South Coast Air Quality Management District’s Stationary Source Committee held its final public comment gathering this Friday (December 20) to discuss two rules directly impacting the use of residential gas furnaces and gas water heaters. Business associations and Chinese officials concerned about this issue urged the public to attend the meeting to express opposition.
The meeting started at 10:30 in the morning and offered both in-person and video conference options for public participation. The committee sought public feedback on the proposed amended rules (PARs 1111 & 1121) and plans to vote on them in February next year.
These proposed rules suggest setting nitrogen oxide emission limits to zero for residential and commercial space heating as well as residential water heaters. The amended rules would apply to the manufacturing, sale, and installation of such equipment. Opponents argue that this effectively bans the sale and installation of natural gas devices for these purposes. Due to the close ties between gas and the restaurant industry and gas equipment and water heater manufacturing sectors, some business associations are concerned about the potential commercial impacts of these rules. They fear that once implemented, the rules could lead to increased operating costs, limited consumer choices, and reduced job opportunities.
During the morning session, there were few public attendees who offered their opinions at the venue. A resident from the northeast Los Angeles area mentioned that the air quality in his community has been very poor in the past few weeks. He experiences eye irritation and throat discomfort when outside, leading him to stay indoors as much as possible. He expressed concerns about getting ill due to air pollution when running errands or going to work and worries about his children facing respiratory issues from pollution, showing gratitude towards the efforts of SCAQMD staff.
However, there were also voices of opposition present. Hertz-Mallari, who has extensive experience working in Orange County for 25 years and serving as an elected official, raised concerns about struggling families in the region who are facing increasing expenses for rent, food, utilities, and their children’s medical bills. She finds it challenging to support significant California initiatives like affordable housing while imposing specific regulations on tangible objects. She suggested considering the stakeholders’ interests and postponing the adoption of these rules.
Another audience member highlighted how this regulation would impact Asian American businesses such as restaurants, hotels, and food stores in the area. These businesses are still recovering from the impacts of the pandemic, and switching to electric equipment would significantly raise their expenses.
Representatives from business associations also expressed opposition during the meeting, citing concerns about the transition costs forced by electrification. While creating a clean environment is positive, the mandatory shift from gas to electric appliances is viewed as a separate issue.
This rule has sparked social backlash, leading several commercial organizations, including the National Association of Home Builders with 140,000 members across the U.S., the California Chamber of Commerce, the California Apartment Association, and the California Restaurant Association to file a lawsuit against SCAQMD earlier this month. They argue that this regulation violates the 1975 Energy Policy and Conservation Act (EPCA); the zero nitrogen oxide standard proposed in the rules poses significant costs for property owners, increases tenants’ expenses, and imposes high renovation and maintenance costs on housing providers.
SCAQMD’s jurisdiction includes all areas in Orange County as well as the urban areas of Los Angeles, Riverside, and San Bernardino counties. Earlier this year, the U.S. Ninth Circuit Court of Appeals overturned a natural gas ban in Berkeley, Northern California, ruling that federal Energy Policy and Conservation Act supersedes local ordinances.
Diamond Bar’s Chinese mayor, Deng Jiayou, stated that the local business chamber also expressed opinions on the rule amendments. He, along with the chamber, shares a consistent stance on the two rules: while expressing concerns, they actively support opposing a complete ban and advocate for feasible legislative solutions that promote a transition without disrupting businesses.
After reviewing the provisions of PARs 1111 and 1121, Deng Jiayou observed that the rules do not restrict restaurant stoves but limit water heaters and heating furnaces, which would still significantly increase equipment conversion costs for businesses. As the Diamond Bar City Council is set to discuss the city’s stance on these rules in January next year, he currently stands in personal opposition to these two rules based on his consumption perspective. He also encouraged Chinese residents to voice their opposition by attending the meeting on Friday.