ACEEE Report, Analyzing State Energy Code Update Benefits

As a result of the Bipartisan Infrastructure Law (BIL) and the Inflation Reduction Act (IRA), the Department of Energy is has announced or should soon announce substantial funding opportunities for states to implement stronger building codes. As of January 2023, $45 million in competitive grants were announced for Resilient and Efficient Codes Implementation, with an eventual total of $225 million expected over five years, all under the BIL. Under the IRA, $1 billion in funding to support state adoption of stronger energy codes is expected to be made available in 2023.

To leverage this opportunity, ACEEE published a January 2023 brief identifying the 10 states with the most to gain from an update to their building codes: Louisiana, North Carolina, Minnesota, Virginia, Arkansas, Tennessee, South Carolina, Wisconsin, Kentucky, and Oklahoma. This list was derived from estimates of the energy cost savings expected from energy code updates, existing building-energy related greenhouse gas emissions, construction activity, and existing state climate policies with specific GHG emissions targets. This report serves as a guide and call-to-action for policymakers and advocates in these jurisdictions.