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

This briefing from Energy Innovation provides a blueprint for U.S. state policymakers to maintain energy efficiency and electrification progress in buildings and industry following the passage of the One Big Beautiful Bill Act (OBBBA), which the author projects will negatively impact the U.S. economy.

• Energy Innovation projects that the energy provisions of the One Big Beautiful Bill Act (OBBBA) will cause significant economic damage by 2035, including a $1.1 trillion reduction in U.S. GDP, the loss of 790,000 jobs, and $170 billion in increased energy costs for American businesses and households.
• Residential heat pumps have seen significant market growth, outselling gas furnaces since 2021 and currently holding approximately 43 percent of the U.S. residential cooling market and 56 percent of the space heating equipment market.
• There is a significant opportunity to transition industrial low-temperature heat (below 200 °C) to electric heat pumps, which are two to four times more efficient than fossil fuel alternatives, although they currently represent less than 2 percent of the heat pump market.
• The primary barriers to electrification and energy efficiency are economic and logistical, specifically the lack of upfront capital for retrofits, concerns over higher electricity rates, insufficient space or electric upgrades, and outdated building codes.
• The document recommends several state-level policy actions to drive efficiency, including adopting energy efficiency goals and emissions standards, providing grants or tax credits for electric technologies, creating revolving loans, offering workforce training, implementing building performance standards, and adopting modern or 'stretch' energy 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} }