U.S. Energy Department Allocates $530 Million to Advance Sustainable Building Transformation

The U.S. Energy Department on Dec. 18 announced a pioneering initiative, earmarking up to $530 million in competitive grants for technical assistance that not only aims to foster a skilled workforce and inclusive programs aligned with President Biden’s Justice40 Initiative but also seeks to expedite energy efficiency projects for the decarbonization of buildings. This initiative targets the adoption of cutting-edge energy codes, zero energy codes, and innovative standards with the primary objective of modernizing the nation’s building infrastructure where the emphasis lies on enhancing energy efficiency and fortifying resilience to extreme weather events.

Funded through the 2022 Inflation Reduction Act, or IRA, this initiative marks a key step in the Biden administration’s commitment to a sustainable future that aims for a substantial CO2 reduction of nearly 2 billion tons, equivalent to removing 445 million cars in 30 years. The IRA allocates an unprecedented $369 billion for energy security and climate change initiatives spanning the next decade. This legislation overhauls crucial tax incentives, crucial for advancing the transition to clean energy, with a forecasted outcome of approximately 40 percent reduction in emissions by 2030. Notably, the act is designed to contribute to deficit reduction, with an anticipated impact of more than $300 billion to counter inflation.

The funding program for Latest and Zero Building Energy Codes is available to states, territories, and local government units with the authority to adopt building codes. This initiative, building on a prior formula funding announcement for states and territories, introduces a competitive funding opportunity that extends eligibility to certain localities. It broadens qualifying activities to encompass customized codes and innovative approaches like building performance standards. These funding streams are designed for flexibility, catering to the diverse circumstances of different jurisdictions. The funding provides clear federal guidance on adopting and implementing various building energy codes, including the latest model energy codes, zero energy codes, custom codes yielding equivalent energy savings, and innovative code approaches.

Concept papers from eligible stakeholders are due by Feb. 9, 2024 and the full application deadline is April 30, 2024. For those pursuing the formula funding opportunity, the letter of intent is due by Jan. 31, 2024, allowing states and territories to initiate the full application process if they have already submitted their letters of intent.