Agenda Packet - February 3, 2025
Resolution Opposing South Coast Air Quality Management District Proposed Amended Rules 1111 and 1121 Related to Regulation of Air Emissions from Residential and Business Natural Gas Furnaces and Water Heaters. ,
from a SCAQMD draft staff report on the PARS show replacement costs for space heaters ranging from $18,500 to $21,500 in an electric panel upgrade is needed. For water heater replacements, the cost to go electric ranges from approximately $5,200 to $8,200. At this time, SCAQMD has not released information on the proposed Go Zero Incentive Plan which is proposed to reimburse residents for the transition. It is important to note that as understood, the Go Zero Incentive Plan is a rebate program so residents would need to provide upfront funding. An example from a SCAQMD presentation shows the cost of a Heat Pump Water Heater at $5,200 while the incentive rebated is only in the $1,000 to $2,000 range, though with longer-term fuel savings derived from the switch.
Previously, on June 7, 2024, SCAQMD’s Governing Board approved updates to Rule 1146.2 that will require new and existing residential and commercial buildings to transition to zeroemission (ZE) water heaters, to include natural gas-fired pool heaters, larger water heaters, small commercial water heaters, boilers, and process heaters, starting January 1, 2026.
Concern expressed by industry and resident commenters in meetings held by SCAQMD include that the rules create significant burdens for consumers and will potentially cost billions of dollars to only slightly reduce overall nitrogen oxide (NOx) emissions within the South Coast Air Basin. Based on information contained in a preliminary staff report for the Proposed Amended Rules, that percentage is 10 tons per day out of the total 351 tons per day of NOx emitted by all sources within the basin. As such, there is concern that PARs 1111 and 1121 require significantly more public education and consideration before being promulgated by SCAQMD.
FISCAL ANALYSIS
The consideration and adoption of the Resolution does not have a City fiscal impact.
ENVIRONMENTAL ANALYSIS
Not applicable.
LEGAL REVIEW
The City Attorney has reviewed the proposed Resolution.
ATTACHMENTS
1. Reso No 25-XX SCAQMD Rules 1111 and 1121
2. Rule 1111 and 1121 Factsheet
Agenda Packet - February 3, 2025
RESOLUTION NO. 25-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA VERNE, CALIFORNIA, OPPOSING PROPOSED AMENDED RULES 1111 AND 1121 OF THE
SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT RELATED TO
REGULATION OF NATURAL GAS EMISSIONS DUE TO COSTS TO AFFECTED
BUSINESS AND RESIDENTS
WHEREAS, the South Coast Air Quality District (SCAQMD) is a regional air pollution control agency representing Los Angeles, Orange, Riverside and San Bernardino counties with responsibility for regulating stationary sources of air pollution; and WHEREAS, the SCAQMD is considering two rules that would have a significant impact on up to 17 million South Coast homeowners, renters and businesses: Rule 1111 would regulate air emissions from gas-powered central furnaces; and Rule 1121 would regulate air emissions from residential-type, natural gas-powered water heaters; and WHEREAS, Rules 1111 and 1121 would impose high costs to consumers while providing limited measurable air quality benefits for the four-county SCAQMD service area; and WHEREAS, the two rules would ban the use of natural gas-powered furnaces and water heaters in new construction, taking effect in 2026. These rules would phase out existing natural gas furnaces and water heaters in existing single-family homes, multi-family housing, and businesses in 2027; and
WHEREAS, housing affordability is and will remain a top public policy priority for all local governments for the foreseeable future, and local governments are being pressured to build more housing, specifically housing people can afford and maintain. Any regulations that increase these costs deserve scrutiny to ensure that the increased costs are met with an equal or more significant amount of benefit to the consumer; and
WHEREAS, unlike most SCAQMD rules that regulate large stationary sources of air pollution like oil refineries and warehouses, Rules 1111 and 1121 specifically target individual homeowners, apartment buildings, and businesses large and small, meaning that families and business owners will directly bear the costs of these two rules; and
Agenda Packet - February 3, 2025
WHEREAS, Rules 1111 and 1121 would require retrofitting homes, apartments, and businesses with electrical panel upgrades, extensive new plumbing, and physical renovations to accommodate compliant units; and
WHEREAS, on June 7, 2024, SCAQMD’s Governing Board approved updates to Rule 1146.2 that will require new and existing residential and commercial buildings to transition to zero-emission (ZE) water heaters, to include natural gas-fired pool heaters, larger water heaters, small commercial water heaters, boilers, and process heaters, starting January 1, 2026; and WHEREAS, for apartment owners, the cost to replace natural gas water heaters and furnaces with all- electric units will be passed down to tenants, leading to rent increases and placing additional financial pressure on renters; and
WHEREAS, updates to Rule 1146.2 will impact approximately 710,000 natural gas-fired residential pool and spa heaters alone, which will lead to further economic hardship to those pool owners; and
WHEREAS, for homeowners, and especially senior homeowners, of whom the City has a higher percentage than other cities, the costs to retrofit homes could be financially infeasible; and WHEREAS, the City Council shares the commitment of SCAQMD to clean air and water and other quality of life benefits that draw and retain residents and businesses; however, the current version of Rules 1111 and 1121 will increase the cost of living in La Verne and potentially impact job creation and business retention.
NOW, THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF THE CITY OF LA VERNE THAT:
SECTION 1. Rules 1111 and 1121 will have a profound impact and impose significant costs on thousands of La Verne homeowners and renters and hundreds of businesses; and SECTION 2. The City Council requests more time to allow for a more robust public outreach process that ensures residents and businesses are properly informed and that questions regarding cost, technology, and the availability of potential incentives are able to be addressed; and
Agenda Packet - February 3, 2025
SECTION 3. The City Council of the City of La Verne opposes Proposed Amended Rules 1111 and 1121 and urges the SCAQMD to indefinitely delay or cease consideration of these two regulations.
PASSED, APPROVED, AND ADOPTED this 3rd day of February 2025.
_____________________
Tim Hepburn, Mayor
ATTEST:
__________________________
Debra Fritz, Deputy City Clerk
I hereby certify that the foregoing Resolution No. 25-XX was introduced and adopted at a regular meeting of the City Council of the City of La Verne held on the 3rd day of February 2025, by the following votes:
AYES:
NOES:
ABSENT:
ABSTAIN:
____________________________
Debra Fritz, Deputy City Clerk
Agenda Packet - February 3, 2025
South Coast AQMD is Conducting
Rulemaking that Could Impact Your Home
Water Heaters and Furnaces
How Will the Rules Impact You?
Will Financial Assistance
be Available?
Rules will take effect in 2-5 years and will be
required only when:
Existing appliances
break
Appliances are
voluntarily replaced
Will There be any Flexibility?
Exceptions will be allowed for:
South Coast AQMD is working on an
incentive program to provide rebates
for residents, building owners and small
businesses.
Health Benefits
4,000 premature deaths
16,000 cases of newly onset asthma
4,000 emergency room visits
Want to provide feedback on the rules or need more information? Join a working group meeting.
More information can be found at: www.aqmd.gov/home/rules-compliance/rules. To receive future updates on rulemaking and incentives via email newsletter: Subscribe by checking the “Building Appliances” box located under Rule Updates: www.aqmd.gov/sign-up.
Get Involved
Once implemented, these rules will prevent:
The rules will reduce emissions from residential furnaces (Rule 1111) and water heaters (Rule 1121) by transitioning to zero-emission appliances.
South Coast Air Quality Management District @SouthCoastAQMD 21865 Copley Dr. Diamond Bar, CA 91765
www.aqmd.gov • 1-800-CUT-SMOG©
More
info
Construction or utility
upgrades delays
buildings
Owners of multifamily
Considering other
circumstances
High-altitude areas
V.1 Page 130 of 130
Agenda Packet - February 3, 2025
From: Richard Bowen <[email protected]>
Sent: Monday, February 3, 2025 11:20 AM
To: Tim Hepburn <[email protected]>; Meshal Kashifalghrita <[email protected]> Cc: Ken Domer <[email protected]>
Subject: Phone tower in North La Verne
Mr Mayor Hepburn (Dist 5) and Councilman Kashifalghrita (Dist 4) For many years (over 15 at least) a large portion of northern La Verne has had terrible mobile phone service.
This has been an issue to many residents for a long time. Also, in many cases, vendors cannot use their phones or internet connections trying to work in this area.
The recent power outage put a focus on this problem from a safety issue.
With NO power and limited to NO phone service residents in No. La Verne were put in greater danger.
I am requesting that the city immediately address getting a tower(s) or any other system to offer normal mobile service in this critical area of the city.
All other areas of the city have great mobile service, why not US? This is no longer a joke but a potential crucial lifeline for many citizens.
Please request that the city IMMEDIATELY arrange for the safety of La Verne residents.
Respectfully,
Richard Bowen
42 year resident
BTW
Will one of you (or the city manager) read this during the council meeting tonight or do I need to attend in order for it to be made public?
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