Gas Water Heaters Are on Their Way Out in Four SoCal Counties

Southern California air regulators are moving forward with limits on gas-powered water heaters and boilers. In a 2-1 ruling this summer, the 9th Circuit Court of Appeals upheld the South Coast Air Quality Management District’s rule for commercial and industrial gas appliances in Los Angeles, Orange, Riverside and San Bernardino counties. According to the Sierra Club, a defendant in the lawsuit, the ruling affects roughly 1.3 million water heaters and industrial boilers.

What it means for apartment owners

The rule, adopted in 2024, sets a zero-emission standard, which in practice means electric. According to the California Apartment Association, it applies to new buildings starting in 2026 and to existing buildings starting in 2029. If you own an apartment building in one of those counties with a covered water heater or boiler, plan on an electric replacement when the time comes.

Given the increase in power consumption, many buildings will need an electrical service upgrade, which can run tens of thousands of dollars. It’s worth budgeting for now.

Ventura County and residential units

Ventura County isn’t one of the four counties. Residential water heaters are exempt… for now.

If you own a building in one of these counties and want help planning ahead, call me…

Thanks to CalMatters for this story. Ruling details from Earthjustice; compliance dates from the California Apartment Association.

Originally published in The Trusted Advisor, August 2026.