California rejects $25 Billion in health savings to keep gas heaters flowing

Los Angeles, California – In a narrow vote after hours of heated testimony and months of political wrangling, Southern California air regulators on Friday rejected a major clean air proposal that would have begun phasing out gas-powered water heaters and furnaces across the Los Angeles basin.

The South Coast Air Quality Management District board, which governs air pollution policy across Los Angeles, Orange, Riverside, and San Bernardino counties, voted 7–5 against adopting two proposed rules that would have required manufacturers to gradually shift toward selling zero-emission appliances. Though framed as sales targets rather than outright bans, the proposals faced fierce resistance from industry groups and some local officials, who argued that the transition would drive up consumer costs and strain the region’s electric grid.

The decision came after a five-hour public hearing that drew hundreds of residents, environmental advocates, and business representatives, as well as more than 30,000 written comments. Supporters of the rules, including health professionals and environmental justice groups, emphasized the urgent need to reduce nitrogen oxide emissions, a leading contributor to Southern California’s enduring smog problem. Gas-powered heaters and furnaces account for nearly seven tons of smog-forming pollution every day—roughly the same output as all the region’s oil refineries.

But critics, including six board members from Orange County and the Inland Empire, voiced concern over the economic impact of the proposed changes. “This mandate hits really hard for disadvantaged and fixed-income residents,” said Orange County Supervisor Janet Nguyen, citing the high cost of retrofitting homes with electric appliances.

The proposed rules aimed to transition 90% of water heaters and furnaces sold in the region to zero-emissions models by 2036. Manufacturers would have faced fees for continued sales of natural gas units, with that revenue directed toward helping low-income households upgrade their systems.

Despite claims from opponents, the measures would not have forced residents to replace existing appliances. Rather, they targeted new sales and were designed to align with existing market trends. Many environmental advocates noted that the first phase of the plan — reaching 30% zero-emission sales by 2027 — largely reflects current industry patterns.

Health experts and climate advocates lamented the board’s decision, pointing to decades of persistent air quality violations and rising health costs. According to the district’s own projections, the rejected rules could have prevented 2,500 premature deaths and saved the region $25 billion in health-related costs by 2061.

Still, the battle over electrification in California is far from over. The board voted to send the proposal back to committee for further revision, signaling a possible return to the debate next year. Until then, the region’s smog crisis — the worst in the nation — remains unresolved.