Breaking Down Each State's Climate Priority Policies

Forty-five states have now completed climate action plans outlining how they'll advance federal climate goals through policy and programs in coming years, with most focusing at least in part on real estate development as a way to reduce emissions.

Many of the states — as well close to a dozen major metro areas — will focus on real estate development policy such as upzoning, committing to building weatherization and electrification, conservation, and renewable energy development, among other common goals.

Submitting a "priority action climate plan" was a prerequisite for eligibility for $4.6 billion in grants under the U.S. Environmental Protection Agency's Climate Pollution Reduction Grants program to carry out the policies and programs in the recent action plans. Those grant awardees will be announced in coming months.

The states were required to outline priority measures that could be customized to meet local goals and challenges, but which must take into account low-income and disadvantaged communities and be implementation-ready.

While many of the states' priority measures are dependent on funding to begin implementation, the action plans still give insight into the direction each state is moving in its climate-related real estate regulation.

Florida, Iowa, Kentucky, South Dakota and Wyoming did not submit reports.

Here, Law360 takes a look at the real estate and development-related measures each participating state is prioritizing in its climate action plans.

Alabama

Many of Alabama's land-related priorities surrounded agriculture and offsetting greenhouse gas emissions from farming and transportation of food and other resources. The state is proposing implementing solar arrays on farms to reduce agriculture's high energy consumption and boost resilience, as well as to lessen the climate impact of irrigation.

The report also proposes programs and measures to increase local production of grains and vegetables to reduce the emissions generated in transporting those commodities from the Midwest and California.

Alabama officials would develop a list of potential farms and awardees to benefit from the solar and irrigation projects, as well as a list of potential contractors to carry out the work.

The state has also committed to creating incentive programs for energy efficiency retrofits in commercial and industrial buildings including heating, ventilation and cooking appliances.

In the residential sector, the state is are also eyeing the same energy efficiency retrofit programs in addition to programs to weatherize buildings through insulation, new windows and doors, and efficient water heating.

Alaska

Alaska has had a Weatherization Assistance Program since the 1990s but is proposing to expand funding for the program to allow additional homes to be weatherized. The state is seeking further weatherization and energy efficiency measures for public buildings like schools, universities and state and city/tribal office buildings.

Alaska officials are also looking to significantly expand the Alaska Energy Authority-owned Bradley Lake Hydroelectric Project, which diverts water from the Dixon Glacier through a canal and a 5-mile underground tunnel into Bradley Lake and ultimately to an electric grid that serves 75% of the state's population.

To complete the project, the state would need $342 million. It currently has $7.36 million committed.

The Alaska Energy Authority is also proposing a residential rooftop solar program catering to low-income and disadvantaged households.

Arizona

Arizona officials are looking to launch a program called Whole Home Health/Clean Green Affordable Homes, which will fund upgrades like wiring, mold remediation, fire safety and residential energy efficiency upgrades. Part of the program would include home energy audits, and funding would expand access to weatherization, efficiency upgrades and electrification.

Another measure would urge municipalities to upgrade their building codes. Because Arizona is a home-rule state, that initiative would need to come from the municipalities, but the state would plan to use grants to incentivize building code updates to the latest energy efficiency standards.

A grant program, if funded, would give communities, multifamily housing owners and homeowners grants to install solar-plus-battery systems in residential and community buildings to increase electricity excess and support resilience in power outage and poor grid areas.

Arkansas

Arkansas is investigating the development of community-scale renewable energy generation and storage, city and municipal solar development, and energy efficiency appliance measures to state programs.

Arkansas' goals of incentivizing and funding energy efficiency upgrades in buildings focuses largely on schools, prioritizing building enveloping — which consists of upgrading doors, windows and insulation — renewable energy generation, updated lighting and weatherization.

California

California's priority measures are largely focused on transportation, natural land and agriculture, with few building-centric proposals.

The state is proposing to expand the Energy Conservation Assistance Act to scale 0% and 1% interest loans to educational institutions, municipalities and tribal nations for clean energy generation, energy storage, electric vehicle infrastructure and energy efficient upgrades.

Expanding the Self-Generation Incentive Program would allow for more "behind-the-meter" energy storage, the state said, and it would enhance resilience during power outages.

California is proposing to upgrade low-income homes with energy efficiency measures and replace fossil fuel equipment like water heaters, space heating and cooling, and cooktops with electric versions at low or no cost to residents in single-family, multifamily and mobile homes.

Colorado

In 2022, Colorado enacted its Energy Performance for Buildings law, which requires commercial, multifamily and public buildings over 50,000 square feet to report annual energy use and reduce it incrementally over the next decade.

The state's climate action plan would seek federal funding to develop reporting data and model ordinances to further implement the new law and to bring technical assistance to large commercial buildings in developing case studies and sourcing low-interest financing.

The state is also working to prioritize transportation infrastructure and pedestrian and bike connectivity to lower emissions from vehicle traffic, and to introduce parking reduction measures like building less parking and using paid parking.

The funding would also be used to adopt the 2021 energy code earlier than planned, and to write building code to encourage solar- and EV-ready housing production, including incentives for local governments that update those standards.

Colorado would encourage accessory dwelling units by right wherever single family homes are allowed, and eliminate occupancy limits in an effort to increase density and therefore lower emissions from urban sprawl and transportation.

Measures would be implemented to encourage transit-oriented multifamily development by, for example, reducing or eliminating fees and launching infrastructure or density bonus incentives. Office-to-residential conversions or other adaptive reuse policies are also highlighted, as well as potential policies to discourage greenfield development.

Connecticut

According to its climate action plan, Connecticut would implement policies and programs to increase adoption of heat pumps statewide, expand funding for energy efficiency programs and weatherization.

The state would also incentivize installation of EV-charging infrastructure near multifamily homes and other areas with few current EV-charging options.

Delaware

Delaware plans to increase on-site renewable energy systems in commercial and residential buildings by expanding existing state programs, and to prepare the state for offshore wind energy opportunities.

The state's building energy codes would be strengthened, and energy efficiency opportunities for low- and moderate-income residents would be expanded, as would the state's Energy Efficiency Investment Fund, which incentivizes nonresidential, commercial and industrial buildings to complete efficiency upgrades.

Officials also plan to expand EV-charging infrastructure, prioritize urban greenspaces and permanently protect 2,500 acres of forest area by 2028 through conservation.

District of Columbia

Federal funding would support buildings under 10,000 square feet in low-income and disadvantaged communities to upgrade systems and reduce emissions.

The district would implement policies prioritizing rehabilitation of existing housing stock to meet updated codes and energy standards. Possible policies could include requiring asset and energy use disclosure at the time of sale or lease, requiring energy audits and upgrades at the time of sale, and expanding weatherization and home efficiency assistance.

Officials highlight policies of requiring new construction design to account for climate risk, developing construction codes encouraging resilient design, providing technical assistance and incentivizing passive heating and cooling with an ultimate goal to adopt fossil fuel-free construction codes by 2026.

Georgia

Georgia is seeking to implement weatherization for residential buildings, home energy rebates for purchasing electric and energy efficient appliances and systems, and energy efficiency lighting upgrades in commercial buildings.

New policies would increase renewable energy — especially solar — through rooftop installation on government-owned buildings, community solar, and renewables at industrial facilities.

The state would launch a program for farmland conservation and to implement green farming practices, reduced-till farming and cover cropping.

Hawaii

Federal funding could accelerate a transportation infrastructure measure called Skyline Connect to improve connection between Skyline rail and the bus on O'ahu, which, coupled with another measure to improve "complete streets," would make pedestrian and bike modes of travel more accessible.

The city of Honolulu is collaborating with counties, the state and a utility commission to create a statewide affordable housing retrofit program to increase energy efficiency in multifamily buildings.

The state also has a goal to plant 1 million native trees in Maui County to restore forest land, with the intention of alleviating threats like flood and fire.

Idaho

If funded, Idaho would expand existing energy efficiency systems like weatherization, lighting retrofits, appliances and heating and cooling systems.

The state wants to implement a measure to support conservation and streamline the pathway to conservation easements for existing land acquisition programs, and to develop a program to support solar adoption.

Illinois

Illinois seeks to fill in funding gaps in existing federal and state framework that hinder energy efficiency and building electrification efforts, to provide technical assistance and to implement low-carbon and energy-focused building codes.

The state would create a whole-home decarbonization incentive of up to $12,000 per household, the Illinois Climate Bank would launch low-cost financing for decarbonization incentives, and a lease-to-own structure for system installations would be implemented.

Funding would allow for the development of a contractor portal to share information across agencies, manage low-cost and easy-to-access loans and working capital, and streamline application processes. Additionally, owners of large buildings could connect to decarbonization and retrofitting resources through a "clean buildings concierge" service.

The state is working to finalize its new Stretch Energy Code and create grants for local governments to adopt the framework.

Finally, the state will eye new and scalable models of interconnected community-scale geothermal networks that allow residents and businesses to opt in to connect to the shared geothermal ground loop to heat and cool buildings.

Indiana

Indiana would implement programs to retrofit and weatherize buildings and to adopt energy efficient building practices like increasing insulation, building envelope upgrades, improving heating and cooling systems and upgrading lighting and passive heating.

The state would focus on zoning and development code updates to diversify and improve land use, create bike and pedestrian infrastructure, improve public transit and change traffic patterns to make vehicle travel more efficient.

Kansas

Kansas would expand the state's existing weatherization assistance program to improve heating and cooling, upgrade insulation, improve air sealing, and replace doors and windows. It also seeks to increase solar, wind and other renewable energy production statewide.

Louisiana

Louisiana is prioritizing a "one-stop shop" for building owners to find state, local and federal incentives and grants for projects like weatherization, roof repairs and solar.

Policies would prioritize energy efficient upgrades that improve resilience like heating and cooling, ventilation and shelter during and after natural disasters.

The state would also implement a program to incentivize facility audits and comprehensive retrofit evaluations for multifamily, commercial and industrial buildings. It would also simplify local permitting to conduct those retrofits.

Louisiana doesn't currently have any community solar projects in place nor any regulations, so the state would develop loan products that allow local government-led community solar projects and incentivize community solar, particularly for low-income households.

Maine

Maine already has a climate action framework called Maine Won't Wait, including goals to install at least 100,000 heat pumps in buildings by 2025, implementing upgraded appliance standards, weatherizing at least 35,000 homes and businesses by 2030, and developing building codes to align with climate goals.

With a goal of 80% of electricity usage coming from renewables by 2030, federal funding would accelerate the current climate plan efforts and allow the state to craft policy for offshore wind, distributed energy and energy storage.

The state would also develop land use regulations and laws specific to resilience for flooding and other climate impacts.

Maryland

Maryland's building energy upgrades focus on new zero-emission heating systems, and starting in 2024, the state will offer rebates up to $8,000 for the cost of heat pump installation in some low-, moderate- and middle-income homes.

The state will adopt the latest energy code, according to its climate plan, and as of October 2023, EV-charging equipment will need to be installed during the construction of single-family homes, duplexes and townhouses.

The EV-charging regulation could soon be extended to multifamily housing under the climate plan, depending on a yet-to-be-completed cost-barrier analysis. If that analysis is positive, the document calls for the legislature to introduce EV-ready verbiage for new multifamily buildings, along with solar-ready standards.

Massachusetts

Massachusetts aims to craft policies that assist local governments and residential and commercial building owners with energy efficiency analyses and with implementing renovations or retrofits to increase efficiency.

The state intends to increase heat pump adoption, expand geothermal adoption, accelerate offshore wind infrastructure and solar development with a focus on community-scale solar.

Michigan

Aiming to reduce heat-related emissions in homes and businesses by 17% by 2030, Michigan plans to use federal funding to build on current state programs like Energy Waste Reduction and Sacred Spaces Clean Energy Grants.

The state would focus on stronger requirements, incentives and financing options for energy efficiency and energy waste reduction, and adopting electrification as an alternative heat source.

Upgrading transit infrastructure and expanding EV-charging infrastructure were also highlighted priorities.

Minnesota

Minnesota is eyeing a slew of voluntary incentives, programs and rebates to decarbonize residential buildings through electrification, renewable energy implementation, upgraded systems like heating and cooling, and service panel upgrades.

The state would focus on the same measures for commercial buildings, but offer grants, loans and tax rebates and credits as the incentives.

A potential policy highlighted in the report includes designing new buildings using green building principles, energy sources, materials and techniques.

Mississippi

Mississippi hopes to use existing technology to expand small-scale solar in residential and commercial buildings.

The state would also incentivize building envelope upgrades like exterior walls, foundations, roofs, windows and doors to control heat, light and noise. It also wants to expand programs that incentivize upgrading lighting, HVAC, water heating, appliances and power systems in both commercial and residential buildings.

Missouri

Much of Missouri's action plan focuses on real estate upgrades, and the state is proposing weatherization upgrades and building electrification through expanded low-interest loan programs.

The state would craft policies to boost residential, commercial and industrial solar use, and it would provide grant funding for businesses to install EV-charging stations in their parking lots and, for residents, in their homes.

Open space is also a goal, the state said, outlining a policy to launch prairie restoration for land that's been destroyed by commercial, residential and industrial development.

Montana

Montana's goals are largely focused on agriculture and forestry initiatives, but on the property front, there's a focus on decarbonizing industrial facilities through a mix of electrification, solar thermal health, biomethane, low- or zero-carbon hydrogen and other low-carbon energy to reduce emissions.

Existing voluntary grant, loan and rebate programs that fund efficiency upgrades in homes and businesses would be expanded, as would incentives for commercial, nonprofit and government buildings to improve energy efficiency.

Nebraska

Nebraska would focus on a range of incentives for energy efficiency, electrification and weatherization for industrial, commercial, agricultural, public and nonprofit buildings.

Low- and middle-income residents could receive rebates on purchasing heat pumps and water heaters, as well as assistance to bring homes up to current code or rectify health and safety issues so they're eligible for weatherization and other programs.

Solar is another big focus, with incentives for solar panels on unused or contaminated land and at agricultural or industrial facilities, as well as rooftop solar on commercial and residential properties.

Nevada

Nevada would incentivize new buildings under construction to go beyond current energy efficiency standards, and it seeks to expand retrofit and upgrade programs in buildings.

The state is working on turning industrial sites and brownfields into clean energy hubs, encouraging renewable energy and green hydrogen production near industrial sites.

The Nevada Clean Energy fund would be increased to enhance retrofitting and weatherization, and officials would explore using R-PACE and C-PACE programs to support residential and commercial weatherization and retrofitting. It would also explore alternative financing like community land trusts and a revolving loan fund.

High-efficiency, all-electric new buildings could be eligible for density bonuses, streamlined permitting and tax abatements, and implementing renewable energy would open up even more rebates and incentives, the state said.

Density bonuses and streamlined permitting are also options for incentivizing EV-chargers and rooftop solar in multifamily housing, according to the report.

New Hampshire

Federal funding would cover costs associated with utility system upgrades to support EV charging at government buildings, small businesses in the hospitality and tourism industries like restaurants and ski areas, state parks, and are or near multifamily buildings.

Existing programs would be expanded to prioritize heat pumps and weatherization in residential buildings, and state officials would look to implement additional grants, loans or rebates to boost the measures.

New Jersey

New Jersey has a goal of installing zero-carbon emission space heating and cooling and weather systems into 400,000 residential properties and 20,000 commercial properties, which it plans to do through a "one-stop shop" for resources about state and federal rebate funding.

The state would adopt the latest energy conservation codes for residential and commercial buildings and explore adopting a stretch code.

The state would pilot community, campus or neighborhood-scale district geothermal system projects, and it would explore adopting a clean heat standard.

New Mexico

New Mexico's priority measures build on the state's EO 2019-003 framework including pre-weatherization for low-income residential building owners, energy efficiency community block grants and decarbonization of low-income and disadvantaged building owners.

New York

New York would focus on changing current land use planning and zoning practices to promote housing diversity, affordability, sustainable and energy efficient development and multiple modes of transportation.

The state also wants to create green and resilient public facilities and implement large-scale reforestation.

North Carolina

North Carolina would explore building energy audits and incentives, develop a revolving loan fund for energy efficiency and electrification projects at public, private, institutional and industrial buildings, create low- or no-cost bridge loan options for energy efficiency, and encourage utilizing its "guaranteed energy savings performance contract" to implement and finance major facility upgrades in government buildings.

If funded, the state would establish decarbonization programs through expanding combined heat and power deployment for industrial, large commercial and public buildings, as well as incentivizing electric residential appliances through rebate programs.

Technical assistance, gap funding loans for tax credits, revolving loan funds, and programs targeting small businesses in low-income or disadvantaged communities are possibilities to encourage emissions reductions, according to the action plan.

State officials would investigate revising residential building codes to require or recommend pre-wiring for EV-charging, and they ant to expedite permitting and review for EV-charging infrastructure.

North Dakota

North Dakota would expand the state's Energy Conservation Grant program to fund public buildings' electrification and energy efficiency upgrades. The state is also seeking funding to upgrade streetlights to LED lighting in Fargo.

Ohio

Ohio would consider updating building codes to require EV-charging capability, and it wants to incentivize renewable energy like solar and wind and to increase the efficiency of residential, commercial, public and industrial buildings.

Funding would allow for incentives to all asset classes to integrate renewable energy like solar arrays into new construction, to streamline permitting, and to support utility-scale renewables or improve grid interconnection in projects.

With a focus on targeted finance incentives like low-interest loans or rebates for improved efficiency measures in buildings and using low-carbon construction materials like cross-laminated timber, recycled steel and low-embodied-energy concrete, the state would encourage changes to how buildings are constructed. It's a move that could also lead to updating state and municipal level building and energy codes, according to the plan.

Officials would eye financial incentives like tax credits and grants for adaptive reuse of commercial and industrial buildings, and they would collaborate with utilities for additional electrification incentives.

Oklahoma

Oklahoma's real estate climate goals center on solar development: incentivizing solar on farms and for industry, municipalities and universities to install solar and battery storage.

Energy efficiency programs like updating HVAC in buildings, improving lighting and upgrading old refrigerants in commercial spaces is also a priority.

Oregon

The Oregon Department of Energy is currently finalizing a Building Performance Standard requirement expected in late 2024, so the state is proposing to add an incentive for owners who comply with the new requirements early and voluntarily. The new regulations would be enforced as early as 2028, but the requirements are tiered depending on building type and size.

Oregon would also expand its Multi-Family Energy Program to serve affordable housing projects in rural and other areas of the state that are currently ineligible for energy efficiency upgrades because of their current utility providers.

The state would also incentivize heat pump installation and weatherization, and it would craft policy to incentivize developing "space-efficient housing," meaning dwellings around 1,100 square feet, in a range of housing types from studios to three-bedroom houses.

Pennsylvania

Pennsylvania is investigating legislative updates such as requiring that 30% of electricity should come from renewable energy by 2030, authorizing community solar, and incentivizing localities to reconsider zoning laws that promote renewable energy in commercial, residential and industrial buildings.

Officials would look to expand EV-charging infrastructure, including seeking out landowners and federal properties close to highways that may host charging infrastructure, and implementing a tax credit or rebate program for EV chargers at homes.

Lastly, the state would prioritize funding, policies and programs to electrify and update building efficiency, including revising permitting and zoning to support construction and providing retrofitting incentives.

Rhode Island

Clean heat would be a goal of Rhode Island's climate policy. The state wants to expand the Clean Heat RI program to incentivize heat pump adoption and pre-weatherization work.

Investing in EV-charging infrastructure at workplaces and multifamily units is also on the list, as is incentivizing battery storage and installing solar on commercial and previously disturbed lands.

If funded, the state would also advance the Rhody Express train service between Providence Station, TF Green Airport and Wickford Junction. Its goal is to commence operation by fall 2025.

South Carolina

Much of South Carolina's hopeful policy would focus on land conservation and agriculture, prioritizing conserving and restoring high carbon-storage land, expanding its Climate Smart Forestry and Climate Smart Agriculture pilot programs, and extending and expanding existing weatherization programs being carried out by housing authorities and nonprofits.

Tennessee

Tennessee would provide incentives for residential, commercial and industrial building sectors to make energy-efficient improvements like space heating and ventilation, energy efficient lighting and weatherization. The state would also implement programs to expand EV-charging infrastructure.

Texas

Texas has few property-related priorities, but the state wants to promote combining solar arrays with biogas at closed landfills and adding solar to commercial and residential buildings.

The state would also promote switching to electric heat pumps, weatherizing homes, reforesting agricultural land no longer in use and efficient irrigation systems in agriculture.

Utah

Utah would develop a rooftop solar incentive program and use federal funding to incentivize EV chargers at multifamily housing and workplaces across the state through one-time grants and technical assistance.

Federal funding would also allow for offering whole home energy retrofits and new home updates through ongoing grants, and to offer incentives for weatherization and residential heat pump installation for low-income households.

Vermont

The existing Charge Vermont program would be expanded with federal funding to install public EV chargers, focusing particularly on multifamily properties where owners have been slower to adopt the technology and it tends to cost more.

Vermont would also create five "energy navigator" positions to work with low- and moderate-income families to transition home energy systems to cleaner technologies.

Developers would be incentivized to exceed the state's building standard with a focus on the building envelope, particularly affordable housing developers, with a more realistic "per-unit incentive" model.

Vermont currently acquires between seven and 10 retired farms per year for conservation, an effort that would increase to 10 to 15 per year with federal funding, as well as other strategic acquisitions to conserve land and enhance carbon sequestration.

Virginia

Renewable energy is a big focus for Virginia, which highlighted goals to accelerate offshore wind, solar and nuclear energy, expedite transmission line project approvals and expand solar deployment for low- and moderate-income families.

The state would provide financing like property assessed clean energy, or PACE, to help property owners upgrade energy efficiency and renewable energy in buildings. It also seeks to expand incentive programs for energy audits and other site assessments.

In the residential setting, the state would look to offer subsidies for weatherization and efficiency, with grants and incentives for low-income households, and it would offer incentives for retrofits.

Programs would also incentivize energy efficiency and clean energy power generation at commercial facilities, including data centers.

The state would also eye reforestation opportunities on brownfields and mine reclamation lands, and it would create reforestation and afforestation programs.

Washington

Washington has only two building-related measures: reducing refrigerant use in small businesses and decarbonizing campus energy systems.

West Virginia

West Virginia wants to encourage energy efficiency initiatives in commercial and residential buildings, while encouraging counties to submit proposals on their own initiatives for the specifics of how such efforts would roll out.

The state is also eyeing the development of an automated energy use tracking software on state-owned buildings, to be filtered down to counties and other local governments for use.

Wisconsin

Wisconsin will focus on transit planning and implementing possible measures such as higher density along transit corridors, mixed-use zoning, increased parking fees, improved public transit systems and more walking and biking paths.

The state would also expand funding for commercial and residential electrification and retrofitting, create a pre-weatherization program, and expand publicly accessible EV-charging along key commercial corridors.