[{"_1":2,"_87":-5,"_88":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,75],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":68,"_72":73,"_74":73},"mediaId",6476290,"mediaKeyId","5730659-ba7e05bd333312d9433d98de8039f5e9","parentId",5730659,"title","Palo Alto committee recommends emergency reach-code amendments including AC-to-heat-pump replacement rule","audioSeconds",3088,"startMs",772000,"endMs",3860000,"viewUrl","/Search/View?dp=1&key=5730659-ba7e05bd333312d9433d98de8039f5e9&start=772&end=3860","thumbnailUrl","https://assets.pipeline.soar.com/5730659-ba7e05bd333312d9433d98de8039f5e9/thumbnail_772000.jpg","articleUrl","/articles/6476290/Palo-Alto/Santa-Clara-County/California/Palo-Alto-committee-recommends-emergency-reach-code-amendments-including-AC-to-heat-pump-replacement-rule","mediaUrl","https://secure.pipeline.soar.com/6476290-9f352c3cd1bcba418b46991ddf69c3c4/orig.mp4?Expires=1770555604&Signature=bUDcbqYGJC9RVHBBjkvUvNtrN8Fs2L5Wx5uWgykerJ0jVUUeLlz4CuZaZuwaAeyI5yhFSLQ8K2bzuxdJgaPIUwXbb8T2uWN~ybzQGoalqlSNr8PIxAwbb~Ii5xHobDSJAvKW1mBzBlyTkD1mceseEfVXiAhYMHd~06Vy7qjIokEC6-Ct5ULdQbFoCoBTBUMSUcu218911HcawKb19gOFuxy-vo~kd4WXzNWay0rXQZoZNuwhMBhXgPT1Z0PtJAQGwyXhaE2UeOvCEhyoKFEeFe3NNNeNiNTdrd1P7eUZNTSAEYZuqelgzZZRGQ4kJ-Vyz3jMaq~P2KgWdF4x71FQ~w__&Key-Pair-Id=KUT5TJCACFTXG","author","City of Palo Alto","date","2025-09-06T17:28:25Z","article","The Climate Action and Sustainability Committee recommended that the City Council adopt emergency local amendments to the city energy code on Sept. 5, 2025, including a provision that when air conditioners are replaced homeowners must either install a heat pump or implement specified efficiency measures; staff said the AC-to-heat-pump requirement would take effect Jan. 1, 2027 if approved.

Committee staff said the package also includes a FlexPath compliance option for remodels larger than 1,000 square feet that requires projects to achieve 12 points by choosing measures from a flexible list of energy-efficiency and electrification options. Tim Scott, resource planner, said the 12-point target is intended to provide clear, cost-effective routes that can make all‑electric pathways viable for remodel projects.

Why it matters: Staff and committee members framed the amendments as a near-term step to increase residential electrification and reduce greenhouse gas emissions while responding to a state law, AB 130, that narrows some local reach-code authority beginning Oct. 1. Staff accelerated the residential pieces so the city can present them before the statutory deadline.

Key details
- Staff recommended the committee recommend Council adoption of the residential amendments at the Sept. 8 City Council meeting; nonresidential and additional green building amendments will follow on a later October timeline.
- Brad Eggleston, director of public works, announced a separate but related staff initiative: new permit-fee rebates to reduce the cost barrier for residential heat-pump water heaters and heat-pump HVAC projects. Eggleston said staff is planning to add these permit rebates to the city rebate hub and launch them around Oct. 2 to coordinate with state incentive timing.
- Permit-fee rebate amounts staff cited: about $328 for instant permits and about $638 for standard permits; tech-clean state incentives cited for comparison range from roughly $1,100–$1,800 for heat-pump water heaters and $1,000–$1,500 for heat-pump HVAC systems.
- Staff presented a compliance exemption pathway tied to the city’s General Plan and existing greenhouse-gas reduction strategy; deputy city attorney Maddie (identified in the meeting as McMadeline’s Law, deputy city attorney) explained staff’s view that an exemption in the state law could allow local amendments that incentivize all‑electric construction while permitting mixed‑fuel construction consistent with the General Plan.

Questions and concerns raised
- Committee members and attendees pressed staff for clarification on multiple points: whether the required heat pump must be sized to serve primary heating for the home, how the rule treats installations where an existing AC does not serve the whole home, and exemptions when a heat pump heating system is already installed. Scott said the requirement is that a replacement heat pump be sized to serve as the home’s primary heating source, and staff explained there is an exemption when installing a heat pump would require a system more than about one ton larger than the existing system.
- Public commenters asked staff to add a specific exemption for homes that already use a combination heat-pump system for water heating and space heating so they could add AC without being required to resize to serve whole-home heating. Staff said that configuration had not been on their radar and that they expect to evaluate and, if needed, adopt additional exceptions in the period between adoption and the rule’s effective date.
- Several speakers asked about FlexPath point values and whether staff could adjust points to more strongly incentivize heat pumps; staff said point values are drawn from the cost-effectiveness study and changing them would require an additional study.

Committee action and next steps
- The committee voted to recommend Council adoption of the emergency ordinance with the local amendments reviewed in the staff report. The motion passed on a voice/roll-call vote; committee members recorded as voting in the affirmative during the roll call included Council member Lee and Vice Mayor Banquert (motion carried). Staff will present the recommendation verbally at the Sept. 8 City Council meeting and, if Council approves, staff will submit the local amendments to the California Energy Commission and the California Green Building Standards Commission for state review.

Context and implementation
- Staff said the CEC/CBSC review typically takes about two months. Staff indicated the AC-to-heat-pump requirement would be effective on 01/01/2027 and that some other requirements would be effective 01/01/2026 if approved by the state agencies.
- Staff will continue outreach and additional cost-effectiveness work on items not ready for the accelerated timeline (for example, gas water‑heater time‑of‑replacement and updates to new‑construction source‑energy compliance margins), which staff projected could be complete in spring 2026.

Ending: The committee’s recommendation moves the city one step closer to local reach-code changes intended to accelerate building electrification; Council action is required next for the measures to proceed to state review and final effect.","mediaType","Video","parentTitle","Climate Action and Sustainability Committee Meeting - September 5, 2025","oneSentenceSummary","The Climate Action and Sustainability Committee recommended that the City Council adopt emergency local amendments to Palo Alto’s energy code on Sept. 5, 2025, including a requirement that air-conditioner replacements either add insulation/air sealing or install a heat pump; staff said the AC-to-heat-pump rule would take effect Jan. 1, 2027 if approved.","taxTitle","Palo Alto, Santa Clara County, California","taxId",3867,"location","headline","","shortSummary",{"_33":76,"_35":36,"_37":38,"_39":77,"_41":78,"_43":79,"_45":80,"_47":81,"_49":82,"_51":83,"_53":84,"_55":56,"_57":58,"_59":85,"_61":62,"_63":64,"_65":86,"_67":68,"_69":70,"_71":68,"_72":73,"_74":73},6476287,"Palo Alto to analyze incentives, financing and permitting reforms to help residents comply with Bay Area low‑NOx water‑heater rules",384,3896000,4280000,"/Search/View?dp=1&key=5730659-ba7e05bd333312d9433d98de8039f5e9&start=3896&end=4280","https://assets.pipeline.soar.com/5730659-ba7e05bd333312d9433d98de8039f5e9/thumbnail_3896000.jpg","/articles/6476287/Palo-Alto/Santa-Clara-County/California/Palo-Alto-to-analyze-incentives-financing-and-permitting-reforms-to-help-residents-comply-with-Bay-Area-lowNOx-waterheater-rules","https://secure.pipeline.soar.com/6476287-c846d19a94a911b8cc3e7af49b91c7ef/orig.mp4?Expires=1770555604&Signature=naMegd96GpuejiWX0tmlsTHJwbN4OQKTTj-GXKXVVLOIwM23JJD4NbL5OV9rxS4KPC5HLMOEEj3smUao4QeuJACjC0XoQDYI8G7s-~Fdpi0BFXrb~Im~~kSWabK0oIvIy7oSex~A7EBT8qAYK1lSF6uIrp59kriRL8YL2l65bWyNPvzj4pNkQYkFl5Vx9fKk3nivZ1ofNgnFCLd4OrPBj42Djj~BSbXL5~vG6IKVFrr6pxR28FhQfNkh-CpjxRG8lfLZ2Q0ObLpCCPSJbE3exdVWPsz5EMf7fRffa24CK2nPMcmQi1QDaW5bCatYtovDVMW6Z7HjFOyPUgrPjKupkQ__&Key-Pair-Id=KUT5TJCACFTXG","City staff told the Climate Action and Sustainability Committee on Sept. 5 that Bay Area air-quality rules will effectively require electric or low‑NOx water heaters for most residential replacements manufactured on or after Jan. 1, 2027, and that the city should plan assistance to help residents comply.

Jonathan Obenschein, assistant director for climate action, said the Bay Area air district’s Rules 9‑4 and 9‑6 lower NOx limits for new replacement water heaters, which in practice will mean most compliant replacements will be heat-pump water heaters or electric options. Obenschein said installations vary widely in complexity: while many replacements are straightforward, a substantial share require home upgrades (electrical conduit, condensate drainage, space modifications) that increase costs and may deter homeowners from converting.

What staff will study: Obenschein asked the committee whether staff should analyze and pursue a range of assistance tools, including incentives, financing, contractor training and streamlined permitting. Staff presented four preliminary financing/incentive scenarios with broad annual cost ranges: a low-cost financing-only scenario and more expensive packages with low‑income and middle‑income incentives. Staff said these preliminary models assumed financing could be offered on a 20‑year term and that a targeted $4,500 incentive for low‑income customers would fully offset the incremental cost in the model.

Public feedback and concerns
- Sierra Club’s Dashiell Leeds told the committee the chapter supports implementation of the air-district rules and urged Palo Alto to help residents comply through financial and programmatic support.
- Multiple public commenters cautioned that broad vendor/contractor incentives can be captured by contractors through higher pricing. David Cole and another commenter described experiences where contractor pricing rose when rebates were available and urged program designs that avoid paying incentives directly to contractors.
- Luke Morton, an energy consultant, and others described technical tradeoffs for electric resistance water heaters and electric tankless units: resistance or tankless options can be installed in compact spaces but may trigger large electric-service upgrades and high amperage needs; staff said these technical paths merit further study to determine whether they are viable policy options in Palo Alto.

Staff recommendation and next steps
- Staff recommended continuing regional coordination with community choice aggregators and other Bay Area agencies, developing proposals for incentives and financing options, and returning to Council with more detailed options in early 2026. Staff said they will also explore electric-resistance water-heater pathways and how streamlining or other measures could facilitate compliance.

Ending: Committee members generally supported further analysis and regional coordination; staff will incorporate committee feedback into proposals that return to Council for detailed consideration early next year.","Staff presented the Bay Area air-district rules that will require low‑NOx water heaters manufactured after Jan. 1, 2027, and asked the committee whether to pursue incentives, financing, contractor training and permit streamlining to aid compliance. Staff recommended further analysis and regional coordination.","actionData","errors"]

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Palo Alto committee recommends emergency reach-code amendments including AC-to-heat-pump replacement rule

Palo Alto to analyze incentives, financing and permitting reforms to help residents comply with Bay Area low‑NOx water‑heater rules