The buildings sector truly sits at the intersection of climate change, income inequality, and racial inequity. 

The building sector’s impact on climate change is undeniable. It is the largest emitting sector in the United States when accounting for direct and indirect emissions. In 2019, 13% of U.S. greenhouse gas emissions came from direct emissions of the buildings sector, primarily from heating and cooling. When electricity consumed by the end user—indirect emissions—is factored in, buildings account for a whopping 31% of total U.S. greenhouse gas emissions. 

The sector is also one of the most visible examples of racial inequity in the nation. In the United States, people of color are disproportionately impacted by unsafe, hazardous, and inefficient housing and schools. People of color, who are more likely than their white counterparts to live in low-income households and in high-poverty communities, spend up to half of their income on rent and spend three times as much on energy as their white counterparts do. This energy burden is in part because they are more likely to live in older, less energy-efficient housing.

Investments in improving the nation’s building sector will drive down the emissions causing climate change and take steps to address the systemic racism pervasive in the public school system and the housing sector while creating local, good-paying union jobs, and fighting income inequality.

One key opportunity in the BIL is investing in energy-efficient MUSH (Municipal Buildings, Universities, Schools, and Hospitals) buildings through an energy efficiency state revolving fund, school retrofits, and the State Energy Program. These buildings represent a large portion of the commercial building stock with roughly 912,000 in the U.S. and tend to be the most energy-intensive. MUSH buildings are generally older or historic or have high electricity demand—such as the hospital sector. Therefore, targeting these buildings for energy efficiency retrofits can significantly reduce carbon emissions while creating local jobs and saving taxpayer money on energy bills for these public-serving institutions. 

The Energy Efficiency Revolving State Loan Fund received $250 million and the State Energy Program (SEP) received $500 million in the BIL. These investments, which can go towards MUSH building retrofits, represent 19,687 direct, 12,675 indirect, and 17,812 induced jobs, a total of 50,174 jobs over 10 years. There is an additional $500 million in grants for public schools to use towards energy efficiency, renewable energy, and alternative fueled vehicles. School retrofits would create an additional 33,450 jobs over ten years.

The BIL also includes funding for residential buildings, largely to improve energy efficiency, safety, and affordability, particularly for low-income households. The Weatherization Assistance Program (WAP) received $3.5 billion in funding towards long term solutions for energy efficiency while the Low Income Home Energy Assistance Program (LIHEAP) received $500 million to address short-term needs for paying energy bills. It’s noteworthy that without a waiver, 15% of LIHEAP funds can go towards weatherization assistance and with a waiver up to 25%. The Energy Efficiency Conservation Block Grants (EECBG), which received $550 million in BIL and directly fund local projects, can go towards residential and commercial buildings, and historically retrofits represent the largest percentage of EECBG funds. DOE received $250 million in AFFECT grants that go towards improving energy and water efficiency for federal buildings and $225 million to provide technical assistance to states for adopting or updating building codes.