Building Appliances Implementation Working Group

The IWG was formed to provide the Air District with information, recommendations, and solutions to support a smooth, accessible, and equitable technology transition and implementation of amendments to Rules 9-4 and 9-6 in order to improve air quality and public health in the Bay Area. The IWG will be a multiyear effort, likely spanning from 2023 to 2029. The intent is to make space for diverse ideas among IWG members in a way that supports understanding, joint fact-finding, and recommendations.

The IWG is comprised of over 40 invited members representing a variety of stakeholder segments. To appropriately account for the broad range of subject matters, questions, and concerns that may arise, the IWG includes the Technical Subcommittee, the Community/Equity Subcommittee, and the Steering Committee. The IWG is led by the Air District with the assistance of a contracted facilitator. Quarterly plenary meetings of the IWG are open to public attendance.

Although the IWG is not a decision‐making body, the Air District will authentically and thoroughly consider IWG input and feedback in its implementation process, periodic reports to the Board, and rulemaking materials. Information and insights from the IWG will be critical to the Air District’s ability to equitably implement these rule amendments. Air District staff will retain its independent decision‐making role in the rule implementation process.

Meetings, Workshops, and Events

Technical Subcommittee

The Technical Subcommittee compiles and reviews the most up-to-date technical information relevant to implementing the Building Appliances Rules to present to the Working Group, such as market availability and projected cost of compliant appliances, and potential financial incentives for consumers. The Technical Subcommittee also provides recommendations for the Working Group and/or Steering Committee to consider.  As of last web page update, the Technical Subcommittee has held the following meetings:

• July 11, 2023
• September 12, 2023
• December 5, 2023
• March 19, 2024
• June 11, 2024

Community/Equity Subcommittee

The Community/Equity Subcommittee reviews information and identifies challenges and potential solutions relevant to equitable implementation of the Building Appliances Rules to present to the Working Group, such as accessibility of incentive, funding, and financing programs, and impacts to different stakeholder groups, specifically for communities of color, seniors, and lower income households. The Community/Equity Subcommittee also provides recommendations for the Working Group and/or Steering Committee to consider. In addition, with input from the Community/Equity Subcommittee, Air District staff has provided updates to the Community Advisory Council which works with the Board of Directors and Executive Officer on community related matters.  As of last web page update, the Community/Equity Subcommittee has held the following meetings:

• July 13, 2023
• September 19, 2023
• December 12, 2023
• March 26, 2024
• June 18, 2024

Steering Committee

This small group of IWG members provides guidance to staff and the facilitator and ensure the mission of the IWG (including the two subcommittees) is accomplished by bringing items from the two subcommittees to the plenary and developing other recommendations for the IWG as needed.  The Steering Committee also contributes to developing agendas and helps prioritize topics requiring further research.  As of last web page update, the Steering Committee has held the following meetings:

• August 5, 2023
• October 3, 2023
• January 16, 2024
• April 16, 2024
• July 16, 2024

Consultant Work Products

With guidance from IWG members on content and prioritization, the Air District has contracted with multiple expert consultants in order to support subcommittee and plenary group findings by conducting additional research and analysis.  These work products will be posted here as they become available.

• Installation Costs for Zero-NOx Space and Water Heating Appliances - This report was commissioned by the Air District in support of the Building Appliances Implementation Working Group process to provide an updated summary of installation costs for zero-NOx space and water heating appliances. It was conducted by Rincon Consultants and E3 during the fourth quarter of 2023 and based on data that was available at that time. Report results were shared at the February 2024 IWG Plenary Meeting and will be further evaluated in Air District staff’s report to the Board of Directors for December 2024. Further on-bill impact analysis updates were added in September 2024 to reflect the newly passed Income Graduated Fixed Charge.
• Workforce Challenges for Zero-NOx Requirements - This memo summarizes research conducted by BW Research on existing landscape and current workforce programs in the nine-county Bay Area, addressing local contractors and heat pump water heater and heat pump space-heating market/technology, training preferences and knowledge of applicable incentives.
• Challenging Use Cases and Emerging Solutions for Zero-NOx Appliances - This whitepaper provides a summary of challenging use cases associated with the installation of zero-NOx space and water heating appliances, such as space or location constraints, noise restrictions, and electrical capacity. Solutions are also discussed. The main focus is on Rule 9-6 and small water heaters (up to 75,000 BTU/hour) given the earlier 2027 compliance date.
• Renter Protections Policy Landscape Summary - This report summarizes policy language related to tenant protections in rental housing within the nine-county Bay Area to provide a baseline of understanding of the potential downstream impacts of future Rule implementation, and then provides recommendations to mitigate potential impacts to renters and other next steps (further stakeholder engagement, possible policy avenues, data needs, etc.).
• Market and Sales Trends for Zero-NOx Appliances - This whitepaper summarizes market and sales trends, and public drivers, for zero-NOx space and water heating technologies. This analysis uses the available economic, market, and sales data, as well as contractor interviews to evaluate the current state of the heat pump market, as well as future market trends. 
• Permitting Requirements for Zero-NOx Appliances - This whitepaper aims to provide a summary of the permitting requirements, challenges, and best practices associated with installation of zero-NOx space and water heating. To understand the current permitting landscape in the Bay Area, the authors conducted interviews and surveys with several cities of various sizes around the region. 
• Grid Reliability and Interconnection Challenges - This analysis aims to explore grid concerns and better understand the extent of likely impact on homes and businesses in the Bay Area. To do this, the analysis focused on community electrical grid reliability concerns related to interconnection and service line upgrades, power outages, and appliance-level reliability. 
• Lived Experience Interviews Summary - To provide a balance to the more technical research done in the IWG, the Air District funded a project to conduct interviews with renters living in different areas of the Bay Area to gain insight into their lived experience as it relates to housing insecurity, tenant displacement, energy burden, and other quality of life impacts that could be affected by the implementation of the Building Appliance Rules. This report summarizes key findings and takeaways from some of those conversations.

Implementation Working Group Membership

The following list of organizations have participated as members of the IWG. Note that not all members can join all meetings and that this list does not include organizations that were invited but declined to participate. The Air District sought to form a group that represents a variety of backgrounds and areas of expertise to comprise the IWG.

• Air Conditioning, Heating and Refrigeration Institute (AHRI)
• Ardenna Energy
• Associated General Contractors of California
• BayREN
• BlocPower
• Building Owners and Managers Association
• California Air Resources Board
• California Energy Commission
• California Public Utilities Commission
• Canal Alliance
• City of Berkeley
• City of Palo Alto
• City of San Francisco
• City of San Jose
• Climate Resilient Communities
• County of San Mateo
• Earthjustice
• East Oakland Collective
• El Concilio of San Mateo County
• Emerald Cities Collaborative
• Energy Solutions
• Johnson Controls
• Local Clean Energy Alliance
• MCE Clean Energy
• Mitsubishi Electric
• NorCal Mechanical Contractors Association
• Ortiz Group
• Pacific Gas and Electric
• Peninsula Clean Energy
• QuitCarbon
• Rocky Mountain Institute
• San Francisco Apartment Association
• San Francisco Electrical Construction Industry
• Seagull Prime Real Estate Fund, LLC
• Silicon Valley Clean Energy
• SMART Sheet Metal Workers Local Union No. 104
• SPUR
• South Coast Air Quality Management District
• StopWaste
• Sun Work
• UA Local 38 Plumbers and Pipefitters
• Unity Council
• Vallejo Citizen Air Monitoring Network