California Cities Embrace Novel Strategy to Cut Energy Bills and Climate Pollution: Target Air Conditioner Replacements

SAN FRANCISCO - A growing wave of California cities are embracing a practical new strategy to help residents save money while reducing pollution: encourage homeowners to upgrade to efficient heat pumps when their air conditioners break down.

Since July, five cities representing over half a million residents - Menlo Park, Sunnyvale, Mountain View, Palo Alto, and Moreno Valley - have adopted building provisions that encourage heat pump upgrades when air conditioning systems need replacement. Heat pumps provide highly-efficient cooling and heating in a single unit, meaning households that upgrade can often get rid of their polluting gas furnace entirely and cut a key source of climate and air pollution.

"Local leadership matters. When a city's staff and council work together to protect our climate, we see how deeply they care about their residents and communities. Other cities are inspired by that work," said Jeff Schmidt, Councilmember in the City of Menlo Park."When Menlo Park started regulating methane gas use in new buildings, it became a blueprint for other cities. It also sent a clear signal that California residents deserve the strongest climate protections in the nation and that we will hold our city, regional, and state policymakers accountable for standing strong and delivering."

The codes are designed to ensure heat pumps are seriously considered when replacing a cooling unit because this is the most economically advantageous time to upgrade to a heat pump. The installation is often seamless because the necessary wiring, electrical capacity, and space are already in place. Heat pumps are often 20% more efficientthan the older air conditioning systems that they typically replace. When gas furnaces eventually break down, families with heat pumps avoid replacement costs entirely, preventing thousands of dollars in future equipment expenses.

A typical single-family California household upgrading to heat pumps from gas for both space and water heating can save an average of $370 annuallyon their energy bills while enjoying more consistent, comfortable temperatures.

"There's a lot of momentum building behind this approach," said Dylan Plummer, Campaign Advisor for Sierra Club's Building Electrification Campaign. "It's great to see California cities taking a leadership role and pushing back against the Trump administration's attacks on clean energy with smart policies like this. When cities make it easier for families to choose heat pumps, everyone wins-residents get lower bills and we all get cleaner air."

Beyond savings, heat pump installations deliver community benefits. Gas appliances in homes generate four times as muchlung-damaging nitrogen oxide pollution as all of California's power plants combined and roughly 11%of California's total climate pollution. Heat pumps eliminate air pollution from heating entirely. They can also cut heating emissions by 72% in the first yearand achieve a 93% reductionover the equipment's lifetime compared to gas heat systems.

While recent state legislation paused most building code updates through 2031, cities can still adopt heat pump upgrade policiesif they align with existing general plans and greenhouse gas reduction strategies-requirements most California cities already meet. This creates a clear pathway for local leadership on practical solutions for healthy homes.

"Every time someone in California wants to replace a broken a/c system, it's a golden opportunity for them to install a heat pump. Heat pumps cool, they heat, they don't pollute. That's why cities are eyeing policies to capitalize on this perfect window for the upgrade," said Matt Vespa, Senior Attorney at Earthjustice. "Despite legislation pausing most building code updates, California cities can still adopt AC-to-heat-pump policies if they align with their existing general plans and greenhouse gas reduction strategies. Most California cities already meet these requirements, so there's a clear legal path forward for this commonsense climate

About the Sierra Club

The Sierra Club is America's largest and most influential grassroots environmental organization, with millions of members and supporters. In addition to protecting every person's right to get outdoors and access the healing power of nature, the Sierra Club works to promote clean energy, safeguard the health of our communities, protect wildlife, and preserve our remaining wild places through grassroots activism, public education, lobbying, and legal action. For more information, visit https://www.sierraclub.org.