Line extension allowances are no longer available with the exception of specific non-residential projects approved for an exemption by the California Public Utilities Commission.
You may have heard.
In September 2022, the CPUC issued Decision (D) 22-09-026, that, effective July 1, 2023, California gas utilities must eliminate line extension allowances, the 10-Year Refundable Payment Option, and 50% Discount Payment Option under existing gas line extension rules for residential and non-residential (commercial) applications for natural gas service.
Exemptions to the elimination of line extension rules are limited to non-residential (commercial) projects and must meet the requirements as described in the CPUC Decision. Find answers to common questions in the FAQs or see the full Decision
here
.
Natural gas can still be extended by paying the full cost of installing a main and/or service line to the project.
Cost is estimated and payment required prior to the project commencing. After the project is completed, customers will be billed if the final cost exceeds the original estimate or will be reimbursed if the final cost is below the original estimate.
Natural gas helps both the builder and the buyer. As a preferred energy source, natural gas is more efficient, reliable, and affordable. Projects designed with natural gas will help you meet demand for both residential and commercial buyers, selling faster while achieving net-zero energy performance and meeting emissions reduction goals.
To request installation of natural gas service lines, submit your application.
- Download and complete a Residential or Non-residential Request for Natural Gas Service application from the links below.
- Email the completed form with the subject line: Application for Natural Gas Service followed by a project address and/or APN number to SCAES@swgas.com
Frequently Asked Questions
Can I still use natural gas in my project?
Yes, natural gas is still allowed in new construction and preferred among many new homebuyers.
Why use natural gas for my project ?
Natural gas helps both the builder and the buyer. As a preferred energy source, natural gas is more efficient, reliable, and affordable. Projects designed with natural gas will help you meet demand for both residential and commercial buyers, selling faster while achieving net-zero energy performance and meeting emissions reduction goals.
Do Department of Energy (DOE) Zero Energy Ready Homes (ZERH) need to be all electric?
Natural gas water heating*, space heating, cooking, and clothes drying are still all allowed in DOE ZERH and new construction.
*Needs to be a tankless unit >.87 UE
What are the requirements to be considered for an exemption to new gas line extension rules, effective July 1, 2023?
Per CPUC Decision D.22-09-026 the exemption requirements are as follows:
- The project shows a demonstrable reduction in greenhouse gas emissions;
- The project’s gas line extension is consistent with California’s climate goals, including those articulated in Senate Bill 32 (Pavley, 2016); and
- The project demonstrates that it has no feasible alternatives to the use of natural gas, including electrification.
Will I still get reimbursements (credits) for applicant-provided trenches?
Yes.
How will this change impact project cost?
Elimination of line extension rules will not increase the cost to install new gas main and service line extensions but will likely increase the cost incurred by the project applicant.
For example, prior to July 1, 2023, a residential service line extension to a single-family home had the potential for $551 in allowances toward decreasing the total cost of the project. After July 1, 2023, the lack of $551 in allowances means that the project applicant will now need to pay the full cost of installing a service line extension.
For example, prior to July 1, 2023, a residential service line extension to a single-family home had the potential for $551 in allowances toward decreasing the total cost of the project. After July 1, 2023, the lack of $551 in allowances means that the project applicant will now need to pay the full cost of installing a service line extension.
Will my project still receive a refund?
Project applications submitted on or after July 1, 2023, will not be eligible for a refund unless it involves a non-residential project that receives an exemption approval by the CPUC.
Are construction timelines impacted by this change?
No, construction timelines are not impacted by the elimination of allowances.
