Said at yesterday’s meeting amendments don’t go far enough to address costs of mandated appliance renovations
By Keegan Coleman, Director, Actum
SAN FRANCISCO – The California Rental Housing Association (CalRHA) issued a statement after the Bay Area Air Quality Management District (BAAQMD) Board of Directors yesterday voted to adopt amendments to Rule 9-6, the district’s ban on the sale and installation of new natural gas water heaters.
According to a post on the Air District’s X account Wednesday afternoon, “The Air District Board approved updates to the zero-NOx water heater rule that delay implementation to January 2028 and allow exemptions for low-income homeowners, properties with electrical limitations and space-constrained homes.” (See meeting agenda and presentation, watch video and see related article)
CalRHA was joined by hundreds of Bay Area residents including housing and property organizations, such as 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, South County Business Alliance, Silicon Valley Business Alliance, and Small Property Owners of San Francisco Institute, in opposing the gas appliance ban and testifying at the Air District’s September, October and November board meetings. CalRHA will continue to advocate for policies that protect residents, small rental property owners and the renters who depend on them.
“Today’s vote to delay implementation by one year happened despite concerns from Board members over costs, impact to seniors and families on fixed incomes, and electric grid blackouts,” said Adam Pearce, President, CalRHA. “We are grateful to every member, affiliate and coalition partner who spoke out at the September, October, and November Board meetings, and took time away from their families and businesses to make their voices heard. But a delay and set of unworkable exemptions don’t fix the core problem. A hard sales ban tied to replacement cycles still puts the financial and logistical burden on housing providers.
Under the amended rule, a gas water heater that fails after the compliance date must be replaced with an electric model, which in many Bay Area buildings constructed before 1980 means new circuits, upgraded electrical panels and often new service lines from the street. Upgrading panels and service lines alone can cost from $11,500 to more than $120,000 per building, according to a 2023 California Public Utilities Commission report.
“We have asked the Air District for a new cost analysis that reflects what conversion really costs in older buildings,” added Pearce. “We have also asked for alternative financial incentives, so mom-and-pop housing providers already dealing with rent control, rising insurance premiums and thinning margins aren’t left to absorb those costs on their own. We share the goal of clean air, and we will keep working with the Air District to reach it without making housing more expensive or pushing small housing providers out of the industry.”
For a small property owner with a duplex or fourplex, compliance could cost six figures across the property and wipe out years of net operating income, and where rent control applies, capital improvement pass-throughs are slow, contested and often capped far below actual costs.
About the California Rental Housing Association
The California Rental Housing Association represents 14,000+ members totaling more than 805,000+ units, made up of small, medium, and large rental housing owners throughout the State of California. Our purpose is to advocate for the best interests of the rental housing industry and collectively address industry needs.



















