The Bend City Council voted 4-1 to approve a climate pollution fee on new homes with gas appliances, set to take effect April 1, 2027. Builders will pay up to $2,972 per permit for homes with gas heating, water systems, stoves, dryers, or fireplaces. The fee uses the EPA social cost of carbon to calculate charges, discounted by 80 percent. Funds go into a Climate Pollution Fund for projects like flood and fire mitigation and building decarbonization. Opponents including Cascade Natural Gas, Central Electric Cooperative, and builders argue the fee could raise housing costs, strain the electrical grid, and cut jobs in gas infrastructure. Supporters say it helps Bend meet state carbon-free electricity mandates by 2040 and its own 2016 climate resolution. Ashland passed a similar ordinance in January 2025. The policy applies only to new construction, not existing homes or all-electric builds.
