Overview

There is a regional government body called the Bay Area Air Quality Management District (BAAQMD) that can pass laws for the 9-county Bay Area. In March of 2023, this agency banned gas water heaters and furnaces. There are 2.5 million residences in the 9-county Bay Area. The vast majority of homes will need some renovation to make them suitable for all-electric major appliances. While the cost of replacing a home’s gas major appliances with electric can cost

$10,000 or more, the cost of renovating a home to be able to accommodate the increased electrical demand can cost substantially more – $50,000 to $250,000. The construction costs dramatically exceed the cost of the electric appliances.

Even if every homeowner had the $50,000 to $250,000 necessary to renovate their home to make it all-electric, there are not enough contractors to electrify the approximately 2 million residences that need to be updated in the 9-county Bay Area.

The Law

Starting on January 1, 2027 (less than 2 years from now), it will be illegal to purchase or install a gas water heater in the 9-County Bay Area. Starting on January 1, 2029, it will be illegal to purchase or install a gas furnace.