California Becomes First State to Eliminate Gas Subsidies for New Homes

CALPIRG: On Thursday, September 15, 2022, the California Public Utilities Commission (CPUC) voted to end gas line subsidies for new homes. The unanimous decision, which goes into effect in July 2023, is among a series of recent climate measures aimed at decarbonizing California’s building sector and ultimately, reaching statewide carbon neutrality by 2045.

Previously, California builders and developers were able to offset the costs of extending natural gas lines into new residential and commercial buildings through ratepayer subsidies. The CPUC’s decision eliminates this financial incentive and is expected to save ratepayers approximately $164 million per year.

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