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Legislators are gathering in Salem for a five-week session that could have long-lasting effects on construction, commercial real estate and development.

Or, it could end with another walkout by Senate Republicans, limiting legislative progress on a host of priorities set forth by Gov. Kate Brown, House Speaker Tina Kotek and other Democratic leaders.

The Oregon Legislature will convene on Monday. At the top of the agenda for Democrats, who control both chambers, is cap-and-trade legislation that would limit carbon emissions. It’s broadly similar to systems in other states that cap emissions and let polluters trade for credit, with twists to address Oregon’s urban-rural divide.

Conversations are under way to persuade Senate Republicans to stay in Salem for the session.

鈥淲e’re hoping that they’re not going to use the same tactics and basically kill the short session, because there’s other important legislation that needs to be dealt with,鈥� Rep. Mark Meek, D-Clackamas County, said.

Brown made a case for climate change legislation on Monday at a City Club event in Portland.

鈥淲e must do something meaningful and soon about climate change,鈥� she said. 鈥淭his is the challenge of our time.鈥�

Yet Brown turned aside a critical question about the Oregon Department of Transportation‘s nearly $1 billion Rose Quarter project.

鈥淲e absolutely must address the Rose Quarter issue to increase safety and, at the same time we can do this with a layer of congestion pricing, and that should make sure it’s carbon neutral,鈥� Brown said Monday.

Several changes have been made to climate change legislation that the House passed last year. The new Senate Bill 1530 would sharpen different approaches for urban and rural Oregon. The bill would require 80 percent of fund raised to be spent locally. ODOT would receive the remaining 20 percent, but the agency would be required to spend much of the revenue where it’s raised.

The cap-and-trade 鈥� or, to supporters, 鈥渃ap and invest鈥� 鈥� bill would roll out gradually by region, with Portland first subject to the requirements in 2022. Other cities would follow in 2025. Rural areas would have the option of opting in thereafter, but would not be required to do so.

鈥淭he majority of truly rural communities will be exempted from price increases at the pump,鈥� Brown said.

The city of Portland has supported legislation to reduce greenhouse gas emissions, but hasn’t taken a position on the Senate bill, said Elizabeth Edwards, director of the city’s Office of Government Relations. 鈥淲e’re reviewing it now and getting input,鈥� she said.

The Senate Republican caucus did not immediately respond to a request for comment.

In other legislation:

• Brown has filed a resolution, H.J.R. 203, which would authorize real estate transfer taxes to fund affordable housing. The resolution would be referred to voters as a constitutional amendment. It would essentially undo Measure 79, a 2012 ballot measure that prohibits real estate transfer taxes.

If the new measure were approved, the transfer fees would not apply to the first $500,000 of real estate value, exempting most home sales. (The median price of a Portland-area home was $410,000 in 2018, according to RMLS, and most rural areas have lower property values). The bill is likely to attract fierce opposition from the real estate industry.

• State Rep. Nancy Nathanson, D-Eugene, is sponsoring a bill that would 鈥渄isconnect鈥� state taxes from federal opportunity zone tax breaks. Investors would still earn federal tax breaks, but not additional state tax breaks, she stated in an email.

鈥淭he intent was to provide incentives for investors to invest in low-income communities,鈥� Nathanson stated. 鈥淭he cost to the state, however, is significant 鈥� estimated at $10 million or more for the first year 鈥� and legislators, constituents and some advocacy organizations are questioning whether the public benefit is worth the loss of revenue to fund critical programs.鈥�

The bill would suspend state opportunity zone tax breaks for a year to allow time for a study of Oregon’s zones.

Portland’s opportunity zone has received national attention for its location covering downtown, Pearl District and Central Eastside real estate that is highly desirable to developers. Opportunity zone funds have been created in Portland for the 35-story Block 216 tower, a luxury hotel and condominium project; 11 West, a 25-story mixed-use building; and a proposed eight-story office building in the Central Eastside.

鈥淭he goal would be to come back next year and find out whether we want to reconnect with these opportunity zone breaks with a better understanding of what would best suit Oregonians and how we could best support Oregon,鈥� Meek said.