California advances bill to pay households to ditch gas before $20,000 pipe replacements

Households across California may soon receive additional incentives to electrify their homes after the state's Senate passed the California Home Energy Choice Act, also called AB 2313.

What happened?

California's Senate Committee on Energy, Utilities, and Communications has moved ahead with a bill that would redirect some costly utility spending into a potential financial benefit for households.

AB 2313, which was sponsored by state Assemblymember Marc Berman, would give customers a way to ditch gas service with financial support.

Under the proposal, the California Public Utilities Commission would have to establish a program in which gas companies pay customers to permanently end gas service and adopt clean electric alternatives, as Daily Energy Insider reported.

The program would apply when a gas utility is preparing for a pipeline replacement expected to cost more than $20,000. In that situation, the company would offer the customer an incentive using the money that otherwise would have been spent on that replacement.

Supporters of the bill, including the Natural Resources Defense Council, say it would prevent wasteful spending while also helping the environment and improving safety.

Kiki Velez of the NRDC described the issue this way to Daily Energy Insider, saying, "Picture this situation: a customer's gas pipe is replaced with no notice, and then they leave the gas system within a few years, and all customers are left paying those wasted costs for decades."

She added that "This bill offers customers facing a pipe replacement the opportunity to leave the system at the precise time when it will save money for everyone else. It also gives customers the safest option for their home, which is removing the risks of gas use and gas leaks entirely by going all-electric." 

Why does it matter?

The bill could create a rare chance to get paid to make a major home energy transition at the moment it makes the most financial sense. 

Electrification projects often carry high upfront costs, so an incentive tied to avoided gas infrastructure spending could help remove a significant barrier.

Plus, choosing to leave gas service would eliminate the risk of gas leaks inside the home and move the household toward cleaner electric equipment.

The bill also seeks to better align consumer choice, utility spending, and public benefit, giving residents more control while helping avoid infrastructure investments that may not pay off.

If AB 2313 becomes law, the California Public Utilities Commission would need to create the program by January 1, 2028.

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