A board of air pollution officials, including Palo Alto Councilwoman Vicki Veenker, will decide today (May 6) whether to stick with plans to ban the installation of traditional natural gas water heaters and furnaces, even though the prohibition will worsen the affordability problem in the Bay Area.
The Bay Area Air District, of BAAD, approved the ban in March 2023, which goes into effect in seven months, on Jan. 1, 2027. A similar ban of natural gas furnaces becomes effective on Jan. 1, 2029.
The ban is aimed at reducing the 5% of nitrogen oxide emissions linked to home appliances. Most of the emissions come from heavy industry, wildfires, transportation and agriculture, according to the California Air Resources Board.
BAAD is headed by a 24-member board of directors made up of elected leaders from throughout the Bay Area including Palo Alto’s Veenker, San Mateo County Supervisors Ray Mueller and Noelia Corzo, Santa Clara County Supervisor Otto Lee, Mountain View Councilman Chris Clark and Sunnyvale Councilwoman Linda Sell. While each of the 24 directors is elected to their local post, no elections are held for BAAD’s board. Instead, BAAD directors are appointed.
Since approving the bans, the BAAD board has been getting backlash from property owners and the business community. They argue that the equipment needed to replace gas water heaters and furnaces will cost thousands of dollars — and will drive up housing costs, contributing to the Bay Area’s affordability crisis.
BAAD officials acknowledge that heat pump water heaters cost more — on average $3,500 more by the agency’s estimate — to purchase and install than traditional gas-powered counterparts. But BAAD says consumers can apply for government rebates to lower the cost.
Opponents say that the owners of older homes will have to pay for electric panel upgrades, which, again, will add thousands of dollars to a project.
Opponents also say BAAD has downplayed the cost. Industry data indicates the upfront equipment and labor cost for a new heat pump water heater in the Bay Area ranges from roughly $4,000 to $9,000, while a heat pump HVAC system can run up to $20,000.
Upgrading an electrical panel can add $3,000 to $15,000, and completely rewiring a house can cost upwards of $10,000.
BAAD is one of 35 air quality districts in California. The South Coast Air Quality Management District in Los Angeles voted 7-5 in June 2025 to reject similar water heater and furnace phase-out rules. Board members said they were afraid it would increase the affordability problem.
Other districts across the state have concluded that the cost placed on families does not justify the modest health and environmental gains.
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