Gas corporations: gas distribution service line replacements: alternatives

The program gives customers an alternative to gas-line replacement and is designed to avoid some gas-system capital spending. It provides higher incentives for eligible customers in disadvantaged communities.

What the law does ​

• Requires the California Public Utilities Commission to have every gas corporation offer a replacement-alternatives program by January 1, 2028.
• Offers owners of eligible residential properties a monetary incentive to switch to energy service that does not use gas and permanently cease gas service when their service line is planned or forecast for replacement within five years.
• Sets standard incentives below the avoided service-line replacement cost and enhanced incentives for eligible customers in disadvantaged communities.
• Requires gas disconnection and meter removal, plus a customer acknowledgment releasing the gas corporation's duty to serve the property, as conditions of participation.
• Exempts emergency service-line replacements and caps enrollment at 1 percent of each gas corporation's customers, including customers in zonal decarbonization pilots.
• Requires annual commission reviews and annual reports to the Legislature beginning January 1, 2029.

Who it affects ​

• Residential property owners served by gas lines planned or forecast for replacement within five years.
• Gas corporations and their gas customers, including customers who do not participate.
• Tenants in eligible properties, who must receive notice and engagement protections.
• Customers in disadvantaged communities and low-income customers, who receive enhanced outreach or coordinated incentives.

Context ​

The law expires on January 1, 2035.