ENERGY LEADERSHIP IN A TIME OF NEED: A BLUEPRINT FOR STATES

The document argues that U.S. states should implement 'no-regrets' actions in building and industrial efficiency to counter the negative economic impacts of the One Big Beautiful Bill Act (OBBBA), which is projected to cost households $170 billion in higher energy bills and reduce GDP by $1.1 trillion by 2035. It advocates for the deployment of heat pumps and electric boilers, noting that residential heat pumps have held a 56 percent market share for space heating since 2021. The briefing specifically highlights the potential of industrial electric heat pumps for low-temperature heat (under 200 °C), which are two to four times more efficient than fossil-fueled versions but currently make up less than 2 percent of the market. To overcome barriers such as upfront capital and high electricity rates, the document recommends a suite of policy actions, including adopting modern energy codes, implementing building performance standards, providing point-of-sale rebates, and creating revolving loan funds.

• The One Big Beautiful Bill Act (OBBBA) is projected to have severe negative economic consequences for the United States by 2035, including a $1.1 trillion reduction in GDP, the loss of 790,000 jobs, and $170 billion in increased energy costs for businesses and households.
• Residential heat pumps have seen significant market adoption in the U.S. since 2021, now accounting for approximately 43 percent of the residential cooling market and 56 percent of the space heating equipment market.
• There is a significant opportunity to electrify low-temperature industrial heat (below 200 °C) using electric heat pumps, which offer two to four times the efficiency of fossil-fuel alternatives, despite currently representing less than 2 percent of the heat pump market.
• The primary obstacles to the adoption of energy efficiency and electrification are economic and logistical, specifically the lack of upfront capital for retrofits, concerns over high electricity rates, insufficient space or electrical infrastructure, and outdated building codes.

APA

Energy Innovation (n.d.). ENERGY LEADERSHIP IN A TIME OF NEED: A BLUEPRINT FOR STATES. https://energyinnovation.org/wp-content/uploads/Double-Down-on-Efficiency-and-Electrification-for-Buildings-and-Industry_Blueprint-for-States_August-2025.pdf

Chicago

Energy Innovation. ENERGY LEADERSHIP IN A TIME OF NEED: A BLUEPRINT FOR STATES. n.d. https://energyinnovation.org/wp-content/uploads/Double-Down-on-Efficiency-and-Electrification-for-Buildings-and-Industry_Blueprint-for-States_August-2025.pdf.

Wikipedia

{{cite report |author=Energy Innovation |title=ENERGY LEADERSHIP IN A TIME OF NEED: A BLUEPRINT FOR STATES |url=https://energyinnovation.org/wp-content/uploads/Double-Down-on-Efficiency-and-Electrification-for-Buildings-and-Industry_Blueprint-for-States_August-2025.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{energyinnovationndenergy, author = {{Energy Innovation}}, title = {{ENERGY LEADERSHIP IN A TIME OF NEED: A BLUEPRINT FOR STATES}}, institution = {Energy Innovation}, url = {https://energyinnovation.org/wp-content/uploads/Double-Down-on-Efficiency-and-Electrification-for-Buildings-and-Industry_Blueprint-for-States_August-2025.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }