Bill Full Text
Home
-
Bills
-
Bill
-
Authors
-
Dates
-
Locations
-
Analyses
-
Organizations
<?xml version="1.0" ?>
<ns0:MeasureDoc xmlns:html="http://www.w3.org/1999/xhtml" xmlns:ns0="http://lc.ca.gov/legalservices/schemas/caml.1#" xmlns:ns3="http://www.w3.org/1999/xlink" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" version="1.0" xsi:schemaLocation="http://lc.ca.gov/legalservices/schemas/caml.1# xca.1.xsd">
<ns0:Description>
<ns0:Id>20250AB__231399INT</ns0:Id>
<ns0:VersionNum>99</ns0:VersionNum>
<ns0:History>
<ns0:Action>
<ns0:ActionText>INTRODUCED</ns0:ActionText>
<ns0:ActionDate>2026-02-19</ns0:ActionDate>
</ns0:Action>
</ns0:History>
<ns0:LegislativeInfo>
<ns0:SessionYear>2025</ns0:SessionYear>
<ns0:SessionNum>0</ns0:SessionNum>
<ns0:MeasureType>AB</ns0:MeasureType>
<ns0:MeasureNum>2313</ns0:MeasureNum>
<ns0:MeasureState>INT</ns0:MeasureState>
</ns0:LegislativeInfo>
<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Assembly Member Berman</ns0:AuthorText>
<ns0:Authors>
<ns0:Legislator>
<ns0:Contribution>LEAD_AUTHOR</ns0:Contribution>
<ns0:House>ASSEMBLY</ns0:House>
<ns0:Name>Berman</ns0:Name>
</ns0:Legislator>
</ns0:Authors>
<ns0:Title> An act to add Section 785.3 to the Public Utilities Code, relating to energy. </ns0:Title>
<ns0:RelatingClause>energy</ns0:RelatingClause>
<ns0:GeneralSubject>
<ns0:Subject>Gas corporations: gas distribution service line replacements: alternatives.</ns0:Subject>
</ns0:GeneralSubject>
<ns0:DigestText>
<html:p>Existing law vests the Public Utilities Commission with regulatory authority over public utilities, including gas corporations. Existing law requires, until January 1, 2031, gas corporations to submit to the commission an annual map that includes, among other things, the location of all potential gas distribution line replacement projects identified in its distribution integrity management plan and any foreseeable gas distribution pipeline replacements.</html:p>
<html:p>This bill, the Home Energy Choice Act, would require the commission, in a new or existing proceeding, to require each gas corporation to offer a Gas Distribution Service Line Replacement Alternatives Program, on or before January 1, 2028, to provide gas customers served by a gas distribution service line, planned or forecasted for replacement over the next 5 years, or prioritized for replacement by
the commission, with a monetary incentive to deploy gas distribution service line replacement alternatives, as defined, and cease gas service to avoid the gas distribution service line replacement, as specified.</html:p>
<html:p>Under existing law, a violation of any order, decision, rule, direction, demand, or requirement of the commission is a crime.</html:p>
<html:p>Because a violation of a commission action implementing the bill’s requirements would be a crime, the bill would impose a state-mandated local program.</html:p>
<html:p>The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.</html:p>
<html:p>This bill would provide that no reimbursement is required by this act for a specified reason.</html:p>
</ns0:DigestText>
<ns0:DigestKey>
<ns0:VoteRequired>MAJORITY</ns0:VoteRequired>
<ns0:Appropriation>NO</ns0:Appropriation>
<ns0:FiscalCommittee>YES</ns0:FiscalCommittee>
<ns0:LocalProgram>YES</ns0:LocalProgram>
</ns0:DigestKey>
<ns0:MeasureIndicators>
<ns0:ImmediateEffect>NO</ns0:ImmediateEffect>
<ns0:ImmediateEffectFlags>
<ns0:Urgency>NO</ns0:Urgency>
<ns0:TaxLevy>NO</ns0:TaxLevy>
<ns0:Election>NO</ns0:Election>
<ns0:UsualCurrentExpenses>NO</ns0:UsualCurrentExpenses>
<ns0:BudgetBill>NO</ns0:BudgetBill>
<ns0:Prop25TrailerBill>NO</ns0:Prop25TrailerBill>
</ns0:ImmediateEffectFlags>
</ns0:MeasureIndicators>
</ns0:Description>
<ns0:Bill id="bill">
<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
<ns0:BillSection id="id_D826DB3F-921E-4619-995D-D35FD5196467">
<ns0:Num>SECTION 1.</ns0:Num>
<ns0:Content>
<html:p>This act shall be known, and may be cited, as the “Home Energy Choice Act.”</html:p>
</ns0:Content>
</ns0:BillSection>
<ns0:BillSection id="id_87F42E4C-ACA2-49BB-A419-41D5E030119A">
<ns0:Num>SEC. 2.</ns0:Num>
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
The Legislature finds and declares all of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Natural gas demand is already declining as California transitions away from natural gas to zero-emission electric alternatives to achieve the state’s energy efficiency, climate, and air quality objectives.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Without active planning and management, reduced demand for natural gas will result in higher gas rates, with a disproportionate burden on vulnerable customers.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Alternatives that avoid new capital investment in the gas system should be pursued where feasible and cost-effective.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
California gas corporations replace thousands of gas distribution service lines each year, with the significant majority connected to a single gas meter.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
Gas distribution service line replacement costs are paid by all gas customers as capital costs over a period of at least 55 years.
</html:p>
<html:p>
(6)
<html:span class="EnSpace"/>
Gas customers are currently not given a choice regarding the replacement of service lines connected to their homes.
</html:p>
<html:p>
(7)
<html:span class="EnSpace"/>
A monetary incentive for a gas customer to voluntarily replace their gas appliances with electric alternatives in lieu of a planned service line replacement benefits the customer by helping enable the purchase of new zero-emission appliances, other gas ratepayers by avoiding the long-term capital costs of service line replacements, and
California’s climate and air quality objectives by reducing reliance on fossil gas combustion.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
It is the intent of the Legislature that the Public Utilities Commission establish a program requiring gas corporations to offer gas customers the choice to replace their gas appliances with electric alternatives and cease gas service as an alternative to a planned service line replacement through a monetary incentive no greater than the average avoided cost of service line replacement.
</html:p>
</ns0:Content>
</ns0:BillSection>
<ns0:BillSection id="id_4A244595-B9CC-4E37-855C-657B64E4FCEF">
<ns0:Num>SEC. 3.</ns0:Num>
<ns0:ActionLine action="IS_ADDED" ns3:href="urn:caml:codes:PUC:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2F%2Fcaml%3ALawSection%5Bcaml%3ANum%3D'785.3'%5D)" ns3:label="fractionType: LAW_SECTION" ns3:type="locator">
Section 785.3 is added to the
<ns0:DocName>Public Utilities Code</ns0:DocName>
, to read:
</ns0:ActionLine>
<ns0:Fragment>
<ns0:LawSection id="id_13D5690B-3786-4D27-B3E0-068ACB90E770">
<ns0:Num>785.3.</ns0:Num>
<ns0:LawSectionVersion id="id_F99971BE-1E8D-461F-8ECC-9BC701281D6A">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
For purposes of this section, all of the following definitions apply:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
“Disadvantaged community” means a community identified pursuant to Section 39711 of the Health and Safety Code.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
“Eligible gas customer” means a gas customer served by a gas distribution service line that is planned or forecasted for replacement during the next five years or prioritized for replacement by the commission based on characteristics, including, but not limited to, age or material of the gas distribution service line.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
“Gas distribution service line” has the same meaning as “service line” as set forth in Section 192.3 of
Title 49 of the Code of Federal Regulations.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
“Gas distribution service line replacement alternatives” means measures to provide gas customers with energy service that does not require connecting to the gas system, including replacement of gas appliances with electric alternatives, any wiring, panel upgrades, or remediation necessary for electric appliance installation, circuit sharing or other devices that can avoid a panel upgrade, and energy efficiency.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
“Load-serving entity” has the same meaning as defined in Section 380.
</html:p>
<html:p>
(6)
<html:span class="EnSpace"/>
“Program” means the Gas Distribution Service Line Replacement Alternatives Program.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
In a new or existing proceeding, the commission shall require each gas corporation to offer a Gas Distribution Service Line
Replacement Alternatives Program on or before January 1, 2028. The program shall provide eligible gas customers with a monetary incentive to deploy gas distribution service line replacement alternatives and cease gas service to avoid a planned or forecasted gas distribution service line replacement.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
Costs approved for gas distribution service line replacement by the commission may be used to fund incentives for gas distribution service line replacement alternatives. The cost-recovery period for redirected funds shall be no longer than 10 years.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
In administering the program, the commission shall establish all of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
A standard incentive level for the deployment of gas distribution service line replacement alternatives no greater than the average lifetime cost of an avoided gas distribution
service line replacement.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Notice requirements for eligible gas customers. Notice shall include information about the climate and health benefits of zero-emission buildings, and the potential availability of additional incentives from other gas corporation and nongas corporation programs.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
A process for program implementation, including, but not limited to, potential use of a third-party program administrator, development of a preapproved list of contractors, development of a program internet website through which gas customers can determine their eligibility for the program, coordination with electrical corporations, local publicly owned electric utilities, load-serving entities, and local governments, and a requirement that a gas customer receiving incentives for gas distribution service line replacement alternatives close their gas account and request removal of their gas
meter.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
Additional outreach requirements for gas distribution service line replacements in disadvantaged communities.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
Coordination with low-income energy efficiency and electrification programs to maximize available incentives for low-income customers.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
</ns0:Fragment>
</ns0:BillSection>
<ns0:BillSection id="id_25785287-1825-4D2E-B17C-75CA14BC8A73">
<ns0:Num>SEC. 4.</ns0:Num>
<ns0:Content>
<html:p>
No reimbursement is required by this act pursuant to Section 6 of Article XIII
<html:span class="ThinSpace"/>
B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII
<html:span class="ThinSpace"/>
B of the California Constitution.
</html:p>
</ns0:Content>
</ns0:BillSection>
</ns0:Bill>
</ns0:MeasureDoc>