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AB 832

School Energy Efficiency Stimulus Program.

2025-2026 Regular Session Introduced by Al Muratsuchi

AB 832 extends California's School Energy Efficiency Stimulus Program to 2030, requires IAQ standards for K-12, and lets funds shift between ventilation/energy and water upgrades.

Re-referred to Com. on U. & E.
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Bill Summary · AB 832

AB 832 — School Energy Efficiency Stimulus Program (Muratsuchi)

Status: Re-referred to Committee on Utilities & Energy (U. & E.) — introduced Feb 19, 2025

Purpose

AB 832 extends, modifies, and clarifies California’s School Energy Efficiency Stimulus Program to (1) lengthen program and spending timelines, (2) allow flexible use of remaining funds between ventilation/energy and water/appliance projects, (3) expand certain definitions of eligible replacements, and (4) require the Department of Education to develop indoor air quality (IAQ) standards and guidance for K–12 local educational agencies.

Key provisions

  • Indoor air quality standards: Requires the State Department of Education, in consultation with the State Department of Public Health and the Air Resources Board, to develop IAQ standards, guidelines, and recommendations for school districts, county offices of education, and charter schools on or before July 1, 2027. (Adds Chapter 7.5, Indoor Air Quality, to Education Code.)
  • Program timeline extension:
    • Extends the deadline by which all funds allocated under the School Energy Efficiency Stimulus Program must be spent or returned from December 1, 2026 to December 1, 2030.
    • Extends the program reporting requirement: Energy Commission must continue annual reports on program activities and spending through March 1, 2031 (previously through March 1, 2027).
    • Repeal date for program provisions moved to January 1, 2031 (previously January 1, 2027).
  • Funding allocation and flexibility:
    • Retains initial requirement that for the first two program years, 75% of funds go to the School Reopening Ventilation and Energy Efficiency Verification and Repair (SRVEVR) Program and 25% to the School Noncompliant Plumbing Fixture and Appliance (SNPFA) Program.
    • After the first two years, authorizes the Energy Commission to reallocate remaining funds between the two programs based on need.
    • Authorizes the Energy Commission to set application and encumbrance deadlines and establish timing of grant funding to ensure fund reversion deadlines are met.
  • Definitions: Revises program definitions, notably expanding “noncompliant appliance” to include commercial propane, natural gas, or oil water heaters (in addition to other non-water-efficient plumbing fixtures/appliances).
  • Reporting: Annual programmatic and budget reports to relevant legislative policy committees and the Joint Legislative Budget Committee (through March 1, 2031).
  • Funding source & authority: Continues use of energy efficiency portfolio funds required from large investor-owned utilities (electrical corporations with ≥250,000 accounts; gas corporations with ≥400,000 accounts). The bill’s extension of a continuous appropriation constitutes an appropriation.

Who is affected

  • Primary: K–12 local educational agencies — school districts, county offices of education, and charter schools (also references private schools, California Community Colleges, CSU; UC requested).
  • State agencies: California Energy Commission (program administration), State Department of Education (IAQ standards), State Department of Public Health, Air Resources Board, Public Utilities Commission.
  • Utilities: Large electrical and gas investor-owned utilities subject to the funding requirement.
  • Contractors and vendors performing HVAC, plumbing, and water-heating equipment repairs/replacements.

Legal / fiscal implications

  • The bill continues/extends a continuous appropriation for program funds (appropriation: YES).
  • Contains provisions that may impose state-mandated local program duties; provides that certain mandates require no reimbursement for a specified reason, and other mandated costs (if any) would be reimbursed per existing statutes if the Commission on State Mandates finds such costs.

Legislative history (selected)

  • Introduced: Feb 19, 2025
  • Referred to U. & E. and Education Committees: Mar 17, 2025
  • Amended and re-referred: Apr 7–8, 2025

Summary prepared to explain the bill’s substance, timelines, and likely operational impacts on schools, state agencies, and utilities.

Compiled from official sources — confirm details with the bill’s official record.

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