SCAQMD Zero-NOx Rules for Furnaces and Water Heaters: What Changes and When
The air district is steering new gas equipment toward electric. Here is what that does and does not mean for your house.
By Piggies Air Conditioning HVAC Team · Updated · 5 min read · Codes & Ratings
The short answer
The South Coast Air Quality Management District adopted amended rules that phase in sales targets for zero-NOx (electric) furnaces and water heaters, with fees on gas units beyond them. The rules apply to manufacturers and the equipment market, not to the working furnace in your house. Nothing must be removed, but new gas units may get costlier and scarcer, so price a heat pump at your next replacement.
What the rules are
Nitrogen oxides (NOx) from gas-fired home heating are a meaningful share of the region's smog-forming emissions. SCAQMD's Rule 1111 covers residential and small commercial gas furnaces; Rule 1121 covers residential gas water heaters. In 2025 the district's board adopted amendments that set escalating targets for the share of zero-NOx units manufacturers sell in the district, with a mitigation fee attached to gas units outside the target. The schedule starts with water heaters and then furnaces later in the decade and ramps up over the following years.
The adopted text, dates and fee amounts can change through further rulemaking or litigation. Treat this guide as orientation and confirm the current rule language at aqmd.gov before making a decision that depends on a date.
What it means for a homeowner
- Nothing changes for equipment already installed. Keep running and maintaining it.
- Replacing like-for-like with gas remains allowed, but expect the price gap between gas and heat pump equipment to narrow or flip as fees and incentives take effect.
- An emergency winter replacement is the worst time to discover the heat pump option needs a panel check. Do that homework while the furnace still works.
How to plan a replacement around it
If your furnace or water heater is past the middle of its life, get two quotes at the same time: a gas replacement and a heat pump equivalent. Compare them with incentives applied and with your SCE rate plan in mind, since a heat pump shifts the home's heating cost from the gas bill to the electric bill. For many single-story San Gabriel Valley homes with a gas furnace and a separate air conditioner, one heat pump replaces both and simplifies the mechanical closet.
Related state rules to keep an eye on
The California Air Resources Board has also considered statewide emission standards for space and water heating. Those proposals have moved and been revised; check CARB's site for the current status rather than relying on headlines.
What to remember
- 1 The rules target the equipment market, not your existing furnace.
- 2 Price both gas and heat pump options before the current unit fails.
- 3 Dates and fees are subject to change; confirm at aqmd.gov.
This guide is general information for homeowners in Baldwin Park and surrounding communities. Codes, rates and incentive programs change; confirm current terms with the agency or program before relying on a date or amount. For your specific system, book a visit or call us.
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