Starting January 1, 2027, the Bay Area Air Quality Management District (BAAQMD) will require all newly installed water heaters to meet zero-NOx standards. Conventional gas water heaters will no longer be permitted for new installations.
What Is the BAAQMD 2027 Regulation?
BAAQMD adopted Regulation 9, Rule 4, phasing out high-NOx appliances including residential gas water heaters. After January 2027, Bay Area contractors cannot install standard gas water heaters.
Does this affect existing heaters? No — only new installations are affected.
Best Compliant Option: Heat Pump Water Heaters
Heat pump water heaters are BAAQMD-compliant, 2–4x more efficient than gas, and eligible for up to $4,900 in rebates through TECH Clean CA and the federal IRA 25C tax credit.
Available Rebates
- TECH Clean CA: up to $3,000
- Federal IRA 25C tax credit: up to $2,000
- Utility rebates (PG&E, EBCE): $100–$500
- Total potential savings: up to $4,900+
Water Heater Boys is a registered TECH Clean CA contractor — we apply the rebate directly to your invoice.
Frequently Asked Questions
Do I have to replace my gas water heater before 2027?
No. The rule applies to new installations only.
Can I get a gas water heater after 2027?
After January 2027, Bay Area contractors will not be permitted to install standard gas water heaters.
Ready to Upgrade?
Call Water Heater Boys at (415) 888-4428. We handle all rebate paperwork.