Data says: Bay Area proposal to ban gas furnaces/water heaters to “Burn-Out”—holes in residents’ pockets

The Bay Area Air Quality Board District (BAAQBD) votes on March 15th whether to prohibit replacement of all natural gas furnaces and water heaters as early as 2027. Replacements at “burn-out” must be electric. Meanwhile, grassroots coalition Families & Homes San Jose, along with the SCC Association of Realtors (SCCAOR) and FHSJ members, has actually done the math: At $30–60k/home, conversions to meet the “Burn-Out Ordinance” requirements would prove too costly for most SJ families.

Bay Area Air Quality Management District (BAAQMD), which includes San José, is considering a ban on the sale and installation of gas furnaces and water heaters as soon as 2027.

All three of these public entities have significantly under-estimated the up-front cost for gas-to-electric conversion, while simultaneously over-estimating future operating cost savings.
The City Staff’s report to the City Council is expected in Fall 2023.  The Council is expected to provide additional direction to Climate Smart city staff (climatesmart@sanJoséca.gov).  It is expected that a “Burn-Out Ordinance” will be proposed (probably with an implementation date sooner than 2027).  This activity is being driven by the City of San José Climate Smart goals.

WHY ARE WE CONCERNED?

We have received cost estimates for replacing natural gas fueled furnaces and water heaters with electric powered heat-pumps from several reliable sources: the Santa Clara County Association of Realtor (SCCAOR); FHSJ members who obtained quotes from HVAC contractors or actually installed these upgrades.  Based on actual implementation costs and quotes from qualified installers, FHSJ estimate that a single-family home (SFH) cost to convert from gas-to-electric would range from $30K to $60K or more. 

This article originally appeared in Families & Homes San Jose. Read the whole thing here.

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Image by John Karwoski