The California Energy Commission (CEC) recently approved its 2025 AB 209 Clean Energy Programs Annual Report, detailing significant financial commitments to various clean energy initiatives across the state. The commission gave its approval at its Sept. 9 business meeting, directing staff to finalize, transmit the document to the Legislature, and make it publicly available.
As of Dec. 31, 2025, the report provides a comprehensive year-end accounting for five distinct AB 209 programs. It states that the total budgets allocated for these projects reached $495.9 million. Of this substantial sum, $442.18 million had been encumbered, signifying funds committed to specific projects or contracts. The remaining $53.72 million was listed as unencumbered. The report also accounted for administrative, technical, and scientific services, which collectively amounted to $14,928,342 through the end of the year.
The largest portion of the encumbered funding, according to the report, was directed toward the Equitable Building Decarbonization program, which accounted for $359.25 million. This program is actively preparing several key initiatives, including a statewide direct-install effort, a dedicated tribal direct-install program, and the GoGreen Home financing component, designed to support the transition to cleaner energy in buildings.
Progress varied among the other clean energy programs. The Offshore Wind Waterfront Facility Improvement Program demonstrated forward momentum, with the commission recommending and subsequently approving five port-related awards. These awards collectively totaled $42.8 million, indicating significant investment in infrastructure supporting offshore wind development.
The Food Production Investment Program also moved ahead, having released a solicitation in 2025 valued at $10.5 million. Following this, the program recommended six projects for funding, signaling investment in more sustainable food production methods.
In contrast, the Clean Hydrogen Program faced considerable challenges. The report indicates this program remained significantly hindered after budget cuts reduced its allocation to just $4 million. Further hindering its progress, no federal cost-share awards were made to the program during the reporting period.
The Industrial Decarbonization and Improvement of Grid Operations Program saw some activity, awarding one project worth $5.5 million. However, the program also had to repurpose $10 million in funding. This occurred after the U.S. Department of Energy canceled two federal cost-share awards that had previously been anticipated.
The resolution adopted by the California Energy Commission concerning the report clarified its environmental status. The commission determined that the approval of the report does not constitute a project under the California Environmental Quality Act (CEQA). Alternatively, the resolution stated that the approval would meet the criteria for a general exemption based on common sense principles.
With the report now approved, CEC staff are tasked with its finalization, followed by its official transmission to the Legislature. Subsequently, the report will be posted publicly, providing transparency regarding the state’s clean energy financial commitments and program progress. This step ensures that the comprehensive accounting of these five AB 209 programs is accessible to the public record, offering insight into how clean energy funds are being allocated and utilized statewide.
