Eric Hunt / Wikimedia Commons
Why It Matters
Extreme summer heat poses a genuine public safety threat in Oregon, where the 2021 Pacific Northwest heat dome claimed more than 100 lives. Despite years of state investment in heat pump programs, more than 18% of Oregon households still have no air conditioning at all — a number that puts the state among the worst in the nation for cooling access, according to U.S. Census Bureau data.
With another hot summer forecast and state heat pump incentives currently paused due to funding shortfalls, lawmakers are weighing whether to revisit the programs that were meant to address the problem.
What Happened
State Rep. Pam Marsh (D-Ashland), who chairs the House Committee on Housing and Homelessness, is planning to convene a workgroup focused on cooling systems in residential housing. The effort comes as Gov. Tina Kotek has already declared a state of emergency over wildfires, and as housing advocates grow increasingly concerned about residents’ ability to stay safe during extreme heat events.
“We are looking at a summer that’s likely to be very hot,” Marsh said in a public statement. “Making sure that the housing people have is comfortable, healthy and supports them in these pretty exceptional conditions, I think is part of our mission.”
Oregon has invested significant resources in heat pump technology over the past several years. In 2022, lawmakers allocated nearly $25 million in heat pump installation incentives and passed a law barring landlords from prohibiting portable air conditioners in rental units. In 2024, the state directed another $4 million specifically toward a Rental Home Heat Pump Program.
Despite that spending, the state has since paused heat pump incentives for most Oregonians, citing insufficient funding to continue at scale.
By the Numbers
- 4,638 heat pumps installed through state programs — a far cry from the state’s goal of 500,000 installations by 2030
- 25% of Oregon air conditioning equipment was estimated to be heat pumps as of December 2025, a 7% increase since 2023
- 58% of respondents in a 2023 Oregon Department of Energy survey reported lacking a permanent cooling system
- $500 million to more than $1 billion — the estimated cost to fully address the state’s cooling access deficit
- $300 more per billing cycle reported by some Portland General Electric customers during high air conditioning use
Program Details and Energy Efficiency
Heat pumps work differently from conventional air conditioning units by removing heat from interior spaces rather than generating cold air directly, making them generally more energy-efficient. Oregon’s Heat Pump Purchase Program offers $2,000 per installation through state-approved contractors.
Christy Splitt of the Oregon Department of Energy said the agency hopes to reopen the rental heat pump program toward the end of the two-year budget cycle ending in 2027. When asked about installation targets, Splitt said: “I’m hoping for 5,000. That’ll be a nice number.”
That cautious benchmark reflects just how far Oregon is from its 2030 goal. At the current pace, the state would need to dramatically accelerate installations — a tall order given that funding has already been paused and the estimated cost to close the cooling gap runs into the hundreds of millions of dollars. The Oregon Emergency Board recently approved $33 million in unplanned spending on a range of priorities, signaling that competition for limited state dollars remains intense.
Zoom Out
Oregon’s cooling access problem is not unique to the Pacific Northwest. Federal data shows coastal and northeastern states also rank poorly for household air conditioning access, but Oregon’s combination of rapidly warming summers and limited program funding has put the issue in sharper focus. Utility costs add another layer of pressure — Oregon utilities have recently restructured energy rates, shifting cost burdens in ways that could affect residential customers looking to add or upgrade cooling equipment.
The 2021 heat dome remains a defining event for Oregon policymakers. In that single weather event, more than 100 residents died, and the shock of that toll has driven years of legislative action — though the gap between program goals and actual outcomes remains significant.
What’s Next
Rep. Marsh’s planned workgroup is expected to examine gaps in current cooling programs and potentially lay the groundwork for new legislation when the Oregon Legislature reconvenes. The next official state heat pump report is not scheduled until 2027, meaning lawmakers will be operating with data that is at least two years old as they debate potential program changes. The Oregon Department of Energy anticipates reopening the rental heat pump program before that report is released, but specifics on funding levels and eligibility have not yet been announced.
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