Sign on to the Support Letter
by April 3, 2026
What’s at risk:
Failing to extend CalSHAPE during this year’s budget process will have significant negative impacts:
Hundreds of schools will miss out on functional, energy-efficient HVAC that can help keep thousands of students and staff healthy, in school, and ready to learn
Projects already underway may not be completed due to the unusually short timeline, which leaves little margin for ordinary construction delays, let alone supply chain disruptions, exposing affected school districts to budgetary pressures, unfinished work, and disputes
Program oversight and accountability may suffer due to insufficient time for review, corrections, audits, and impact assessment
Save the CalSHAPE program
The California Schools Healthy Air, Plumbing and Efficiency Program (CalSHAPE) program provides funding to upgrade HVAC systems in public schools across California. The Program is set to sunset on January 1, 2027, with unspent funds reverting to invest-owned utilities (IOUs) on December 1, 2026.
We are asking the legislature to:
Extend statutory deadlines for the CalSHAPE program, currently set to sunset on January 1, 2027, with unspent funds reverting to investor-owned utilities (IOUs) on December 1, 2026
Direct the California Energy Commission (CEC) to distribute the estimated $194 million in remaining funds to schools
Prioritize funding for HVAC upgrades and repairs that will promote high-quality local jobs and help schools
reduce energy use and pollution
remain open during extreme weather and air quality events like wildfires
protect students and staff against infectious diseases, harmful pollutants, and dangerous temperatures
These objectives can be achieved by deleting the existing provisions of TBL RN 26 09129, relating to CalSHAPE, and inserting new provisions. We also support the proposal of stakeholders to allocate existing unspent interest on CalSHAPE program funds, estimated to be around $70 million, to the Demand Side Grid Support Program (DSGS), rather than to the Emergency Load Reduction Program (ELRP).
What happened?
The CalSHAPE program was established by AB 841 (2020) to offer 100% grant funding to upgrade HVAC systems in public schools across California. The Climate Ready Schools Coalition defended the CalSHAPE program from termination in 2024 by helping defeat AB 3121 (Petrie-Norris). Shortly after the defeat of AB 3121, the CEC closed applications for the remaining unallocated CalSHAPE funds and has never reopened them.
As a result, although more than 4,500 schools (50% in underserved communities) obtained grant awards to conduct initial HVAC assessments, only 172 were able to secure follow-on funding to complete recommended HVAC repairs, replacements, and upgrades.
Advocacy with our partners
January 2nd coalition letter to Governor Newsom to reopen applications for CalSHAPE, extend the program, and use the interest from the program to fund the Demand Side Grid Support (DSGS) Program.
Media Coverage
March 23rd op-ed in the Sacramento Bee California schools are too hot. We need help from state leaders | Opinion by Karthik Meyyappan, a Folsom High School freshman and California Youth Climate Policy (CYCP) Leadership Program Graduate