To: MAYOR AND CITY COUNCIL
From: LUKE SMUDE, ASSISTANT TO THE CITY MANAGER
TITLE
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DISCUSSION AND POSSIBLE ACTION REGARDING PROPOSED AMENDMENTS TO RULES 1111 AND 1121 OF THE SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT'S GOVERNING BOARD THAT WOULD BAN RESIDENTIAL GAS-FIRED FURNACES AND WATER HEATERS IN THE REGION
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EXECUTIVE SUMMARY
The South Coast Air Quality Management District (SCAQMD) Governing Board is holding a public hearing on June 6, 2025 to address amending two rules to reduce emissions and ban residential gas fired furnaces (Rule 1111) and water heaters (Rule 1121) to transition to zero-emission appliances.
BACKGROUND
The SCAQMD recently proposed Rules 1111 and 1121 which require a shift from natural gas furnaces and water heaters to all-electric units for both new and existing buildings. These rules are intended to reduce emissions across Los Angeles, Orange, Riverside and San Bernardino Counties. The Cost of Living Council, an advocacy group focused on the impact of proposed regulations on the cost of living in Southern California, estimates the rule changes could burden consumers with over $300 million in compliance costs annually, or approximately $7.7 billion over the projected 25-year life cycle of the new appliances.
Property owners would face significant retrofit expenses (electrical panel upgrades, new plumbing and structural modifications) potentially raising housing costs and straining the electric grid. SCAQMD states that these proposed amended rules would eliminate nitrogen oxide (NOx) emissions from residential heating appliances that burn natural gas and transition the region to using zero-NOx emission appliances.
Several cities and agencies, including the Orange County Council of Governments, San Gabriel Valley and San Bernardino Councils of Governments along with a number of cities including Santa Ana, Fullerton, San Clemente, Anaheim, among others, have expressed concerns with the proposed amendments. These...
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