Hundreds of Bay Area rental housing providers, tenant advocates to protest, testify in opposition to Air Board’s gas appliance ban
To raise concerns during Wednesday meeting that the regulation is bad policy that will increase housing costs, disrupt renters, and push housing providers to sell properties
BAAQMD’s actions part of effort to convert California homes to electric powered heat pumps for water heaters and HVAC systems
Contra Costa Supervisors Carlson, Gioia serve on BAAQMD Board
By Keegan Coleman, Actum
SAN FRANCISCO – Hundreds of rental housing providers, property owners and representatives from local rental housing affiliates across the nine counties that fall under the Bay Area Air Quality Management District’s (BAAQMD) jurisdiction – including the counties of Contra Costa, Alameda, Marin, Napa, San Francisco, San Mateo, Santa Clara, Solano and Sonoma – will gather at the BAAQMD Board of Directors meeting on Wednesday, October 7, to testify in opposition to the district’s gas appliance ban and make clear that the regulation is bad housing policy.
Background & Timeline
The Air District Board of Directors is considering changes to Regulation 9, Rules 4 and 6 which are intended to reduce emissions of nitrogen oxides from residential and commercial furnaces and water heaters in buildings in the Bay Area.
According to the Water Heater Rule Draft Amendments Overview, “The amendments are designed to make compliance with the rule more affordable by providing exemptions for low-income property owners and addressing situations where installing a compliant water heater would be particularly expensive. The draft amendments and supporting material can be found at: baaqmd.gov/building-appliances.”
According to the District’s Notice of Public Hearing issued on Friday, Oct. 2nd, “On March 15, 2023, the Air District adopted amendments to Rule 9-4: Nitrogen Oxides from Fan Type Residential Central Furnaces and Rule 9-6: Nitrogen Oxides (NOx) Emissions from Natural Gas Fired Boilers and Water Heaters that govern point of sale emission standards for small, typically residential and commercial, water and space heating systems.
The Board then conducted a public hearing on June 21, 2023, in which they directed staff to submit the current versions of Rule 9-4 and Rule 9-6 to the United States Environmental Protection Agency (EPA and the California Air Resources Board for inclusion in the State Implementation Plan (SIP).
At their meeting on Nov. 4, 2026, the Air District Board of Directors will consider changes to Rule 9-6 for water heaters. The changes being considered would, if approved, provide for some exemptions to the zero-nitrogen oxides standard and would extend the compliance date. The meeting will begin at 9:00 a.m., or as soon thereafter as the matter may be heard and is also accessible via Zoom on the Air District’s website.
According to the Appliance Rules Concept Paper Overview, “To make the transition fair and practical, the Air District is working on 2026 flexibility amendments that could:
• Allow continued sales of small (≤35-gallon) gas water heaters for a limited time.
• Provide exemptions for low-income homeowners and some small business types.
• Permit contractors to purchase and install temporary “loaner” water heaters for emergencies
• Grant extra time or exemptions for homes needing major electrical upgrades, water heater relocation, or hydronic systems”
According to the District’s Fact Sheet on the proposed amendments, “The amended rules will affect Bay Area households that use natural gas appliances — roughly 2/3 of all households currently. The rule amendments will apply only to new appliances, and do not mandate retrofitting of existing appliances and the current timeline is as follows:
- 2027* – only zero NOx small tank type 75k BTU/hr water heaters can be sold or installed in the Bay Area.
- 2029 – only zero NOx furnaces less than 175k BTU/hr can be sold or installed in the Bay Area.
- 2031 – only zero NOx large commercial water heaters, tank type 75k to 2M BTU/hr and tankless water heaters, typically large commercial and multifamily water heaters can be sold or installed in the Bay Area.
*The Board of Directors will consider flexibility amendments in 2026 and potentially adjust the timeline with a later compliance deadline.”
According to the Rule Development History;
- In December of 2024, Air District staff presented an informational update on the implementation readiness of the zero NOx requirements for residential water heaters (Rule 9-6) to the Air District Board of Directors.
- In April of 2025, Air District staff presented to the Stationary Source Committee to share proposed next steps and potential flexibilities and amendments to Rule 9-6 (2027 compliance date) based on the IWG’s findings. The second phase of the IWG 2.0 will commence in late-2025 and will focus on furnaces Rule 9-4 (2029 compliance date).
So, the Air Board will consider the proposed amendments to Rule 9-4 at a later date.
Public Comments for Oct. 7th Meeting
During general public comments speakers will urge the Board to reconsider the regulation, warning that the mandate would impose high new costs on rental housing communities, create logistical and construction challenges for older and space-constrained properties, disrupt renters, and further strain a region already facing one of the nation’s most severe housing affordability crises. If Item 16 is pulled from the Consent Calendar, there will be another opportunity for public comments on the Stationary Source Committee’s report (see the Committee’s Item 5 on page 176 of the Board meeting agenda, entitled, State and Regional Efforts to Advance the Equitable Transition to Clean Appliances).
Representatives from organizations including Better Housing Policies, Business and Housing Network, Santa Clara Association of Realtors, San Mateo County Association of Realtors, East Bay Rental Housing Association, Berkeley Property Owners Association, California Rental Housing Association, South County Business Alliance, Silicon Valley Business Alliance, and Small Property Owners of San Francisco Institute will attend the meeting to emphasize to the Board that while clean-air goals are important, this regulation takes the wrong approach by shifting costly infrastructure burdens onto housing providers and, ultimately, renters.
Stationary Source Committee Meeting Details
During the District’s Stationary Source Committee meeting on September 9 2026, Chaired by Contra Costa County District 4 Supervisor Ken Carlson, and whose Vice Chair is Contra Costa County District 1 Supervisor John Gioia, “Richard Chien, Planning and Climate Protection Manager, gave the staff presentation entitled, State and Regional Efforts to Advance the Equitable Transition to Clean Appliances, including: abbreviations; outline; major players in the clean appliance transition; spotlight on California Heat Pump Partnership; spotlight on Bay Area Regional Energy Network (BayREN) – heat pump water heater (HPWH) for hard-to-reach households, contractor readiness, building department support; spotlight on Pacific Gas & Electric (PG&E); spotlight on load serving entities – funding support, permitting support; Senate Bill (SB) 222 – The Heat Pump Access Act, entitled, “Residential heat pump water heater or heat pump HVAC systems” (which Newsom signed into law on Sept. 28th); spotlight on Sprint to 9-6 – communications and outreach; spotlight on equitable building decarbonization; and Air District outreach and education.
“Jane Elias, Manager of Energy Programs with Metropolitan Transportation Commission/Association of Bay Area Governments, and Nik Kaestner, Senior Building Decarbonization Coordinator with the San Francisco Environment Department, provided additional context after the presentation.”
Before the presentation, the District’s Executive Officer and Air Pollution Control Officer Philip Fine explained to the committee members that the agenda item wasn’t Rule 9-4 or 9-6 which the Board will consider in November.
Chien shared about the California Heat Pump (Public-Private) Partnership Blueprint which is pushing to increase the number of housing units that install heat pumps throughout the state. “The 2025 California Energy Code (effective Jan 1, 2026) encourages heat pumps for both space and water heating and supports all‑electric new construction. California has committed to a clean energy future for all through groundbreaking building decarbonization efforts, including Governor Newsom’s goal to install 6 million heat pumps throughout the state by 2030.”
“Unlike traditional fossil gas systems, heat pumps use electricity to transfer heat rather than generate it, making them highly efficient while reducing greenhouse gas emissions and air pollution,” the Blueprint claims.
According to the HVAC Laboratory, “At its core, a heat pump is an electrically powered appliance that moves heat between the indoors and outdoors. Unlike a furnace that burns fuel or a standard electric heater that converts electricity directly into warmth, a heat pump captures existing heat from the air—or even the ground—and relocates it. In heating mode, the outdoor unit extracts thermal energy from the outside air and brings it inside; even when temperatures drop into the 40s or 30s, there’s enough ambient heat to collect. Come summer, the cycle flips. The system acts just like a central air conditioner, pulling heat from your living spaces and expelling it outdoors.”
According to ElectrifyCalc, “California homeowners can expect to pay $5,500–$12,000 installed for a 2–3 ton air-source heat pump in 2026 — and with the Section 25C federal tax credit (30%, up to $2,000), HEEHRA (High-Efficiency Electric Home Rebate Act) rebates up to $8,000, and California’s own TECH Clean CA program offering $1,000–$4,000, the net cost after stacking incentives can drop below $2,000 for income-qualified households.”
According to EnergyStar.gov, a heat pump water heater “takes the heat from surrounding air and transfers it to water in an enclosed tank.”
Chien also spoke about BayREN, the Bay Area Regional Energy Network, which is “a coalition of the Bay Area’s nine counties…partnering to promote resource efficiency at the regional level, focusing on energy, water and greenhouse gas reduction.” They are working to provide resources, such as “an express permitting form template and standardized information materials for city websites.”
He also spoke about what PG&E is doing to help streamline the installation of heat pumps including zero-interest loans. Finally, Chien spoke on the Equitable Decarbonization Program overseen by the California Energy Commission which includes the Initial Community Focus Areas of Western and Eastern Contra Costa and others in the Bay Area.
He, the other presenters and District staff then answered questions of the committee members followed by public comments on the item.
No action was taken on the information item. (See video of the committee meeting)
WHAT: BAAQMD Board of Directors Meeting
WHEN: Wednesday, October 7, 2026 10:00 a.m.
WHERE: Bay Area Air Quality Management District, 375 Beale Street, Suite 600, San Francisco, CA 94105
WHO: Noni Richen, Board President, Small Property Owners of San Francisco Institute
Derek Barnes, CEO, East Bay Rental Housing Association
Krista Gulbransen, Executive Director, Berkeley Property Owners Association
Public Comment Deadline Nov. 1st
The District is seeking public comments on the Proposed Rule Language and Preliminary Staff Report ahead of the Board of Directors meeting on November 4th. The public comment period for the proposed amendment to Rule 9-6 will close on November 1st at 6 PM. Online comments must be submitted through the Air District’s public comment tool to be considered. Under Air District policy, we cannot consider comments on regulations that are submitted by email. Written comments can also be submitted by mail to Rule Development, Bay Area Air Quality Management District, 375 Beale Street, Suite 600, San Francisco, CA 94105. Verbal comments are welcome up to the day of and during the Public Hearing.
For more information about the Board meeting see Agenda Packet and about the BAAQMD visit www.baaqmd.gov.
the attachments to this post:
CCC Supes Ken Carlson & John Gioia BAAQMD Comte mtg 090926
Rental housing coalition vs BAAQMD & photos
