Dive Brief:

• The Department of Energy announced March 4 that it is making $90 million available to help states and localities adopt and implement building energy codes, which set energy efficiency standards for new buildings, additions and major renovations.
• This is the second tranche out of a total of $225 million designated by the 2021 infrastructure law for building energy code modernization. In July 2023, the DOE awarded the first $90 million to 27 projects nationwide, including workforce development programs and a national network to support state and local governments as they develop new codes.
• Concept papers for the newest round of funding are due April 5 and full applications are due June 6. The DOE anticipates that it will hand out between 20 and 40 awards worth between $500,000 and $10 million each.

Dive Insight:

Building energy codes have a "significant impact on building resilience and occupant safety,” while establishing energy efficiency standards for new buildings, additions and major renovations, the DOE said in the release. The department touts the benefits that updated energy codes promise for communities: lower utility bills, reduced greenhouse gas emissions and improved grid reliability. 

Buildings that are more energy efficient also allow people to shelter in place longer during and after extreme weather events and power outages, the agency said. This statement is backed by findings from a DOE-commissioned study published last summer. The study found that across six U.S. cities, improving residential buildings’ passive efficiency saves lives during extreme heat and cold events by keeping the space at a habitable temperature longer. 

For example, during a weeklong cold event that coincides with a power outage, a typical existing single-family building in Houston stays habitable for 3.8 days, while a home built to the 2021 International Energy Conservation Code is habitable for almost the entire week, the study finds. The researchers estimate that updating existing buildings to the 2021 IECC code could save roughly 20 lives during such an event in Houston. 

Still, many communities that want to adopt more modern codes face significant roadblocks. A lack of resources to support implementation is one such bottleneck the DOE pointed out in a news release last year. In several states, legislators are aiming to roll back building energy codes and preempt local governments from updating the standards. In August, North Carolina’s Republican-controlled legislature succeeded in that endeavor, making it illegal for the state building code council to overhaul residential building codes until 2031.

In awarding funds to communities, the DOE says it will prioritize applicant teams that include “strategic partnerships” between bodies such as local building code agencies, design or construction associations and developers of standards.