Bay Area Air District staff urged regulators to push back a planned natural gas-powered water heater sales ban by nine months to allow more time for public outreach on the landmark rule, which will require many property owners to replace broken water heaters with cleaner but more expensive electric versions.
The rule is set to begin in January. The new timeline, if approved, would push it back to October 2027.
The rule seeks to reduce pollution, but the price tag would be significant: Air district staff say the installation of a heat pump water heater would cost roughly $3,500 more than a natural gas version, and some homes could face even higher costs if they need additional electrical work.
To blunt the financial impact, the staff proposed exemptions for low-income households, small water heaters and homes facing unusually high installation costs. Those exemptions were discussed at an air district meeting Wednesday and will be up for a vote in October. The board feared losing quorum during the six-hour meeting, so the discussion will continue next Wednesday.
Up to 38% of water heater replacements could qualify for exemptions. But that figure was calculated using a 2023 socioeconomic analysis, and directors questioned whether more households could qualify now.
“Communities are struggling right now,” air board member Gabe Quinto said. “I have a feeling that it’s more than 38% that cannot afford this.”
Dozens of speakers testified about the measure at the air district meeting Wednesday, with many sharply disagreeing over how expensive the transition would actually be. Real estate agents and property owners testified that the rules could require thousands of dollars in changes for individual homes. Other speakers emphasized the affordability of plug-in electric water heaters that they said could substantially cut costs.
Supporters framed the rule as a major public health measure. Air district officials estimate the ban on nitrogen oxide-emitting water heaters and furnaces could prevent up to 85 premature deaths annually while improving regional air quality.
“I’m speaking on behalf of my patients who are too short of breath to come in today, who are stuck in the hospital and cannot leave because of how sick they are,” family medicine Dr. Rachel Gottlieb told the board. “Unfortunately breathing unpolluted air was not an option they could make and it’s not something that I could prescribe, but it is something you can regulate and change.”
With exemptions, enforcing the rule could prove difficult. Air district staff acknowledged homeowners may simply purchase gas water heaters outside the Bay Area, while the agency would still need to determine how to verify low-income eligibility and track exempt purchases across the region.