Bay Area Air Board Delays Gas Water Heater Phaseout, Exempts Medi-Cal Enrollees

The Bay Area Air Quality Management District voted 16-1 to delay by a year its phaseout of gas water heaters, now requiring zero-nitrogen-oxide models starting January 2028 for most property owners replacing a unit. The amended rule exempts people with incomes at or below 80% of area median income or enrolled in programs such as Medi-Cal or CalFresh, those whose housing costs exceed 28% of gross income, and homes with physical barriers like cramped closets or outdated electrical panels. The air district estimates about 20% of households qualify for the income-based exemption and another 20% for physical-barrier exemptions, with staff estimating the exemptions could forgo roughly half the rule's originally projected pollution cuts. Larger water heaters common in apartment buildings now have until 2033 instead of 2031.