For Immediate Release
January 13, 2025
Media Contact:
Tryn Brown, tbrown@buildingdecarb.org
California Governor’s budget proposal maintains over $500 million for equitable building decarbonization
Governor Newsom’s proposed state budget funds equitable building decarbonization and large-scale community pilot projects that advance long-term energy affordability and protect low-income Californians from extreme weather.
Sacramento, CA – On January 10, Governor Newsom announced a state budget proposal that upholds $500 million in funding for the Equitable Building Decarbonization (EBD) Program to expand access to electric heat pumps and essential home upgrades in low-income communities that are most vulnerable to extreme climate impacts and high energy bills. The budget proposal also includes nearly $2 million to launch neighborhood-scale building decarbonization pilot projects as directed under Senate Bill (SB) 1221, a bill Governor Newsom signed into law in 2024, which will enable responsible utility investments and advance long-term energy affordability for Californians.
“The Equitable Building Decarbonization Program will help ensure that low-income Californians can receive healthy home upgrades without fear of displacement or increased rent,” said Elle Chen, Legislative Director of the Asian Pacific Environmental Network. “Environmental justice communities are often locked out of accessing highly-efficient appliances and retrofits, and the bill savings that come with these upgrades. California must ambitiously fund this vital program, especially in the face of escalating climate impacts and skyrocketing housing costs.”
The EBD Program covers the upfront costs of appliances and installation, and can provide weatherization and other home upgrades for low-income Californians. Powering households with highly-efficient heat pumps can also reduce reliance on fossil fuels and create more predictable energy costs. The program includes strong tenant protections that enable renters to benefit from cleaner air, cooling, and air filtration while remaining in their homes—boosting energy equity and climate resilience.
“We commend Governor Newsom for his commitment to protecting Californians against extreme weather and high energy costs. Our state budget should reflect the values of Californians: long-term energy affordability, clean air, and fighting climate change,” said Beckie Menten, California Director at the Building Decarbonization Coalition. “Continued and consistent investments in the Equitable Building Decarbonization Program and The Priority Neighborhood Decarbonization Act (SB 1221) are critical in making sure that we prioritize frontline and low-income communities as we face more climate crises.”
California is currently under siege from one of the most destructive wildfire disasters in its history. Already home to the most polluted cities in the nation and having emerged from the hottest summer on record in 2024, funding for the EBD Program is essential for deploying heat pumps for life-saving air filtration and cooling, and for cutting emissions from the state’s second leading producer of climate pollution. The emissions generated from fossil fuel combustion in homes and buildings exacerbates extreme heat events and wildfires, and pollutes both indoor and outdoor air.
This first phase of funding for The Priority Neighborhood Decarbonization Act (SB 1221) will help California fast track large-scale clean energy projects to create healthier homes and communities, improve air quality, and create long-term energy affordability. Shifting utility spending away from replacing aging gas infrastructure and towards upgrading neighborhoods to run on clean energy can save households money on their utility bills and create energy equity for frontline communities. This is because replacing aging gas infrastructure costs California ratepayers on average $3 million per mile—or an estimated $20 billion over the next decade. By 2050, household gas bills could rise as high as $600 per month. With neighborhood decarbonization, utilities can redirect these investments towards clean energy infrastructure instead and stabilize household utility rates.
Neighborhood decarbonization can also create high-road jobs with family-sustaining wages. Transitioning blocks of homes and community buildings to run on clean electricity or benefit from thermal energy networks will require a skilled workforce, from gas pipeline workers to installers, electricians, and contractors. These large-scale projects can help boost economic growth as workers are critical for bringing California into a new era of clean energy.
With California on the national stage as it battles devastating wildfires, the Administration and policymakers have the opportunity to demonstrate climate leadership by prioritizing building decarbonization to increase climate resilience, mitigate climate change fueled by fossil fuel pollution, and model innovative solutions and programs that advance energy affordability. Sufficient and continued funding for the Equitable Building Decarbonization Program and SB 1221 are needed to prioritize Californians and create safer and healthier homes and communities. In May, the Governor will release his May Revise, including any funding adjustments to his initial January proposal.
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The Building Decarbonization Coalition (BDC) aligns critical stakeholders on a path to transform the nation’s buildings through clean energy, using policy, research, market development, and public engagement. The BDC and its members are charting the course to eliminate fossil fuels in buildings to improve people’s health, cut climate and air pollution, prioritize high road jobs, and ensure that our communities are more resilient to the impacts of climate change.