California Legislature Passes the Home Energy Choice Act

Today, the California Legislature passed the Home Energy Choice Act (AB 2313), authored by Assemblymember Marc Berman (D-Menlo Park). This popular, commonsense legislation will offer California homeowners the choice and the support needed to electrify their homes. When a gas service line is due for replacement, utilities will offer a voluntary incentive to electrify instead.  This entirely optional program will help give more California homeowners the funds and the choice to determine what energy powers their home appliances. Both owner-occupied and rental properties are eligible, and there will be additional support provided for families in disadvantaged communities. Earthjustice and NRDC are co-sponsoring the legislation.

“Why squander money replacing old gas lines when we can help thousands of Californians upgrade their homes with non-polluting appliances? With AB 2313, more Californians will have the freedom and the funds to make the shift in their homes,” said Matt Vespa, senior attorney on Earthjustice’s Right To Zero campaign. “We’re incredibly grateful to Assemblymember Berman and the California Legislature for their keen judgement in advancing the Home Energy Choice Act, and we look forward to Governor Newsom signing this no-brainer bill into law.”

Californians are currently not given a choice when their gas line is scheduled to be replaced. Instead, the system works like an auto-renewed subscription where the utility  automatically replaces gas lines even as more customers want to electrify and shift to nonpolluting appliances. This way of doing things is driving up costs: UCLA estimates that gas customers will be expected to pay $43 billion by 2045 to maintain the gas system in California. 

PG&E employees repair a gas line in San Francisco. (Michael Macor / The San Francisco Chronicle via Getty Images)

The Home Energy Choice Act, on the other hand, will bring down costs for everyone. The legislation will reduce bills for all customers because the money that a homeowner receives through the program will be less than what their gas utility would spend replacing the gas service line to their home. As energy rates skyrocket and Californians look for relief, AB 2313 will help make energy more affordable while giving people access to cleaner and more efficient appliances. 

“Californians can look forward to energy choice and cleaner air as AB 2313 heads to the governor’s desk,” said Merrian Borgeson, director of California climate & energy policy at NRDC. “Replacing aging gas pipelines shouldn’t be automatic – we can’t afford to waste money on infrastructure we don’t need or want. We urge Governor Newsom to sign this commonsense bill without delay.”   

Recent polling from Lake Research found that commanding majorities of California voters support legislation that would offer homeowners the opportunity to upgrade their home appliances to electric when their utility company is scheduled to replace their gas service line.

On top of major clean air and climate benefits, all-electric appliances are better products: heat pumps hold a steadier temperature than gas furnaces and they provide both heating and cooling. This is particularly helpful for the quarter of Californians who currently don’t have access to air conditioning. Induction stoves offer quicker and more precise cooking and they’re easier to clean.

Illustration of a heat pump heating and cooling the interior of homes through different seasons. (Lily Padula for Earthjustice)

More than 100 organizations around the state have championed AB 2313 and Californians sent over 11,000 letters to their legislators and the Governor supporting the bill. Governor Newsom has until September 30 to sign the bill into law.