Laserfiche WebLink
City of Santa Ana DRAFT MOTION <br />IN OPPOSITION TO SCAQMD RULES 1111 AND 1121 <br />WHEREAS, the South Coast Air Quality Management District (SCAQMD) serves as a regional air pollution <br />control agency for Los Angeles, Orange, Riverside, and San Bernardino counties, tasked with regulating <br />stationary sources of air pollution; <br />WHEREAS, SCAQMD is currently considering the adoption of Rules 1111 and 1121, which would <br />significantly impact up to 17 million homeowners, renters, and businesses in the South Coast region. <br />Rule 1111 seeks to regulate air emissions from gas-powered central furnaces, while Rule 1121 aims to <br />regulate emissions from residential-type, natural gas-powered water heaters; <br />WHEREAS, the implementation of Rules 1111 and 1121 would impose over $20 billion in costs on <br />consumers, while delivering minimal measurable air quality improvements for the four-county SCAQMD <br />service area; <br />WHEREAS, these rules propose a ban on natural gas-powered furnaces and water heaters in new <br />construction beginning in 2026, further increasing construction costs and exacerbating the already <br />significant challenge of housing affordability in Southern California. The rules would also phase out <br />existing natural gas furnaces and water heaters in single-family homes, multi-family housing, and <br />businesses by 2027; <br />WHEREAS, housing affordability remains a critical public policy priority for the City of Santa Ana. Local <br />governments are under increasing pressure to build more housing, particularly affordable housing. <br />Regulations that significantly elevate costs must be thoroughly examined to ensure the benefits justify <br />the financial burden placed on Orange County residents and consumers; <br />WHEREAS, unlike traditional SCAQMD regulations that target large stationary sources of pollution, such <br />as oil refineries and warehouses, Rules 1111 and 1121 specifically impact individual homeowners, <br />apartment complexes, and businesses. This structure places the financial burden directly on hard- <br />working families and business owners; <br />WHEREAS, compliance with Rules 1111 and 1121 would require homeowners, apartment owners, and <br />businesses to invest not only in costly all-electric furnaces and water heaters but also in expensive <br />retrofits, including electrical panel upgrades, extensive new plumbing, and structural renovations to <br />accommodate the compliant units—significantly raising the cost of both new and existing housing and <br />pricing many potential homeowners and renters out of an already expensive market; <br />WHEREAS, the mandate for apartment owners to replace natural gas water heaters and furnaces with <br />all-electric alternatives is financially burdensome. These costs will likely be passed on to tenants, <br />resulting in rent increases that will further strain renters in an already challenging housing market; <br />WHEREAS, transitioning to all-electric water heaters and furnaces will impose a significant increase in <br />electricity demand on California’s power grid, which has demonstrated difficulty in reliably meeting <br />existing demand. Given that water heaters and furnaces are essential for residential and business <br />operations, millions of new electric units would further burden the grid, increasing the likelihood of <br />brownouts and power outages;