San Jose's City Council has taken a significant step towards enhancing energy efficiency and reducing greenhouse gas emissions by proposing new reach codes aimed at promoting the installation of heat pump HVAC systems in single-family homes. During the meeting on September 9, 2025, council members discussed two pathways for homeowners replacing or adding air conditioning units: installing a heat pump system or opting for a standard AC unit with additional energy efficiency improvements.

The proposed reach code includes exceptions for older homes with outdated wiring and for households earning up to 100% of the area median income, ensuring that the initiative remains accessible to a broader range of residents. The estimated upfront costs for installing heat pumps range from $6,500 to $1,700, while standard AC installations with energy efficiency upgrades could cost between $600 and $7,500, depending on the specific project.

To support residents in making these upgrades, San Jose Clean Energy offers financial incentives through its Eco Home rebate program, providing between $2,500 and $3,500 for heat pump installations, with higher amounts available for income-qualified households. Additionally, residents can access state rebates of up to $4,000 through the Tech Clean California program, which can be combined with local incentives.

The council emphasized the importance of these measures in light of upcoming air district regulations set to phase out gas appliances starting in 2027. With residential buildings accounting for a significant portion of San Jose's greenhouse gas emissions, the transition to heat pumps is seen as a crucial step towards achieving the city’s carbon neutrality goals.

Community members voiced strong support for the reach codes during public comments, highlighting the potential for cost savings on utility bills and the positive public health implications of reducing gas combustion pollutants. The council plans to submit the proposed reach code package to the Building Standards Commission and the California Energy Commission for approval, aiming for implementation by January 1, 2026.

As San Jose positions itself as a leader in environmental policy, the proposed reach codes reflect a proactive approach to building electrification, aligning with broader regional efforts to combat climate change and promote sustainable living.