The New Regulation

In March of 2023, the 9-county Bay Area Air Quality Management District (BAAQMD) banned natural gas water heaters and furnaces in existing homes (in addition to new construction).  In the near future, the BAAQMD intends to ban the remaining gas appliances, including stoves, ovens, fireplaces, and clothes dryers. Ultimately, they intend to require homeowners to remove the gas lines from their homes completely. 

The first gas appliances to be banned by the BAAQMD –  gas water heaters and gas furnaces – will force most homeowners and small businesses to redo their electrical systems. The renovations necessary to prepare a home’s electrical system to accommodate all-electric major appliances will cost families and small business owners tens of thousands of dollars. The older the home, the more the renovations will cost.  This will place a massive burden on families, put renters at risk, and jeopardize local small businesses.

Starting on January 1, 2027, if your water heater breaks,you cannot replace it with a gas water heater. Beginning on January 1, 2029, if your gas furnace breaks, you cannot replace it with a gas furnace.  Starting on January 1, 2026, sellers of residential property must disclose the BAAQMD ban on gas appliances and make the buyers aware of the electrical system renovations necessary to accommodate electric appliances.

If a homeowner’s water heater breaks after January 1, 2027, and they have not already renovated their electrical systems, their home could be without hot water for many months, depending upon the scarcity of local contractors & electricians and PG&E’s permitting and approval backlog.

This past June, after receiving 30,000 written comments, the South Coast Air Quality Management District (SCAQMD) in Southern California rejected two similar measures, one to ban gas water heaters and furnaces, and, after hearing much opposition, an amended measure to charge a $100 fee on the sale of these gas appliances.

Counties covered by the ban include Alameda, Contra Costa, Marin, Napa, San Francisco, San Mateo, Santa Clara, Solano, and Sonoma.

Costs of Electrifying a Home

What many people don’t realize is that homes that are not built to be all-electric cannot accommodate major electrical appliances without significant renovations. An electric major appliance can’t be plugged into a standard wall outlet.

For a 1,800 square foot house built in 1975, there are two different cost scenarios – one for underground (direct burial wiring) and one for above-ground or overhead wiring.

To replace an electrical panel alone, the underground cost can be as much as $50,000, depending on where the transformer is located. If it is across the street, the cost is significantly more than if it is in the front yard right next to the home.

If the home’s wiring is above ground, replacing an electrical panel can cost between $10,000 and $15,000.

In addition to the panel, the cost of wiring inside the home and installing new 220-amp outlets throughout the home for the new major electric appliances can range from $10,000 to $30,000 or more.

To turn a home into an all-electric home is considered a major renovation and can cost well over $100,000. The older the home, the more costly the renovations.

Join us now in urging the BAAQMD to postpone Rules 9-4 and 9-6, banning gas water heaters and furnaces.