Buildings and Efficiency

Eliminating Line Extension Allowances

Gas line extension allowances (LEAs) are policies that enable new customers to connect to the natural gas system, with some or all of the costs paid for by existing gas ratepayers. LEAs essentially subsidize the expansion of the gas system and new gas hookups, so many states are now examining how LEAs may conflict with their policies to reduce greenhouse gases, phase out natural gas use, and electrify and decarbonize buildings. States are reforming or eliminating their line extension allowances to better align with their climate policies and increasing consumer demand for electric alternatives to gas.

Eliminating LEAs does not prohibit new gas connections or eliminate consumer choice; owners and developers of new buildings are still able to connect their building to a gas distribution pipeline, consistent with state and local regulations, but they are directly responsible for those costs. Research estimates that reforming or ending LEAs can save ratepayers millions of dollars per year, based on the pace and cost of new gas system connections, and how generous the allowances are. Early results in states that have eliminated their LEAs also indicate that this reform has led to more development without gas, rather than shifting the cost of gas connections to new customers.

States can reform or eliminate LEAs through regulatory, executive, or legislative action. In some states, LEAs have been eliminated across all gas utilities through legislation or an order issued by the utility regulator. This reform can also be initiated by a petition from an Attorney General or similar office, or an Executive Order. In other states, utility regulators have approached LEAs individually by each gas utility, typically through ratemaking proceedings.

States with Policy Enacted

In Progress

Partially Enacted

See States List

Key Resources

The End of Gas System Subsidies: Why Gas Line Extension Allowances No Longer Serve Us

A policy brief that provides an overview of the current LEA landscape in the U.S. and recommendations for reforming outdated policies that promote the growth of gas consumption and emissions.

Cutting These Subsidies Could Save States Millions of Dollars

An article that estimates the annual savings in the eight states that have made line extension policy changes as of August 2025.
2025
Source:

Ending Subsidies for New Gas Hook-Ups Can Save Cascadians Millions

A policy brief that offers an overview of the current LEA landscape in the U.S. and recommendations, as well as benefits and risks, of different venues for LEA reform.
2025
Source:

Overextended: It's Time to Rethink Subsidized Gas Line Extensions

A brief that examines the prior rationales for gas line extension policies and makes recommendations for state utility regulators to eliminate subsidies for gas, align with state climate policies, and reduce the financial burden on existing gas customers.
2021
Source:

Model States

California

Effective July 1, 2027, California will end line extension allowances for new mixed-fuel building projects (buildings that use natural gas and/or propane in addition to electricity). Mixed-use buildings will have until June 30, 2027 to energize and claim electric line extension subsidies, and projects in the design review approval process prior to July 1, 2024 will remain eligible for electric line extension subsidies as long as they meet the energization deadline.

Colorado

Gas utilities may not provide incentives, including a line extention allowance, to establish gas service to a property.

2023
Establishing Policies

New York

Legislation repealed the state’s “100-foot rule” that required existing utility customers to subsidize new residential gas hookups within 100 feet of an existing pipeline. With the repeal, effective April 2027, applicants must pay the cost for new gas service, rather than existing ratepayers.

Eliminating Line Extension Allowances By State

Filters
Status State Sort descending Region Components Year Enacted
Not Enacted
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Gas line extension allowances (LEAs) are policies that enable new customers to connect to the natural gas system, with some or all of the costs paid for by existing gas ratepayers. Eliminating line extension allowances results in new customers directly paying for the costs to install their new gas service.

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Southeast
Not Enacted
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Gas line extension allowances (LEAs) are policies that enable new customers to connect to the natural gas system, with some or all of the costs paid for by existing gas ratepayers. Eliminating line extension allowances results in new customers directly paying for the costs to install their new gas service.

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West
Not Enacted
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Gas line extension allowances (LEAs) are policies that enable new customers to connect to the natural gas system, with some or all of the costs paid for by existing gas ratepayers. Eliminating line extension allowances results in new customers directly paying for the costs to install their new gas service.

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Southwest
Not Enacted
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Gas line extension allowances (LEAs) are policies that enable new customers to connect to the natural gas system, with some or all of the costs paid for by existing gas ratepayers. Eliminating line extension allowances results in new customers directly paying for the costs to install their new gas service.

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Southeast
Enacted
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Effective July 1, 2027, California will end line extension allowances for new mixed-fuel building projects (buildings that use natural gas and/or propane in addition to electricity). Mixed-use buildings will have until June 30, 2027 to energize and claim electric line extension subsidies, and projects in the design review approval process prior to July 1, 2024 will remain eligible for electric line extension subsidies as long as they meet the energization deadline.

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West 2025
Enacted
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Gas utilities may not provide incentives, including a line extention allowance, to establish gas service to a property.

Establishing Policies
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West 2023
Not Enacted
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Gas line extension allowances (LEAs) are policies that enable new customers to connect to the natural gas system, with some or all of the costs paid for by existing gas ratepayers. Eliminating line extension allowances results in new customers directly paying for the costs to install their new gas service.

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Northeast
Not Enacted
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Gas line extension allowances (LEAs) are policies that enable new customers to connect to the natural gas system, with some or all of the costs paid for by existing gas ratepayers. Eliminating line extension allowances results in new customers directly paying for the costs to install their new gas service.

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Southeast
Not Enacted
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Gas line extension allowances (LEAs) are policies that enable new customers to connect to the natural gas system, with some or all of the costs paid for by existing gas ratepayers. Eliminating line extension allowances results in new customers directly paying for the costs to install their new gas service.

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Southeast
Not Enacted
Empty column

Gas line extension allowances (LEAs) are policies that enable new customers to connect to the natural gas system, with some or all of the costs paid for by existing gas ratepayers. Eliminating line extension allowances results in new customers directly paying for the costs to install their new gas service.

Empty column
Southeast
Not Enacted
Empty column

Gas line extension allowances (LEAs) are policies that enable new customers to connect to the natural gas system, with some or all of the costs paid for by existing gas ratepayers. Eliminating line extension allowances results in new customers directly paying for the costs to install their new gas service.

Empty column
West
Not Enacted
Empty column

Gas line extension allowances (LEAs) are policies that enable new customers to connect to the natural gas system, with some or all of the costs paid for by existing gas ratepayers. Eliminating line extension allowances results in new customers directly paying for the costs to install their new gas service.

Empty column
West
Not Enacted
Empty column

Gas line extension allowances (LEAs) are policies that enable new customers to connect to the natural gas system, with some or all of the costs paid for by existing gas ratepayers. Eliminating line extension allowances results in new customers directly paying for the costs to install their new gas service.

Empty column
Midwest
Not Enacted
Empty column

Gas line extension allowances (LEAs) are policies that enable new customers to connect to the natural gas system, with some or all of the costs paid for by existing gas ratepayers. Eliminating line extension allowances results in new customers directly paying for the costs to install their new gas service.

Empty column
Midwest
Not Enacted
Empty column

Gas line extension allowances (LEAs) are policies that enable new customers to connect to the natural gas system, with some or all of the costs paid for by existing gas ratepayers. Eliminating line extension allowances results in new customers directly paying for the costs to install their new gas service.

Empty column
Midwest
Not Enacted
Empty column

Gas line extension allowances (LEAs) are policies that enable new customers to connect to the natural gas system, with some or all of the costs paid for by existing gas ratepayers. Eliminating line extension allowances results in new customers directly paying for the costs to install their new gas service.

Empty column
Midwest
Not Enacted
Empty column

Gas line extension allowances (LEAs) are policies that enable new customers to connect to the natural gas system, with some or all of the costs paid for by existing gas ratepayers. Eliminating line extension allowances results in new customers directly paying for the costs to install their new gas service.

Empty column
Southeast
Not Enacted
Empty column

Gas line extension allowances (LEAs) are policies that enable new customers to connect to the natural gas system, with some or all of the costs paid for by existing gas ratepayers. Eliminating line extension allowances results in new customers directly paying for the costs to install their new gas service.

Empty column
Southeast
Not Enacted
Empty column

Gas line extension allowances (LEAs) are policies that enable new customers to connect to the natural gas system, with some or all of the costs paid for by existing gas ratepayers. Eliminating line extension allowances results in new customers directly paying for the costs to install their new gas service.

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Northeast
In-Progress
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Per a Maryland Public Service Commission (PSC) order, PSC staff were required to propose regulations to eliminate line extension subsidies for new natural gas service connection by December 1, 2025. If adopted, customers may still choose their preferred fuel, but must pay the full cost of connecting to the gas system, rather than the cost being covered by all ratepayers.

In May 2026, the PSC delayed approving or rejecting draft regulations to end gas line extension allowances in a rulemaking hearing, to further study the policy's impacts and asked PSC staff to identify alternative options to ending LEAs, without a clear timeline of when the regulations may be finalized.

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Southeast 2026
In-Progress
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In 2025, the Department of Public Utilities (DPU) issued an order that proposed ending line extension allowances, requiring new gas customers to pay for upfront connection costs instead of existing ratepayers, unless there are no viable alternatives to natural gas.

Per the order, gas utilities proposed revisions to tariffs that reflect the removal of LEAs, and compliance with the DPU order will be finalized in each utility’s Climate Compliance Plan docket (DPU Dockets 25-40 through 25-45).

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Northeast 2025
Not Enacted
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Gas line extension allowances (LEAs) are policies that enable new customers to connect to the natural gas system, with some or all of the costs paid for by existing gas ratepayers. Eliminating line extension allowances results in new customers directly paying for the costs to install their new gas service.

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Midwest
Not Enacted
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The Public Utilities Commission solicited public comments on whether it should modify existing gas line extension allowances. A PUC order in response is expected.

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Midwest
Not Enacted
Empty column

Gas line extension allowances (LEAs) are policies that enable new customers to connect to the natural gas system, with some or all of the costs paid for by existing gas ratepayers. Eliminating line extension allowances results in new customers directly paying for the costs to install their new gas service.

Empty column
Southeast
Not Enacted
Empty column

Gas line extension allowances (LEAs) are policies that enable new customers to connect to the natural gas system, with some or all of the costs paid for by existing gas ratepayers. Eliminating line extension allowances results in new customers directly paying for the costs to install their new gas service.

Empty column
Midwest
Not Enacted
Empty column

Gas line extension allowances (LEAs) are policies that enable new customers to connect to the natural gas system, with some or all of the costs paid for by existing gas ratepayers. Eliminating line extension allowances results in new customers directly paying for the costs to install their new gas service.

Empty column
West
Not Enacted
Empty column

Gas line extension allowances (LEAs) are policies that enable new customers to connect to the natural gas system, with some or all of the costs paid for by existing gas ratepayers. Eliminating line extension allowances results in new customers directly paying for the costs to install their new gas service.

Empty column
Midwest
Not Enacted
Empty column

Gas line extension allowances (LEAs) are policies that enable new customers to connect to the natural gas system, with some or all of the costs paid for by existing gas ratepayers. Eliminating line extension allowances results in new customers directly paying for the costs to install their new gas service.

Empty column
West
Not Enacted
Empty column

Gas line extension allowances (LEAs) are policies that enable new customers to connect to the natural gas system, with some or all of the costs paid for by existing gas ratepayers. Eliminating line extension allowances results in new customers directly paying for the costs to install their new gas service.

Empty column
Northeast
Not Enacted
Empty column

Gas line extension allowances (LEAs) are policies that enable new customers to connect to the natural gas system, with some or all of the costs paid for by existing gas ratepayers. Eliminating line extension allowances results in new customers directly paying for the costs to install their new gas service.

Empty column
Northeast
Not Enacted
Empty column

Gas line extension allowances (LEAs) are policies that enable new customers to connect to the natural gas system, with some or all of the costs paid for by existing gas ratepayers. Eliminating line extension allowances results in new customers directly paying for the costs to install their new gas service.

Empty column
Southwest
Enacted
Empty column

Legislation repealed the state’s “100-foot rule” that required existing utility customers to subsidize new residential gas hookups within 100 feet of an existing pipeline. With the repeal, effective April 2027, applicants must pay the cost for new gas service, rather than existing ratepayers.

Empty column
Northeast 2026
Not Enacted
Empty column

Gas line extension allowances (LEAs) are policies that enable new customers to connect to the natural gas system, with some or all of the costs paid for by existing gas ratepayers. Eliminating line extension allowances results in new customers directly paying for the costs to install their new gas service.

Empty column
Southeast
Not Enacted
Empty column

Gas line extension allowances (LEAs) are policies that enable new customers to connect to the natural gas system, with some or all of the costs paid for by existing gas ratepayers. Eliminating line extension allowances results in new customers directly paying for the costs to install their new gas service.

Empty column
Midwest
Not Enacted
Empty column

Gas line extension allowances (LEAs) are policies that enable new customers to connect to the natural gas system, with some or all of the costs paid for by existing gas ratepayers. Eliminating line extension allowances results in new customers directly paying for the costs to install their new gas service.

Empty column
Midwest
Not Enacted
Empty column

Gas line extension allowances (LEAs) are policies that enable new customers to connect to the natural gas system, with some or all of the costs paid for by existing gas ratepayers. Eliminating line extension allowances results in new customers directly paying for the costs to install their new gas service.

Empty column
Southwest
In-Progress
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The Oregon Public Utilities Commission ordered the state’s two largest gas utilities to phase out natural gas subsidies for new customers by 2027. The orders require Avista to eliminate their line extension allowances by January 2027, and Northwest Natural to eliminate their LEAs by November 2027.

Empty column
West 2024
Not Enacted
Empty column

Gas line extension allowances (LEAs) are policies that enable new customers to connect to the natural gas system, with some or all of the costs paid for by existing gas ratepayers. Eliminating line extension allowances results in new customers directly paying for the costs to install their new gas service.

Empty column
Northeast
Not Enacted
Empty column

Gas line extension allowances (LEAs) are policies that enable new customers to connect to the natural gas system, with some or all of the costs paid for by existing gas ratepayers. Eliminating line extension allowances results in new customers directly paying for the costs to install their new gas service.

Empty column
Northeast
Not Enacted
Empty column

Gas line extension allowances (LEAs) are policies that enable new customers to connect to the natural gas system, with some or all of the costs paid for by existing gas ratepayers. Eliminating line extension allowances results in new customers directly paying for the costs to install their new gas service.

Empty column
Southeast
Not Enacted
Empty column

Gas line extension allowances (LEAs) are policies that enable new customers to connect to the natural gas system, with some or all of the costs paid for by existing gas ratepayers. Eliminating line extension allowances results in new customers directly paying for the costs to install their new gas service.

Empty column
Midwest
Not Enacted
Empty column

Gas line extension allowances (LEAs) are policies that enable new customers to connect to the natural gas system, with some or all of the costs paid for by existing gas ratepayers. Eliminating line extension allowances results in new customers directly paying for the costs to install their new gas service.

Empty column
Southeast
Not Enacted
Empty column

Gas line extension allowances (LEAs) are policies that enable new customers to connect to the natural gas system, with some or all of the costs paid for by existing gas ratepayers. Eliminating line extension allowances results in new customers directly paying for the costs to install their new gas service.

Empty column
Southwest
Not Enacted
Empty column

Utah has not had any gas line extension allowance (LEA) reform, but the largest utility in the state does not provide a gas LEA.

Empty column
West
Not Enacted
Empty column

Gas line extension allowances (LEAs) are policies that enable new customers to connect to the natural gas system, with some or all of the costs paid for by existing gas ratepayers. Eliminating line extension allowances results in new customers directly paying for the costs to install their new gas service.

Empty column
Northeast
Not Enacted
Empty column

Gas line extension allowances (LEAs) are policies that enable new customers to connect to the natural gas system, with some or all of the costs paid for by existing gas ratepayers. Eliminating line extension allowances results in new customers directly paying for the costs to install their new gas service.

Empty column
Southeast
In-Progress
Empty column

In individual utilty rate cases, Washington State regulators adopted a plan to phase out line extension allowances (LEAs) for three of its four gas utilities: Avista and Puget Sound Energy were required to eliminate gas LEAs by January 1, 2025; Cascade will eliminate gas LEAs for residential and commercial customers by March 1, 2027.

Empty column
West 2025
Not Enacted
Empty column

Gas line extension allowances (LEAs) are policies that enable new customers to connect to the natural gas system, with some or all of the costs paid for by existing gas ratepayers. Eliminating line extension allowances results in new customers directly paying for the costs to install their new gas service.

Empty column
Southeast
Not Enacted
Empty column

Gas line extension allowances (LEAs) are policies that enable new customers to connect to the natural gas system, with some or all of the costs paid for by existing gas ratepayers. Eliminating line extension allowances results in new customers directly paying for the costs to install their new gas service.

Empty column
Midwest
Not Enacted
Empty column

Gas line extension allowances (LEAs) are policies that enable new customers to connect to the natural gas system, with some or all of the costs paid for by existing gas ratepayers. Eliminating line extension allowances results in new customers directly paying for the costs to install their new gas service.

Empty column
West

The State Climate Policy Dashboard tracks only passed policies and does not include bills currently proposed in legislative sessions. The website is intended to illustrate the current status of policies for each state, as well as key resources and model states for each policy.

Much of the information contained in this database is derived from the public domain, with links to resources provided. The information provided is made available solely for general information purposes and does not constitute legal advice. Click here for full Terms of Use.

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