AB 209, Energy and Climate Change

This bill would require the Energy Commission to establish the following clean energy programs: 
(A) the Industrial Grid Support and Decarbonization Program
(B) the Food Production Investment Program
(C) the Hydrogen Program 
(D) a direct install program to fund the installation of energy efficient electric appliances, energy efficiency measures, demand flexibility measures, wiring and panel upgrades, building infrastructure upgrades, efficient air conditioning systems, ceiling fans, and other measures to protect against extreme heat, where appropriate, and remediation and safety measures to facilitate the installation of new technologies; (E) a statewide incentive program for low-carbon building technologies; (F) a program to support offshore wind infrastructure improvements to advance the capabilities of California waterfront facilities (G) the Carbon Removal Innovation Program

The act authorizes, until January 1, 2026, the California Alternative Energy and Advanced Transportation Financing Authority to provide financial assistance in the form of a sales and use tax exclusion for projects, as defined, including those that promote California-based manufacturing, California-based jobs, advanced manufacturing, the reduction of greenhouse gases, or the reduction in air and water pollution or energy consumption.

The law also requires bank standards, including project labor agreements that provide prevailing wages, targeted hiring provisions, and apprenticeship utilization.  

This bill continuously appropriates funds from the Voluntary Offshore Wind and Coastal Resources Protection Fund.

The Outdoor Equity Grants Program (OEP) improves the health and wellness of Californians through new educational and recreational activities, service learning, career pathways, and leadership opportunities that strengthen a connection to the natural world. OEP’s intent is to increase the ability of residents in underserved communities to participate in outdoor experiences within their community, at state parks, and other public lands.

Outdoor Equity Grants Program

The goals of the Equitable Building Decarbonization Program are to reduce greenhouse gas (GHG) emissions in homes and advance energy equity. In addition to reducing GHG emissions, the Equitable Building Decarbonization Program will strive to encourage resiliency to extreme heat, improve indoor air quality, improve energy affordability, provide electric grid support, and increase payment of prevailing wage to the implementing workforce.

Equitable Building Decarbonization Program

The program will include a direct install program for low- and moderate-income households, which is a type of program that provides and installs energy efficient electric appliances, energy efficiency measures, and related upgrades directly to consumers at minimal or no cost. The Equitable Building Decarbonization Program will also include a statewide incentive program to accelerate deployment of low-carbon building technologies. The primary goals of the program are to reduce greenhouse gas emissions and advance energy equity. The direct install program, which is the focus of these guidelines, will include a statewide direct install program and a tribal direct install program.

Equitable Building Decarbonization Direct Install Program

The Clean Hydrogen Program provides financial incentives to eligible in-state projects for the demonstration or scale-up of the production, processing, delivery, storage, or end use of clean hydrogen. These projects will help reduce sector-wide emissions.

Clean Hydrogen Program

The California Energy Commission’s Food Production Investment Program (FPIP) provides grants to help food processors accelerate the adoption of advanced energy and decarbonization technologies to support electrical grid reliability and reduce greenhouse gas (GHG) emissions.

Equitable Building Decarbonization Program

Action History

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