Protect Funding for School HVAC
The California Schools Healthy Air, Plumbing and Efficiency Program (CalSHAPE) provides funding to upgrade HVAC systems in public schools across California. The Program is set to sunset on January 1, 2027, with $194 million in unspent funds (frozen since July 1, 2024) reverting to invest-owned utilities (IOUs) on December 1, 2026.
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 before applications were closed and funds frozen in 2024.
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
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
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), which would have terminated the program. Shortly after the defeat of AB 3121, the CEC closed applications for the remaining $192M in unallocated CalSHAPE funds and has never reopened them.
Milestones & Engagement
April 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
April 19th article in the OC Register, Nearly $200 million set aside in California to update school HVAC systems remains unspent
April 7th article in the LA Times, PG&E is overcharging Californians to keep the last nuclear power plant open, report alleges
March 23rd op-ed in the Sacramento Bee, California schools are too hot. We need help from state leaders | Opinionby 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