AB 2313: Incentives to go electric when your gas line is replaced

The small pipe that carries gas from the street to your meter wears out, and utilities replace these service lines on a schedule. A fact sheet from the bill's supporters says PG&E alone replaces about 15,000 a year, mostly for single homes, and that one replacement often costs more than $20,000. All gas customers pay that cost back through rates over decades.

AB 2313, the Home Energy Choice Act by Assemblymember Marc Berman, appears among the bills Governor Newsom signed in his September 30, 2026 legislative update. It gives some homeowners a third option when that replacement comes due.

What the law does. It requires the California Public Utilities Commission (CPUC) to create a Gas Distribution Service Line Replacement Alternatives Program on or before January 1, 2028. The program applies to gas utilities the CPUC regulates, such as PG&E, SoCalGas and SDG&E. It offers residential customers a money incentive to switch their home to electric appliances and end gas service, instead of having a new line installed.

Who qualifies. Residential property owners served by a service line that the utility plans to replace within five years, or has identified as a priority for replacement.

How much. The law sets no dollar amount. Incentives are to be based on the avoided cost of replacing the service line, not the gas main in the street, with higher levels in disadvantaged communities. The CPUC will approve the amounts.

What else to know. The program is voluntary. Utilities must notify eligible customers and share information about other incentive programs. Customers who leave gas must still pay a fair share of costs already built into the system, and the program sunsets January 1, 2035.

Until the CPUC writes the rules, there is nothing to apply for. If your utility contacts you about a gas line replacement before then, it is reasonable to ask whether your address would be eligible once the program opens.

A small step for today: note the age and fuel of your water heater and furnace. If either is near the end of its life, that list will help you decide quickly if an electrification offer reaches you.