About half of the Bay Area's households could soon qualify for exemptions from a rule phasing out new gas water heaters. A one-year delay to the regulation will also push back pollution reductions meant to protect residents' health.

Here's what to know

Financial hardships and installation challenges are the basis for newly approved exemptions. The Bay Area Air District approved the one-year delay, moving the rule's start date from January 2027 to January 2028, according to KQED.

Once the rule takes effect, newly purchased water heaters will need to be zero-emission models like heat pumps. Residents can continue using and repairing functioning gas units.

A separate measure targets new gas furnaces in 2029. Both regulations received district approval in 2023.

Replacing a gas water heater with a heat pump model costs about $3,500 more upfront, according to district staff estimates.

Although the upfront price is higher, heat pump water heaters can help households lower energy bills by operating more efficiently.

More background

Nitrogen oxides are the main concern. Burning gas in vehicles and home appliances releases these compounds. District staff told KQED that gas-burning water heaters and furnaces pump out roughly as much pollution across the Bay Area as cars and trucks do.

These pollutants can worsen asthma, strain the lungs, and contribute to heart disease. They help form smog and fine particulate matter in the air.

Communities of color facing disproportionate pollution exposure stand to see some of the biggest health gains. District staff also expect the rules to lower medical costs and cut pollution-related deaths.

The proposal drew public comment from hundreds of residents. Doctors, faith leaders, environmental advocates, and younger generations largely backed it. Groups representing homeowners, on the other hand, pushed back over cost concerns.

Most board members said the revisions addressed concerns their constituents had raised.

What's being done?

Homeowners whose income falls below 80% of their area's median, or who direct a large share of their earnings toward a mortgage and property taxes, can qualify by self-reporting through an online form, according to KQED.

Homes lacking adequate space or electrical capacity get a single exemption, but a contractor must confirm the electrical limitation before it's granted.

Water heaters under 30 gallons are also exempt because zero-emission options are limited. Buildings containing at least six units face a January 2033 compliance deadline.

Households looking to upgrade can turn to Cala's configurable smart heat pump water heaters. Cala's systems let households match their water-heating schedule to actual demand, which cuts energy use. That flexibility can also lower bills for residents watching their energy costs. It's one more reason Cala is worth considering when it's time to replace a water heater.

East Bay air board member Lena Tam said to KQED that reducing pollution was important for nearby communities: "I represent the areas that share a disproportionate burden of dealing with air pollutants, particularly the industrial areas in Oakland, Alameda, and San Leandro, and so if we can reduce harm with this rule, we should do it."

Where can I learn more?

The Bay Area's water heater rules have raised questions about both the policy and the practicalities of replacing gas appliances.

• Bay Area officials steering the gas water heater ban mostly still use gas themselves.

• California's water heater rule drew letters generated by AI, with purported authors denying approval.

• In California, an ADU's 36-inch water heater closet may be too tight for heat pumps.

• Buyers seeking 120V heat pump water heaters keep hunting for rare 12,000-BTU models.

• After a seller installed a cheap electric heater, a homebuyer weighed returning to gas.

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