The Equitable Building Decarbonization (EBD) Statewide Direct Install Program provides and installs energy-efficient electric appliances, energy efficiency measures, and related upgrades at no cost to low-income households in under-resourced communities.
The EBD Statewide Direct Install Program is implemented by three regional administrators serving northern, central, and southern California.
Each of the three regional administrators has assembled a team with expertise in residential building decarbonization to support the program’s implementation. These teams include community-based organizations that will provide culturally appropriate outreach, education, and support for participating households and communities.
The regional administrators are:
Northern Region: Association for Energy Affordability
Counties: Alameda, Amador, Butte, Colusa, Contra Costa, Del Norte, El Dorado, Glenn, Humboldt, Lake, Lassen, Marin, Mendocino, Modoc, Napa, Nevada, Placer, Plumas, Sacramento, San Francisco, San Mateo, Santa Clara, Shasta, Sierra, Siskiyou, Solano, Sonoma, Sutter, Tehama, Trinity, Yolo, Yuba.
Contact: ebd@aeacleanenergy.org
Central Region: Center for Sustainable Energy
Counties: Alpine, Calaveras, Fresno, Inyo, Kern, Kings, Madera, Mariposa, Merced, Mono, Monterey, San Benito, San Joaquin, San Luis Obispo, Santa Barbara, Santa Cruz, Stanislaus, Tulare, Tuolumne, Ventura.
Contact: contactEBD@energycenter.org
Southern Region: County of Los Angeles
Counties: Imperial, Los Angeles, Orange, Riverside, San Bernardino, San Diego
Contact: socalebdcoalition@icf.com
The first phase of the program will serve specific communities within each region called initial community focus areas. These communities were selected based on criteria established in the guidelines. Within the communities, the program will focus on low-income households located in eligible census tracts. See the Frequently Asked Questions (Q7) below for more information on the selection process.
A community application process will be available for other interested communities (see Frequently Asked Questions, Q8).
Northern Region Initial Community Focus Areas:
- Contra Costa Refinery Corridor
- East and West Oakland
- East Palo Alto
- Humbolt County
- Morgan Hill and Gilroy
- North and South Sacramento
- Richmond
- East San Francisco
Central Region Initial Community Focus Areas:
- Bakersfield
- East Fresno
- Los Banos
- Modesto
- West Fresno
Southern Region Initial Community Focus Areas:
- Bassett Avocado Heights Advanced Energy Community
- Bell Gardens
- Brawley
- Buena Park
- Carson
- Chula Vista
- Compton
- El Cajon
- El Centro
- El Monte
- Escondido
- Fullerton
- Hawaiian Gardens
- Hawthorne
- Hesperia
- Huntington Park
- Indio
- Lancaster
- Lawndale
- Maywood
- Moreno Valley
- North Hollywood
- Oceanside
- Pacoima
- Paramount
- Pico Rivera
- Pomona
- Ramona
- Riverside/Highgrove
- San Bernardino
- San Marcos/Vista
- Santa Ana
- South Gate
- STORM Communities
- Victorville/Apple Valley
- Wilmington
In order to begin benefitting low-income households while the full program infrastructure is under development, the regional administrators are looking at opportunities to partner with existing building decarbonization programs to conduct “rapid start” retrofits.
September 2022 - Governor Newsom signed Assembly Bill 209 directing CEC to develop an Equitable Building Decarbonization Program
December 2022 — October 2023 Nine public workshops and two tribal listening sessions were held to inform the development of the program guidelines
October 2023 - Program guidelines adopted
April — November 2024 Competitive solicitation process held to select three regional administrators
November 2024 - Regional administrators approved at CEC business meeting
Fall 2025 (expected) - First rapid start home retrofits
Winter 2025-2026 (expected) - First home retrofits in initial community focus areas
Q1: Why is the Equitable Building Decarbonization Program important?
The State of California is committed to a just and equitable transition to carbon neutrality by 2045. Buildings account for about 25% of California’s greenhouse gas emissions, so decarbonizing buildings – by replacing gas appliances with efficient electric appliances – is a key part of California’s climate strategy. The Equitable Building Decarbonization Program (which includes the Statewide Direct Install, Tribal Direct Install, and Statewide Incentive Programs) prioritizes low-income, disadvantaged, and tribal communities, to ensure that these communities aren’t left behind in the transition to carbon neutrality.
In addition to reducing greenhouse gas emissions and advancing energy equity, the Equitable Building Decarbonization Program will benefit low-income households and communities by improving resiliency to extreme heat and poor air quality, while promoting energy affordability, grid reliability, and local workforce opportunities.
Q2: What is a direct install program?
A direct install program is a type of program that provides and installs energy-efficient appliances, energy efficiency measures, and related upgrades directly to consumers at minimal or no cost. Direct install programs are different from loan programs because participants are not responsible for paying anything back. They are also different from rebate programs, which often require participants to pay for upgrades upfront and get reimbursed later.
Q3: How will the Equitable Building Decarbonization Statewide Direct Install Program work?
First, community-based organizations will conduct outreach to potential participants in the initial community focus areas. Outreach will focus on homes most likely to benefit from the program, including those most likely to save money on their electric bills as a result of decarbonization retrofits. The program is open to single-family homes, multifamily buildings, and manufactured and mobile homes.
Homeowners/occupants who are interested will first be screened for eligibility. See Q4 for eligibility criteria.
If the property is eligible, a home assessment will be conducted to evaluate the existing condition of the home and to identify appropriate retrofit measures from among the program’s eligible measures (see Q5). After the home assessment, if the homeowner/property owner wishes to proceed with the retrofit, the regional administrator will schedule contractors to complete the work. All work will be done at no cost to the homeowner.
Q4: Which homes are eligible for the Statewide Direct Install Program?
To be eligible, a building must meet all of the following criteria.
- Be a single-family home, multifamily building, or manufactured/mobile home.
- Be located in an initial community focus area (see list above), or in a community selected through the forthcoming community application process (see Q8).
- Be built before January 1, 2020.
- Use natural gas, propane, or another fossil fuel as the primary fuel for space heating or water heating.
In addition, the building occupants must meet the following income criteria.
- For single family and manufactured/mobile homes, the home must be occupied by a low-income household.
- For multifamily properties, at least two-thirds of units must be occupied by low-income households.
Low-income households are defined as households earning up to 80% of the area median income. Low-income thresholds by county and household size are available from the Department of Housing and Community Development.
Q5: What will the direct install home retrofits include?
At this time all homes served will be provided retrofits at no cost. All homes served will receive a heat pump for space heating and cooling, or a heat pump water heater, or both. Homes may also receive other upgrades including:
- Induction stove
- Electric clothes dryer
- Duct sealing
- Smart thermostat
- Ceiling fan or whole house fan
- Insulation
- Air sealing
- Solar window film
- Low-flow showerheads and faucets
- LED lighting
- Air filtration
- Electric wiring and panel upsizing
- Remediation and safety improvements
In addition, at the conclusion of the retrofit, at least two of the following four end uses must be electric: space heating, water heating, cooking, and clothes drying.
The full list of eligible measures is available in the program guidelines.
Q6: How can contractors participate in the Statewide Direct Install Program?
Contractor enrollment will be managed by the regional administrators. Participating contractors will be required to meet training and experience requirements established in the program guidelines. Points of contact for the regional administrators are:
Northern: ebd@aeacleanenergy.org
Central: contactEBD@energycenter.org
Southern: socalebdcoalition@icf.com
Q7: How were the initial community focus areas selected?
The full launch of the EBD Direct Install Program will first serve specific under-resourced communities called “initial community focus areas.” This approach was built into the program guidelines and informed by extensive input from interested parties during program development. Because program funding is insufficient to reach every under-resourced community and household in the state, the guidelines include criteria for selecting initial community focus areas. These criteria are:
- The presence of a local organization with which the program can partner for culturally appropriate outreach and engagement with community residents.
- Communities in which households are most likely to experience utility bill savings as a result of decarbonization, based on climate zone, utility rates, and other factors.
- Communities vulnerable to extreme heat, high fire risk, other climate risks, and communities vulnerable to high levels of ambient air pollution.
- Communities underserved by existing programs that fund building decarbonization, weatherization, and related measures.
- Communities where households pay a higher-than-average percentage of income on utilities.
Each regional administrator conducted an analysis to identify initial community focus areas in its region. Examples of data sources they used include:
- CalEnviroScreen 4.0 and SB 535 Disadvantaged Communities Map
- CARB Priority Populations Map
- Climate zones
- Cal-Adapt data on extreme heat and drought
- CAL FIRE hazard severity zones
- DOE Low Income Energy Affordability Data (LEAD) tool
- Building stock data
- Utility rates and delivered fuels
In addition to this quantitative analysis, the regional administrators used input from local community partners to inform the selection of the initial community focus areas.
Q8: Beyond the initial community focus areas, will there be an opportunity for other communities to participate?
Yes. Each regional administrator will develop an application process for communities that would like to participate in subsequent phases. Like the initial community focus areas, additional communities will be required to be under-resourced (disadvantaged or low-income communities). The community application process will be available in 2026.
Q9: What is an under-resourced community?
Under-resourced communities include both disadvantaged communities and low-income communities.
Disadvantaged communities (also known as DACs) are areas defined by the California Environmental Protection Agency as a focus of investments to improve public health, quality of life, and economic opportunities in California’s most burdened communities. More information and a map of DACs is available from the California Environmental Protection Agency.
Low-income communities include census tracts with a median household income at or below 80% of the statewide median income, or a median income at or below 80% of the area median income for the county. For a map of both DACs and low-income communities, see the California Climate Investments Priority Populations Mapping Tool 4.0.
Q10: How much funding does the program have?
The State of California has allocated $525.5 million to the Equitable Building Decarbonization Program. Of that, $412.95 million will support the Statewide Direct Install Program (the remaining funds are supporting the Tribal Direct Install Program and the GoGreen Home Energy Financing Program). State funding sources include the Greenhouse Gas Reduction Fund and the General Fund. State funding for this program is subject to change based on funding authorized by the California Legislature.
The CEC is planning to supplement these state funds with an additional $154.25 million from the federal Inflation Reduction Act Home Efficiency Rebates (HOMES) Program, subject to approval from the U.S. Department of Energy. Including both state and federal funds, the budget for the Statewide Direct Install Program is $567.2 million.
These funds are allocated among the three regions in proportion to the population of under-resourced communities in each region. The table below shows state and federal funds allocated to each region based on the current program budget.
| Region | Regional Administrator | State Funding | Federal Funding | Total Funding |
| North | Association for Energy Affordability, Inc. | $94,978,500 | $35,478,190 | $130,456,690 |
| Central | Center for Sustainable Energy | $78,460,500 | $29,308,070 | $107,768,570 |
| South | County of Los Angeles | $239,511,000 | $89,466,740 | $328,977,740 |
| Total | All Regions | $412,950,000 | $154,253,000 | $567,203,000 |