Bend City Council approves Climate Pollution Fee on natural gas appliances in new homes
BEND, Ore. (KTVZ) — After years of debate, Bend City Council has approved a new Climate Pollution Fee that will place charges on certain natural gas appliances in some new homes, setting up another fight over climate policy, housing costs and energy choice in the city.
The council adopted the ordinance at its June 3 meeting in a 4-1 vote. The fee applies only to new single-family homes, duplexes, townhomes and accessory dwelling units. It does not apply to manufactured homes, triplexes or larger housing developments, existing buildings, renovations, replacements or commercial construction.
The policy is set to take effect on April 1, 2027.
What the fee does
The city says the fee is designed to reflect the climate damage caused by natural gas appliances in new construction. It will be based on home size and the type of appliance installed, with each gas appliance carrying its own fee.
City officials say the policy is closely tied to Bend’s climate goals and its 2016 climate action resolution. Councilor Mike Riley said buildings are among the city’s biggest sources of emissions, "This fee is an effective policy mechanism targeted at one of the driving forces of our community’s fossil fuel use.”
The city also says the final fee amount will be calculated in early 2027 using updated utility data and the actual fuel mix that generates electricity at that time. Riley said if a gas appliance turns out to be less carbon-intensive than the comparable electric option, the fee for that appliance would be zero.
Why supporters back it
Supporters of the policy say it is a practical way to push new homes toward cleaner energy while protecting Bend’s future. City leaders say buildings account for about half of Bend’s greenhouse gas emissions, and electrifying those buildings is one of the most effective ways to reduce that number when paired with clean electricity.
Councilor Steve Platt said the policy will help the City meet its climate goals, “We are creating strong incentives to reduce greenhouse gas emissions and invest in cleaner energy sources, leading to improved air quality, strengthening our resiliency and ensuring we are doing our part to address the global climate challenge.”
Advocates also say the policy could help Bend keep up with housing growth while still addressing climate concerns. The city says the fee is meant to support an equity-focused program that will help improve energy efficiency and affordability for Bend households. Supporters at the final public hearing said the policy could also help utilities plan smarter for future energy demand and reduce pollution from the start.
Why opponents object
But the plan has drawn sharp criticism from opponents who say the city is adding another cost to new housing in a place already known for high prices. A mailing sent out by the Northwest Coalition for Energy Choice urged residents to oppose the move, arguing that the fee amounts to a hidden tax on new homes and makes Bend less affordable.
Opponents also question whether Bend should be pushing gas appliances out of new construction before the city has fully proven that the transition will be affordable and reliable for residents. Some critics say the policy limits consumer choice and could create new pressure on builders and buyers at a time when Oregon is already trying to add more housing.
Broader push for electrification
The fee did not come out of nowhere. Bend city leaders have spent several years looking for ways to encourage building electrification, with work sessions stretching from 2024 into 2026 as council members explored different policy options. The ordinance is also modeled in part on a similar policy adopted by Ashland last year.
Supporters say the timing matters, pointing to Bend’s growth, its housing needs and broader state efforts to cut emissions. The city’s release notes that Bend will need thousands of new homes over the next two decades, while state energy and building code changes are also moving toward cleaner construction.
