Two specialized types of water heaters direct vent and mechanical vent also called power vent are exempted from this code requirement.
Can you vent a hot water heater out the wall.
However it is very important to check the pvc requirements before installing one.
Exceptions may be made for non combustible walls such as solid masonry.
Direct vent water heaters.
If the unit is installed on a basement wall the vent pipe can be run up just a few feet and then vented out the side with the use of a 90 degree elbow.
Installing your tankless water heater for easier venting.
Most tank type gas water heaters are atmospheric vent type and they are required to vent vertically and above the roof of a home.
They do make two models of power vent units one is called a direct vent power vent as bob harper pointed out it draws its combustion air from outside unlike a standard power vent unit which burns its combustion air from the dwelling.
Exhaust gases are vented outdoors through a separate vent duct or through a separate chamber of the same pipe this requires a double wall vent duct.
This one vents out the side wall and it is perfectly fine.
Instead both systems typically expel exhaust through a pipe that runs outside through an exterior wall.
The difference is that a power vent water heater pulls in combustion air from the space.
With a direct vent system air for combustion is drawn from a vent pipe that runs through an exterior wall or the roof.
The only other option is an electric water heater which requires no vent.
All solid liquid or gas fueled water heater whether they are tank type or tankless must vent through the roof unless they are direct vent.
Yes you can vent a gas hot water heater with pvc.
To make venting easiest install your tankless water heater on an outside wall.
It can be installed both vertically and horizontally.
Single wall natural draft gas water heater vent pipe cannot be used in unheated areas like attic or garage even if only partially penetrating that space because such vent pipe installation will cause excessive condensation on vent pipe walls and compromise proper drafting double wall pipe b vent type is required.
Water heaters and vents come in multiple forms including induced draft direct venting and conventional draft.
Photos go a long way.
Without knowing the water heater type vent type location and type of termination no one can give you a more definitive response.