Energy efficiency funding is distributed inequitably across communities in California 

Based on Michelle Le, Sydney Litvin, Atherv Gole, Audrey Meiman, Austin Covey, Nathaniel Villa, Measrainsey Meng, Tatum Katz, and Ranjit Deshmukh. Energy Research & Social Science. Inequity in public sector energy efficiency? Explaining disparities in program budgets in California, United States. https://doi.org/10.1016/j.erss.2024.103590 (2024).

Rural and disadvantaged communities have decreased access to energy efficiency funding, limiting their ability to improve energy efficiency and reduce costs.

The Policy Problem

Rural and disadvantaged communities face inequitable access to energy efficiency funding, which increases their energy burdens. Disparities affect local governments and K-12 schools in these areas, which need more resources to implement energy efficiency programs. K-12 public schools spend $8 billion annually on energy, yet many schools in disadvantaged communities receive lower funding for energy efficiency programs, contributing to both financial and environmental disparities. Identifying what factors can predict these disparities in energy efficiency program budgets is just the first step in ensuring that investments are equitably distributed across communities.

Key Findings and Proposed Solutions

  • Increase targeted funding for rural and disadvantaged communities in California. These communities receive significantly lower per capita funding for energy efficiency programs, which increases energy costs.

  • Prioritize energy efficiency investments in K-12 public schools in low-income areas where schools face inadequate funding for energy efficiency upgrades despite the potential for significant cost savings and improved learning environments.

  • Improve access to counties with higher tax revenues per capita. Due to population size disparities, these counties often have lower energy efficiency budgets, particularly in rural areas.