SAN FRANCISCO – The California Public Utilities Commission (CPUC) today continued efforts toward meeting California’s climate and equity goals by approving measures to accelerate the state’s transition to all-electric buildings. The decision addresses key barriers faced by customers, particularly those in under-resourced communities, and streamlines access to electrification programs and funding.
Today’s decision focuses on four areas that support building decarbonization:
Support for Under-Resourced Customers Requiring Electric Service Upgrades to Electrify Homes
The CPUC has authorized up to $5 million annually for investor-owned utilities to cover electric service line upgrades at no cost for income-qualified and under-served customers. Eligible participants must be electrifying at least one major appliance and one additional qualifying appliance in their homes through approved decarbonization programs and have an existing electric panel rated below 100 amps. A $10,000 cap per single-family project is in place to promote wide program participation. Unspent funds after 2029 will be returned to ratepayers.
Avoiding Unnecessary Home and Electric Service Upgrades
To reduce the need for costly and time-consuming electric service line upgrades, the decision supports the use of Meter Socket Adapters (MSAs) and other solutions that facilitate the installation of new electric appliances without the need for upgrades, such as new electric panels or electric service upgrades. Utilities will be required to collect additional data on service line sizes, file new tariffs, and provide educational materials to help customers explore lower-cost electrification options.
Deadline Extension for Mixed-Fuel Building Projects
Recognizing delays in supply chains and permitting, the CPUC extended the energization deadline for mixed-fuel building projects to June 30, 2027, and allowed building projects under design review before July 1, 2024, to still claim electric line extension subsidies so long as those projects meet other program requirements and deadlines. Utilities must now report quarterly on expenditures related to these projects.
$40 Million for TECH Initiative in Aliso Canyon Communities
Pursuant to Assembly Bill 157, the CPUC authorized an additional $40 million from the Aliso Canyon Recovery Account to the TECH Initiative. This additional funding will specifically benefit Southern California Gas Company customers, with priority given to communities in the area surrounding the Aliso Canyon Natural Gas Storage Facility. The funds will support both partial and comprehensive home electrification efforts in alignment with state climate and environmental justice goals. The TECH Initiative was established under Senate Bill 1477 in 2018 to provide heat pump incentives and support statewide efforts to reduce greenhouse gas emissions through building electrification.
“Today’s decision will further California’s decarbonization goals by adopting measures that provide common facility treatment for under-resourced customers and measures to prevent unnecessary service line upsizing, clarifying reporting requirements, and requiring certain information to be placed on utility websites. It also extends the deadline for subsidies on dual fuel building projects to ensure a fair transition away from fossil resources due to supply chain shortages, permitting delays, and energization delays,” said Commissioner Darcie L. Houck, who is assigned to the proceeding. “This decision is an example of how California is leading the clean energy transition to benefit customers, the economy, and the environment.”
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