Letter Asks States to Use Federal Funds for Energy Efficiency Projects

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Several dozen businesses and organizations are asking state government leaders to take advantage of an increase in federal funds by investing in energy efficiency programs.

In a letter that will be sent to several state governors and their administrations, 59 organizations are asking states to increase their investments in important energy efficiency and demand management programs. The letter asks the states to tap into the billions of dollars of federal funds that were implemented through COVID-19 relief and infrastructure packages that Congress passed last year.

The organizations say using the funds toward such initiatives, including improving building efficiency and expanding demand-side energy management, will cut energy costs for businesses and residents. The groups say many of the investments they are seeking could be made quickly through funds that have already been dispersed and programs that currently exist.

Some of the organizations that signed the letter include Johnson Controls, Siemens, Eaton Corporation and Sierra Nevada. It is being sent to 14 states.

The letter asks for programs that expand energy management programs, including for commercial sectors, that will reduce emissions. It also seeks investment in buildings, such as retrofits, in the form of HVAC upgrades, efficient lighting and building management platforms to reduce energy waste.

Additionally, the organizations want states to improve energy efficiency at important public facilities such as schools, hospitals and airports. Another area the letter focuses on is energy efficiency programs for low-income areas that include building upgrades and efficiency measures in areas that might not be as likely to use them.

Energy efficiency is already a significant piece of the United States government’s sustainability targets, and the letter specifically calls for federal infrastructure funds to go toward most of the programs and projects the organizations recommend. The $1 trillion infrastructure bill includes $65 billion toward clean energy and grid reliability, and the stalled Build Back Better Act would allocate more than $110 billion toward energy efforts.

States have had success with public energy projects, such as Arkansas saving more than $229 million since 2010 on efficiency efforts led by Jonson Controls. California, which is one of the states the letter addresses, is currently advancing legislation that will greatly expand community solar.

“Congress has provided states with access to significant new funding to improve both public health and infrastructure,” says Alli Gold Roberts, senior director of state policy for Ceres, which helped organize the letter campaign. “It’s hard to imagine a better opportunity for meeting both goals than doubling down on energy efficiency,”