The Environmental Protection Agency (EPA) Proposing to Conditionally Approve Revisions to the California Bay Area Air Quality Management District (BAAQMD) portion of the California State Implementation Plan (SIP) that Phase Out and Eventually Prohibit the Installation of Natural Gas Residential Furnaces and Water Heater. Comments Due to EPA by December 30, 2024.
In March, 2023, the California Bay Area Air Quality Management District (BAAQMD) adopted revisions to their NOx requirements for residential and some commercial natural gas furnaces and water heaters that essential phase out their installation in their area of responsibility over the next 7 years. ( Note: The BAAQMD covers the San Francisco area and is one of California’s 35 local Air Districts responsible for regional air quality planning, monitoring, and stationary source and facility permitting.) The BAAQMD issued a Frequently Asked Questions (FAQ) document that provides the details of the updated NOx rule including the requirement schedule, covered gas appliances (natural gas furnaces and water heaters), support for electric space and water heating appliances, etc.. Yesterday, the Environmental Protection Agency (EPA) issued a Federal Register Notice that according to the notice, proposes to “conditionally approve revisions to the Bay Area Air Quality Management District (BAAQMD) portion of the California State Implementation Plan (SIP). These revisions concern emissions of oxides of nitrogen (NOx) from natural gas-fired furnaces and water heaters. We are proposing to approve local rules to regulate these emission sources under the Clean Air Act (CAA).” The notice goes on stating, “We are taking comments on this proposal and plan to follow with a final action. Comments are due at EPA on or before December 30, 2025.” In the Federal Register, the EPA states that , “in reviewing SIP submissions, the EPA’s role is to approve state choices, provided that they meet the criteria of the Clean Air Act. Accordingly, this proposed action merely proposes to approve State law as meeting Federal requirements and does not impose additional requirements beyond those imposed by State law.” EPA reports that the BAAQMD SIP submittal meets the criteria required by the Clean Air Act.
They go on to state that “For that reason, this proposed action:
• Is not a significant regulatory action subject to review by the Office of Management and Budget under Executive Orders 12866 (58 FR 51735, October 4, 1993) and 14094 (88 FR 21879, April 11, 2023);
• Does not impose an information collection burden under the provisions of the Paperwork Reduction Act (44 U.S.C. 3501 et seq.);
• Is certified as not having a significant economic impact on a substantial number of small entities under the Regulatory Flexibility Act (5 U.S.C. 601 et seq.);
• Does not contain any unfunded mandate or significantly or uniquely affect small governments, as described in the Unfunded Mandates Reform Act of 1995 (Pub. L. 104–4);
• Does not have federalism implications as specified in Executive Order 13132 (64 FR 43255, August 10, 1999);
• Is not subject to Executive Order 13045 (62 FR 19885, April 23, 1997) because it proposes to approve a State program;
• Is not a significant regulatory action subject to Executive Order 13211 (66 FR 28355, May 22, 2001); and • Is not subject to requirements of section 12(ds) of the National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272 note) because application of those requirements would be inconsistent with the Clean Air Act
Because of the significant impact the adoption of the latest BAAQMD NOx SIP submittal can have on future federal and state rulemakings that will prohibit natural gas furnaces and water heaters and essentially promote electrification, the basis and legal justification of such far-reaching the negative consequence of such legislation or regulations needs an extensive and thorough evaluation. Eliminating consumer choice for the availability to access natural gas furnaces and water heaters for space and water heating purposes is at risk. AGA staff is evaluating the EPA proposed rule and BECS Committee members are also requested to do the same particularly on the EPA statement and determination that “the BAAQMD SIP submittal meets the criteria required by the Clean Air Act.”
State Codes Activity Update.
Attached is a weekly feature of the “Friday Update” covering state code calendar activities as presented by the online utility “Fiscal Note,” which is sponsored by APGA and AGA Code and Standards. Please review the update and determine if there are state code activities that impact your service territory or organization.