Newsom signs California Home Energy Choice Act

What the new law does

Gov. Gavin Newsom signed the Home Energy Choice Act, AB 2313, on Sept. 30, 2026. Assemblymember Marc Berman of Menlo Park authored the measure.

The law creates an optional alternative when the gas service line connecting a home to the main gas line is scheduled for replacement. Instead of automatically replacing that line, the utility will offer an incentive that can help pay for switching the home to electric appliances.

Participation is voluntary. Property owners may choose the electrification incentive or continue with replacement of the gas service line. The program applies to both owner-occupied homes and rental properties.

Who is eligible

AB 2313 makes owners of eligible residential properties the decision-makers over whether to participate. Rental properties qualify alongside homes occupied by their owners, expanding the program beyond individual homeowners.

The law also calls for additional support for families in disadvantaged communities. The program’s central approach is to redirect money that otherwise would have paid for a replacement gas connection toward conversion to electric appliances.

What changes for utility customers

Before AB 2313, a utility could replace a home’s aging gas service line without offering an electrification alternative. The new law requires utilities to present the voluntary incentive when a line is due for replacement.

Earthjustice and the Natural Resources Defense Council co-sponsored the legislation. Earthjustice described the measure as a way to reduce spending on gas infrastructure while giving households another energy option. UCLA has estimated that California gas customers would pay billion through 2045 to maintain the state’s gas system.