⚡ San Francisco Moves Toward a Natural Gas Ban in Major Renovations
The City of San Francisco is taking another big step toward its climate goals. Lawmakers are advancing legislation that would ban the use of natural gas in major building renovations—defined as projects that affect more than two-thirds of a building’s structural elements.
If approved, the new rule would go into effect July 2026 and expand on the city’s 2020 gas ban for new construction. Officials estimate the policy will impact about 1 million square feet of renovation work annually. Instead of replacing aging gas systems, property owners would need to install electric alternatives such as heat pumps, induction ranges, and electric water heaters.
What This Means for Landlords
Planning Ahead: If you’re considering a major remodel in the next few years, start budgeting for electric upgrades now—waiting until rules take effect could drive costs higher.
Older Buildings Face Extra Hurdles: Many older San Francisco buildings don’t have enough electrical service from PG&E to handle full electrification. Upgrading service often requires coordination with PG&E, which can be costly and time-consuming. Landlords may need to plan projects further in advance to account for these utility upgrades.
Tenant Relations: Electric appliances and heating systems can be marketed as modern, efficient, and environmentally friendly—potentially improving appeal to renters.
Compliance Timeline: Smaller updates and routine maintenance will not be affected, but large-scale renovations will require a transition to electric systems.
San Francisco’s broader goal is to reach net-zero greenhouse gas emissions by 2040. While the upfront costs may be significant, the city argues that long-term savings from efficient electric systems will balance out expenses for property owners.
Landlords—especially those with older properties—should factor this shift into long-term capital planning. In many cases, the first step won’t be inside your building, but outside, working with PG&E to ensure your property has the electrical capacity for an all-electric future.