Everything You Need to Know About Ashland’s New Electrification Ordinance

Photo of Rogue Climate’s Ashland Youth for Electrification Team.

The new policy aims to reduce climate-warming emissions — and clean up indoor air quality

On Tuesday, February 18, 2025, Ashland City Council passed a landmark climate policy with unanimous support. The new pollution fee ordinance incentivizes developers to build homes with all-electric appliances by charging a fee for the installation of methane (“natural” gas) in new construction. 

“This is a step in the right direction for the climate and our planet,” said Bryan Sohl, chairman of the city’s Climate and Environment Policy Advisory Committee.

Here is what Ashlanders should know about the new ordinance.

Why place a fee on natural gas? 

“Natural” gas is primarily composed of methane, a potent greenhouse gas that traps 80 times as much heat as carbon dioxide over a 20-year period, effectively hitting the gas on climate change (yes, pun intended). At every step of its transportation and use, from refineries to pipelines to our stoves, methane leaks out into the atmosphere. Methane from our gas stoves alone has a climate impact comparable to the carbon dioxide emissions of 500,000 gas-powered cars, one Stanford study found.

In Ashland, switching homes to electric appliances is especially beneficial: 96% of energy used locally comes from clean non-carbon sources (like hydropower and solar).

But so-called “natural” gas isn’t just bad for the environment — it also harms our own health. As methane burns, it releases nitrogen dioxide (NO₂) as a byproduct. Exposure to this gas is harmful to the lungs — and may be responsible for as many as 200,000 current cases of childhood asthma. Gas appliances also leak other harmful gases, including the carcinogen benzene at concentrations higher than second-hand smoke. 

How much will developers have to pay to install gas appliances? 

The proposed fees for installing gas appliances are as follows:

• Furnaces: $4,118.40
• Hot water heaters: $1,396.60
• Ranges: $374.40
• Clothes dryers: $145.60
• Gas fireplaces: $728.00

I already own my home. Do I have to pay a fee if I purchase new gas appliances? 

No. This ordinance only applies to new construction. (But we still recommend switching out your gas appliances for efficient electric ones when they are ready to be replaced. The climate and your wallet will thank you. We have plenty of info on how to start your electrification journey.)

Will this ordinance affect businesses?

No. The pollution fee only applies to residential construction. 

I’m thinking about building an ADU. Will the pollution fee apply to my new unit? 

Yes. Homeowners will have to pay a fee for gas appliances installed in new ADUs. This ordinance also applies to complete demolitions and rebuilds.

What if I don’t like electric appliances?

This ordinance doesn’t require anyone to switch to efficient electric appliances — but we encourage you to give them a chance! A growing number of professional chefs are singing the praises of induction cooktops, heat pumps are outselling gas furnaces, and heat pump water heaters are taking off. 

Not only are these appliances effective — they save homeowners and tenants money! The electrification non-profit Rewiring America estimates that the average household can save between $1,050 and $2,585 per year in energy bills by switching to efficient electric appliances.

When fees are collected, how will the money be used?

Any revenue generated from this Ordinance will go to the Ashland Low Income Energy Assistance Program within the Electric Fund.

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Special thanks to Rogue Climate and the Ashland Youth for Electrification Team, the Climate and Environment Policy Advisory Committee, and the City of Ashland for their hard work on this policy. This pollution fee is the result of years of your hard work – we appreciate you!