Energy, Electricity, and Buildings Sector Funding Programs
Decarbonizing our buildings and developing renewable energy will require substantial investments in under-resourced households and communities — and substantial support to protect low-income consumers from increases in their already high energy burdens.
Pathways to a Just Clean Electricity Transition
From the standpoint of individuals and communities, key strategies include:
Increasing the supply of distributed renewable energy, primarily solar
Improving energy efficiency to lower electricity demand
Investing in building decarbonization — that is, switching from natural gas-based energy to electricity
Providing rate relief or bill assistance to low-income customers
Agencies
California Public Utilities Commission (CPUC). The CPUC regulates private utility companies, including California’s investor-owned electric and gas utilities. In most instances, CPUC programs are implemented by the regulated utility companies.
California Energy Commission (CEC). The CEC assesses the state’s energy needs and identifies policies to meet that need. The CEC is also responsible for siting power plants, developing building energy efficiency standards, and developing charging infrastructure for electric and hydrogen-powered vehicles. The Reliability, Renewable Energy & Decarbonization Incentives Division includes building decarbonization and numerous solar and other electricity-related programs.
Multi-purpose agencies, like the Strategic Growth Council, fund projects that include energy investments. These programs are described on the Multisector Funding Programs page.
Funding Sources
General Fund: In the 2021 and 2022 budget bills, the Legislature allocated $48 billion (after rollbacks) to support a range of climate programs.
California Greenhouse Gas Reduction Fund (GGRF). The state auctions a percentage of the allowances in the cap-and-trade program. The revenue must be devoted to greenhouse gas reductions. Informed by state agencies’ Investment Plan, completed every three years, the Legislature apportions the GGRF funds to specific programs.
CPUC Public Purpose Programs Fund. This fund is financed by a charge for public programs included in customer electricity rates.
Proceeds from Utility Allowance Sales. Although the state provides cap-and-trade allowances to investor-owned utilities (IOUs) for free, the IOUs must then “consign” the allowances back to the state for sale in allowance auctions. The IOUs receive the revenue from selling their consigned allowances, which must be used to benefit ratepayers. The IOUs use a small percentage of these funds to help finance clean energy and energy efficiency programs.
Energy and electricity sector and buildings opportunities are organized in the following tables:
