HomeMy WebLinkAbout3254 Amending AMC Title 9 Health and Sanitation Creating Chapter 9.45 Pollution Impact FeeORDINANCE NO.3254
AN ORDINANCE AMENDING AMC TITLE 9 HEALTH AND SANITATION
CREATING CHAPTER 9.45 CARBON POLLUTION IMPACT FEE AND
ESTABLISHING STANDARDS FOR A CARBON POLLUTION IMPACT FEE FOR
NEW RESIDENTIAL STRUCTURES IN THE CITY OFASHLAND
Annotated to show deletions and additions to the Ashland Municipal Code sections being
modified. Deletions are I3 , and additions are bold underlined.
Powers of the City. The City shall have all powers which the constitutions, statutes, and common
law of the United States and of this State expressly or impliedly grant or allow municipalities, as
fully as though this Charter specifically enumerated each of those powers, as well as all powers
not inconsistent with the foregoing; and, in addition thereto, shall possess all powers hereinafter
specifically granted. All the authority thereof shall have petpetual succession.
WHEREAS, the City of Ashland has declared a commitment to climate recovery goals in Title 9
of the Municipal Code as detailed in the Climate and Energy Action Plan (CEAP); and
WHEREAS, emissions fi-om buildings represent one of the largest sources of greenhouse gas
emissions in Ashland; and
WHEREAS, reducing fossil fuel consumption is essential to meeting the City's CEAP goals;
and
WHEREAS, transitioning to low -carbon electric homes is most feasible in new construction;
and
WHEREAS, adding new residential strictures reliant on fossil fuels increases the City's carbon
footprint and requires additional mitigation efforts; and
WHEREAS, an upfront carbon pollution impact fee provides a mechanism to account for and
offset the envirotnnental, health, and societal costs associated with fossil fuel -based systems; and
WHEREAS, revenue generated from this fee could support programs promoting clean
technology installations, including support for low-income households, furthering the City's
decarbonization goals.
THE PEOPLE OF THE CITY OF ASHLAND DO ORDAIN AS FOLLOWS:
SECTION 1. Chapter 9.45 Carbon Pollution Impact Fee is hereby created to read as follows:
9.45.010 Purpose
The Inulmose of this chapter is to promote the healdisafety, and general welfare of Ashland
residents by establishing a Carbon Pollution Impact Fee for new residential develo pment
ORDINANCE NO. 3254 Page 1 of 4
utilizing fossil fuel -powered thermal energy systems. This ordinance all ns with the goals
set forth in Chapter 9.40 Climate Recover and Implements the Climate and Ener
Action Plan CEAP to the full extent of the Ci 's authority under applicable federal, state
and local laws.
9.45.020 Definitions. For purposes of this chapter the following definitions apply:
A. Thermal Energy System: Any system for space conditioning, water heating, cookie
process heat or other building energy use that relies on fossil fuel combustion excluding
outdoor grills, heaters or other systems designed for exclusive use outside of enclosed
residential structures.
B. Fossil Fuel: Fuels derived from hydrocarbons, including but not limited to natural gas,
coal oil propane, and kerosene.
C. New dentin! et..
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or repaWs to existing buildings, and complete
demolition and rebuilds, and any ceesso" dwelling unl�-
C. New Residentlal Building: New construction of any residential building, including
complete demolition and rebuilds and any accessory dwelling units. This definition does
not include additions alterations renovations or repairs to existing buildings.
D. Social Cost of Greenhouse Gases (SCGHG): The monetary value assigned to climate
change damages resulting from the emission of one metric ton T of greenhouse gases.
The SCGHG shall be determined as follows:
1. The base value shall beset at the November 2023 determinationpublishe€f by the
United States Environmental Protection Agency PA .
2. On January 1 of each subsequent year, the SCGHG shall be adjusted by the
percentage increase in the Consumer Price Index CPI-U U.S. city average, not
seasonally adjusted for the 12 months preceding the previows September 1.
3. Should the EPA release u )dated SCGHG values in line with leading scientific
standards the Cl Council may review and adopt such values by ordinance.
E. CO2e: Carbon dioxide equivalent a standardized measure for comparing the impact of
different greenhouse gases.
9.45.030 Carbon Pollution Impact Fee
A. Fee Assessment:
Applicants utfilzfng a fossil fuel thermal energy system in a new residential building shall
be assessed a Carbon Pollution Impact Fee for each dwelling unit therein. This fee shall be
due upon the issuance of building permits.
1. Exceptions: No fee shall be assessed for the following:
ORDINANCE NO. 3254 Page 2 of 4
i. Outdoor thermal energy systems, including but not limited to propane ,grills,
patio heaters, and other systems designed for exclusive use outside of enclosed
residential structures.
ii. Thermal enemy systems not explicitly listed in Section 9.45.030 B (Fee
Calculation)
B. Calculation of Fee:
The Carbon Pollution Impact Fee is calculated as follows:
Fee_=(SCGHG)x(MTCO2e)x(Service Life)
Where:
• SCGHG is $208 per metric ton aMusted annually),
• MTCo2e is 2.49 metric tons for an averaee residential natural eas home in Ashland
adjusted for specific appliance usage.
Service Life is the expected operational lifes an of the appliance, as detailed below:
Appliance
CO2e (MT/year)
Service Life (Year's)
Fee Example
Furnace
1.32
15
$208 X 1.32 X 15=$4118.40
Water Heater
0.62
10
$208 x 0.62 x 10 = $1289.60
Range
0.12
10
$208 x 0.12 x 15 = $374.40
Gas Fireplace
0.35
10
$208 x 0.35 x 10 = $728.00
Clothes Dryer
0.07
10
$208 x 0.07 x 10 = $145.60
If fossil fuel piping is present for an appliance but no a Nance is installed the absent
appliance will be assumed to use fossil fuels and the fee will be calculated accordingly,
However, if a new electric appliance is installed, even with existing fossil fuel piping, no fee
will be applied.
>�, lied.
C. Annual Aciiustment:
On January 1 of each year, the SCGHG shall be adjusted in proportion to the Consumer
Price Index CPI-U U.S. city average, not seasonally atl usted for the 12 months preceding
the previous September 1.
9.45.040 Reporting requirement.
A. Record Maintenance:
The City shall maintain records of all fees collected and report annually on the revenue
generated and its allocation.
B. Annual Reporting Requirements for Fossil Fuel Utilities Operating in the City's Right
of Way:
Any utility providing fossil fuels and operating within the Ci 's Right of Way must submit
an annual report detailing total residential and commercial fossil fuel consumption. For
metered fossil fuel services the report must include the total number of operational meters
separated into residential and commercial accounts. This data shall be provided on the
same schedule as payments to the City for Right of Way use.
ORDINANCE NO. 3254 Page 3 of 4
9.45.050 Penalties
A. Violators of this chapter. including non-payment of the fee or installation of unperinitted
fossil fuel systems, are subject to the ,gueneraLL),enalt3, provisions In
violation occurs each
allocated to clean energX_pK2grams.
SECTION 2. Effective Date. The provisions of this chapter shall take effect on January 1,
2026.
SECTION 3. SeverAhRftL Each section of this ordinance, and any part thereof, is severable,
and if any part of this ordinance is held invalid by a court of competent jurisdiction, the
remainder of this ordinance shall remain in Rill force and effect.
i
SECTION 4. Codification. Provisions of tills Ordinance shall be incorporated in the City Code
and the word "ordinance" may be changed to "code", "article", "section", "chapter" or another
word, and the sections of this Ordinance may be renumbered, or re -lettered, provided however
that any Whereas, clauses and boilerplate provisions (i.e. Sections 3-5) need not be codified and
the City Recorder is authorized to correct any cross-references and any typographical errors.
The foregoing ordinance was first read by title only in accordance with Article X, Section
2(C) of the City Charter on the 2 Is' day of January, 2025, and duly PASSED and ADOPTED this
z _day of 1'UQ,*,tJ ,2025.
PASSED by the City Council this day of
2025.
ATTEST:
l "�a' 'lodzi ski,- I i a' 0 11 - ty k�coraer
SIGNED and APPROVED this day of C-J,Y 2025.
Tonya Graffam, Mayor
Reviewed as to form;
I
ORDINANCE O. 3254 Page 4 of 4