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Incentives/Policies for Renewables & Efficiency

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School Facility Program - Modernization Grants   

Last DSIRE Review: 01/25/2013
Program Overview:
State: California
Incentive Type: State Grant Program
Eligible Efficiency Technologies: Unspecified Technologies
Applicable Sectors: Schools
Web Site:

Note: California voters approved Ballot Proposition 39 in November 2012. The new law closes a tax loophole, which is expected to provide $1 billion in additional revenue every year. According to the law, half of the new funding collected in the first five years must be used for renewable energy and energy efficiency projects at schools and public facilities, workforce development, and providing assitance to local governments in establishing and implementing PACE programs. It is unclear at this time how the new funding will be allocated, or if this program will be modified as a result of the new funding.

The School Facility Program (SFP) provides funding assistance to school districts for the modernization of school facilities. The assistance is in the form of grants approved by the State Allocation Board (SAB), and requires a 40 percent local contribution. A district is eligible for grants when students are housed in permanent buildings 25 years old or older and relocatable classrooms 20 years old or older and the buildings have not been previously modernized with State funds.

The modernization grant (pupil grant) amount is set in law and is based on the number of students housed in the over-age facilities. In addition to the basic grant amount, a district may be eligible for supplemental grants depending on the type and location of the project. In some cases, districts unable to contribute some or all of the local match may be eligible for financial hardship.

The modernization grant can be used to fund a large variety of work at an eligible school site including but not limited to air conditioning, insulation, roof replacement, as well as the purchase of new furniture and equipment.

Full details and program documents are available on the website above.

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Disclaimer: The information presented on the DSIRE web site provides an unofficial overview of financial incentives and other policies. It does not constitute professional tax advice or other professional financial guidance, and it should not be used as the only source of information when making purchasing decisions, investment decisions or tax decisions, or when executing other binding agreements. Please refer to the individual contact provided below each summary to verify that a specific financial incentive or other policy applies to your project.

While the DSIRE staff strives to provide the best information possible, the DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. make no representations or warranties, either express or implied, concerning the accuracy, completeness, reliability or suitability of the information. The DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. disclaim all liability of any kind arising out of your use or misuse of the information contained or referenced on DSIRE Web pages.

Copyright 2014 - 2015 North Carolina State University, under NREL Subcontract No. XEU-0-99515-01. Permission granted only for personal or educational use, or for use by or on behalf of the U.S. government. North Carolina State University prohibits the unauthorized display, reproduction, sale, and/or distribution of all or portions of the content of the Database of State Incentives for Renewables and Efficiency (DSIRE) without prior, written consent.