San Jose Burn-Out Ordinance

Replacing natural gas heaters and water heaters

To: San Jose Leaders, February 4th, 2023

From: Independent Leadership Group

Lead Organization: Families & Homes

Supporting Organizations: Citizens for Fiscal Responsibility, Business and Housing Network of San Jose, Silicon Valley Chinese Association, Vietnamese American Cultural Foundation

Re: Replacement of Natural Gas Furnaces & Water Heaters

Dear Mayor of San Jose and City Council,

The San Jose City Staff is studying a Burn-Out Ordinance for natural gas furnaces and water heaters for all existing commercial and residential properties due to indoor air quality interests. We are also concerned about all forms of air quality, especially considering the 22,000 encampments fires in San Jose over the past two years. Since the California Air Resources Board (CARB) already announced a ban on sales of Gas Heaters, Furnaces, and Water Heaters by 2030 we want to make sure San Jose air quality priorities are: a complete end-to-end solution, transparent, address potential housing affordability concerns and do not duplicate efforts at the State or Federal level.

Accountability and Transparency Concerns:

· We are concerned that this study is unnecessary, and an inefficient use of critical resources given the work already being done at both the State and national level.

· We are equally concerned that staff has not been given clear direction from the San Jose City Counsel.

· We are concerned despite such a major financial impact, that all business and homeowners and renters have not been involved in discussions.

Housing Affordability Concerns:

This ordinance will significantly increase the cost of housing.

· Completing gas to electric conversion in homes and businesses is a highly technical job which will cost substantially more than the Housing Department has estimated, especially when dealing with older structures.

· Replacing HVAC, water heaters, upgrading electrical panels and master meters can only be done at substantial cost.

· Operating costs and electricity bills will increase.

· PGE is not a reliable source of energy, and many will need to find expensive back-up alternatives.

Each of these items has the potential to increase the cost of homeownership and rent prices in San Jose. We urge extreme caution and a complete financial and technical investigation into all forms of air quality before any further effort is placed into developing a Burn-Out Ordinance.

Thank you,

Independent Leadership Group