Bay Area proposes delaying first-of-its-kind gas water heater ban

Regulators in the Bay Area of California have proposed delaying the implementation of a rule that prohibits the sale of many gas-powered residential water heaters beginning next year. 

Catch up quick: In 2023, the Bay Area Air District (BAAD) passed a proposal requiring that residential water heaters rated at 75,000 BTU per hour or less meet a zero-NOx standard to be sold or installed in the area after January 1, 2027, a move aimed at improving air quality. 

• Since then, however, business groups have raised concerns about affordability and installation logistics, prompting BAAD to weigh revisions, as Homepros has reported. 

What’s happening: BAAD last week published draft changes to the rule, proposing to delay its effective date by one year, to January 1, 2028.

• The changes also propose exemptions for qualified low-income households and situations where electrical panels or space constraints would make installations “especially difficult or expensive,” a news release states. 
• (Water heaters between 75,001 and 2 million BTU per hour, including tankless and commercial units, fall under a separate zero-NOx deadline, which would shift from January 1, 2031, to January 1, 2033.)

The big picture: While other state and local governments have moved to restrict gas appliances, BAAD is the first regulatory body in the U.S. to enact a zero-NOx requirement for residential water heaters.

Of note: The rule does not require homeowners to replace existing water heaters; it applies only to installs after the effective date. 

What they’re saying: “We heard from homeowners that the cost and logistics of switching to cleaner appliances can be real barriers, and we have responded by proposing common sense solutions,” Philip Fine, executive officer of the Air District, said in a statement. 

• “A property owner with an older electrical panel, a tight utility closet or income constraints will have a clear path forward, so a broken water heater will never become a financial crisis,” he added. 

What we’re watching: The proposed changes come after eight BAAD board members in May called for suspending the rule entirely, while 10 members supported keeping the rule with amendments similar to those now on the table, as Homepros reported.

Looking ahead: BAAD is accepting public comments on the proposed changes through August 13 and is expected to consider their adoption in November.