Bay Area Air Quality Management District considers gas ban changes to ease transition

New rules aimed at phasing out certain natural gas appliances across the Bay Area could be reconsidered, as regulators weigh possible exemptions that could ease the transition for some residents.

The proposed changes by the Bay Area Air Quality Management District would affect the cost of replacing furnaces and water heaters across all nine Bay Area counties, drawing both support and criticism.

Under rules adopted in 2023, only zero-nitrogen oxide water heaters would be sold starting in 2027, followed by air heaters in 2029 and larger commercial systems in 2031.

Homeowners would not be required to remove existing appliances. The rules would apply only when systems need to be replaced, effectively phasing out gas-powered units over time.

Supporters say the move is necessary to reduce air pollution and combat climate change.

"We think this is critical for moving everybody in the direction of reducing greenhouse gas emissions and fighting climate change," said Ken Strong of the Marin Conservation League.

The district estimates it would cost about $3,500 more to install an electric heat pump water heater compared to a natural gas model.

Regulators are now considering one-time exemptions for lower-income households, homes that require major electrical upgrades and buildings that cannot accommodate electric systems.

Opponents argue the policy could create a financial burden for homeowners and small businesses.

"It's been dismal, the outreach that they've done, and this law affects everyone," said Johnny Khamis, president of the Silicon Valley Business Alliance. "Everybody has a water heater at their house, whether they rent or own."

The organization represents small businesses, including landlords, and says the transition could lead to higher costs even with rebates.

"The business community has felt like they're at war with elected officials," Khamis said. "They keep passing laws that affect business in one way or the other."

Regulators estimate up to 38% of homeowners could qualify for exemptions under the proposal.

Environmental groups say exemptions are appropriate for those who need them but warn against delaying or reversing the rules entirely.

"We think it's a health issue, and delaying this rule-we don't see clear reasons why it should be delayed in its entirety," Strong said.

The proposed rules would not apply to gas stoves or ovens.

The air district board is expected to take up the exemption proposal Wednesday.