Congressional Stimulus Compromise Retains State Energy Assistance Grants

On February 13, the U.S. House of Representatives and the U.S. Senate approved a $787 billion economic stimulus package that included over $20 billion in appropriations for energy efficiency.  President Barack Obama signed the bill on February 17.

The American Recovery and Reinvestment Act (ARRA) includes $3.1 billion for energy assistance grants for states that adopt and administer the national model building energy codes. The act requires governors who want a share of the energy assistance grants to certify that their state, or the applicable units of local government that have authority to adopt building codes, will implement the following:

  • A building energy code for residential buildings that meets or exceeds the most recently published International Energy Conservation Code (IECC);
  • A building energy code for commercial buildings throughout the state that meets or exceeds the ASHRAE Standard 90.1-2007; AND
  • A plan to achieve compliance with their certified energy codes within eight years in at least 90% of new and renovated residential and commercial building space, including active training and enforcement programs and measurement of the rate of compliance each year.

ARRA also includes other provisions regarding state regulatory authority over utilities and prioritizing the grants toward funding energy efficiency and renewable energy programs.

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