YES, it is possible to have a vet waive the rabies requirement, especially if the dog has had a reaction to a vaccine. Mine, here in San Diego have all been waived. I would contact your local animal control anonymously just for informational purposes and ask them what the procedure is for obtaining the waiver. They were very nice to me when I called and told me that it simply needs to be on the vets sttionery and say the reason for the waiver, usually that to have the shot would be potentially life threatening.
You can also contact a homeopathic vet in your area to ask them to inquire for you. The homeopathic vets I have found to be more compassionate about this issue as well as more knowledgeable since most of them are very hesitant when it comes to traditional vaccines.
PM me is you want to discuss this issue in further detail.