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Lawmakers press agencies on shifting CalSHAPE and DBA funds to demand‑response programs; stakeholders urge preserving DSGS and extending school funds
Summary
Department of Finance proposed redirecting $22 million from a DBA program into DSGS for 2026 (bringing DSGS to about $52 million) and returning ~$70 million in CalSHAPE interest to electrical corporations for 2027–28 use under ELRP; committee members, agencies and public commenters debated whether to preserve the existing DSGS program or transfer funds to CPUC’s ELRP and urged extending CalSHAPE for school HVAC projects.
David Evans of the Department of Finance told the subcommittee the governor’s budget includes two trailer‑bill language proposals: one to redirect $22,000,000 from a prior general‑fund appropriation for the Distributed Energy Backup Assets program into the Demand Side Grid Support (DSGS) program for summer 2026, which would supplement roughly $30,000,000 already in DSGS for a combined total near $52,000,000; and a second to return accumulated interest (about $70,000,000) from the CalSHAPE fund back to electrical corporations for use in emergency load‑reduction programs in 2027–28 (ELRP or an equivalent).
"So that's the first proposal," David Evans said, describing the $22,000,000 transfer and the administration’s view that returning CalSHAPE interest to IOUs would flow…
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