California’s Gas Appliance Phase-Out: What Landlords Need to Know

Based on insights from Mehigan Law's August 2025 California Rental Housing Legal Update.

California is making new rules that landlords can't use gas-powered appliances, like stoves or heaters, because these appliances create pollution that harms the environment. Landlords must replace them with electric appliances. It's a big change, and landlords need to prepare early.

Why is California Phasing Out Gas Appliances?

California regulators, especially the South Coast Air Quality Management District (AQMD), are enforcing rules to phase out gas appliances to reduce harmful pollutants called nitrogen oxides (NOₓ). These pollutants damage air quality, contribute to smog, and worsen climate change.

Timeline and Scope of the Phase-Out

This transition won’t happen overnight. Instead, it will occur gradually, with different rules depending on location and appliance type.

Bay Area (BAAQMD – 9 counties, including San Francisco, Alameda, Contra Costa, Santa Clara)

Adopted rules apply to new sales/installs only (you don’t have to remove working appliances).

• Jan 1, 2027 – Zero-NOx requirement for residential water heaters under 75,000 BTU/hr.

• Jan 1, 2029 – Zero-NOx requirement for residential & commercial furnaces.

• Jan 1, 2031 – Zero-NOx requirement for larger commercial/multifamily water heaters (75,000 BTU/hr – 2 million BTU/hr).

Important: These rules do not cover gas stoves or cooking appliances in the Bay Area.

South Coast (Los Angeles, Orange, Inland Empire – SCAQMD)

In June 2025, the board rejected the proposed rules that would have set similar phase-out dates. New proposals will return, but as of now, there is no adopted schedule. Landlords in these regions should monitor closely—timelines could align with Bay Area standards but may be delayed.

Statewide Energy Code (California Energy Commission – CEC)

• Starting Jan 1, 2026, the 2025 Energy Code takes effect for new construction permits, requiring heat pumps for most space and water heating in new homes and some commercial buildings.

• This does not require existing landlords to replace gas appliances, but it means new builds will be all-electric by default.

CARB’s Statewide Zero-Emission Standards (Proposed)

CARB is drafting a statewide rule that would require all new space and water heaters sold in California to be zero-emission by ~2030. Existing equipment can stay in place until end-of-life, but new sales after adoption would be electric-only.

Local City Ordinances

Several cities are moving further. For example, San Francisco is considering an ordinance that would require electrification during major renovations by 2027. These are not statewide, but landlords should check their local city regulations.

Potential Impacts on Landlords

Switching from gas to electric appliances isn't a simple swap. It often involves extensive electrical upgrades, such as improved wiring and updated electrical panels, which could be costly. Without preparation, landlords may face significant financial and logistical hurdles.

How Landlords Can Prepare (Briefly)

• Assess Current Appliances: Identify and document all gas appliances currently in use.

• Electrical Upgrades: Evaluate the need for electrical system improvements.

• Budget Planning: Prepare financially by researching costs for appliances, upgrades, and potential rebates.

• Stay Informed: Regularly check for new developments, potential incentives, and legal updates.

Ongoing Legal Challenges

Several groups, such as the California Apartment Association, are challenging these rules in court. Outcomes from these cases might introduce delays, exceptions, or modifications to the regulations. Staying updated on these developments is crucial for landlords.

What This Means for the Future

The gas appliance phase-out is part of California’s broader push toward electrification and carbon reduction. For landlords:

• Bay Area landlords face hard dates starting 2027.

• Southern California landlords should prepare, but wait for finalized rules.

• Statewide, new buildings after 2026 will almost exclusively use heat pumps.

• By the early 2030s, it will be nearly impossible to purchase new gas furnaces or water heaters in California.