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:
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
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.
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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.
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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
August 2026 new report and webtool from The 2035 Initiative and UndauntedK12: “Analysis: The State of School HVAC in California”
June 2026 updated coalition letter
May 18, 2026 letter from nine members of the California State Assembly urging the Senate and Assembly Budget Committees to extend the CalSHAPE deadline.
April 13, 2026 letter from ASHRAE to Senate and Assembly leadership supporting extension of CalSHAPE.
April 2026 Assembly floor alert urging amendments to the Governor’s Proposed Trailer Bill Language to extend the CalSHAPE and make sure its remaining funds reach schools that need them.
April 2026 coalition letter to Senate and Assembly leadership requesting amendments to trailer bill language that would extend the CalSHAPE program
January 2, 2026 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
Advocacy in 2024 to defeat AB 3121, which would have terminated the CalSHAPE program.
Media Coverage in 2026
October 22 op-ed by Leah Stokes in the LA Times, Becerra’s plan for free midday electricity would be a leap forward
September 29 article in Politico, Can California handle the heat?
September 1 article in CalMatters, California utilities to reclaim unused money from school air conditioning program
August 25 op-ed by Jennifer Granholm in the LA Times, Sacramento should save the program that is saving the grid
August 22 op-ed by JuNelle Harris in the Sacramento Bee, Ending California school HVAC funding is a costly, unsafe move | Opinion
July 28 article in The Cooldown, California schools found broken HVAC systems, but only 172 got upgrade money before cutoff
July 23 article in CalMatters, California pulled the plug on new school air conditioners, leaving $200 million unspent
June 29 article in Canary Media, California’s choice: Cleaner air for schools or money for utilities
June 3 article in Politico Pro, $200 million is sitting unused in a California school air quality fund. Budget talks could change that
May 28 op-ed by Jonathan Klein and Leah Stokes in the LA Times, Use designated money to cool California schools, not to enrich utilities
May 20 article in the Santa Barbara Independent, Santa Barbara County Schools Race to Cool Down Hot Classrooms Before State Grant Program Sunsets
April 19 article in the OC Register, Nearly $200 million set aside in California to update school HVAC systems remains unspent
April 7 article in the LA Times, PG&E is overcharging Californians to keep the last nuclear power plant open, report alleges
March 23 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 graduate of the California Youth Climate Policy (CYCP) Leadership Program
Visit this page to see media coverage of the advocacy to defeat AB 3121 in 2024