Aliso Canyon settlement releases $20 million for electric home upgrades

The first $20 million in incentive funding from the Aliso Canyon gas blowout settlement is now available to affected residents in Los Angeles. The funds are designed to help homeowners replace gas-powered appliances with electric alternatives, including heat pumps, stoves, and water heaters.

Evan Kamei, director of TECH Clean California, stated the incentives will help create healthier homes and lower energy costs. He added that the program aims to create local jobs by replacing aging gas appliances with efficient electric ones.

The funding is the first portion of a total $40 million program. Single-family home owners in the affected area are immediately eligible for the incentives. Residents who meet specific income requirements can receive additional funding. Multi-property owners will have access to the program at a later date.

The blowout began in 2015 when a natural gas storage well failed near the San Fernando Valley. The leak released nearly 100,000 tons of methane and other substances into the atmosphere for more than 100 days. The incident sickened thousands of families and forced them from their homes to escape sulfurous odors and symptoms such as headaches, nausea, and nose bleeds.

In 2021, approximately 35,000 plaintiffs reached a settlement of up to $1.8 billion with Southern California Gas Co. and its parent company, Sempra Energy. The compensation addressed personal injury and property damage claims. SoCalGas spent more than $1 billion managing the blowout, with the majority of that cost going to the temporary relocation of 8,000 families.

Income-qualified residents in the affected zone can receive up to $31,800 in incentives. This amount is intended to cover the cost of electric installations in their homes. The program seeks to reduce reliance on gas, which releases pollutants like nitrogen dioxide and benzene that are linked to asthma and cancer.

Weldon Kennedy, co-founder of the California startup Copper, said his company is involved in distributing the settlement money. He noted that people often have a cultural attachment to gas cooking. Copper sells electric induction stoves that plug into regular outlets, avoiding the expense of rewiring homes.

Carol Kamei, 72, has lived near the Aliso Canyon Natural Gas Facility for 46 years and was a plaintiff in the case. She experienced nose bleeds during the leak and recently participated in a health study by the University of California, Los Angeles. The study found she has diminished lung capacity. Kamei plans to use the incentive funding to replace her oven with an electric one.