Grants to States or units of local governments with code making authority to adopt updated building energy codes, zero energy codes, or equivalent codes or standards.
An Opportunity for More-Efficient Buildings for All
The Inflation Reduction Act (IRA) provides $1 billion for states and local governments with the authority to adopt traditional building energy codes and innovative building energy codes, such as building performance standards, to lead the way in decarbonizing the new and existing residential and commercial buildings. Codes are typically used to "raise the floor," but this opportunity lets jurisdictions take innovative approaches to efficiency and emissions reductions for their new and renovated buildings through the adoption of the latest model energy codes, zero energy codes, or other standards with equivalent energy savings, like a building performance standard.
Codes and innovative approaches such as building performance standards supported under this opportunity are cross-cutting and will create more inclusive programs that align with the Administration's Justice40 priorities and will build capacity at the state and local level, including encouraging strong community and Tribal engagement. The potential impact from these innovations in building energy codes presents a nearly unprecedented opportunity to benefit all Americans through utility bill savings, more resilient and efficient buildings, support for the workforce, and reduce our contributions to the changing climate.
Sign up to receive updates on IRA funded technical assistance for building energy codes.
States and local governments with authority to adopt building energy codes. DOE may reserve up to 5% of necessary administrative costs.
Period of Availability:
To remain available through 9/30/2029
Yes – a portion of the funding is being distributed as formula to states and territories. A portion of the funding will also be distributed through a competitive funding opportunity.
Partnerships with Tribes are encouraged since Tribes are not eligible to be direct grant recipients.
Cost Share Requirement:
About the IRA Building Codes Technical Assistance
The IRA made funding available to states and units of local governments with authority to adopt building codes and standards for two categories:
- $330 million to adopt the latest building energy codes, which are 2021 International Energy Conservation Code (IECC) for residential buildings and the ANSI/ASHRAE/IES Standard 90.1–2019 for commercial buildings or other codes and standards that achieve equivalent or greater energy savings; and
- $670 million to adopt building energy codes that meet or exceed the zero energy provisions in the 2021 IECC or other codes and standards with equivalent or greater energy savings.
These grants will support states and local jurisdictions in adopting, implementing, and enforcing the latest model, zero energy codes, or equivalent codes and standards, improving residential and commercial new construction and retrofits, and transitioning the building stock to more efficient, decarbonized buildings for all.
Recipients must develop an implementation plan that provides approaches to achieve full compliance with the newly adopted code or standard, plans for capacity building to support ongoing implementation, and active workforce training and enforcement programs.
Formula Funding for States and Territories
In September 2023, DOE released program guidance and opened applications for $400 million in formula funding to improve traditional building energy codes that reduce utility bills, increase the efficiency and resilience of buildings, and reduce carbon emissions. The funding is available through a formula allocation to states and territories to adopt, implement, enforce, and measure compliance for the latest building energy codes and zero energy codes in the following categories:
- $240 million 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.
- $160 million to adopt and implement the zero energy provisions in the 2021 IECC, or other codes with equivalent or greater energy savings.
Additional information on eligible recipients, qualifying activities, and program guidance is available in the Assistance for Latest and Zero Building Energy Code Adoption (Sec. 50131) Administrative and Legal Requirements Document (ALRD). Eligible states and territories must submit a letter of intent to IRACodes@hq.doe.gov by January 31, 2024, to reserve their funding, with full applications due by September 30, 2025. An optional template letter of intent is available to download.
Program Guidance and Resources
State and Territory Funding Impacts
If all States updated to the latest model codes, together they would save at least 12 quads of site energy over 30 years – an amount equivalent to the energy used by all the households in the United States in a year – along with almost two billion metric tons CO2 in climate benefits over the same 30 years. This would save these states' consumers up to $178 billion on their utility bills.
We want to hear from you! The team at DOE can provide individualized technical assistance as you work through your codes program design. Reach out to schedule a one-on-one to discuss your program, questions, assistance needs, or your jurisdiction's circumstances at IRACodes@hq.doe.gov. You can find the estimated impacts of adopting and implementing the latest model codes and zero energy codes in your state or territory below:
DOE intends to release a competitive funding announcement that will provide direct support to states and local governments with code adoption authority for more innovative code approaches to decarbonizing new and existing buildings later this year. If you are an eligible locality or a state pursuing innovative code approaches, subscribe to the SCEP Newsletter to receive notice when the funding opportunity is published and reach out to IRACodes@hq.doe.gov with any questions or Technical Assistance needs.
Request for Information & Notice of Intent
The RFI and NOI are posted on the Clean Energy Infrastructure Funding Opportunity eXCHANGE.
Responses to this RFI are now closed. A public informational webinar was held on April 18, 2023. A recording of the webinar and the presentation can be found using these links: