Despite inadequate homeowner rebates, SJ staff weighs “Burn-Out Ordinance”

Advocates argue that a total ban on natural gas furnaces/water heaters, as the California Air Resources Board proposed last September, won’t empty residents’ wallets—because of existing rebate and incentive programs. Neighborhood group-based org Families & Homes SJ begs to differ. Existing programs will refund 10% max of residents’ expected costs, leaving $27,000+ out of pocket for locals already struggling with rent.

The San José City Staff is studying a “Burn-Out Ordinance” for natural gas furnaces and water heaters for ALL EXISTING commercial and residential properties (including single-family homes, duplexes, and multifamily units) no later than 2030.  

On September 22, 2022, the California Air Resources Board (CARB) proposed a statewide ban on sales of Gas Heaters, Furnaces, and Water Heaters by 2030.  (see: CARB Announces Ban on Sales of Gas Heaters, Furnaces, Water Heaters by 2030 - California Globe).  

Bay Area Air Quality Management District (BAAQMD), which includes San José, is considering a ban on the sale and installation of gas furnaces and water heaters as soon as 2027. [This board is expected to vote on March 15, 2023, on the proposal. Send comments to mhiratzka@baaqmd.gov by Tuesday, March 14, 2023 at 5 p.m.]

All three of these public entities have significantly under-estimated the up-front cost for gas-to-electric conversion…

  1. Rebate and Incentive Program Inadequately Funded
    None of the current rebate programs (that we reviewed) cover more than 10% of the expected up-front conversion cost to homeowners. Most of the programs are income based. Some were already costed due to lack of funding. Generally, an incentive or rebate will be considered taxable income. 

This article originally appeared in Families & Homes San Jose. Read the whole thing here.

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Lauren Oliver