$1.4B for Climate-Resilient CA Homes, Schools, Communities

As the dust settles on this legislative session, it is clear that the state has made a significant down payment on Governor Newsom’s targets to deploy heat pumps and ensure that at least 7 million homes are climate-resilient by 2035. With the funds allocated in this year’s budget together with commitments* in future year budgets, the state plans to invest over $1.4 billion to decarbonize California homes, schools, and community centers – with most of the funding directed towards low-income families and disadvantaged communities.

These investments are critical not only to avoid greenhouse gas emissions and help electricity reliability, but also to improve community resilience to the effects of climate change such as the heat wave California is currently suffering through.

These investments include:

• $922 million* for new Equitable Building Decarbonization programs at the California Energy Commission (CEC). The majority of these funds will provide efficient electric appliances and other improvements to low-income families with a program model that engages community-based organizations and ensures protections for renters.
• $270 million for the Community Resilience Centers program in development at the Strategic Growth Council, which will upgrade or build vital gathering places (community centers, libraries, schools, etc.) with efficient electric technology, energy efficiency, renewables, and storage.
• $145 million to enhance the already successful TECH Clean California program to develop the market for heat pump technology across the state, train contractors, and pilot innovations to reduce barriers for low-income communities.
• $40 million to the California Air Resources Board (CARB) to accelerate the adoption of ultra-low-GWP refrigerants.
• $20 million to the CalSHAPE program at CEC to fund heat pumps to heat and cool classrooms in schools across California, with a focus on schools serving disadvantaged communities.
• $5 million to the Department of Housing and Community Development (HCD) to develop new policies designed to ensure that homes can maintain safe indoor air temperature, which is vital for renters who need and deserve protection from extreme heat.

This is an impressive array of investments that are sure to transform these homes, schools and community spaces to provide comfort and respite for Californians, while also reducing climate and air pollution. Let’s take a moment to celebrate our progress!

* Funding amounts referenced above include fiscal year 2022-2023 allocations from this budget as well as future-year commitments by the Administration, Senate, and Assembly which have been agreed to based on current revenue projections. See the 2022 Budget Addendum for future year agreements: https://www.ebudget.ca.gov/2022-BudgetAddendum.pdf