What the Bay Area Air District appliance policy means for your home—and how SJCE can help
The Bay Area Air District is our regional agency that regulates stationary source air pollution to protect public health for the nine counties around the San Francisco Bay. In March 2023, the Air District proposed amendments to building appliance policy to reduce air pollution that harms our lungs and to help cut climate-warming emissions from homes and buildings. In October 2025, the Air District released a proposed list of exceptions to the rules and is inviting public feedback for the next 30 days, which means they are actively considering exemptions for specific circumstances.
What is the policy?
The Bay Area Air District (BAAD) updated its appliance rules to phase in zero-NOₓ standards for new or replacement water heaters and furnaces. These rules do not require you to remove working appliances and do not apply to cooking appliances like gas stoves. The goal is to cut nitrogen oxides (NOₓ), a major contributor to smog and asthma, as equipment is replaced over time.
What’s covered:
Gas water heaters and furnaces (vented appliances) when sold and installed after the effective dates. You will be required to install zero -NOₓ appliances, meaning electric appliances like heat pumps. To learn more about heat pump water heaters click here and for heat pump HVAC systems click here.
Where it applies:
The 9-county Bay Area within the Air District’s jurisdiction, including Santa Clara County.
Key Dates & Phasing Timeline:
The Air District’s zero-NOₓ standards roll out in phases. After these dates, only compliant (zero-NOₓ) models can be sold or installed in the Bay Area.
| Appliance | Effective Date |
|---|---|
| Water heaters < 75,000 BTU/hr (typically residential tank water heaters) | January 1, 2027 |
| Residential & commercial furnaces | January 1, 2029 |
| Water heaters 75,000–2,000,000 BTU/hr (commercial/multifamily, including tankless/instantaneous) | January 1, 2031 |
