SUSTAINABILITY COMMITTEE
Meeting Date: March 9, 2026
Subject: RECEIVE REPORT on subsidies and incentives currently available to County residents and businesses for appliances that meet requirements of pending regulations by the Bay Area Air District, and PROVIDE DIRECTION.
Submitted For: John Kopchik || Director | DCD
Department: DEPARTMENT OF CONSERVATION & DEVELOPMENT
Presenter: Jody London || Sustainability Coordinator | DCD
Contact: Jody London | (925) 655-2815
Referral History:
The Climate Action and Adaptation Plan (2024) establishes ambitious goals for homes, workplaces, and businesses in unincorporated Contra Costa County to run efficiently on clean energy. The estimated reductions in greenhouse gas pollution for the built environment include anticipated emission reductions from Bay Area Air District regulations on new water heaters and furnaces that are expected to go into effect in 2027 and 2029.
The Air District rules adopted in 2023 require residential water heaters (less than 75,000 BTU/hour) installed after January 1, 2027 to meet efficiency standards such that they do not emit oxides of nitrogen (NOx). This will likely mean installing heat pump water heaters instead of water heaters that run on gas. The Air District rules require residential and commercial furnaces installed after January 1, 2029 to also meet zero-NOx standards, again likely installing electric heat pumps that provide both heat and air conditioning. Eliminating NOx from gas use in homes by installing heat pump furnaces and water heaters is expected to improve indoor and outdoor air quality, prevent premature deaths, and save close to $900 million in health impacts. Attachments B and C provide more information about the new regulations and possible updates currently under consideration.
Referral Update:
As the implementation date for the new regulations nears, the Sustainability Committee has asked for a report on currently available options to help County residents and businesses purchase and install compliant equipment as the new requirements go into effect. Attachment A outlines the information available as of February 24, 2026. There are a range of programs available through entities including the Bay Area Regional Energy Network (BayREN), MCE, PG&E, and a few others. There are also regional and local grant opportunities upcoming through the Air District Community Investments program, and the Keller Canyon Mitigation Fund.
Recommendation(s)/Next Step(s):
RECEIVE REPORT on subsidies and incentives currently available to County residents and businesses for appliances that meet requirements of pending regulations by the Bay Area Air District, and PROVIDE DIRECTION.
Fiscal Impact (if any):
There is no fiscal impact to the County at this time.