Yet the policy is likely to make an impact well beyond the four-county region. Proponents say a\u00a0major goal of setting the zero-emission standard is to signal to heat pump manufacturers and other clean technology suppliers to start ramping up production \u2014 which could benefit industrial electrification efforts elsewhere by driving down appliance costs.<\/p>\n
The Ninth Circuit\u2019s ruling<\/a> comes as California is pushing to decarbonize all corners of its $4.3 trillion economy. Manufacturing facilities are responsible for more than one-fifth<\/a> of annual greenhouse gas emissions in the state, making them the largest source after transportation.<\/p>\n Last year, Democratic Gov. Gavin Newsom signed a\u00a0law, Assembly Bill 1280, that expands incentive programs to help manufacturers install industrial heat pumps, thermal storage systems, and other electrified equipment. Utilities and state lawmakers are also developing new electricity rate structures<\/a> that would lower the cost of operating electric appliances.<\/p>\n Such efforts are meant to address the financial challenges that can come with switching to electric appliances in industrial settings. Cleaner alternatives, such as heat pumps and electric boilers, are typically more expensive up front. Electricity is often far more expensive as a\u00a0fuel than natural gas, especially for large industrial users \u2014 an issue that\u2019s true in California as well in other parts of the country, including the Upper Midwest and Northeast.<\/p>\n If policies can help overcome those hurdles, industrial firms stand to reap significant economic benefits by reducing their exposure to volatile fossil fuel prices, making their operations more efficient, and lowering their energy bills over time. All told, electrifying the entire U.S. industrial sector could generate around $471 billion in total economic growth through 2035, according to a\u00a0recent analysis<\/a> by the Renewable Thermal Collaborative and the Industrial Heat Pump Alliance.<\/p>\n California is well positioned to reap some of those benefits, given its existing climate policies and high levels of industrial activity. The state could see over $31 billion from the construction, installation, and manufacturing of electrified technologies, as well as indirect effects from growing supply chains, the report said. That\u2019s even accounting for the expected decline in economic activity and job losses from gas-equipment makers and service providers.<\/p>\n The gas industry, however, sees the Golden State\u2019s electrification push as a\u00a0threat.<\/p>\n Last year, Southern California Gas, the nation\u2019s largest gas-distribution utility, helped sink<\/a> the air district\u2019s separate plan<\/a> to push households away from gas-burning space and water heaters and toward electric heat pumps. Rinnai America, which manufactures gas appliances, has led the legal fight against the zero-emission standards for boilers and water heaters.<\/p>\n In July 2025, a\u00a0U.S. district court upheld the clean boiler rules, rejecting opponents\u2019 argument that the measure conflicts with the federal Energy Policy and Conservation Act and thus isn\u2019t valid. Rinnai and other plaintiffs have continued to fight the policy, resulting in the Ninth Circuit\u2019s July 2\u00a0decision to affirm the district court\u2019s earlier ruling.<\/p>\n The opposition will still have a\u00a0chance to challenge the policy again, by asking the Ninth Circuit to review its ruling, Youngblood said. In the meantime, Southern California regulators are preparing to propose a\u00a0new set of rules for larger commercial and industrial systems in the region, which the agency staff aims to present to its board by the end of this\u00a0year.<\/p>\n","protected":false},"excerpt":{"rendered":"Yet the policy is likely to make an impact well beyond the four-county region. 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