Sens. Manchin, Murkowski introduce legislation to provide grants for improving energy efficiency
U.S. Sens. Joe Manchin (D-WV) and Lisa Murkowski (R-AK) introduced the INSULATE Buildings Act (S.B. 2066) this week, which would establish grants for states and territories to create loan funds for energy audits and efficiency upgrades.
INSULATE, or Investing in New Strategies for Upgrading Lower Attaining Efficiency, would work through the State Energy Program to pursue its revolving loans process. Such efforts are aimed at granting businesses and homeowners resources to improve energy efficiency in their facilities and homes and prioritize funding for states with the poorest efficiency in buildings.
“Investing in energy efficiency is common sense – and unlike other energy resources, energy efficiency opportunities exist everywhere there are buildings,” Manchin said. “Buildings use a staggering 40 percent of all the energy consumed in the United States, and contribute nearly the same share of our greenhouse gas emissions.”
In all, the program would establish two grant programs. The first, the Energy Efficiency Revolving Loan Fund Capitalization Grant Program, would create a means for the DOE to award capitalization grants to states to fund and operate revolving loan funds, as run by their energy offices. These funds could be used to distribute loans to eligible businesses and homeowners, but also allow states to use up to 25 percent of these funds as direct grants for small businesses and low-income homeowners. Approximately $250 million would be authorized for the program per year through FY2026.
The bill would also create the Energy Auditor Training Grant Program. This program would utilize $8 million each year through FY2026 to create a competitive grant structure for awarding grants to states conducting training for energy auditors.
“When it comes to energy, Alaska is a high-cost, high-consumption state,” Murkowski said. “Unfortunately, the efficiency of many buildings, homes, and businesses is lacking, which drives those prices up even further. The INSULATE Buildings Act prioritizes energy efficiency improvements in states with the poorest building efficiency and gives businesses and homeowners resources to pursue improvements, clearly helping Alaska.”
The legislation will enhance support for a revolving loan system state energy offices have operated within for years. It has also been supported by organizations such as the National Association of State Energy Officials (NASEO), the American Council for an Energy-Efficient Economy (ACEEE), and the Alliance to Save Energy.
