California has scored two significant clean energy victories with the signing of SB 1359 and AB 2313 into law by Governor Newsom. These bills, identified as clear winners for ratepayers by the UCLA Emmett Institute, aim to reduce costly gas bills and ease the transition to cleaner energy for households.
SB 1359: Greater Transparency for Gas Utilities
The Natural Gas Ratepayer Protection Act, or SB 1359, will create greater transparency around gas utilities’ investments. It requires gas utilities to prepare an annual report detailing their planned infrastructure spending, the status of projects, the risk of stranded assets, and the distributional impacts of these assets on remaining gas ratepayers. This law is a key first step toward long-term gas transition planning, ensuring investments align with California’s policy priorities.
The initial version of SB 1359 mirrored many of the recommendations in the UCLA Emmett Institute’s 2025 report, “Go Big, Save Big: Approaches to Fund Building Electrification in California.” While the scope of the legislation has been narrowed since its first draft, it makes it easier for the CPUC to hold gas utilities accountable for their expenditures and ensures that investments are in line with California’s policy priorities. The law also requires utilities to describe any available electrification or non-pipeline alternatives implemented or evaluated.
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AB 2313: Voluntary Home Electrification
AB 2313, also known as the Home Energy Choice bill, offers customers an innovative option. When a gas service line repair or replacement is scheduled, households can choose to receive funding for home electrification instead of continuing gas service. This voluntary program is a win for ratepayers, as it avoids costly investments in soon-to-be-obsolete gas infrastructure, bringing down rates for everyone.
NRDC and Earthjustice led the charge in passing AB 2313, with hundreds of organizations coming together in support. The UCLA Emmett Institute’s E-CELL project contributed to building momentum through a report, “Non-Pipeline Alternatives to Accelerate California’s Gas Transition,” and blogs.
A Growing Momentum for Clean Energy
These two bills are part of a larger movement in California to reduce reliance on expensive and aging gas infrastructure. Other enacted bills, such as SB 222 and AB 1738, streamline permitting processes for clean electric alternatives like heat pumps. Together, these policies pave the way for a more affordable, healthy, and sustainable future for Californians.
