MAKING BUILDINGS BETTER

This policy brief by Energy Innovation outlines the building electrification and energy efficiency provisions within the House version of the Build Back Better Act (BBBA). It details $12.5 billion in incentives for residential and commercial building decarbonization, alongside significant investments in affordable housing, workforce training, and the adoption of zero-energy building codes to reduce greenhouse gas emissions and consumer costs.

• The House version of the Build Back Better Act (BBBA) allocates $12.5 billion for building electrification and energy efficiency incentives. This includes $6.25 billion for the High Efficiency Electric Home Rebate Program, which provides rebates for electric appliances and equipment—such as heat pump HVACs and water heaters—with higher rebate amounts available for low- and middle-income (LMI) households, multifamily housing, and underserved or tribal communities. Additionally, $5.89 billion is designated for Home Owner Managing Energy Savings (HOMES) Rebates to support state-led energy efficiency retrofit programs, and $360 million is allocated for Home Energy Performance-Based Contractor Training Grants to develop a qualified workforce.
• The BBBA includes substantial funding to improve housing equity, resilience, and public health for underserved populations. Key investments include $65 billion for public housing upgrades, $1.77 billion for affordable housing improvements, $1.8 billion for rural rental housing projects, and $294 million for renewable energy and electrification access in tribal communities. The act also provides $500 million for public or non-profit building improvements and $50 million (comprising $37.5 million for upgrades and $12.5 million for technical assistance) for schools in low-income and disadvantaged communities.
• The document emphasizes the economic and environmental benefits of building electrification. It notes that 85 percent of U.S. households could save money on monthly energy bills by switching to modern all-electric equipment, with LMI households saving an average of up to $493 per year. In New York City, an all-electric home is estimated to save $6,800 over 15 years compared to a fossil-fueled home. Furthermore, electrification is projected to create over 1.3 million jobs in the U.S., including 460,000 installation jobs, 80,000 manufacturing jobs, and 800,000 indirect and induced jobs.
• The BBBA provides $300 million to help state and local communities adopt updated and zero-energy building codes. This is targeted at the 65 percent of U.S. counties, cities, and towns that have not yet adopted climate-relevant codes. The document cites FEMA research indicating that modern building codes could prevent at least $32 billion in losses from natural disasters. To reach net-zero greenhouse gas emissions by 2050, the brief states that all new buildings must be all-electric by 2030.

APA

BALDWIN, S., & TALLACKSON, H. (2021). MAKING BUILDINGS BETTER. Energy Innovation. https://energyinnovation.org/wp-content/uploads/Making-Buildings-Better-in-the-Build-Back-Better-Act.pdf

Chicago

BALDWIN, SARA, and HADLEY TALLACKSON. MAKING BUILDINGS BETTER. Energy Innovation, 2021. https://energyinnovation.org/wp-content/uploads/Making-Buildings-Better-in-the-Build-Back-Better-Act.pdf.

Wikipedia

{{cite report |last1=BALDWIN |first1=SARA |last2=TALLACKSON |first2=HADLEY |title=MAKING BUILDINGS BETTER |publisher=Energy Innovation |date=December 2021 |url=https://energyinnovation.org/wp-content/uploads/Making-Buildings-Better-in-the-Build-Back-Better-Act.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{baldwin2021making, author = {BALDWIN, SARA and TALLACKSON, HADLEY}, title = {{MAKING BUILDINGS BETTER}}, institution = {Energy Innovation}, year = {2021}, month = dec, url = {https://energyinnovation.org/wp-content/uploads/Making-Buildings-Better-in-the-Build-Back-Better-Act.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }