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As Bend continues to grapple with housing affordability, conversations that may once have seemed purely environmental, like electrification, are now directly tied to the cost of building and living in our community.
What was once a climate-focused discussion has become a housing conversation. At the same time, the underlying goal remains important. Reducing emissions and planning for a more sustainable future continue to be key priorities for our community.
Electrification is one example of how these issues are converging. As the City of Bend advances policies to reduce natural gas use in new residential construction, including adoption of a climate pollution fee, the conversation is no longer just about energy systems. It is about how those decisions impact the cost of building homes, the availability of housing, and who can afford to live in Bend.
The Cumulative Impact on Housing
The City of Bend has now taken action to move forward with a climate pollution fee on natural gas in new residential construction, with implementation scheduled for April 1, 2027. Even at a lower recommended level, this fee is estimated to add approximately $2,000 or more per home.
On its own, that increase may seem manageable. But it does not exist in isolation. At a time when households and builders are already navigating higher interest rates, construction costs, and broader economic uncertainty, even incremental increases can have a meaningful impact on housing affordability.
Electrification is being considered alongside other policies that also affect housing cost, including wildfire hardening requirements (R327), updates to the Tree Code, and additional regulatory changes. Taken together, these policies shape the overall cost of building housing in Bend, making it important to consider their combined impact. In a market already facing constraints, a coordinated and thoughtful approach can help ensure we continue to expand housing opportunities for the workforce Bend depends on.
Where Electrification Fits
Electrification has evolved significantly over the past several years, moving from an emerging idea to an active policy discussion that will shape how Bend grows.
The goal is clear: reduce emissions by transitioning away from fossil fuels in buildings and align with broader state and local climate goals. There are also long-term opportunities, including improved energy efficiency, lower operating costs over time, and growth in sectors tied to clean energy and building innovation.
We support Bend’s climate goals and appreciate the City’s commitment to a collaborative process here at the Bend Chamber. Done right, this can be a model for balanced policy that advances sustainability while also addressing affordability and reliability.
How we get there is just as important as the goal itself. As this policy moves toward implementation, it will be important to ensure it is carefully sequenced and grounded in local realities to avoid unintended impacts on housing affordability and energy reliability.
A Path Forward
Bend is at an important inflection point. Electrification presents a real opportunity to advance climate goals, and we will continue working with the City as implementation moves forward to ensure impacts on housing affordability and the broader community are carefully considered.
The Bend Chamber shares the City’s climate goals and appreciates the continued commitment to a collaborative process. Throughout this discussion, we advocated for a longer implementation timeline and a pilot program to better understand the real-world impacts of this policy on housing affordability. While we are encouraged by the City’s efforts to find balance, including adjustments to the fee level, we are disappointed that a more phased, data-driven approach was not adopted.
As this policy moves forward, we remain committed to working with the City and community partners to ensure implementation reflects Bend’s housing and economic realities. We also note that key decisions related to how this policy applies across income levels, including households in the 80 to 120 percent AMI range, remain unresolved. We encourage the City to ensure final decisions include exemptions that support housing affordability for Bend’s workforce. Thoughtful pacing and continued collaboration will be essential to achieving outcomes that support both sustainability and a community where people can afford to live and work.
