Bay Area Air District mulls delays, changes to ban on natural gas water heaters

Amid concerns about affordability, the Bay Area Air District said it would consider adding exemptions and delaying the start of a looming ban on new natural gas water heater installations.

Under the rules, set to take effect in January 2027, property owners would not be required to remove existing water heaters, but would have to replace them with water heaters that produce zero nitrogen oxides.

In a statement Tuesday, the agency said it published draft language to the rule that would delay implementation by one year, to January 2028. The language would also exempt low-income property owners and situations where electrical panel or physical space constraints at properties make the transition "especially difficult or expensive."

"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," said Air District executive officer Philip Fine.

According to the district, exemptions would likely apply for property owners who participate in programs such as Medi-Cal or Cal Fresh, along with households paying more than 28% of their income toward their mortgage or property taxes. In addition, properties without enough room or ventilation to install a compliant water heater or certain electrical limitations would be exempt.

"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," Fine added.

Exemptions would also be in place for certain businesses such as restaurants, laundries, healthcare facilities and assisted living facilities.

"These businesses have been identified to have specialized high hot water heat demands whose needs may not be met by the technical capabilities of zero NOx water heaters that are currently available on the market," according to the text of the proposal.

Public comments on the proposed changes will be accepted on the agency's website through August 13.

The Air District Board of Directors is expected to consider the proposed changes this fall.