The Bend City Council has taken a major step toward charging a one-time fee on natural gas appliances in newly built homes, setting the stage for a political tussle over how the city heats its future housing. Councilors voted this month to keep developing the proposal and scheduled an informational roundtable in April ahead of a public hearing and possible vote in May or June. They say the goal is to cut greenhouse-gas emissions and nudge builders toward electric heat pumps and other efficient electric equipment in new construction. It is not an outright gas ban, but the idea is to make choosing gas furnaces, water heaters or other appliances significantly more expensive for builders and buyers.
Under the plan on the table, every gas appliance in a new home would come with its own surcharge. Fees would be calculated using the social cost of carbon, multiplied by the appliance’s projected lifetime emissions and then adjusted for the size of the home. Consultants from BrightLine Group gave staff sample calculations that showed those raw, pre-discount numbers can get big, and councilors have already talked about tiering the fees and adding discounts to blunt the impact. Early examples ran into the thousands of dollars for a single furnace before any reductions, according to The Source.
How the fee would be calculated
City staff laid out a straightforward formula: Social Cost x Annual Emissions x Appliance Lifetime, with a tier factor added for home size. After that, discounts or a lower flat-fee option could come into play. Officials say the money raised is meant to seed an incentive program that would help homeowners and builders install heat pumps, electric heat-pump water heaters and other efficient electric gear. The council has signaled it still plans to fine-tune who pays, which projects qualify for exemptions and how big a share developers will be expected to chip in before taking a final vote, according to The Oregonian/OregonLive.
Who’s pushing back
The idea has already stirred up organized pushback from regional opponents and gas-industry allies who warn the fee could ratchet up housing costs. The NW Coalition for Energy Choice is running a petition drive against the proposal, as reported by The Source, while industry voices including the Northwest Gas Association have urged cities to look closely at economic and legal ramifications before adopting similar policies. Builders and some labor representatives have told councilors the fee could push construction costs higher at the same time climate advocates are urging the city to move faster on electrification.
Where this fits in Oregon policy
Bend is not operating in a vacuum. Ashland adopted what was described as Oregon’s first carbon-pollution fee on natural-gas appliances for new residential construction in 2025, a move detailed by OPB. At the state level, the Residential and Manufactured Structures Board recently signed off on updates to Oregon’s residential energy code that steer builders toward energy-efficient heat pumps instead of traditional ducted air conditioning, according to Smart Cities Dive. Taken together, these local and statewide moves are reshaping what new housing in Oregon is likely to look like, and who ultimately pays for the transition to cleaner equipment.
The Bend council plans to keep working through the details this spring. Staff and consultants are expected to return with proposed fee schedules, exemption criteria and draft rebate programs tied to the new revenue. City officials post meeting agendas and public-comment instructions on the City Council section of the city website, and residents can track the process or weigh in during business meetings or work sessions, either in person or virtually, according to the City of Bend. After the April roundtable and subsequent hearings, the council could vote on a final ordinance later in the spring or in early summer, depending on public feedback and legal review.
If the fee is ultimately adopted, it would give Bend a new tool to push building practices toward electric appliances and away from fossil fuels. Opponents argue it would add yet another cost for buyers and builders, while supporters describe it as a necessary lever to meet the city’s climate goals. Expect the coming debate to zero in on which projects get exemptions, how much developers are required to contribute and how the city will channel the collected dollars into electrification incentives.
