On June 6, California’s South Coast Air Quality Management District (SCAQMD) board voted 7-5 to reject proposed rules (PAR 1111 and PAR 1121) that would have phased out residential gas water heaters and furnaces. The outcome represents a major pause in one of Southern California’s boldest clean-air efforts in years and a significant moment for stakeholders across the energy, housing, and hearth appliance sectors.
Under the non-mandatory rules proposed by SCAQMD, manufacturers selling gas-powered furnaces and water heaters would have paid fees determined by their adherence to new sales targets for electric models. Manufacturers were expected to reach 30% zero-emission sales in 2027, 50% in 2029, and 90% by 2036.
These rules would have been the first in the nation to impact the sale of replacement gas appliances and had been in preparation for several years. This rejection is likely to affect a similar effort in the Bay Area and may also influence a separate rule being considered for the entire state that could limit gas heating product sales.
Industry groups, local governments, and residents argued that the measures would increase upfront costs, strain the electric grid, and disproportionately impact low-income households.
Janet Nguyen, who serves on the Orange County Board of Supervisors, concurred, expressing concerns that the rules would financially burden people, stating that “these rules don’t target refineries or shopping ports. They target people. The 17 million homeowners, renters, seniors, and small businesses.”
Leading up to the board’s decision, the U.S. Justice Department issued a warning that it could challenge the rules in court. Bilal Essayli, the U.S. Attorney for the Central District of California, sent a letter to board Chair Vanessa Delgado, which stated: “Please be advised that if PAR 1111 and 1121 pass, my Office is prepared to take all steps necessary to enforce federal law, including filing a civil action seeking any and all available relief, including injunctive relief, monetary damages, and penalties.”
Additionally, an industry coalition is challenging a 2024 rule by the SCAQMD that mandates commercial buildings switch to zero-emission industrial water heaters. In the case Rinnai America Corp., et al. v. SCAQMD, the plaintiffs argue that the rule is preempted by federal law under the Energy Policy and Conservation Act. In a June 2 court filing, they claim the rule unlawfully targets energy use by effectively banning gas appliances, which they say contradicts federal protections against such state-level regulations.
For more information, contact governmentaffairs@hpba.org.