City of Santa Ana DRAFT MOTION
IN OPPOSITION TO SCAQMD RULES 1111 AND 1121
WHEREAS, the South Coast Air Quality Management District (SCAQMD) serves as a regional air pollution control agency for Los Angeles, Orange, Riverside, and San Bernardino counties, tasked with regulating stationary sources of air pollution;
WHEREAS, SCAQMD is currently considering the adoption of Rules 1111 and 1121, which would significantly impact up to 17 million homeowners, renters, and businesses in the South Coast region.
Rule 1111 seeks to regulate air emissions from gas-powered central furnaces, while Rule 1121 aims to regulate emissions from residential-type, natural gas-powered water heaters; WHEREAS, the implementation of Rules 1111 and 1121 would impose over $20 billion in costs on consumers, while delivering minimal measurable air quality improvements for the four-county SCAQMD service area;
WHEREAS, these rules propose a ban on natural gas-powered furnaces and water heaters in new construction beginning in 2026, further increasing construction costs and exacerbating the already significant challenge of housing affordability in Southern California. The rules would also phase out existing natural gas furnaces and water heaters in single-family homes, multi-family housing, and businesses by 2027;
WHEREAS, housing affordability remains a critical public policy priority for the City of Santa Ana. Local governments are under increasing pressure to build more housing, particularly affordable housing.
Regulations that significantly elevate costs must be thoroughly examined to ensure the benefits justify the financial burden placed on Orange County residents and consumers; WHEREAS, unlike traditional SCAQMD regulations that target large stationary sources of pollution, such as oil refineries and warehouses, Rules 1111 and 1121 specifically impact individual homeowners, apartment complexes, and businesses. This structure places the financial burden directly on hard- working families and business owners;
WHEREAS, compliance with Rules 1111 and 1121 would require homeowners, apartment owners, and businesses to invest not only in costly all-electric furnaces and water heaters but also in expensive retrofits, including electrical panel upgrades, extensive new plumbing, and structural renovations to accommodate the compliant units—significantly raising the cost of both new and existing housing and pricing many potential homeowners and renters out of an already expensive market; WHEREAS, the mandate for apartment owners to replace natural gas water heaters and furnaces with all-electric alternatives is financially burdensome. These costs will likely be passed on to tenants, resulting in rent increases that will further strain renters in an already challenging housing market; WHEREAS, transitioning to all-electric water heaters and furnaces will impose a significant increase in electricity demand on California’s power grid, which has demonstrated difficulty in reliably meeting existing demand. Given that water heaters and furnaces are essential for residential and business operations, millions of new electric units would further burden the grid, increasing the likelihood of brownouts and power outages;
WHEREAS, the City of Santa Ana remains committed to identifying and implementing sustainable and environmentally friendly solutions to combat the climate change crisis. However, these solutions must be both practical and equitable, balancing environmental benefits with the economic realities faced by residents and businesses;
NOW, THEREFORE, BE IT RESOLVED that the City of Santa Ana formally opposes the adoption of SCAQMD Rules 1111 and 1121 due to their significant financial burdens on residents, renters, homeowners, and businesses, their detrimental impact on housing affordability, and the increased strain they would place on California’s electric grid.
BE IT FURTHER RESOLVED that the City of Santa Ana urges SCAQMD to explore alternative approaches that achieve meaningful air quality improvements without imposing unreasonable financial hardships on the community, compromising housing affordability, driving out businesses or overburdening the electrical grid.