New rules for natural gas & electrification (it’s on the books!) | Business

A California law that goes into effect on Jan. 1 of next year requires disclosures of local rules affecting gas appliances and also requires a disclosure regarding electrical inspections.   

Also beginning Jan. 1 of next year, the seller shall disclose the existence of any state or local requirements or restrictions relating to the future replacement of existing gas-powered appliances (i.e., appliances fueled by natural gas or liquid propane).  

Beginning Jan. 1, a notice must be delivered to a prospective buyer: “In a purchase of real property, it may be advisable to obtain an inspection by a qualified professional of the electrical system(s) of any buildings, including, but not limited to, the main service panel, the subpanel(s), and wiring. Substandard, recalled, or faulty wiring may cause a fire risk and may make it difficult to obtain property insurance. Limited electrical capacity may make it difficult to support future electrical additions to the building(s), such as solar generation, electric space heating, electric water heating, or electric vehicle charging equipment.”   

What does this mean for the average home seller and home buyer? Starting in 16 months, if you live in the Bay Area and want to replace your gas water heater, you will need to purchase an electric water heater. Starting in 2029, if you replace a gas furnace, you’ll need to install an electric furnace. 

On the surface, this doesn’t sound too bad. The issue, as I see it, is that many, especially older homes, do not have the capacity in their existing electrical panel to support this additional electricity load. Upgrading your home’s electric panel to support the new demands will neither be inexpensive nor quick. Think about costs, hiring an electrician, getting permits, PGE timelines, etc. If your gas water heater goes out, you might be weeks without hot water. 

There are two sides to the issue of whether going all-electric is a good or bad thing for the environment. This is not the forum for that discussion.

My goal is to educate homeowners about the upcoming regulations to

give you time to react. If you have an older 100-amp electric panel, you might consider upgrading sooner rather than later in case your water heater goes out in 18 months. You might also set aside some extra funds, as an electrical panel upgrade will not be inexpensive. 

Owen Halliday is a realtor who also manages the Christie’s International Real Estate Sereno office in downtown Los Altos. If you have a comment or question that you would like to see addressed, he can be reached at Owen@Sereno.com or (650) 492-0062.