According to CalMatters Housing, California's state lawmakers and Governor Newsom failed to extend a grant program that was helping schools upgrade their air conditioning and heating systems. The program, called CalSHAPE, had nearly a billion dollars in utility funding available, but the state energy commission stopped accepting new applications in 2024, leaving about 191 million dollars unspent. Under state law, that unused money now has to go back to the utilities, which will return it to ratepayers through bill credits.
What lawmakers did manage to do was pass a measure giving schools that already got CalSHAPE funding an extra three years to complete their projects before the state takes back the money. However, they didn't pass a separate proposal that would have reopened the application process for schools to request new upgrades, reportedly because Governor Newsom didn't support it. School advocates and environmental groups were frustrated by this decision, especially given that the program had helped over 4,500 schools assess their aging HVAC systems, with 172 schools making significant improvements.
The disagreement really comes down to who should pay for school infrastructure. According to the reporting, utilities and their representatives argued that ratepayers shouldn't be funding a school program since it doesn't directly benefit them. Some utilities, like San Diego Gas and Electric, contributed about 190 million dollars to the program and stand to recover significant portions of those funds. However, when you do the math on what ratepayers will actually receive back, it works out to very small monthly amounts like $1.25 or even just 20 cents per month depending on which utility serves them.
School advocates on the other hand questioned whether these small refunds matter to everyday ratepayers and pointed out the real need in classrooms. Recent heat waves left schools across California struggling, with some districts like Coronado Unified shutting down entirely when temperatures spiked. Schools in Los Angeles and San Diego that had received assessment funding from CalSHAPE had no money to actually fix or replace broken air conditioning systems. School leaders and clean air advocates expressed disappointment that the governor chose to side with utilities returning money rather than supporting schools that clearly need help keeping classrooms at safe temperatures.
The reporting also notes that about 216 out of 719 school districts that had been awarded grants still have pending projects they need to finish. So while some schools will get more time to complete work that's already underway, no new schools will be able to access funding for the upgrades they need. Environmental groups and school administrators say this is a missed opportunity, especially as California faces increasingly extreme heat and weather events.
What I am seeing locally here in the Bay Area and across the East Bay is that school infrastructure needs are real and growing, particularly around climate resilience. When you talk to school administrators and parents, they're increasingly concerned about whether their kids can even learn in overheated classrooms during heat waves. The decision to wind down this program means Bay Area schools, including those in Fremont and throughout the East Bay, won't have this particular funding source available to address aging HVAC systems. Whether you're buying a home with school-age children or selling property near schools, the question of how school facilities are maintained and upgraded matters more than ever.
