Deadline Approaching for Fed Grants to Improve Energy Codes

The first key deadline is approaching for states and industry participants to get in line for the $1.2 billion being offered by the Biden Administration to assist in costs incurred by state and local governments to update their building energy codes.

Concept papers are due to be submitted by Jan. 31 with full applications due by March 27, according to a summary of the programs by the National Association of Home Builders.

This available funding comes from two recent pieces of legislation. One is the $1.2 trillion Infrastructure Investment and Jobs Act signed in November 2021 that provides $225 million ($45 million per year for fiscal years 2022-2026) for the Department of Energy’s Resilient and Efficient Codes Implementation (RECI) program. Under the RECI program, states can receive grants to update to more recent model energy codes. The money can be spent on conducting studies, training, implementation, and a host of other purposes.

Updates VIA IRA Grant Restrictive in Nature

The other legislation is the more recent Inflation Reduction Act. It sets aside nearly $1 billion for states and local governments to adopt the most recent energy codes, which as of now, are the 2021 International Energy Conservation Codes (IECC). These grants are expected to be awarded through the fiscal year 2029.

“States must move to at least the 2021 IECC to be eligible,” according to NAHB. “Infrastructure (RECI) money, meanwhile, can be used to update to a more recent version. So, if a state is currently using the 2009 IECC, they may qualify for funding to adopt the 2015 edition.”

NMHC: Codes and Standards Should be Based on Individual Needs

Paula Cino, National Multifamily Housing Council VP, Vice President Construction, Development, Land Use and Counsel, tells GlobeSt.com, “while NMHC supports cost-effective and technologically feasible energy codes, we caution against one-size-fits-all federal policies that direct the use of specific code provisions or editions.

“The codes and standards specified in this program are designed to be amended and adopted by state and local jurisdictions based on their individual needs and characteristics. Federal incentives must be designed to improve code implementation and performance over a jurisdiction’s existing baseline and acknowledge the diversity of conditions that impact state and local code adoption.”

NAHB Encouraging States and Members to Apply

NAHB said that both grant programs allow state governments to partner with local jurisdictions and other stakeholders, including HBAs and home builders, in the application process, and because of this flexibility, it is encouraging states to apply for infrastructure bill grants and hopes that members will do the same.

Even if a state misses the deadline in the first year, there will be more opportunities each year to apply, according to NAHB.