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Council deadlocks on reach code for existing single‑family homes; proposal to require heat‑pump conversions on AC replacement fails

5743399 · September 10, 2025
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Summary

After extended debate, the council split on a proposed reach code that would require heat‑pump HVAC when existing single‑family air conditioners are replaced and that would add an electric‑ready option for remodels; the motion failed after a 5–4 recorded vote and will not take effect.

The City Council on Sept. 9 debated for more than two hours a proposed building reach code that would affect existing single‑family homes. The ordinance had two parts: an “AC‑to‑heat‑pump” component that would require a heat‑pump HVAC system when a homeowner replaces or adds an air conditioner (with some exceptions), and an “electric‑ready” component requiring certain electrical pre‑wiring when alterations or additions occur near gas appliances.

Staff presented technical and financial analyses, including upfront incremental costs staff estimated between about $750 and $3,500 for heat‑pump conversions above like‑for‑like AC replacements and the availability of stacked incentives (San Jose Clean Energy rebates of $2,500–$3,500 plus state Tech Clean California rebates and zero‑interest on‑bill financing). Staff and consultants cited potential first‑year bill savings ranging $300–$500 and lifecycle utility savings; staff also proposed an exemption for households with income up to 100% of area median income (AMI) and other exceptions (kitchen/attic/asbestos/panel upgrade triggers).

Council members split on whether the city should adopt a mandate tied to equipment replacement or remain voluntary and rely on rebates and outreach. Supporters said the measure would accelerate emissions reductions and help residents avoid replacing gas furnaces later; opponents raised concerns about uncertain out‑of‑pocket costs for homeowners and renters, implementation details (income verification, permitting and inspection workflows), and program capacity (current rebate funding estimated to cover roughly 590 installations per year while annual AC permit activity is larger).

After debate and a council amendment that removed immediate pre‑wiring requirements and added an income‑based exemption, the roll call was Mahan, Cohen, Candelas, Tordillos and Campos voting yes; Kamei, Ortiz, Dwan, Foley and Casey voting no (Councilmember Cohen’s earlier voting absence generated procedural complexity). The council recorded the outcome as failing to achieve passage; staff will not implement the proposed reach code as drafted and will proceed with other electrification programs already authorized.