Our campaign to protect funding for school HVAC

Since 2024, the Climate Ready Schools Coalition has fought to get CalSHAPE’s $194 million in remaining funds to schools for HVAC upgrades. In 2026, the state let that funding expire.

What happened

The California Schools Healthy Air, Plumbing and Efficiency Program (CalSHAPE) was created by AB 814 (Ting) in 2020 to give public K-12 schools 100% grant funding for HVAC upgrades. The program was designed to run from 2021 to 2026. In 2024, members of the coalition helped defeat AB 3121 (Petrie-Norris), which would have ended CalSHAPE early. Shortly after, the CEC stopped accepting applications for CalSHAPE funding and froze the remaining $194 million in funding left in the program.

Throughout 2026, members of the coalition pressed the Legislature to release those funds. At the end of August, the state let the remaining $194 million in CalSHAPE funds expire.

Learn more about CalSHAPE

Extend the statutory deadlines for the CalSHAPE program

The program was set to sunset on January 1, 2027, with unspent funds reverting to investor-owned utilities (IOUs) on December 1, 2026.

What we asked the Legislature to do

1

Prioritize funding for HVAC upgrades and repairs that will promote high-quality local jobs and help schools:

3

Direct the California Energy Commission (CEC) to distribute the estimated $194 million in remaining funds to schools

2

Where things stand

In August 2026, the Legislature weighed several versions of a budget trailer bill that would revise CalSHAPE’s statutory language. The final version, agreed to by the Legislature and the Governor, is Senate Bill 193.

  • What was approved

    More time for projects already funded

    SB 193 gave some schools that already received CalSHAPE awards more time to finish their projects before funds are clawed back. Details can be found in the Amended Notice of Grant Deadline Extensions in the CalSHAPE Program released by the CEC on October 14, 2026.

  • What was not

    Remaining funding was not released

    A measure to reopen applications for the remaining $194 million in frozen CalSHAPE funding was dropped from the final trailer bill. The unspent funds will be returned to California’s investor-owned utilities on December 1, 2026.

Why it matters

In late August, as final budget negotiations were under way, extreme heat forced schools in Santa Barbara, San Diego, and Riverside Counties to send students home early. Because the state let the remaining CalSHAPE funds expire, $194 million that could have cooled those classrooms is instead going back to the investor-owned utilities, which are already posting billion-dollar profits.

As a result, hundreds of schools will miss out on functional, modern HVAC. Although more than 4,500 schools (50% in underserved communities) obtained CalSHPAE grant awards to conduct initial HVAC assessments, only 172 were able to secure follow-on funding to complete recommended HVAC repairs, replacements, and upgrades before applications were closed and funds frozen.

Milestones & Engagement

Media Coverage in 2026