Plumbing

California lawmakers and Gov. Gavin Newsom declined to extend CalSHAPE, a state program that used nearly $1 billion in utility funds to help schools assess and upgrade aging HVAC and plumbing systems. The California Energy Commission abruptly closed applications in 2024, leaving $191 million unspent, which by law must now be returned to utilities such as San Diego Gas & Electric, Southern California Edison, and Pacific Gas & Electric for ratepayer relief.

A last-minute budget trailer bill gives schools that already received funding three extra years to finish projects, but a separate measure to reopen applications was dropped after failing to gain Newsom's support. The program had helped over 4,500 schools assess HVAC systems, with 172 completing major upgrades. Critics, including advocacy groups and school officials, argue the returned funds amount to negligible per-customer savings while schools continue struggling with heat-related disruptions, pointing to recent heat waves that forced class cancellations and schedule changes across districts including Los Angeles and San Diego. The governor's office declined to comment.