Posted On: July 8, 2008 by Tonkon Torp LLP

Lottery Funds: New Ticket to Climate Change?

Governor Kulongoski recently revealed his new comprehensive water strategy initiative, Headwaters to Ocean (H2O). The initiative's primary goal is to "achieve sustainable water supplies and quality to benefit Oregon's people, communities, economy, environment and ecosystems, and fish and wildlife" in the face of the pressures of climate change and rapid population growth. The H2O initiative is part of the Governor's legislative package designed to mitigate the impacts of global warming. To fund this initiative, Governor Kulongoski intends to ask the 2009 Legislature to put a referral bill before voters requesting $100 million from projected lottery dollars per biennium for 10 years. This bill, if passed, would then be placed on the November 2010 ballot. If approved, the H2O initiative would join a new class of climate change-based initiatives funded by lottery dollars.

The use of lottery money to fund climate change-based initiatives seems to be an emerging international concept. For example, the Climate Group, an independent, not-for-profit organization that works internationally with government and business leaders to advance climate change solutions, recently secured €1.5 million (approximately $2.36 million) from the Dutch National Postcode Lottery. The monies will be used to fund a global hub for climate change leadership involving influential state and regional governments around the world, including California and New York. Similarly, an injection of ₤1.25 million (approximately $2.47 million) in lottery funds from the UK's national lottery will help to fund a project aimed at making a small Scottish town, Stirling, the UK's first carbon neutral city.

Given the fact that Oregon is considered a forerunner in sustainability in the United States. Oregon's use of innovative funding to address climate change seems befitting its status as a "green state."

Posted by Jeanette C. Schuster, Attorney practicing in the Sustainability and Real Estate and Land Use Practice Groups.