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.

Overview

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.