Equitable Building Decarbonization Direct Install Program (CA)

1. Program Overview

• Agency: California Energy Commission (CEC)

• Mandate: Reduce GHG emissions and advance energy equity.

• Authority: Assembly Bill 209 (2022), Executive Order B-55-18, AB 32, SB 32.

• Duration: 2022–2027

• Funding: Up to $922 million, with layered potential from HOMES and HEEHRA funds (IRA).

• Two main components:

  • Direct Install Program (focus of these guidelines)

  • Incentive Program (to be defined later)

• Subprograms:

  • Statewide Direct Install Program: Northern, Central, and Southern California regions

  • Tribal Direct Install Program

  • Support for existing programs

• Administered by: 3 regional administrators (to be competitively selected)

🏨 Program Implementation Details Relevant to Software Providers 

Building Eligibility

• Retrofits only (built before Jan 1, 2020)

• Primary fossil fuel use for space/water heating is required

• Eligible property types include:

  • Single-family, multifamily (2+ units), townhouses, manufactured/mobile homes

  • Group housing, transitional housing, farmworker housing

Household Eligibility

• Single-family: Household income ≤ 80% of AMI

• Multifamily: ≥ 66% of households meet low-income threshold

Audit + Modeling Implications

• Software must support:

  • Analysis of fuel switching potential

  • Modeling of bill impacts and GHG reduction per retrofit

  • Measure eligibility screening

  • Electrical panel assessment (upgrade required vs. not)

  • Compliance tracking (refrigerant GWP, contractor licensing, etc.)

• Support for bundled measure packages, HERS verification support, QA data logging, rate optimization, and post-installation diagnostics will be critical.

Data Requirements for Administrators

Software must capture/export:

• Building type, income eligibility, pre/post fuel type

• Measures installed (from approved list), cost, labor, permitting

• Meter data, GHG avoided, rate optimization impacts

• Tenant protections and contact logs

• Workforce tracking (e.g., prevailing wage compliance)

• Follow-up support (e.g., hotline, filter changes, etc.)

📋 Eligible Measures (Full Table from Program Guidelines) 

❌ Ineligible Measures:

• Fossil-fuel appliances or systems

• Primary electric resistance heating

• Solar PV

• Standalone battery storage

• Window replacements (unless for remediation)

Type of Home Max Average Cost (Electrical + Remediation)

Single-family / Multifamily $6,000

Manufactured / Mobile homes $7,200

📊 Program Budget (Table 2)

Program Component Budget Allocation

Statewide Direct Install (incl. MHs) $689.8 million

Tribal Direct Install $30 million

Support for Existing Programs $30 million

Statewide Incentive Program $80 million

Program Administration $92.2 million

Total $922 million

📍 Regional Allocation (Table 3)

Region Population in Underresourced Communities | Funding Allocation Northern 5.3 million | 23%

Central 4.3 million | 19%

Southern 13.6 million | 58%

🧑‍🚒 Key Administrative Features

• Must include CBOs in all outreach and implementation

• Measure Packages must be designed and offered (e.g., "base retrofit", "full electrification", etc.)

• Household Targeting Tool will be developed by CEC using interval meter and contextual data

• QA + hotline support required for 12+ months

• HERS verification, EPA 608, JA-compliant equipment enforced