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A Sustainable Building Policy Agenda for the 118th Congress

Buildings are infrastructure Just as roads water systems and broadband are essential components of our daily lives the buildings where we live work play learn worship and heal are critical to providing a better quality of life for all Americans Like other forms of infrastructure buildings and their construction and operation have a significant impact on the public s health our environment and our economy Powering buildings uses 40 percent of all energy produced in the country including consuming roughly 70 percent of electricity generated in the country and account for approximately 40 percent of greenhouse gas emissions Making buildings more resource efficient makes achieving the goals set forth in the Paris Agreement more achievable Likewise the COVID 19 pandemic demonstrated how important it is to ensure that buildings create a healthy environment for the people that inhabit them Multiple studies show the vastly improved health outcomes not to mention worker productivity gains that healthy homes and offices bring Last but not least the building sector is a potent job creator employing millions of people in hundreds of different vocations from architects and engineers to contractors and maintenance staff And many of these jobs can never be outsourced In recent years policymakers have increasingly recognized the vital role buildings play in supporting a sustainable environment healthier communities and a more prosperous economy In the last Congress lawmakers took many important steps towards the transformation of buildings especially through the Inflation Reduction Act But these actions should represent the start and not the culmination of efforts to transform America s buildings to improve our economic and environmental future The building sector is committed to the task of designing constructing operating and retrofitting buildings that keep people safe and healthy using less energy and water and fostering thriving communities The sector is comprised of a diverse set of stakeholders across multiple sectors of the economy While each stakeholder has unique skills and interests they share the common goal of advancing policies that lead to better buildings buildings Copyright 2023 BuildingAction All rights reserved

As the 118th Congress begins its efforts to address the most challenging issues that our nation faces BuildingAction offers these top line recommendations on ways in which federal policymakers can work in a bipartisan fashion to help transform buildings Buildings account for more than 40 percent of the nation s greenhouse gas GHG emissions due in part to the mix of energy sources that power buildings Nearly half of all homes in the United States are powered by natural gas and fossil fuels continue to play a leading role in keeping buildings heated or cooled Building electrification when paired with the increased use of renewable sources of energy like wind and solar will have a dramatic impact on the nation s carbon footprint Emerging and in some cases long existing technologies like heat pumps can move buildings away from fossil fuels and towards more cleaner sources of energy Building electrification also has health benefits A study by MIT found that combustion emissions from the building sector contribute more than a third of all premature deaths associated with air pollution Electrifying the building sector is no small task and the process faces various challenges from cost to consumer preferences to ensuring reliability of the electric grid The federal government can help speed the movement towards electrification through investing in incentives and rebates promoting renewable energy and supporting development of a strong national electric grid The Inflation Reduction Act IRA took some important first steps towards electrification by providing 500 million to deploy the Defense Production Act to help build out domestic manufacturing of heat pumps and other energy efficient technologies and 70 million to the EPA for programs to reduce Greenhous gas emissions from domestic electrical generation Moving forward the 118th Congress can continue the acceleration towards building electrification by continuing to fund programs that support the deployment of energy efficient products and investing in the electrical grid Recognizing that lower income Americans often face significant challenges in financing efforts to electricity their homes Congress should focus on delivering benefits towards vulnerable communities The increasing complexity of green building systems means that traditional vocational training programs need to evolve to make Transforming America s Buildings 3

sure that students have the skills needed to compete for jobs in the marketplace Without a well trained workforce it will be difficult if not impossible to transform America s buildings Preparing people for jobs in the sustainable building sector has the twin benefits of increasing economic opportunity and making dramatic improvements to America s building stock In particular supporting and strengthening apprenticeship programs in every community especially in underserved communities with higher unemployment rates will fuel the building sector with the skilled workers needed to build retrofit and operate the buildings of tomorrow Recent analysis from ACEEE found that 1 3 million jobs would be created through a suite of energy efficiency policy proposals including expanding building tax credits and retrofitting homes and businesses In 2022 Congress provided 200 million in the IRA to implement programs to train and educate contractors in the installation of home energy efficiency and electrification improvements The 118th Congress should work to ensure there is a well trained workforce in the built environment through increased funding for worker training for building professionals through both secondary and post secondary education systems and other instruction and certification programs especially for people in vulnerable communities that have often been denied access to education and training opportunities and well paying jobs The federal government spends billions of taxpayer dollars each year response to and helping communities prepare for and recover from natural disasters As the number and severity of extreme weather events has increased in recent years so has the amount spent by the federal government From 2014 to 2018 the U S has faced an average of 13 billion dollar disasters every year Studies show that lower income Americans and Americans in marginalized groups spend more of their income on energy than those in higher income brackets Lower income communities are disproportionately impacted by the effects of climate change In addition many Americans in marginalized groups face significantly greater health risks due to poor indoor air quality and inadequate ventilation systems Policies practices and attitudes within the building sector have long served to marginalize underserved communities and people of color leaving them with higher energy bills worse educational and health outcomes and less protection from natural disasters In 2022 Congress made some useful down payments towards equity in the built environment the IRA provides 2 8 billion to the EPA for grants for community led air and 4 Transforming America s Buildings

Designing buildings to better withstand the impacts of natural disasters saves money it is estimated that every dollar spent on building resilience saves six dollars in future disaster costs There is much the federal government can do to help communities harden their infrastructure before disasters happen Federal agencies conduct research into the best ways to protect buildings from disasters for example and federal grants can help states and localities prepare for natural hazards The federal government also can ensure that states and communities have the most up to date data about acute and long term threats so they can better prepare for future hazards The next Congress should pass the Climate Resilient Communities Act H R 1936 in the 117th Congress which directs the Government Accountability Office GAO to evaluate and report on the structural and economic impacts of climate resiliency at the Federal Emergency Management Agency FEMA In addition Congress should advance legislation that directs mitigation and adaptation funding to underserved and vulnerable communities which often face the gravest threats from natural hazards and often are the least equipped to address them Investing in the retrofit of existing buildings to make them more sustainable carries enormous potential for reducing energy use and protecting the environment not to mention for creating well paying jobs In addition reusing older buildings saves the costs and environmental impacts of demolition and constructing entirely new structures But for many building owners from homeowners to businesses not for profit institutions local governments and others other pollution monitoring prevention and remediation investments in low and zeroemission and resiliency technologies and workforce development that helps reduce GHG emissions But we can and must do more Ensuring that the benefits of healthier more sustainable buildings reach every American must be more than an after thought or a policy option that competes for attention and resources with other priorities Rather the goal of equity should be baked into every policy decision that the federal government makes Action on any of the recommendations in this report will not be complete and successful if equity is not taken into account To that end equity is not a separate recommendation in this report per se but an imperative that is woven into each of the other recommendations Transforming America s Buildings 5

energy costs are an increasingly large portion of their budget But for many owners the initial first costs of energy efficiency retrofits can be a deterrent Federal support to help finance energy efficiency retrofits can help owners get over that initial hump and spur a dramatic increase in employment The IRA restores and increases tax incentives for greening both new and existing buildings including the 25C Nonbusiness Energy Property Credit the 25D Residential Clean Energy Credit the 179D Energy Efficient Commercial Buildings Deduction and the 45L New Energy Efficient Home Credit Even with these important measures there are millions of square feet of existing residential commercial institutional and public space that could achieve significant energy savings if retrofitted This is particularly the case in lowerincome communities A 2018 national survey commissioned by Energy Efficiency for All found that 43 percent of people making less than 40 000 a year say they make sacrifices such as forgoing opportunities in education and healthcare so that they can pay energy bills The 118th Congress should work with the administration to set performance targets such as energy savings for efficiency programs that serve low income communities and explore policies that unleash the innovative power of the building sector to spur retrofits that reduce energy consumption save consumers and taxpayers money and create well paying jobs One of the largest landlords in the world the U S federal government spends roughly 6 billion each year in taxpayer money on energy costs for buildings it owns such as federal office centers courthouses diplomatic missions laboratories and military facilities By designing retrofitting and operating its owned and leased buildings in more sustainable ways the federal government can not only make significant contributions towards energy savings and carbon reduction its size can spur new innovations in energy saving technologies designs and strategies Since federal buildings are designed to last for 50 to 100 years identifying ways to help them save energy over the long run will improve the environment and save taxpayer money The IRA takes many important steps towards making the federal government a leader in building sustainability by providing 2 15 billion to the Federal Buildings Fund for the acquisition and installation of low embodied carbon materials and products for the construction of federal buildings 250 million billion to the Federal Buildings Fund for the conversion of federal facilities to highperformance green buildings and 975 million to the Federal Buildings Fund for emerging and sustainable technologies related to sustainability and environmental programs Next the 118th Congress should advance legislation that accelerates the transformation of federal buildings such as the Federal Mechanical Insulation Act H R 9419 in the 117th Congress which seeks to ensure that federal buildings are utilizing an important Transforming America s Buildings 7

technology for energy efficiency that is often overlooked mechanical insulation Buildings and their operation consume 47 billion gallons of water per day The increasing use of water strains water systems in many parts of the country that face chronic water shortages In addition it is estimated that it costs water systems 4 billion on electricity to treat and transport their water supply The building sector has made enormous strides in making buildings more water efficient through advanced plumbing codes and the development of water efficient appliances The federal government should ensure that policies standards and incentives for making buildings consume less energy also support reducing water usage In many communities however the biggest challenge isn t water conservation but the basic availability of safe water for drinking cooking and other everyday needs From the ongoing water crisis in Flint Michigan to last year s crisis in Jackson Mississippi too many communities across the country cannot rely on safe access to water Water should not be a luxury but a basic right The IRA makes important contributions towards addressing this issue providing 550 million in grants contracts or financial assistance for domestic water supplies in communities or households that don t have reliable access to domestic water The 118th Congress should provide funding for research to help communities better implement strategies related to conservation and water reuse and continue to support underserved communities that face severe environmental issues like lead and other contaminants in 8 Transforming America s Buildings water In addition Congress should provide adequate funding for EPA s WaterSense program a voluntary product efficiency labeling program that identifies efficient and highperforming water consuming products Schools libraries community centers and other local civic buildings provide more than essential services they are places where community members meet and engage where citizens participate in the democratic process on Election Day and where families find shelter when disaster strikes Due to budget pressures at the local level our nation s community buildings are in dire need of improvement Outdated equipment means higher energy costs for local governments and neglect leaves many buildings unprotected from natural hazards Children should not be forced to learn in dilapidated school buildings and libraries should not have to rely on donations and bake sales for basic upkeep Investing in improving these buildings assets not only fosters better learning and community engagement it creates jobs especially in areas where the pandemic and economic trends have created high unemployment The IRA appropriated 37 5 million to the EPA for grants to monitor and reduce air pollution and GHG emissions at schools in low income and disadvantaged communities and 12 5 million to the EPA for providing technical assistance to schools in low income and disadvantaged communities to address environmental issues to develop school environmental quality plans and to identify and mitigate ongoing air pollution hazards The 118th Congress should pass legislation to support community efforts to transform their

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building stock such as the Build America s Libraries Act S 127 in the 117th Congress which would provide 5 billion to build and modernize public libraries and to enable libraries to better serve and engage their communities particularly in underserved areas and the Energy Efficient Public Buildings Act H R 4542 in the 117th Congress which would provide grants to states local governments or nonprofit organizations for making energy improvements in public libraries public hospitals community centers and state or local government buildings Past pandemics have spurred major advancements in how we construct buildings and design communities to keep people safe You cannot ensure the safety of the public without improving the physical environment they inhabit 90 percent of the time But the intersection of buildings and health goes well beyond the pandemic Research shows that better indoor air quality access to daylight and choice of materials all improve the health and well being of people who use buildings Unfortunately healthy buildings are often not the reality for marginalized groups Multiple studies show that people in lowerincome communities generally experience worse indoor air quality IAQ and the resulting health consequences of less healthy buildings than people in higher income communities The federal government can play a role in making buildings after by investing in research into building technologies and techniques that keep people safe and by investing in healthy buildings strategies in vulnerable communities To start the 118th Congress should pass the Airborne Act H R 7671 in the 117th Congress legislation that would incentivize non residential building owners to conduct indoor air quality assessments IAQ and upgrade their ventilation and air filtration systems Housing makes up the bulk of buildings in the Unites States from single family houses to multi family apartment buildings temporary shelters and other structures that people call home The federal government plays an important role in the housing industry through HUD programs government sponsored enterprises like Fannie Mae and Freddie Mac and tax benefits And nearly 10 million Americans receive some form of federal affordable housing assistance The IRA provides 837 5 million to HUD for direct loans and grants to fund projects that improve energy efficiency water efficiency indoor air quality or sustainability projects that implement low emission technologies materials or processes and projects that address climate resilience and nearly 9 billion for states to issue rebates to homeowners for whole home retrofits and for efficient heat pumps heat pump water heaters and other electrical equipment Most funding would be for low and moderate income households Next the 118th Congress should pass the Green Neighborhoods Act H R 4155 in the 118th Congress which would require HUD to establish annual energy efficiency participation incentives to encourage participants in HUD programs to achieve substantial improvements in energy efficiency Smarter buildings are more sustainable buildings Advances in smart building technology enable the building sector to take Transforming America s Buildings 11

advantage of automation real time monitoring and feedback and data collection to optimize how buildings function including making them more energy efficient and healthier for their occupants Smart building technologies connected to HVAC systems lighting and other building processes enable owners and operators to improve reliability avoid wasting energy and maintain healthy and productive spaces Smart buildings also can use external data like weather forecasts and potential electricity demand spikes to adjust building controls to maintain reliability and comfort Increasingly building owners ad product manufacturers are looking at smart building technology as a critical tool in making sure that buildings perform to their highest potential Congress can help speed the transformation of America s buildings through research and by retrofitting federal facilities to be smart buildings The 118th Congress should support the deployment of smart building technology through investing in broadband advanced metering infrastructure and grid modernization with a particular focus on underserved and marginalized communities Unlike conventional buildings where different operational systems operate independently smart buildings use technology to connect building systems together to improve the building s performance holistically The passage of the Inflation Reduction Act and the Infrastructure Investment and Jobs Act were profoundly important achievements for Washington policymakers in the last Congress But the legacy of these bills will matter only if their implementation succeeds The federal government has to balance the need for rapid deployment of new funding with the imperative to make sure it s done right In the coming months and years BuildingAction and its allies across the building sector will work with federal agencies to make sure that implementing regulations and 12 Transforming America s Buildings guidelines lead to the transformation the bills promise Moving forward the key principles we believe that federal government should follow are Engage in transparent and regular collaboration with public and private sector stakeholders Support projects that get the biggest bang for the buck in terms of energy savings and other metrics Always consider the impact of rules and guidelines on vulnerable frontline and fenceline communities Communicate progress and outcomes clearly to the public

Launched in 2020 BuildingAction unites diverse voices from multiple parts of the economy and from both sides of the aisle to urge policymakers to put buildings at the top of the agenda There is no time to waste The need to make significant investments in healthier more sustainable buildings is greater than ever But so is the opportunity BuildingAction focuses on three core functions to build the influence of the green building sector at all levels of government for bipartisan policies to help cut the energy and water use of America s buildings in half by 2040 policymakers and the public about the impact of sustainable buildings on the economy and environment those who create buildings with those who use them to build political and policy clout at all levels of government Together we can make sure that buildings are part of the solution Transforming America s Buildings 15

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