Origin of the Settlement Funds

From the 1930s to just before they were banned in 1979, Monsanto was the sole manufacturer of polychlorinated biphenyls (PCBs) in the United States. 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. 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.

The Environmental Protection Agency classifies PCBs as a probable carcinogen, and PCBs 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 against Monsanto 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 providing Oregon with a once-in-a-generation opportunity to restore ecosystems and provide restitution for Tribes and other communities across our state. This 2022 settlement award is the largest pollution settlement in Oregon’s history and Monsanto’s largest single state payout.

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

How the Funds will be Allocated

The Oregon Environmental Restoration Fund has been established to function similarly to an endowment. Over the first 50 years, the Oregon Environmental Restoration Fund will use the settlement dollars to earn investment and interest income. Annually, the Oregon Environmental Restoration Council will determine a distribution amount from the fund based on earnings and fund balance. The distribution will be allocated to three statutorily established funds, and be used to support projects and programs to improve Oregon's environment and communities who have been harmed by PCBs and other toxins.