New air quality rules spark debate over costs and environmental benefits

REDLANDS, Calif. — Redlands City Council voted to table a decision on whether to oppose South Coast Air Quality Management District's (AQMD) proposed rules affecting natural gas furnaces and water heaters during their April 1 meeting, following extensive public comment and council discussion.

The debate was carried over from their March 18 meeting, where South Coast AQMD presented  a revised proposal on gas appliance regulations, emphasizing manufacturer targets rather than consumer mandates. 

Why it matters: The proposed regulations to reduce emissions from gas appliances ignited lively discussions about the potential cost burden to consumers versus air quality improvements for a region that struggles with poor air quality. 

Surrounding cities previously expressed formal opposition to the earlier version of the rules, including Chino, La Verne, Lakewood, Yorba Lina and the San Bernardino Council of Governments, of which Redlands is a member. 

In order to fully consider the revised amendments, the San Bernardino Council of Governments has asked AQMD to present on the new approach. 

Details: The council unanimously agreed to postpone action on agenda item J1, which proposed sending a letter opposing AQMD's amended Rules 1111 and 1121. These rules would implement new standards for NOx emissions from residential gas-fired furnaces and water heaters.

Michael Krause, assistant deputy executive officer in the planning and rules division at South Coast AQMD, presented a revised approach to the controversial regulations during the March 18 council meeting that shifts focus away from consumers to manufacturers.

"There is no longer a mandate on the consumer to purchase a zero emission equipment," Krause explained. "The consumer choice is back. And then under the new approach also, the consumers will have that freedom to choose what they want, when they want it, similar to what they’re doing today.”

The revised proposal targets manufacturers rather than end users, setting goals for the industry to gradually increase production of zero-emission appliances while allowing consumers to continue purchasing natural gas options.

"We're again shifting the focus then away from the consumer and we're now looking to seek target goals for the manufacturers of the equipment," Krause said.

The rules aim to reduce nitrogen oxide (NOx) emissions in the South Coast of California, a region that struggles with some of the worst air quality in the nation. According to Krause, residential furnaces and water heaters currently generate 10 tons of NOx emissions per day across the region.

"To give you context, come 2037, all refineries in our region will be emitting four. This is 10. All power plants will be meeting three. This is 10. All passenger vehicles from 2037 in our region, seven," Krause said, highlighting the significance of these appliances as pollution sources.

The revised approach includes a mitigation fee for manufacturers who fail to meet production targets for zero-emission appliances. These fees would start at approximately $50 to $100 per unit and would fund consumer incentive programs.

What they're saying: Mayor Pro Tem Marc Shaw, who requested the agenda item, expressed concern that manufacturers will simply pass these costs on to consumers.

"My concern is that that's still going to get passed on to the consumer. In the end, they're just going to raise the building cost or whatever," Shaw said. "The cost piece is the problem."

Several speakers during the March 18 meeting urged the council to reconsider their opposition.

Jennifer Cardenas from the Sierra Club pointed out that the South Coast Basin "has the worst air quality in the nation with some of the worst rankings for ozone, smog and particulate pollution impacting approximately 17 million residents."

Cardenas also noted that various incentive programs exist to make electric appliances more affordable, including the State High Efficiency Electric Home Rebate program offering between $4,000 to $8,000 for installation costs and the South Coast AQMD Go Zero program providing $1,500 in rebates for water heaters and heat pumps.

Other speakers emphasized the health impacts of poor air quality in the region. Yareli Olazabal, an environmental sciences student, noted that "San Bernardino county already has some of the worst air quality in our nation and some of the highest rates of respiratory diseases."

These sentiments were echoed again during the April 1 meeting by multiple speakers. 

Michael Paisner argued, "While fossil fuels were a necessary step for kickstarting our modern day society, the reality is we can't depend on fossil fuels forever."

A member of Accelerate Neighborhood Climate Action noted, "NOx is 300 times more potent than CO2 is in our atmosphere, so it's going to cause a lot more warming."

Not all public comments supported the proposed rules. Dale Broome, a resident from District 5 argued that consumer choice already exists without regulation.

"We don't need rules for something that we already have the choice for," Broome said. "If somebody wants to put a heat pump in, electric water heater, whatever, those options are still on the table for everybody in our market."

Broome also raised concerns about grid reliability if more homes convert to all-electric appliances.

Redlands resident Andy Hoder calls the proposed regulations "somewhere between ludicrous and stupid," arguing they would do little to improve air quality while imposing significant costs on residents.

Council Member Paul Barich questioned the scientific basis for moving away from natural gas, noting that he personally uses solar power and drives a Tesla, but worries about the financial impact on those with fewer resources.

"I've never denied global warming," Barich clarified. "I'm questioning the science that electric heaters and so on and so forth is less easier on the environment than natural gas."

Council Member Denise Davis expressed concern about the region's air quality problems and noted that the proposed letter opposing the rules seems inconsistent with the city's climate action goals.

"We live in the region with the worst air quality in the nation. And this is something that's deeply concerning to me as a council member," Davis said. "This item feels really not in alignment with our goals as a city who recognizes climate change and the need to move forward on our climate action plans."

Moving forward: The council ultimately voted unanimously on April 1 to table the item and gather more information about the revised AQMD proposal before making a decision on whether to send an opposition letter.

The AQMD has postponed adoption of the rules until June, giving the council additional time to reconsider the issue after gathering more information.

According to the staff report, the proposed rules would establish compliance dates for zero NOx emissions from new residential furnaces and water heaters beginning Jan. 1, 2027, with existing buildings following in 2029.

AQMD estimates replacement costs for space heaters ranging from $18,500 to $21,500 if an electric panel upgrade is needed, while water heater replacements could cost between $5,200 and $8,200.

The South Coast AQMD Governing Board has approved a $21 million incentive program called Go Zero to help residents and small businesses adopt zero-emission heating appliances, with rebates ranging from $1,000 to $4,000 per unit depending on the category.

The AQMD is expected to release updated proposed amendments in early April, with a public hearing scheduled for May 2, 2025.