If you own a home or are considering buying in the San Francisco Bay Area — especially in Santa Clara, San Mateo, or Alameda County — new rules about natural gas appliances are here. These policies are part of California’s push to reduce greenhouse gas emissions, improve air quality, and modernize homes for energy efficiency. Understanding the deadlines and requirements now can help you plan ahead and avoid costly surprises.
Why These Rules Exist
Natural gas has been a mainstay for heating, water, and cooking in Bay Area homes for decades. But gas appliances contribute to carbon emissions and can affect indoor and outdoor air quality. In response, Bay Area governments and the Bay Area Air Quality Management District (BAAQMD) are requiring that new homes and major replacements shift to electric or other zero-emission alternatives.
The goal is to:
- Reduce greenhouse gas emissions in homes
- Improve air quality and public health
- Support California’s climate goals for 2030 and beyond
These rules are part of a long-term trend toward all-electric, energy-efficient homes, particularly for new construction, but they also affect existing homes when appliances are replaced.
Key Deadlines for Homeowners
It’s important to know that these rules don’t force homeowners to remove working gas appliances today. However, when existing appliances reach the end of their life, the replacement rules kick in:
- January 1, 2027 – Replacement gas water heaters will no longer be allowed. Only electric or zero-emission alternatives can be installed.
- January 1, 2029 – Replacement gas furnaces will no longer be allowed. Electric systems, like heat pumps, are required.
Gas stoves and cooktops are currently not affected, and homeowners can continue to use existing appliances. But if you plan to remodel or replace major systems, planning ahead is critical.
How This Impacts Buyers and Sellers
Sellers:
Starting in 2026, sellers are required to disclose the natural gas appliance rules and any potential future costs to buyers. This information could influence buyer decisions, as homes with gas appliances may be less appealing to those who prefer all-electric, energy-efficient homes. Key considerations for sellers include:
- Disclosing whether the home has gas appliances.
- Explaining potential future costs for replacing gas systems with electric alternatives.
- Understanding that these disclosures could impact buyer interest or offers.
Buyers:
If you are purchasing a home with gas water heaters or furnaces, it’s important to know that these appliances will eventually need to be replaced with electric systems. Upgrading to electric may require additional work such as rewiring, panel upgrades, or other modifications, and costs can vary depending on the home. Homes that are already energy-efficient and electric-ready can offer lower long-term operating costs and appeal to buyers who prioritize sustainability. Key points for buyers include:
- Anticipating future replacement costs for gas water heaters and furnaces.
- Understanding potential upgrades that may be required for electrification.
- Considering energy-efficient, electric-ready homes for long-term savings and sustainability.
Planning Ahead & Bottom Line
Even if your gas appliances are working today, now is the time to think ahead. Check the age of your water heater and furnace, evaluate your home’s electrical capacity, and explore available rebates or incentives for switching to electric systems.
These rules signal a long-term shift in Bay Area housing standards. By planning ahead and understanding the timelines, you can save money, avoid stress, and make informed decisions whether you are buying, selling, or upgrading your home.
If you’d like guidance on how these rules may impact a specific property, I’m happy to walk you through the details so you can plan ahead with confidence.
Where to Learn More
- New rules for natural gas & electrification (it’s on the books!) - Los Altos Town Crier
- Bay Area housing policy and electrification impacts - TooCostlyBayArea.com
- Electrification Mandate Overview (June 2025) - Santa Clara Co. Assoc. of REALTORS®