DOE Allocates $400 Million to Improve Building Energy Efficiency - Smart Energy Decisions

Energy Efficiency, GHG Emissions, Regulation  -  September 20, 2023

DOE Allocates $400 Million to Improve Building Energy Efficiency

The U.S. Department of Energy (DOE) released program guidance for $400 million in formula funding to states and territories for adopting and implementing building energy codes that reduce utility bills, increase efficiency and lower GHG emissions.

Funded by President Biden’s Inflation Reduction Act (IRA), states can access this funding for the adoption and implementation of the latest building energy codes and zero energy codes, leading to more efficient buildings.

Switching to the updated energy codes would equate to almost 2 billion metric tons of CO2 emissions reduction.

“A transition to a clean energy economy is about more than adding clean energy to the electric grid; we also need to revitalize, and fortify, the infrastructure we have now,” said U.S. Secretary of Energy Jennifer M. Granholm in a statement. “Thanks to President Biden’s Investing in America agenda, this funding will ensure that states and local communities have the tools necessary to lead the way in increasing the performance and the overall health of buildings through energy codes, vastly improving infrastructure across the country and improving local communities' health and well-being.”  

The new administrative and legal requirements document (ALRD) provides federal guidance in adopting and implementing two categories of building energy codes: 

  • $240 million will be available to adopt and implement the latest building energy code, the 2021 International Energy Conservation Code (IECC) for residential buildings and the ANSI/ASHRAE/IES Standard 90.1–2019 for commercial buildings, or other codes that achieve equivalent or greater energy savings and
  • $160 million will be available to adopt and implement the zero energy provisions in the 2021 IECC, or other codes with equivalent or greater energy savings.

The DOE intends to release a complimentary competitive funding announcement that will provide direct support to states and local governments with code adoption authority for more innovative code approaches, including building performance standards, in the following months. 

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