Help Your State Make the Right Choice on Energy Codes
States and large municipalities across the United States are engaged in a review of their energy codes for residential construction with an eye toward adopting updated energy conservation requirements. They’re doing it because the federal government is offering more than $1 billion in incentives.
But there are choices to be made as two separately funded programs are offering grants for energy code updates. NAHB members and HBAs have an opportunity to help guide state and local decision-making.
- The Infrastructure Investment and Jobs Act (IIJA), signed in November 2021, provides $225 million ($45 million per year from FY22 through FY26) for the Department of Energy’s Resilient and Efficient Codes Implementation (RECI) program for states to adopt updated energy codes, without specifying an edition. This means if a state is currently on the 2012 International Energy Conservation Code (IECC), for example, if it moves to the 2018 edition, it may be eligible for a grant.
- The Inflation Reduction Act (IRA), signed into law in August 2022, provides $1 billion to support state and local governments’ adoption of the most recent energy codes, which currently is the 2021 IECC. Only moves to the 2021 IECC will be funded.
It’s important that NAHB members and HBAs emphasize that there is no need for a state to update its energy codes in most cases. Adopting new building codes is expensive, as building departments need to update their procedures, resources and training, which is why federal money was appropriated to help, and can be confusing for both builders and building officials. And increased energy conservation requirements, which always cost more upfront, do not offer home owners the paybacks they are promised.
But if a state must take grant money, NAHB members and HBAs should encourage state and local governments to apply for IIJA (RECI) money rather than IRA money because the infrastructure bill funding does not mandate the adoption of the 2021 edition of the IECC.
The first round of applications for infrastructure bill funding are due March 27, 2023. But this is just the first cycle of funding that will last at least five years. It is important to engage your state’s energy offices and officials.
Funding applications that have partnerships are given preference. The Department of Energy specifically lists “associations of builders and design and construction professionals,” such as state and local HBAs in the NAHB Federation, as acceptable partners for states on applications.
Engage your state and local officials and HBAs now to see if there is an opportunity to partner on an application. Check out these NAHB resources to see which version of the IECC your state currently uses and for more information on partnering with states.
Latest from NAHBNow
Mar 12, 2026
Senate Passes Major Housing Legislation Despite Serious Industry ConcernsThe Senate today passed the 21st Century ROAD to Housing Act in an attempt to bolster the nation’s housing supply.
Mar 12, 2026
Statement from NAHB Chairman Bill Owens on Passage of Senate Housing BillNAHB Chairman Bill Owens issued the following statement after the Senate passed the 21st Century ROAD to Housing Act.
Latest Economic News
Mar 12, 2026
Single-Family Starts Remain Soft in January on Affordability ConcernsElevated construction costs and constrained affordability conditions led to a reduction in single-family housing starts in January.
Mar 11, 2026
Inflation Steady Before WarAfter months of downward trend, inflation held steady at an eight-month low in February. This report does not reflect the recent surge in oil prices due to Iran conflict beginning February 28. Higher oil prices will likely translate into higher gasoline costs and impact other sectors associated with transportation including airline tickets.
Mar 11, 2026
Single-Family Permits End 2025 on a Soft NoteSingle-family permitting softened over the course of 2025 and finished the year weaker than the prior year. After showing some resilience in 2024, permitting activity gradually lost momentum as elevated mortgage rates and ongoing affordability constraints weighed on buyer demand.