Bay Area delays phaseout of gas water heaters until 2028 with exemptions

Bay Area air regulators voted 16-1 to postpone the state’s initial phaseout of gas water heaters by one year, moving the compliance deadline to January 2028, San Jose Inside reported. The updated rule allows up to half of property owners replacing gas water heaters to skip switching to electric heat pumps, which emit no nitrogen oxides.

The rule, which does not require replacing working water heaters, offers exemptions for low-income owners, households with high housing costs, and homes with limited space or outdated electrical systems, according to San Jose Inside. These exemptions were designed to address concerns raised by property owners and environmental groups.

Supporters argue the Bay Area’s approach balances pollution reduction goals with practical challenges faced by homeowners. An air district spokesperson told San Jose Inside the rule could prevent up to 16 premature deaths and 21 new asthma cases annually, while avoiding $90 million in healthcare costs. However, staff estimate the exemptions may reduce about half of the originally projected pollution cuts.

Heat pump water heaters cost approximately $3,500 more to install than gas models and use significantly less energy, though electricity rates are often higher, San Jose Inside noted. The delay and exemptions reflect a broader trend in California toward easing some appliance electrification mandates, as Southern California air regulators recently rejected similar phaseout plans.

The Bay Area’s decision contrasts with Southern California’s approach, where stricter phaseout plans have faced setbacks. The new timeline gives homeowners more time to adapt to the transition while aiming to reduce smog-forming emissions from home appliances.