Legislative Background

In 2018, California legislature passed Senate Bill 1477 to spur development of clean homes statewide. This bill supports two programs to reduce energy costs, improve air quality, and reduce climate pollution for residential homes. The programs are: the Building Initiative for Low-Emissions Development (BUILD), and TECH Clean California.


To align with California’s Senate Bill 100 goal of achieving 100 percent clean electricity by 2045, full decarbonization of water heating and space conditioning (heating/cooling) technologies in homes and small businesses will likely be required as well. To achieve the scale necessary to meet state policy objectives, the state will need to invest roughly $50 billion. TECH Clean California aims to leverage its funding to stimulate the additional investments needed and lay the basis for further policy and statutory enactment that, together, will fully decarbonize heating in buildings and deliver extraordinary economic and societal returns, benefitting the health, safety and well-being of all Californians.


To comply with California Air and Resources Board (CARB) rules regarding Cap-and-Trade Program funds, spending for the initiative shall be proportionally directed to the gas corporation service territories from which the funds are derived. The percentage allocated for initiative spending in each gas corporation service territory shall be consistent with each gas corporation’s allocation of Cap-and-Trade Program allowances:


  • Southern California Gas Company (SoCalGas): 49.26 percent
  • Pacific Gas and Electric Company (PG&E): 42.34 percent
  • San Diego Gas and Electric Company (SDG&E): 6.77 percent
  • Southwest Gas Corporation (SWG): 1.63 percent


Bonus reading California SB 1477


Note: TECH incentives are still available for HPWHs in Southern California Gas territory and for HPWHs and HP HVAC in Southwest Gas territory.Due to the higher-than-anticipated response, incentives are temporarily suspended in all other territories.