Industry groups say changes to Bay Area’s gas water heater ban don’t go far enough

In response to criticism, officials in the Bay Area of California have proposed changes to a rule that bans the sale of many gas-powered residential water heaters beginning next year. 

Despite the changes, industry groups are still pushing back.

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 first-of-its-kind in the U.S.

• But following affordability and administrative concerns, BAAD in mid-July published draft changes to the rule, proposing to delay its effective date by one year, to January 1, 2028, and offering exemptions for qualified low-income households and situations where electrical panels or space constraints would make installs “especially” difficult or expensive. 
• Another proposed exemption would allow for emergency replacements of non-compliant water heaters only if they’re subsequently replaced with compliant units within 12 months, a move aimed at solving time-sensitive situations where installing compliant products “may not be immediately feasible,” according to BAAD.

What’s happening: Even with the addition of a 12-month grace period, some industry groups remain concerned about the practicality of implementation.

• In a joint letter to BAAD, the California Apartment Association and the San Francisco Apartment Association requested that housing providers be able to permanently install non-zero-NOx water heaters when existing equipment fails.
• PHCC of California has requested the same, according to Contractor Mag.

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 BAAD, said in a July statement.

The other side: “Most people don’t replace a water heater on a schedule — they replace it because it just failed and their family needs hot water restored,” Whitney Squire, CEO of PHCC of California, told Contractor Mag.

• “The exemption process as written assumes there’s time to plan ahead. In the real world, there usually isn’t,” she added.
• “We’re asking the District to build a process that reflects how this actually works on the ground, so contractors can respond immediately and homeowners aren’t left waiting.”

What’s next: BAAD is tentatively scheduled to consider a decision on the changes in November. 

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