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Putting New Federal Energy Efficiency Incentives to Work

April 3, 2023
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In recent years, Congress passed historic infrastructure and climate laws that included energy efficiency funding. The most notable laws were the Inflation Reduction Act of 2022 (IRA) and the 2021 Infrastructure Investment and Jobs Act (IIJA), also called the Bipartisan Infrastructure Law. The American Rescue Plan Act of 2021 (ARPA), the CHIPS Act of 2022, and the Energy Policy Act of 2020 also included relevant funding. Below are ACEEE resources designed to help state and local governments, companies, nonprofit organizations, and individuals access the new efficiency and climate incentives across different sectors:  

Buildings   Industry   Transportation   Cross-cutting

 

Buildings 

WEBINAR 

Webinar Series: Designing Successful State Energy Office IRA Rebate Programs 

State energy offices (SEOs) are moving fast to launch $8.8 billion in IRA rebates for home energy efficiency and electrification to save families money, increase comfort, and reduce pollution. This four-part webinar series brings together leading experts from around the country to support SEOs and stakeholders in quickly getting transformational funding to those who need it most. 

RESOURCE 

Funding for Energy Efficiency and Resiliency Upgrades in Subsidized Housing

IRA provides $1 billion to the Department of Housing and Urban Development for the Green and Resilient Retrofit Program (GRRP) to support energy efficiency and improve indoor air quality and climate resiliency in privately-owned, HUD-subsidized multifamily properties. We assembled a short resource intended for states, local governments, retrofit program administrators, and community-based organizations (CBOs) looking to support HUD-assisted, affordable multifamily housing owners in pursuing energy efficiency and resiliency upgrades. 

POLICY BRIEF 

Home Energy Upgrade Incentives: Programs in the Inflation Reduction Act and Other Recent Federal Laws 

IRA and IIJA provide more than $25 billion for energy efficiency, electrification, and other measures to cut climate pollution from existing homes. This brief outlines the rebates, tax credits, and other incentives available for existing single-family homes and multifamily buildings. 

POLICY BRIEF 

Commercial Building Incentives: Programs for new construction and upgrades in the Inflation Reduction Act and other recent federal laws 

IRA and IIJA also fund energy efficiency measures in new and existing commercial and public buildings through expanded tax deductions, loans, grants, and other incentives. This brief summarizes the resources available to commercial building owners and state and local governments.  

WEBINAR 

Leveraging New and Existing Federal Funding Opportunities for Building Upgrades 

Billions of dollars are available for energy efficiency upgrades in affordable housing under IRA, IIJA, and ARPA. This webinar reviews the funding opportunities available for public housing, subsidized housing, and naturally occurring affordable housing. 

POLICY BRIEF 

Study Identifies States with Best Opportunities to Cut Costs and Emissions by Updating Building Codes Using Federal Climate Funds 

IIJA includes $225 million over five years for states to adopt and implement updated energy codes for newly constructed buildings. IRA includes another $1 billion for states to adopt the most stringent building energy codes. This policy brief details which states would see the greatest cost savings and reductions in climate pollution from updating building energy codes. 

BLOG POST 

States Should Cut Low-Income Residents' Utility Bills Using New Home Energy Rebates  

IRA includes $9 billion for residential energy upgrades and electrification. This blog post outlines steps federal and state governments can take to ensure the funding prioritizes energy efficiency, affordable housing, and lower utility bills. 

 

Industry

BLOG POST 

Adaptable, Creative Workforce Will Be Key to Achieving Full Potential of Federal Climate Funds

Through IIJA and IRA, the Department of Energy is administering more than $250 million in grants to help states, nonprofits, and industries prepare the workforce to deliver energy efficiency and electrification projects. This blog post describes how to prepare students, early career technicians, and experienced professionals for low- and zero-carbon buildings. 

BLOG POST 

The Climate Bill Can Accelerate a Transformation in Industry 

IRA includes $5.8 billion for the Advanced Industrial Facilities Deployment Program to accelerate industrial decarbonization technologies. This blog post outlines how the program can help cover engineering costs and reduce risks for companies seeking to deploy these new technologies. 

BLOG POST 

Low-Carbon Cement Could Be Sped to Market with Climate Law Funds 

The $5.8 billion Advanced Industrial Facilities Deployment Program could be used to cut climate pollution from carbon-intensive industrial processes like the manufacture of steel, chemicals, and cement. This blog post explains how the funding could be used to bring lower-carbon cement to market. 

GUIDEBOOK 

Guidebook Shows How States Can Tackle Industrial Emissions 

Seven industries—chemicals, petroleum refining, iron and steel, cement, glass, forest products, and food and beverages—are responsible for 80% of climate pollution from the industrial sector. The U.S. Climate Alliance, a bipartisan coalition of 24 governors, commissioned ACEEE to develop this guidebook for states to make progress on decarbonizing industry. The guidebook outlines industrial decarbonization investments available under IRA, IIJA, the CHIPS Act, and the Energy Act of 2020. 

 

Transportation

BLOG POST 

New Federal Grants Present Opportunity to Rethink Transportation

IIJA includes $48 billion for public transit and the law created several new grant programs to fund bike and pedestrian projects. A $3 billion IRA program funds projects prioritizing efficient modes of transportation. This blog post reviews how jurisdictions can use the IIJA and IRA programs for low-carbon, efficient, and equitable transportation. 

BLOG POST 

Cities Can Boost Access to Efficient Transportation Using $3 Billion from the New Climate Law 

IRA includes $3 billion for the Neighborhood Access and Equity Grant Program to improve mobility and reconnect neighborhoods isolated by highways and other infrastructure projects. This blog post outlines how local governments can tap the program to improve neighborhood walkability, access to transit, bicycling infrastructure, and other micromobility options. 

BLOG POST 

Communities Look to Electric School Buses to Reduce Pollution, Improve Student Health 

IIJA funds the Clean School Bus Program over five years with $2.5 billion for electric school buses and another $2.5 billion to transition bus fleets from diesel to electricity or other fuels. This blog post describes how electric school buses reduce pollution and improve student health.  

 

Cross-cutting

FACT SHEETS 

Connecting Rural Communities with Historic Federal Clean Energy Investments 

IRA, IIJA, and ARPA can help rural communities reduce energy and transportation costs and access electricity from renewable sources. These fact sheets from ACEEE and the Great Plains Institute describe federal funding for local governments to implement energy efficiency, renewable energy, and transportation efficiency projects. 

BLOG POST 

Congress Is Set to Vote on the Largest Efficiency Investments in History 

IRA is the largest single investment in energy efficiency in U.S. history. This blog post, published just before the U.S. Senate voted on the legislation, highlights some of the law’s programs to expand energy efficiency and reduce climate pollution in the buildings, transportation, and industrial sectors. 

BLOG POST 

Energy Efficiency Funds in Infrastructure Bill Should Tee Up Historic Investments This Fall 

This blog post recaps IIJA provisions regarding state and local programs, efficiency improvements in manufacturing, low-income home weatherization, building energy codes, EV charging, and other areas.  

 

 

 

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