked a more controversial piece of climate legislation, an effort to create a California-style carbon cap-and-trade system. The changes called for by cap-and-trade would have been mandatory, unlike those created by the renewable gas legislation. (The company now says it wanted binding targets for renewable gas but “other stakeholders,” whom it declined to name, opposed them.)

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On social media, the company’s Kim Rush soon cheered the bill’s success, sharing a photo of Oregon Gov. Kate Brown at a September 2019 signing ceremony, flanked by fellow lawmakers, NW Natural CEO David Anderson and at least three other employees of the company.

“Proud of our state for leading the nation on renewable natural gas development!” Rush wrote. “A vital step in the path toward decarbonizing our pipeline network. #LessWeCan.”

In a post on LinkedIn, Kim Rush of NW Natural shared this photo of a signing ceremony for a landmark 2019 bill allowing her utility to be one of the first in the nation to acquire renewable natural gas for customers. Oregon Gov. Kate Brown, center, posed with legislators and numerous NW Natural representatives. Anna Chittum, in pink, led the company’s renewables effort.

In a post on LinkedIn, Kim Rush of NW Natural shared this photo of a signing ceremony for a landmark 2019 bill allowing her utility to be one of the first in the nation to acquire renewable natural gas for customers. Oregon Gov. Kate Brown, center, posed with legislators and numerous NW Natural representatives. Anna Chittum, in pink, led the company’s renewables effort.

Screenshot by ProPublica

***

Despite the victory lap with Oregon’s chief executive, behind the scenes NW Natural and its allies were preparing to quash measures that activist groups and government officials said were needed to reduce the gas industry’s footprint.

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For this mission the Northwest Gas Association initially hired Kelly Evans, a public affairs consultant who once ran the successful reelection campaign of Washington Gov. Christine Gregoire. Evans recommended creating a formal coalition with partners outside the gas industry to lobby for continued natural gas use. It would draw in restaurant associations, labor unions, appliance manufacturers, homebuilders and more.

The winner of a million-dollar contract to build just such a coalition and launch a pro-gas campaign across the Northwest was the communications firm Quinn Thomas. It had helped Washington business interests win fights against cap-and-trade and a carbon tax in that state in 2015 and 2016. Now the firm pledged to “defeat policies detrimental to the natural gas industry” once again.

“When the time comes to ‘turn on’ the coalition to combat a specific proposal,” Quinn Thomas wrote in its bid, “we have extensive experience training and deploying spokespeople for public hearings.”

Evans and Quinn Thomas did not respond to ProPublica’s requests for comment.

Northwest cities including Bellingham, Washington, and Eugene, Oregon, were beginning to consider natural gas restrictions. Evans had outlined a messaging plan for such fights, one focused on affordability, reliability and resiliency, on solutions like renewable natural gas, and, most of all, on consumer choice: “There are policies being advanced to limit YOUR choice…” and “people want to take it away,” she wrote when describing the plan.

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After activists in Eugene accused NW Natural of overstating Oregon’s potential for renewable natural gas, Rush prepared a letter in 2021 to the city manager repeating the consultant’s talking points — “affordability, reliability and choice” — almost verbatim.

Eugene’s City Council nevertheless passed a partial natural gas ban in early 2023. Three days later, a group formed to collect signatures to revoke the ban, its name another apparent echo of the talking points: “Eugene Residents for Energy Choice.” Belying its grassroots name, the group’s work was bankrolled by $1,014,300 in donations — all but $220 of them from NW Natural. (The council eventually revoked the ban on its own.)

Another fight loomed at the state level. With cap-and-trade dead in the Oregon Legislature, Brown had issued an executive order mandating statewide controls on greenhouse gas emissions. For much of 2020 and 2021, the state prepared new rules to put Brown’s order in action.

The Oregon Public Utility Commission, which determines which costs NW Natural can pass along to consumers, soon began to question whether renewable natural gas was the most economical way for the company to meet the new climate rules. What if money spent on renewable natural gas went instead to home weatherization or more efficient appliances? What if it wasn’t spent on natural gas at all?

NW Natural filed suit against regulations stemming from the governor’s executive order in early 2022, serving as the lead plaintiff. The company noted in a letter to its customers that it was committed to addressing climate change, citing its support for past “landmark” renewable natural gas legislation among other actions. It said its legal challenge to the state’s climate program came only “after exhausting all other options.”

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NW Natural’s public messaging around renewable natural gas, meanwhile, remained upbeat. Starting in the summer of 2021, its events team visited at least two dozen street fairs and town festivals across Oregon with what it called the Cowthouse (“think cow + outhouse,” the utility explained): a fake toilet with cow legs sticking out below the door.

Those who approached the Cowthouse were challenged to a riddle: “What do a cow, a toilet and a banana peel have in common?” The answer, “RNG,” for renewable natural gas, was stamped on sugar cookies the company handed out.

***

As it pitched Oregonians on renewable natural gas, NW Natural had gone all out in emphasizing the vast amounts of rotting matter their state could use to produce it. In the end, the company opted not to use a bit of homegrown waste. It turned instead to other states, especially Nebraska.

Meat and poultry giant Tyson Foods kept two of its biggest beef slaughterhouses there, each week churning through tens of thousands of cows that, in turn, churned out hundreds of thousands of pounds of manure as they awaited their end at the facility.

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Cattle pens at Tyson Fresh Meats in Dakota City, Nebraska.

Cattle pens at Tyson Fresh Meats in Dakota City, Nebraska.

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Rotting manure lets off methane. Rotting carcasses let off methane. Rotting garbage lets off methane. The gas is so much worse for the climate than carbon dioxide, ounce for ounce, that capturing a farm or landfill’s uncontrolled methane and purifying it to pipeline quality could, under the right circumstances, offset the harm from emissions it creates when burned.

NW Natural has described renewable natural gas as “carbon neutral” in corporate reports and a “zero-carbon resource” in news releases. But in more recent filings with Oregon regulators, the company estimates that gas from its project in Dakota City, Nebraska, while cleaner than ordinary natural gas, still packs 25% of the climate impact. At the Tyson slaughterhouse in Lexington, Nebraska, it’s 40%.

In an interview, Chittum noted that there is no universal standard to measure how much a renewable natural gas project actually helps the climate. By the standards followed by some state programs, including in California, she said the Tyson projects could possibly be certified as carbon-zero, or even carbon-negative. But it’s expensive to hire someone to do a full accounting, and Oregon doesn’t require NW Natural to prove any benefit — so “we just haven’t spent … the third-party dollars to go calculate all of that,” she said.

Methane from the Tyson operations is captured and piped not to Oregon, but to customers mainly near the two plants. NW Natural counts it as a credit against the fossil natural gas its own customers burn.

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For 2023, NW Natural reported renewable natural gas from the Tyson projects, some dairy digesters in Wisconsin, a sewage treatment plant in New York and a food-waste project in Utah.

“It doesn’t matter where the renewable molecule of RNG comes from if reducing emissions is the goal,” NW Natural’s Roy told ProPublica.

***

NW Natural has notched a series of wins in recent months.

For the fourth year in a row, it was named one of the best gas utilities in the West by the survey company J.D. Power. For the third year in a row, it was named one of the world’s most ethical companies by Ethisphere, a for-profit company that rates other companies’ ethics for a fee.

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In late December, the Oregon Court of Appeals ruled in favor of NW Natural in overturning the state climate program that resulted from Brown’s executive order.

In May, NW Natural touted the results of a poll it had commissioned: It said 72% of Oregon voters opposed bans on natural gas in new homes and buildings, a 9-point increase since 2019. “Voters’ attention is more focused on what they believe are pressing concerns, such as homelessness,” a press release said. More than 75% of respondents supported efforts promoting renewable natural gas.

But the renewable gas business has not gone as billed.

The company’s data for 2023 showed that even as it harnesses the waste streams of one of the world’s biggest meatpackers — at an anticipated cost of $38 million, if two more planned Tyson projects come online — NW Natural is falling far short of the share of its supply it said would come from the alternative fuel.

In a document filed in August with the Public Utility Commission, the company said it had slowed its procurement and did not expect to hit the goal of 5% it had set for 2024. It blamed “policy and regulatory uncertainty,” particularly the commission’s skepticism of its renewable natural gas plans.

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“Less We Can” is taking on a new meaning.

After years of fanfare about renewable natural gas, what’s its share of NW Natural’s gas supply today?

Less than 1%.



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Oregon

John Day, Oregon: Camel population — 2 – East Oregonian

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John Day, Oregon: Camel population — 2 – East Oregonian


JOHN DAY — Grant County’s camel population doubled on March 20.

That’s when Hilde, the county’s famous 1,700-pound Bactrian camel, gave birth to Cora.

Talyn and Tabitha Elliott brought Hilde to the county about a year ago. The Elliotts didn’t know it at the time, but Hilde was beginning her 13-month-long gestation period with Cora before she arrived in John Day from Oklahoma.

“What happened is, Hilde was in a field with other female camels and a bull, and she wasn’t supposed to have her first heat until spring,” Talyn said. “She went into heat a year early, and the camel rancher knew she’d gone into heat but wasn’t sure if she’d actually been bred.”

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Talyn said it became apparent to Tabitha last summer that Hilde was pregnant, but he was skeptical. In the end, Tabitha was proven correct.

What followed was a gestation period that stretched through the summer, winter and into the springtime, ending with Cora’s birth March 20 on the hill behind the Elliots’ home up West Bench Road.

Talyn said Cora was between 65 and 105 pounds when she was born.

Proud mom

Hilde conducted a sort of official introduction of Cora on March 22 to drivers along West Bench Road, Talyn said, bringing her into the front yard to “show her off” to passersby. Hilde attracted attention from passing cars along the same road, and Cora was no different.

“She’s already getting a lot of socialization for sure,” Talyn said.

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Interacting with Cora behind the Elliots’ fence makes one thing apparent — Hilde is never far away.

She’s not threatening or intimidating, and she’ll let people get close to pet the baby — if Cora doesn’t eagerly approach the visitors first.

Talyn said as Cora gets older and larger, Hilde likely will be less protective. For now, Hilde and the occasional grunt she unleashes to remind people that she’s a watchful mom can be expected.

Hilde will nurse Cora for about a year. After that, Cora will move on to the alfalfa, grass hay, rose bushes, thistles and other plants that make up Hilde’s diet.

Hilde is 75% Bactrian, the two-humped camel variety, and Cora’s dad is 100% Bactrian, meaning Cora will have two prominent humps, just like her parents. Her coat will remain white, but its silver patches and streaks will become more prominent as she grows.

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Future plans

Talyn called Cora’s birth a welcome surprise and was ecstatic the calf was white instead of Hilde’s traditional brown.

Talyn and Tabitha’s two children, ages 14 and 12, were excited as well.

“They were just kind of in awe of the baby; it was cool,” Talyn said. “They didn’t know what to think at first, and then they just started loving on her, and it was cute.”

Talyn said he hopes to get Cora “excellently trained.” He’s already been picking up the calf’s feet to help her walk better.

The goal is to have Hilde and Cora walk in a line behind Talyn while he makes one of his famous walks through town.

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There may be interest to breed Hilde again, but Talyn said that can’t be done for at least two years, so he doesn’t have any plans to do so yet.

“I probably will want to have a little herd of camels,” he said, “but I’m not in any hurry to breed her again.”

For now, Talyn welcomes anybody who wants to make the trip up West Bench Road in John Day to stop by and catch a glimpse of Cora. He asks that visitors stay outside the fence to interact with young camel.

Those who want to keep up with Hilde and Cora can follow hildethecamel on Instagram.

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How did a small Oregon town become a hub for industrial development?

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How did a small Oregon town become a hub for industrial development?


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  • Several large companies are investing over $500 million to build new industrial facilities in Millersburg.
  • The city has become a mecca for new or expanded industrial growth due to its low property taxes, available industrial land and pro-development attitude.
  • The city of 3,000 people has become an attraction to businesses due to its proximity to Interstate 5 and railroads.

Ball Corporation, Timberlab, ATI and Gordon Truck Centers are pouring a combined $500 million, at least, to build manufacturing plants and other businesses in Millersburg.

That’s the kind of economic development any city would love. Large employers bring jobs and an expanded tax base, among other benefits.

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In a city of 3,000 like Millersburg, just south of Salem, those numbers make a major impact.

While some governments get “caught up in red tape and rule books” that make development difficult, Linn County Commissioner Roger Nyquist said, Millersburg city leaders welcome businesses.

“How can we get to yes for you on this?” Nyquist said.

When Millersburg uses the slogan “We Are Open for Business” on its website, it’s not just a line.

Millersburg’s low taxes, large tracts of developable land and easy access to Interstate 5 and rail service have made it popular for businesses. Few cities along Oregon’s predominant north-south arterial highway have experienced the city’s level of industrial growth, and certainly none of its size.

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“What the difference is that attitude is from our council,” former City Manager Kevin Krietman said. “I will tell you that historically Millersburg has always had a council that understands the value of the industrial base and protecting that industrial base and growing that base for the benefit of the community.”

Millersburg was incorporated in 1974 to keep taxes low

The town was established as Millers Station in 1871 when a rail station was built for the Southern Pacific Railroad. It became a large shipping point for cattle in the 1880s and renamed Millersburg around 1900.

The U.S. Bureau of Mines established a facility to produce zirconium there in the 1940s. That plant was sold to Wah Chang and the company produced metals including hafnium, tantalum and niobium. The company was later renamed Teledyne Wah Chang and it became a Superfund site.

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The environmental clean-up took 20 years.

The Willamette Kraft Corporation built a paper mill along one of the two rail lines that cut through it in 1952 to process wood chips into kraft paper. When it was owned by Weyerhaeuser, the plant was known for a smell reminiscent of rotting cabbage that greeted people driving by it on I-5.

“That was the smell of money, man,” Nyquist said.

Millersburg incorporated as a city in 1974, partially so businesses and residents could avoid being annexed into Albany and pay that city’s higher property taxes.

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About a third of the city’s land was designated for residential development, which left lots of room for industrial and commercial growth.

International Paper created new urgency in attracting industry

The paper mill closed for good in 2009 and cost 270 workers their jobs. It was then owned by International Paper and torn down by 2012.

At the time of its closure, the mill was paying about $2.6 million per year in property taxes, the most in Linn County.

“We lost a lot of jobs,” Millersburg Mayor Scott Cowan said. “And so that was a big impact, and then of course as that sort of was the immediate situation once that news got out was of course the financial impact to the city was by the franchise fees and taxes from the IP property, we felt that.”

The loss of that revenue was significant to the taxing districts officials had to find ways to replace the revenue to pay for city services and road repair, for example.

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Millersburg didn’t levy a property tax for its first 40 years because the city earned enough money from franchise fees to pay for basic city services. It now charges the maximum $3.50 per $1,000 of assessed value. Most of that goes to contracted fire and sheriff’s services.

The city long tried to attract businesses to fill the gap left by International Paper.

In 2008, Peak Sun Silicon broke ground on a 10,000-square-foot building where it would employ 500 people to product an ingredient in solar cells.

The state foreclosed on the property when Peak Sun defaulted on a $14 million loan in 2012.

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In 2019, the state gave $25 million to Linn County to build an intermodal facility on a portion of the former International Paper property.

That project cost $35 million, but has never operated.

Why companies are building in Millersburg now

When Timberlab was looking to build a new facility to manufacture mass timber, the company considered locations around the Willamette Valley including Independence and Corvallis, President Chris Evans said.

Then Timberlab found a 33.5-acre site in Millersburg. The location had challenges. It had a fish bearing stream, needed an entry road and the main connecting road to Old Salem Highway was under construction.

Still, Timberlab purchased the land from the city and expects to complete its first building this year. That project will bring an estimated 100 jobs to Millersburg.

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Gov. Tina Kotek, who attended the March 2025 groundbreaking, said Oregon is “leading the way” in mass timber and pointed to the new roof at the Portland International Airport terminal.

“The city really facilitated taking a lot of the issues out of the sites here, so they could invite somebody into the community and have a quicker turnaround to have something rezoned from agricultural to industrial,” Evans said at the facility’s groundbreaking.

That will include a 185,000 square foot manufacturing facility and it has plans for 85,000 and 126,000 square foot buildings in the future.

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Companies that build in Millersburg reap the same tax rewards as its citizens.

Property owners in Millersburg pay a combined tax rate of $15.61 cents per $1,000 of assessed value, one of the lowest rates in the state for a city that offers the services that Millersburg does.

A company building a $100 million facility can save over $1 million per year on property taxes compared to other cities if it builds in Millersburg.

The money brought in from taxes and fees also means residents don’t have to worry about being barraged with bonds and levies from the city.

“But don’t worry, our residents still complain about our taxes,” city manager Janelle Booth said.

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Companies like Timberlab also get a tax break by building in enterprise zones, areas designated for large-scale industrial development by the state.

Enterprise zone projects have to meet requirements including a minimum investment cost, employee count and must pay workers between 130% and 150% of the county’s average wage.

Businesses are also exempt from paying property taxes on capital improvements for three to five years. In a rural enterprise zone, such as the one in Millersburg, businesses could be exempt from paying taxes on those improvements for up to 15 years.

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In the meantime, the city will still benefit from the Timberlab development as it collects franchise fees from the company. Millersburg received nearly $1.2 million per year from Pacific Power last year, and that will go up with more power being used by Timberlab and Ball Corporation.

That money pays for basic city services like roads, parks and city administration.

“We’re looking at it for that long-term benefit, too,” Booth said.

Infrastructure investments make economic development possible

Millersburg has invested heavily in infrastructure that benefits residents and businesses. The city shares water filtration and wastewater treatment facilities with Albany.

Pacific Power owns and runs a regional operations center in the southern part of the city.

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Millersburg city leaders convinced Pacific Power to build a new substation on Conser Road across the street from the Jefferson Fire Department station in 2024. That provides large industrial users with plenty of electricity for whatever they plan to build.

Several large parcels inside the city limits were zoned industrial and never developed. Over the years, Millersburg acquired several of those parcels for free or close to it.

To spur economic development, the city took an active approach in marketing the industrial properties.

The city updated its comprehensive plan in 2020, which essentially served as a sales brochure for prospective development.

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“That’s an incentive that we can have with the industries to encourage them to come in,” Kreitman said. “We went through and we put together a presentation and the state asked us to come and talk about it for other communities to look at. It’s really helped us.”

The city council opted to be selective which companies it would sell properties to. For example, they chose not to sell land for warehouses that employ few people.

“As the property owner, the price of the property is one of our tools to get what we want in here,” Booth said.

The city still owns about 70 acres of flat, undeveloped land that is zoned industrial.

Ball Corporation development leads to interest from others

Cowan said Ball Corporation’s plans to build a plant helped spur much of the new economic development in the city.

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“We heard about another company that was interested, but it was a lot of this loose interest and no one really serious until Ball came along,” Cowan said. “That really was a big one.”

Ball Corporation’s facility could be larger than 500,000 square feet when it’s finished, according to city planning documents, but will be smaller to start, Kreitman said.

It is unclear how many jobs the Ball facility will provide once it’s finished. The company did not respond to requests for comment from the Statesman Journal.

Center Market is planning a new 5,200 square foot building for its store and offices. Pure Energy is build a 7,480 square foot building.

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Several businesses have announced plans for the former International Paper property.

Aymium, formerly known as National Carbon Technologies, signed a 16-year lease on 22 acres in 2022 to build a plant that uses carbon products to produce things like filters. Linn County approved a pause in that lease in 2025.

“And if they don’t go forward, we’ve got, guess what, flat land available at a reasonable price in close proximity to I-5 and rail,” Nyquist said.

In 2024, Omni Energy agreed to lease the site to transfer biodiesel from train to trucks. That still hasn’t happened.

“It’s going to take some infrastructure investment,” Nyquist said. “The operators want to work out a longer-term lease to justify that investment, and so that’s what we’re working on today.”

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Corvallis-based Samaritan hospitals owns a 2.3-acre plot of land in the north part of the city at the intersection of Old Salem Highway and the I-5 interchange.

The hospital system planned to build a regional medical center when it purchased the property for $1 million, according to city documents.

“While we do not have definitive plans for that property at this time, we do consider it a very important asset that can help us meet community health needs as Millersburg and surrounding areas continue to grow,” Larissa Balzer, vice president of strategy and planning at Samaritan Health Services, said in a statement.

Millersburg still lacking in commercial, residential development

While Millersburg has a lot of industrial development, it lacks commercial businesses.

Humpty’s Dump Bar & Grill and Oregon Barbecue Company are among the few commercial properties in town.

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The Love’s Travel Stop just off the North Millersburg exit, which opened in 2018, is the city’s most recent commercial development.

The city owns about 8 acres along Old Salem Highway between the new fire station, which the city built for $5 million in 2023, and Center Market. It has designated that for commercial development.

Unlike many small Oregon cities, Millersburg doesn’t have a downtown.

“We’re hoping to create one,” Booth said.

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The city also lacks affordable housing. The only houses for sale in Millersburg are advertised for over $500,000. There are no apartments or multi-family housing.

“That is the constant feedback we hear from our community and our council and our planning commission, 10,000 square foot lots is the hill to die on for our folks,” Booth said.

There are a couple large parcels of undeveloped property zoned for residential development in the city limits. The city had significant housing growth until 2023, when the last parcel of developable land in the city limits was built on.

City leaders say they can’t expand the urban growth boundary to the north or west because of the prime farmland in those areas.

The city is looking to expand to the east side of I-5 at a long-hoped-for new interchange for more commercial and high-density residential growth.

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Millersburg also owns land it intends to use for a YMCA building and a school, something the city hasn’t had since the last one closed in 1983.

“Last we knew, they are very interested in getting something in here,” Booth said.

Bill Poehler covers Marion and Polk County for the Statesman Journal. Contact him at bpoehler@StatesmanJournal.com



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PHOTOS: No Kings protests begin in Portland

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PHOTOS: No Kings protests begin in Portland


PORTLAND, Ore. (KOIN) — No Kings protests are underway in Portland, with crowds already gathering in opposition to the Trump administration.

Event organizers said they are expecting tens of thousands of protesters to take to the streets today.

See photos from the March 28 No Kings protests below:

  • Large crowds march during a No Kings Rally against President Donald Trump in downtown Portland.
  • Large crowds march during a No Kings Rally against President Donald Trump in downtown Portland.
  • Crowds march along Potland's South Watefront during a No Kings Rally.



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