CITY ATTORNEY
Sonia R. Carvalho
CITY MANAGER
Alvaro Nuñez
CITY CLERK
Jennifer L. Hall
20 CIVIC CENTER PLAZA - P.O. BOX 1988, M31 - SANTA ANA, CALIFORNIA 92702 TELEPHONE (714) 647-6900 - FAX (714) 647-6954 - www.santa-ana.org
Councilmember-Requested Item Report
DATE
February 18, 2025
TOPIC
Resolution opposing South Coast Air Quality Management District’s (SCAMQD) proposed Amended Rules 1111 and 1121
COUNCILMEMBER-REQUESTED ITEM TITLE
Discuss and consider directing the City Manager to direct city staff to bring back the attached Resolution for Council consideration that would OPPOSE South Coast Air Quality Management District's (SCAQMD) proposed Amended Rules 1111 and 1121; Which will have a profound impact and impose significant costs on millions of Southern California homeowners, renters and businesses who are already struggling to make ends meet while providing minimal air quality benefit.
DISCUSSION
The South Coast Air Quality Management District (SCAQMD) serves as the regional air pollution control agency for Los Angeles, Orange, Riverside, and San Bernardino counties, overseeing the regulation of stationary sources of air pollution. SCAQMD is currently considering the adoption of Rules 1111 and 1121, which aim to regulate air emissions from gas-powered central furnaces and residential-type natural gas-powered water heaters. While the intent of these rules is to reduce air pollution in the region, my office raises concerns about their potential negative impacts on local residents and businesses. These regulations would affect up to 17 million people in the South Coast region, imposing significant financial burdens on homeowners, renters, and business owners while delivering minimal improvements in air quality.
The implementation of Rules 1111 and 1121 is expected to result in over $20 billion in costs to consumers. These rules include a ban on natural gas-powered furnaces and water heaters in new construction starting in 2026, as well as a phase-out of existing units by 2027. This would significantly increase construction costs and further exacerbate the housing affordability crisis already affecting Southern California. As local governments face pressure to build more affordable housing, any regulations that raise costs must be carefully examined to ensure that the benefits justify the financial strain placed on residents and businesses.
Moreover, the financial burden of complying with these rules is substantial.
Homeowners, apartment owners, and businesses would not only need to replace furnaces and water heaters with all-electric models but also invest in costly upgrades
CITY ATTORNEY
Sonia R. Carvalho
ACTING CITY MANAGER
Alvaro Nuñez
CITY CLERK
Jennifer L. Hall
20 CIVIC CENTER PLAZA - P.O. BOX 1988, M31 - SANTA ANA, CALIFORNIA 92702 TELEPHONE (714) 647-6900 - FAX (714) 647-6954 - www.santa-ana.org
such as electrical panel changes, new plumbing, and structural modifications. This would increase the cost of both new and existing housing, pricing many potential homeowners and renters out of an already expensive market. Apartment owners would also face significant financial challenges, as the costs of replacing natural gas appliances may be passed on to tenants, driving up rent prices in an already strained rental market.
Finally, the transition to all-electric water heaters and furnaces would place additional pressure on California’s already overstretched electric grid. These systems are essential for daily life, and the increased demand from millions of new electric units would heighten the risk of brownouts and power outages. While my office remains committed to supporting sustainable solutions to combat climate change, it is crucial that such measures balance environmental goals with economic realities.
SUBMITTED BY
Councilmember Penaloza
EXHIBIT(S)
Exhibit 1 – Draft Motion in Opposition to SCAQMD Rules 1111 and 1121