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Starting January 1, 2027, only zero-NOx (low-emission) water heaters may be sold or installed in all nine Bay Area counties under BAAQMD Rule 9-6. In plain terms: if your gas water heater fails after that date, a licensed plumber won’t be able to install a new gas unit to replace it. This is a point-of-sale restriction — not a forced retrofit mandate. If you already have a gas water heater running, you’re not required to rip it out. But the moment it needs replacing, your options change significantly. Residents are looking at roughly a $3,500 cost increase for heat pump models compared to traditional tank water heaters. The upside: the federal 25C Energy Efficient Home Improvement Credit offers up to $2,000 for qualifying heat pump water heaters, and state programs through TECH Clean California have offered rebates of $1,000–$3,100+ depending on income eligibility — though funding moves fast and waitlists are common. If your gas water heater is aging, 2026 is genuinely your last window to replace it on your own terms. I’m happy to walk you through your options — whether that’s going in with a gas unit now or planning ahead for a heat pump system. Regulations in this area are evolving — I’ll always do my best to keep this information current, but confirm the latest with BAAQMD or give me a call.