LA wildfire survivors want all‑electric homes, but gas rebates push them back to fossil fuel. Here’s why that’s a problem—and how green tech can fix it.
Wildfire Rebuilds Are a Climate Crossroads
More than 18,000 buildings burned in the Los Angeles wildfires this January. Climate scientists estimate those fires were 35% more likely because of global warming. That’s not abstract anymore; it’s people deciding, right now, what kind of home to build on top of ash.
Here’s the twist: while many LA wildfire survivors are trying to rebuild all‑electric, safer, and cleaner homes, their own gas utility is paying them to stick with fossil gas. And it’s using customer-funded “energy efficiency” dollars to do it.
This matters for anyone working in or following green technology. Wildfire rebuilds are exactly where climate policy, building codes, and clean tech like heat pumps, induction stoves, and smart microgrids either move from theory to reality—or get quietly sabotaged.
In this post, I’ll break down what’s happening in LA, why it exposes a bigger problem with gas infrastructure, and how all‑electric homes and AI-powered energy systems can actually make communities safer, cheaper to run, and more resilient the next time disaster hits.
What’s Really Going On With LA’s Wildfire Rebates?
The core issue is simple: SoCalGas is using ratepayer funds to keep gas in rebuilt homes, even as residents push hard for electrification.
Under a California Public Utilities Commission (CPUC) program called Residential Energy Efficiency Fire Rebuild, wildfire survivors can get:
- $600 for a gas patio heater
- $750 for a gas fireplace insert
- $2,250 for a gas tankless water heater
These are framed as efficiency incentives. On paper, they’re “more efficient” than older gas models. In reality, they lock in new fossil gas equipment that may run for 15–20 years or more—well beyond the timelines California has set for cutting emissions.
Here’s the thing about the rules: the CPUC already knows this is a problem. In a 2023 decision, the commission openly acknowledged that gas rebates can “lock-in long-lived GHG-emitting appliances.” Then it carved out an exception for wildfire rebuilds.
So wildfire survivors—people who just lived through climate‑driven disaster—are now being financially nudged back toward the same fuel that’s helping drive those disasters.
That’s not a policy accident anymore. That’s design.
Why Utilities Are Fighting Electrification
SoCalGas isn’t unique here. Gas utilities across the U.S. are under pressure:
- Building codes are tightening.
- States are setting electrification and decarbonization targets.
- Heat pumps, induction cooking, and smart electric water heaters are getting cheaper and better.
When customers switch to all‑electric, gas utilities lose future revenue and justify less pipeline infrastructure. That’s why you see aggressive lobbying campaigns aimed at slowing or weakening electrification rules.
In Southern California this year, SoCalGas helped lead a campaign that:
- Pushed mayors and local officials to send letters written by utility staff.
- Used misleading claims to fight proposed zero‑emission heater rules.
- Contributed to air quality regulators ultimately rejecting a plan to phase out gas furnaces and water heaters.
Matt Vespa, a senior attorney at Earthjustice, describes SoCalGas as having “tentacles everywhere, at every level of government, every program, everywhere.” He’s not exaggerating. When a utility can:
- Shape local political messaging
- Influence state regulatory timelines
- And still brand itself as supporting “energy efficiency”
…you’re looking at structural resistance to decarbonization, not a one‑off dispute.
For green technology advocates, this is the real battlefield: who controls the incentives and the narrative when people rebuild, retrofit, or expand infrastructure.
All‑Electric Rebuilds: Safer, Cheaper, and Smarter
The most frustrating part is that the better technical solution already exists. All‑electric rebuilds aren’t a science experiment; they’re practical, tested, and often cheaper over the building’s life.
What the data says
Research from the University of California, Berkeley found that rebuilding all‑electric in LA is:
- Cheaper than rebuilding with gas
- More climate‑friendly, with lower lifetime emissions
- Better for indoor air quality, especially for kids and people with asthma
Why? Because modern electric tech has moved way beyond clunky baseboard heaters.
A typical all‑electric wildfire rebuild might use:
- Heat pump HVAC for heating and cooling in one ultra‑efficient system
- Heat pump water heater instead of a gas tankless unit
- Induction cooktop with precise control and no combustion byproducts
- Smart panel and home energy management to optimize when loads run
Pair that with rooftop solar, battery storage, and eventually a neighborhood microgrid, and you get:
- Lower peak bills
- Backup power during outages
- Dramatically reduced emissions
- No indoor combustion of methane or NOx
The human side: rebuilding in the Palisades
In Pacific Palisades, one of the hardest‑hit neighborhoods, you can see what this looks like on the ground.
Residents like Sara Marti lost everything—her apartment and her parents’ house were both destroyed. Instead of defaulting back to gas, she and many of her neighbors are organizing through Resilient Palisades, a local nonprofit focused on:
- Electrification
- Fire‑resilient design
- Microgrids and local energy resilience
- Native plants and soil remediation
Her parents’ new home? Prefab and all‑electric.
Marti’s take on the gas rebates is blunt: SoCalGas is “putting profit over people.” When you’re exhausted, traumatized, and trying to make a hundred decisions a week, a rebate looks like validation. It implicitly tells you, this is the right choice.
That’s exactly why this fight over incentives matters so much.
Where Green Technology and AI Fit In
This blog series is about green technology—and LA’s situation is a perfect case study in how tools like AI, smart grids, and clean appliances actually work in the real world.
Smarter all‑electric homes
Electrification isn’t just swapping fuel sources. With the right tech stack, rebuilt homes can become active participants in a cleaner grid:
- AI‑driven energy management can forecast solar generation, predict household demand, and shift loads like water heating or EV charging to low‑carbon, off‑peak hours.
- Connected heat pumps can modulate output in response to grid signals, keeping homes comfortable while avoiding peak strain.
- Smart inverters and batteries can isolate homes or clusters of homes during outages, turning fire‑prone neighborhoods into resilience hubs instead of vulnerability hotspots.
This is where the gas vs. electric argument gets very practical. You simply can’t run this kind of smart, flexible, low‑carbon system on distributed gas combustion. Digital optimization works best when everything is on the same electric platform.
Data‑driven planning at community scale
Zoom out from a single home, and AI becomes even more powerful:
- Planners can simulate different rebuild scenarios: all‑electric vs. mixed fuel, with or without solar + storage, different appliance mixes.
- Utilities and cities can model wildfire, heatwave, and outage scenarios to see which neighborhoods are most vulnerable—and what combination of microgrids, demand response, and batteries changes that.
- Financing programs can target the highest climate and health ROI: for example, prioritizing heat pumps and induction stoves in areas with poor air quality and high asthma rates.
The reality? An all‑electric, AI‑optimized neighborhood isn’t a futuristic idea; it’s the logical counterpart to the climate risk that LA is already living through.
How Policy Design Can Support (or Undermine) Green Tech
If you’re wondering why SoCalGas can still offer gas rebates in wildfire zones, the answer is: regulatory lag.
Here’s the short version of the CPUC timeline:
- 2022 – Earthjustice and Sierra Club formally ask CPUC to stop using efficiency funds to subsidize new gas appliances.
- 2023 – CPUC agrees in principle to phase out gas incentives but says it needs to create attractive electric alternatives first. It also creates a special exception for wildfire rebuilds, treating them like retrofits instead of new construction.
- Late 2024–2025 – CPUC blows past its own deadlines for electric guidance. Staff say a proposal is "expected in 2025." Meanwhile, SoCalGas keeps offering gas rebates to wildfire survivors.
- Dec 1, 2025 – CPUC staff finally issue a proposal to phase out most gas appliance incentives over the next decade—but notably don’t address the wildfire rebuild exception.
So while California headlines boast the state is ranked #1 for energy efficiency programs, those same programs are actively helping a gas utility hold onto customers during a climate disaster.
This is the part most companies get wrong when they talk about sustainability: technology alone doesn’t win. You need:
- Incentives aligned with climate goals, not legacy fuel sales
- Clear timelines for phasing out fossil subsidies
- Regulators willing to close loopholes instead of creating them
Otherwise, utilities can keep branding fossil gas as “efficient” and slow‑rolling electrification, even as wildfire risks climb.
Practical Steps for Homeowners, Builders, and Advocates
If you’re rebuilding, advising clients, or building green tech products, you’re not powerless here. Here’s what actually moves the needle.
For wildfire survivors and homeowners
-
Ask for an all‑electric design from day one.
Make it the default: heat pump, induction, heat pump water heater, EV‑ready wiring, and solar‑ready roof. -
Compare lifetime costs, not just upfront rebates.
Gas equipment may come with a rebate, but all‑electric homes usually win on:- Lower energy bills over time
- Cheaper infrastructure (no gas line, venting, or meters)
- Reduced maintenance and safety risks
-
Protect your indoor air.
Gas stoves and heaters emit NOx, CO, and particulates. Electrification is a health upgrade, especially for kids and elders.
For builders and designers
-
Standardize all‑electric rebuild packages.
Treat it as your base spec, not a bespoke premium option. -
Integrate smart energy management.
Include smart panels, circuit‑level monitoring, and pre‑wiring for batteries and EVs. This is where green technology really shines. -
Educate clients about risk.
With wildfires and earthquakes, gas lines are a safety liability. A resilient all‑electric home with storage is easier to secure and restart.
For policy and climate advocates
-
Target the incentive rules.
The CPUC has open proceedings on energy efficiency. Public comments matter more than people think, especially when they’re specific. -
Push for gas subsidy phase‑outs with real dates.
Not "over the next decade"—clear milestones by appliance class and building type. -
Connect climate, health, and equity.
Gas infrastructure upkeep costs typically get socialized into rates. Electrification plus targeted support can lower energy burdens in the long run.
Why This LA Story Should Matter to Every Green Tech Leader
Here’s the uncomfortable truth: LA’s wildfire rebuild fight is a preview of what many regions will face—after hurricanes, floods, heatwaves, or fires.
Every disaster is a fork in the road:
- One path rebuilds the same fossil‑dependent systems that failed.
- The other path uses all‑electric, AI‑enabled, resilient infrastructure to bend emissions and risk downward at the same time.
Right now, gas utilities and slow regulatory timelines are pushing hard toward the first path. Residents, climate lawyers, and green technology innovators are trying to pull us toward the second.
If you work in clean energy, smart buildings, or sustainability strategy, this isn’t a side story. It’s a stress test for your ideas.
The question isn’t whether all‑electric homes, heat pumps, and smart microgrids work technically. They do. The real question is: will we let legacy incentives keep propping up fossil equipment right where we should be building the cleanest, safest systems we’ve ever had?
That’s the decision being made, house by house, across the LA fire zone—and it’s the same decision every climate‑vulnerable region will face next.