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Board delays adoption of low-NOx furnace rule, approves CARB-funded rebate program
Summary
Staff proposed lowering allowable NOx emissions for new and replacement natural-gas furnaces to 14 ng/joule (effective Dec. 9, 2026) and estimated a $550 incremental unit cost; the board voted to deny the proposed rule at this meeting pending more information on incentives, then approved a CARB-funded furnace rebate program and accepted related grant funds.
The Ventura County Air Pollution Control Board on June 9 received a staff proposal to amend Rule 74.22 to lower allowable nitrogen-oxide (NOx) emissions for natural-gas-fired fan-type central furnaces sold or installed in Ventura County from the existing limit to a proposed 14 nanograms-per-joule standard, and heard extensive public and contractor input before taking two distinct actions: delaying adoption of the rule changes and adopting a CARB-funded furnace rebate program.
Staff told the board the rule change would apply at point of sale and installation only (not to existing furnaces in place) and that roughly 229,000 furnaces in the county could be subject to the rule over time. Staff estimated aggregate emission reductions of about 104 tons of NOx by 2051 under a gradual replacement assumption (about 4% turnover per year) and said the incremental cost for an ultra-low-NOx unit is about $550 per unit. The staff presentation noted exemptions for mobile homes and for installations above approximately 4,200 feet elevation.
Board members raised questions about affordability, implementation timing and enforcement. Several members urged greater emphasis on an incentive-driven approach rather than an immediate mandate; one board member moved to deny the proposed amendments at this time and request more information on the incentive/rebate program and outreach. After debate and public comment, the motion to deny carried.
At the same meeting the board separately approved a resolution authorizing the district to implement a furnace rebate program (FRP) under the California Air Resources Board (CARB) Community Air Protection Program and approved staff authority to execute agreements needed to implement the FRP. Staff said CARB approved the FRP project plan on May 8, 2026, and that the program will use Cap-and-Trade incentive and Climate Heat Impact Response funds to offset incremental costs of replacing existing natural-gas furnaces with either ultra-low-NOx burners meeting the proposed 14 ng/joule limit or zero-emission heat pump systems. The board also adopted a resolution to accept an identified CARB grant allocation for the incentive effort.
Public commenters included HVAC contractors who cautioned that earlier iterations of ultra-low-NOx technology had reliability and installation challenges and that an immediate mandate could impose undue costs on households and businesses; contractors urged vouchers or upfront discounts to reduce the burden of up-front payments. Dr. Yang Meng, an air-quality engineer in the district's planning/rules/incentives division, described the staff proposal for a rebate process in which customers or contractors submit applications and a third-party contractor would verify unit eligibility before payment or voucher issuance.
The board's actions at the meeting were: denial of the proposed Rule 74.22 amendments pending additional incentive details and study; adoption of the FRP resolution to establish a CARB-backed rebate program; and adoption of a resolution authorizing acceptance of CARB Climate Impact Response Program funds for the district's incentive efforts.
