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City staff outlines proposed electrification fee on gas appliances; AHEC invited to April 8 roundtable
Summary
City staff described a proposed one‑time electrification fee on natural‑gas appliances for new construction, with council direction to charge 20% of a baseline formula; staff invited AHEC to a roundtable on exemptions and implementation and discussed possible exemptions for deed‑restricted affordable housing.
City staff briefed the Affordable Housing and Community Advisory committee on a council‑directed electrification fee proposal that would apply to natural‑gas appliances in new construction and create a revenue pool to fund electrification incentives.
Cassie Lacey, senior management analyst, said council has directed staff to pursue a fee based on a baseline formula (using a social‑cost‑of‑carbon approach, per‑appliance charges and tiers by home size) but to discount that formula to 20% when setting the initial fee. Lacey said preliminary analysis showed an average all‑gas, single‑family home would face about $2,000 under the 20% approach; the fee is applied per appliance (for example, she cited a stove charge around $150 and HVAC as a larger share).
Steve Platt, counsel liaison, clarified the proposal is for a one‑time upfront fee, not an ongoing annual charge. Staff outlined two procedural questions remaining: whether deed‑restricted affordable housing should be exempt and what the implementation timeline and any phased or pilot approach should be.
Lacey said staff will host a council roundtable on April 8 (4–6 p.m., Public Works Campus) focused on exemptions and timing; the roundtable will include the three energy utilities and the mayor will facilitate. Staff will post a memo and fee schedule ahead of the roundtable and the council expects further direction at an April 22 work session and a public hearing and tentative adoption in early June.
Committee members urged staff to consider affordable housing impacts and discussed three options: full exemption for deed‑restricted affordable units, targeted incentives funded by fee revenue to support electrification in affordable projects, or no exemption but strong incentives. Several members signaled support for preserving affordable housing cost neutrality, while staff and legal counsel said incentives would require a funding source and program design for council to act.
What’s next: AHEC will be invited to send a representative to the April 8 roundtable; staff will circulate the memo and fee schedule in advance and the council will continue deliberations through late spring.
