Whirlpool gas water heaters are ok
The problem is not the water heater itself, rather a far too sensitive thermocouple...which is not self-resetting. If you google this, you will find many web-links to the problem. Also clear suggestions on how to prevent it and, when it happens, how to fix it yourself for under $20...but a good 40 minutes work.
Yes, in California the requirements are stiff. And sensible, in the only two years I lived in San Francisco, we had several minor earthquakes and one rather nasty one...you don't want these things coming loose and spilling really hot water all over the place while shooting flames out.
After living with the on-demand, never ending hot water of modern gas water heaters here in Europe never want to go back to the old storage and slow, slower, slowest recovery system. If you can, take a look at the new technology - regardless of electric or gas. The old horror stories of hard to regulate, always too cold or way too hot no longer apply.
The UK, otherwise not exactly a world leader in plumbing technology (to put it mildly) also has some brilliantly simple and very well thought out hot water systems, some of which are beginning to show up in the US.
In short, forget what you have heard in the past, get out there and see all the groovy stuff available today.
Oh, and consider point-heating. Example. My folks warm water for bathing must not be over 120°F maximum. This is hot enough for showers and tub, absolutely not for the dishwasher and the FL washer (a not-dumbed down Frigemorelux). I installed a four gallon water heater running at 145°F right by the washer/dishwasher line (run under six feet) and fed it from the 120°F warm water line. That water arrives cool to cold, but long before the time the internal four gallons are nearly exhausted, the water is up to 120°F. So the rise time is not completely from cold to hot.
Personally, I prefer regenerative energy sources or solar/wind. Any chance you can go that direction? Having only lived in San Francisco, I am not convinced of it, but am told the sun shines a lot in California...