FROM:
City Manager's Office
SUBJECT:
Title
A Resolution of the City Council of the City of Fontana Opposing South Coast Air Quality Management District (SCAQMD) Rules 1111 and 1121.
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RECOMMENDATION:
Recommendation
Staff recommends that the City Council adopt Resolution No. 2025-011 opposing the South Coast Air Quality Management District (SCAQMD) Proposed Amended Rules 1111 and 1121 and urging the SCAQMD to indefinitely delay or cease consideration of these regulations.
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COUNCIL GOALS:
• Enhance the local environment for future generations and create a healthy economic and environmental future by encouraging conservation, waste reduction, and recycling in the community.
• Enhance the local environment for future generations and create a healthy economic and environmental future by committing to purchasing specific products and goods that are climate friendly.
DISCUSSION:
The South Coast Air Quality Management District (SCAQMD) is considering two rules that would have significant economic impacts on homeowners, renters, and businesses throughout Los Angeles, Orange, Riverside, and San Bernardino counties. Rule 1111 aims to regulate air emissions from gas-powered central furnaces, while Rule 1121 seeks to regulate emissions from residential-type, natural gas-powered water heaters.
These rules would ban the use of natural gas-powered furnaces and water heaters in new construction beginning in 2026 and mandate the phase-out of existing natural gas units in single-family homes, multi-family housing, and businesses by 2027. The implementation of these regulations would require extensive and costly retrofits, including electrical panel upgrades, new plumbing, and structural modifications to accommodate compliant units.
1. Economic Impact - Compliance with Rules 1111 and 1121 is estimated to impose over $20 billion in costs to consumers, disproportionately affecting lower- and middle-income households. Apartment owners and business owners would bear significant expenses, which would likely be passed down to renters and consumers.
2. Housing Affordability Concerns - California is facing an ongoing housing crisis, and these regulations would further increase housing construction costs, making homeownership and rental housing even less affordable.
3. Electric Grid Reliability - Transitioning to all-electric water heaters and furnaces would place an additional burden on the state's electric grid, increasing the risk of brownouts and outages, particularly during peak demand periods. Additionally, the reliability of Southern California Edison’s (SCE) power supply remains uncertain, especially during high-wind events when power shutoffs are often implemented as a wildfire prevention measure.
4. Diversification of Energy Sources - The City of Fontana recognizes the need for a diversified energy approach to ensure residents and businesses have access to reliable and affordable energy options. Mandating a complete transition to electric appliances without sufficient infrastructure investment limits consumer choice and increases vulnerability to energy shortages.
5. Minimal Air Quality Benefit - Despite the significant financial impact, the air quality improvements expected from these regulations are minimal and do not justify the increased costs imposed on consumers and businesses.
FISCAL IMPACT:
There is no direct fiscal impact to the City of Fontana; however, the proposed rules would have widespread economic consequences for residents and businesses in the city.
MOTION:
Approve staff recommendation.