These programs will create energy savings of almost 7,000 gigawatt hours, 1,500MW, and 150 million metric therms of natural gas. This is the equivalent of three 500MW power plants and will avoid 3 million tons of greenhouse gas emissions. The funding from this decision can create between 15,000 and 18,000 skilled green jobs, CPUC said.

Michael Peevey, president of CPUC, said: “Capturing the full energy efficiency potential in the state requires more than simply providing rebates to support the installation of the latest and greatest widget.

“Broader programs that support holistic approaches to energy efficiency are absolutely essential if we are to achieve the longer term vision and faithfully pursue energy efficiency as the resource of first choice, as articulated by the loading order in the state’s Energy Action Plan.”

The decision includes the new California statewide program for residential energy efficiency-CalSPREE-under which the CPUC launches the residential retrofit program in the US, aiming to reduce energy consumption by 20% for up to 130,000 California homes by 2012.

The decision funds $175m for programs to deliver zero net energy homes and commercial buildings, including design assistance, incentives for ‘above code’ construction, and research and demonstration of new technologies and materials.

The decision also provides over $260m in funding for 64 cities, counties, and regional agencies for local efforts targeting public sector building retrofits and energy efficiency opportunities.