California regulators pulled the remaining subsidies offered for constructing buildings that rely on natural gas or propane in a move to support decarbonization and incentivize electrification. 

After eliminating natural gas line extension subsidies for all mixed-fuel buildings in 2022, the California Public Utilities Commission (CPUC) earlier in December struck electric line extension subsidies for new mixed-fuel buildings beginning next July. The act marked the removal of the final subsidy.

Subsidies are to continue for all-electric new construction.

“Ending indirect incentives for natural gas system expansion helps us align state climate goals with our subsidies and financial incentives,” said Commissioner Darcie Houck.

From 2018-2022, California provided more than...