The Date You Keep Hearing About
The Bay Area Air Quality Management District adopted zero-NOx water heater rules (Rule 9-6) on March 15, 2023. The date for natural gas water heaters is currently scheduled for January 2027, and it applies when you replace a burned-out unit. A proposed one-year delay, plus new exemptions, is under Board consideration.
Those draft changes were released in 2026, and the Air District Board is expected to consider them this year. Nothing is final until the Board acts, so check the Air District's Rule 9-6 page for the outcome before you plan around either date.
Incentives and Your Electric Provider
The proposed Rule 9-6 changes would add exemptions for low-income owners, for homes with space or ventilation limits, and for electrical limits such as a panel below 100 amps. These are drafts, not adopted rules. If your home might qualify, ask your plumber to note the limit in writing, because the final language may differ.
BayREN offers a 1,000 dollar incentive, paid to a participating contractor, for a qualifying heat pump water heater that replaces a gas or propane unit. The heater must have a UEF of 3.3 or higher and be on the Qualified Products List, and the customer must be with Ava Community Energy. Union City is served by Ava, and customers can return to PG&E at any time, so confirm your account before you buy.
Ask any contractor you consider whether they participate in the program. Do not assume the incentive appears on the quote.
Water heater work in California is governed by the California Plumbing Code, which is based on the Uniform Plumbing Code (UPC), and a heat pump unit also needs a suitable electrical circuit. Ask any installer which code sections apply to your layout before you approve the plan, so the permit and inspection are not a surprise.
Source type: BAAQMD Rule 9-6 page and 2026 news release, BayREN contractor incentive page, Ava Community Energy
Gas Tank and Heat Pump Tank, Side by Side
Gas storage tank
- Fast recovery and a familiar install
- Needs a gas line and a vent to the outside
- Lower equipment cost at the supply house
- Covered by the gas rule dates above
Heat pump water heater
- Pulls heat from surrounding air, so it needs open space
- Needs an electrical circuit, often 240 volts
- Needs a condensate drain and clearance on all sides
- Runs on electricity and puts no combustion gases in the house
Neither choice is wrong. The right one depends on your garage or closet, your panel and your household.
Four Things That Decide Whether It Fits
Air and space
A heat pump heater cools the room it sits in. A cramped closet with no air exchange is a poor home for it, and a garage is often a good one.
Electrical panel
A dedicated circuit and available panel capacity are required. An older or full panel can add an electrician's work to the quote.
Condensate and noise
The unit produces water that must drain somewhere, and it hums like a small appliance. Plan the drain and the room next to it.
Hot water habits
Heat pump mode recovers more slowly than gas. Large households may want a bigger tank or hybrid mode.
Old gas heater showing its age?
Describe the unit and where it sits. A plumber can tell you what a heat pump swap would involve in your house.
Questions for Any Contractor You Consider
- Do you participate in the BayREN heat pump water heater incentive?
- Which models qualify, and are they on the Qualified Products List?
- Is a new circuit needed, and who does the electrical work?
- Where will the condensate drain, and what happens if it backs up?
- How loud is the unit, and what room is next to it?
- What happens to my hot water if the heat pump stops working?
- Is strapping, the permit and removal of my old gas heater in the quote?
How to Plan a Heat Pump Swap
Check the dates
Look at the Air District's Rule 9-6 page for the latest status on the January 2027 date and the proposed delay.
Check the panel and space
Have your plumber or electrician confirm circuit capacity, clearances and condensate routing before you buy.
Confirm incentive eligibility
Verify your Ava account, the UEF rating and Qualified Products List status, and ask whether the contractor participates.
Ask for the written scope
The quote should list the heater, circuit, drain, strapping, permit and disposal. Our water heater replacement page and water heater installation page show what a complete job includes.
We also take these calls from Fremont customers, who face the same rule dates.
Heat Pump Water Heater Questions
The Air District's current schedule is January 2027 for natural gas water heaters, applying when you replace a burned-out unit. A proposed one-year delay is under Board consideration. Check the Rule 9-6 page for the outcome.
A 1,000 dollar incentive paid to a participating contractor for a qualifying heat pump water heater that replaces a gas or propane unit. It must be UEF 3.3 or higher, on the Qualified Products List, and the customer must be with Ava Community Energy.
Yes, Ava lists Union City as served, and customers can choose Ava's Renewable 100 service or return to PG&E at any time. Check your bill to see which applies to you.
Anywhere with enough air volume or ducting, a drain for condensate and a nearby circuit. Garages are common. Tight closets usually need ducting or another location.
Yes, a low hum from the fan and compressor, similar to a small appliance. Avoid putting it against a bedroom wall.
It recovers more slowly than a gas heater in heat pump mode. Hybrid modes and tank size help, so size it for your household's busiest morning.
An electrician may need to add capacity or a circuit. The proposed Rule 9-6 exemptions include electrical limits such as panels below 100 amps, but they are not adopted.