Bay Area Natural Gas Ban (2027 & 2029): What Homeowners Need to Know

By Drummond Electric | Serving San Jose & the South Bay

The Bay Area is moving toward an all-electric future — and new regulations coming in 2027 and 2029 will directly impact homeowners, landlords, and property managers across Santa Clara County.

If your home has a gas water heater or furnace, this guide explains:

• What is actually changing

• When the deadlines hit

• How it affects your home

• Why electrical upgrades are often required

• How Drummond Electric can help you prepare

What Is the Bay Area Gas Appliance Rule?

In 2023, the Bay Area Air Quality Management District (BAAQMD) adopted new zero-NOx standards aimed at reducing pollution from buildings.

Important: The rule does NOT force you to remove working equipment.

Instead, it affects future replacements.

Key Dates Homeowners Must Know

January 1, 2027

• Most residential gas water heaters can no longer be sold or installed

• Replacement units must be zero-NOx (typically heat pump water heaters)

January 1, 2029

• Residential and commercial gas furnaces are phased out

• New installations must be electric heat pump HVAC systems

January 1, 2031

• Larger commercial and multifamily water heaters follow

These rules apply throughout the entire 9-county Bay Area, including San Jose and Silicon Valley.

What Is NOT Banned (Common Confusion)

There is a lot of misinformation online. Here are the facts:

You can still:

• Keep using your existing gas furnace

• Keep using your existing gas water heater

• Repair existing gas equipment

• Keep your gas stove (not included in this rule)

You cannot (after deadlines):

• Install new gas water heaters (2027+)

• Install new gas furnaces (2029+)

Why This Matters More Than Most Homeowners Realize

The biggest surprise for many homeowners is this:

👉 Switching to electric often requires electrical upgrades

When you replace gas equipment with heat pump systems, your home may need:

• Electrical panel upgrade

• New 240-volt circuits

• Load calculation

• Possible PG&E service upgrade

Many older Bay Area homes — especially with 100-amp panels — simply don’t have enough capacity.

The Risk of Waiting Until Failure

We are already warning homeowners about this very real scenario:

Your water heater fails in winter 2027…

• Gas replacement is no longer allowed

• Electrical system is undersized

• Emergency panel upgrade is required

• Permits and utility coordination cause delays

• Family is without hot water longer than expected

Planning ahead avoids this completely.

How Drummond Electric Helps Bay Area Homeowners Prepare

At Drummond Electric, we specialize in preparing homes for electrification and upcoming code changes.

Electrical Panel Upgrades

Many homes need to move from:

• 100 amp → 200 amp service

• or add properly designed subpanels

We handle:

• Professional load calculations

• Clean panel installations

• Permit processing

• PG&E coordination

• Final inspection approval

Heat Pump Circuit Installation

Heat pump water heaters and HVAC systems typically require dedicated 240-volt circuits.

We ensure:

• Proper breaker sizing

• Correct wire sizing

• Code-compliant installation

• Future expansion capacity

Done right the first time.

Whole-Home Electrification Planning

Smart homeowners are bundling upgrades now:

• Heat pump water heater

• Heat pump HVAC

• EV charger

• Induction cooking

• Battery backup

We design your electrical system so you don’t outgrow it later.

Rebates and Incentives May Be Available

Many Bay Area homeowners qualify for incentives, including:

• San Jose Clean Energy EcoHome rebates

• Federal electrification incentives

• Heat pump rebates

• Financing programs

⚡ We help customers understand what electrical work is needed to qualify.

Pro Tip: The Best Time to Prepare Is Before You Have To

If your equipment is aging:

• Water heater: 10+ years old

• Furnace: 12–15+ years old

Now is the ideal time to evaluate your electrical system.

Proactive upgrades are:

• Less expensive

• Faster to schedule

• Less stressful

• Fully planned instead of emergency work

Serving San Jose and the South Bay

Drummond Electric proudly provides electrical services in:

• San Jose

• Los Altos

• Cupertino

• Sunnyvale

• Santa Clara

• Mountain View

• Surrounding Silicon Valley communities

We understand local permitting, PG&E requirements, and Bay Area electrification trends.

Schedule Your Electrical Readiness Assessment

The 2027 and 2029 deadlines are closer than they appear.

If you want to avoid surprises and costly emergency upgrades, now is the time to plan.

Drummond Electric can help you:

• Evaluate your panel capacity

• Perform a professional load calculation

• Prepare your home for heat pump upgrades

• Install required circuits

• Handle permits and PG&E coordination

👉 Contact Drummond Electric today to schedule your electrification readiness assessment