Identify program focus areas. 

  • Using community data and community priorities, establish clear racial equity, housing, workforce development, health, and environmental justice goals for both engagement activities and program outcomes. 

  • As mentioned above, to help identify program focus areas, administrators can use EPA’s EJScreen, the federal government’s Climate and Economic Justice Screen Tool (CEJST) to identify disadvantaged census tracts, and DOE’s LEAD tool. 
  • This guide, from IREC, provides recommendations on how to direct workforce program resources. 
  • This guide, from ECC, provides city staff, elected officials, and advocates with a strategic framework for folding workforce development into climate-related planning processes. 
  • As mentioned above in Section 1, the National Renewable Energy Lab’s (NREL) ResStock and ComStock tools combine large public and private data sources, statistical sampling, detailed sub-hourly building simulations, and high-performance computing to model the impacts of building technologies in different communities. 
  • Alongside other program goals, make greenhouse gas emission reductions a metric for program success.1 Other program goals and metrics may be related to affordability, health and safety, workforce development, racial and social equity, and energy cost reduction. In R2E2‘s opinion, program goals should also specifically include emission reduction goals to ensure that this priority of building upgrade programs is pursued. For more information on this consideration, please see ACEEE’s Climate-Forward Efficiency Initiative.  

  • At the building level, the Los Angeles Department of Water and Power (LADWP) provides incentives for energy efficiency measures if whole building energy savings are above 10%. Through the Comprehensive Affordable Multifamily Retrofits Program, LADWP offers different incentives based on the size of property, the location of efficiency upgrades, and the metric tons of carbon dioxide equivalent (MTCO2e) reduced. For multifamily buildings with fewer than 65 units, LADWP provides $5,400 per MTCO2e reduced in common areas and $6,750 per MTCO2e in renter units. Larger multifamily buildings earn up to $6,200 and $7,750 per MTCO2e, respectively. 
  • California’s Low Income Weatherization Program (LIWP), administered by the Association for Energy Affordability, was the first low-income program in the state to focus on decarbonization specifically, as reflected in the incentives, which are provided based on total avoided GHG emissions instead of a per-measure basis. 

  • EPA provides numerous tools that can help develop GHG emissions inventories at the state and local level. 

Establish program upgrade offerings.

  • Prioritize comprehensive efficiency upgrades and electrification in program offerings. 

  • California’s Low-Income Weatherization Program provides comprehensive energy efficiency and solar PV upgrades exclusively for low-income households (both single and multifamily). This program is notable for its flexible incentive methodology; while it encourages comprehensive retrofits (providing free whole-building energy audits and a simple one-stop shop framework to ease the burden of seeking technical assistance), the program also provides incentives for incremental energy savings. This flexible incentive structure helps to overcome split incentives and reduce upfront costs for homeowners, renters, and property owners, while still rewarding comprehensive upgrades. 
  • Massachusetts’ Low-Income Energy Affordability Network (LEAN) Deep Energy Retrofit Pathway provides an incentive for buildings that meet a 40% energy use reduction compared to existing conditions. These projects include higher-than-standard weatherization and may include electrification of space heating and water heating. 

  • This paper from ACEEE reports the results of a home-by-home analysis of several thousand homes across the United States, looking at gas vs. electric decarbonization and deep retrofits options for space and water heating and their lifecycle costs. 
  • Pair electrification of heating and cooling equipment and building envelope upgrades with onsite generation to help ensure that energy bills do not increase.2 Where onsite generation is not possible, R2E2 recommends that both owners and renters consider community solar where it is available. For more information on community solar, see DOE’s primer on community solar.  

  • Illinois Solar for All, an initiative of the Illinois Power Agency, enables households that otherwise could not afford solar to take advantage of the benefits it provides, including offsetting any cost increases that may result from electrification. The initiative also controls the cost the property owner pays for the solar system by ensuring ongoing costs of the solar photovoltaic system do not exceed 50% of the value of power it generates.  
  • Avoid installing new fossil fuel appliances.

  • Cleveland participates in the Northeast Ohio Regional Sewer District’s Green Infrastructure Grant Program which has provided grants for incorporating low impact development techniques in site design. 
  • New York City installs cool roofs at no cost to qualifying building owners through the NYC CoolRoofs Program. 

Design program offerings to prevent increased household costs and displacement.

  • Protect housing affordability for unsubsidized rental properties that are not subject to pre-existing affordability commitments.6 WAP also offers a potential path for protecting housing affordability for unsubsidized rental properties. WAP allows states to set their own affordability restrictions (DOE Regulation 10 CFR 440.22b3) for unsubsidized units that make use of WAP funding. Program administrators should check with the WAP implementor in their locality to see what affordability restrictions apply for unsubsidized properties. See this DOE FAQ for more details. 7 For additional program examples, see ACEEE’s Energy Equity for Renters initiative. The policy tracker lists several more programs that provide rental efficiency loans and grants in exchange for affordability covenants.

  • The Philadelphia Housing Development Corporation’s Rental Improvement Fund gives rental property owners who own fewer than 15 units the opportunity to carry out necessary repairs on aging units while also preventing rent spikes. The program seeks to ensure stable rents by requiring current rents to be affordable to households earning no more than 60% of AMI and by capping annual rent increases at 3%. Additionally, the current renters must have three-year good cause eviction protection.8 Good cause eviction broadly refers to policies that require owners of rental housing to stipulate a “good cause“ for terminating or not renewing leases. In Philadelphia, examples of good cause reasonsinclude habitual non-payment or late payment of rent, breach of or non-compliance with lease terms, nuisance activity, and more.  
  • The California Energy Commission’s Equitable Building Decarbonization Program offers the following methods of renter protection: rent increase limitations, eviction protections, information for renters and property owners on rights and responsibilities under the program, and requirements related to project work and temporary displacement. 
  • The Efficiency Navigator in Middleton and Madison, WI, requires owners of unsubsidized housing to sign a contract stipulating that the units using the program are occupied by households at or below 80% AMI, and requires the owner to use reasonable efforts to maintain the unit as housing for LMI households for a period of three years after the completion of the upgrade work. For more information on this program, please see this case study, part of guidelines for creating community-driven building retrofit programs, assembled by the Building Electrification Institute (BEI), Elevate, and C40 Cities Climate Leadership Group. 
  • In Seattle, the Multifamily Weatherization Program provides project management services at no cost, but to be eligible, building owners must commit to keeping rents affordable for at least three years and at least half of tenants must meet income qualifications. 

  • This report from ACEEE describes the benefits, barriers, and strategies for decarbonizing buildings in the affordable housing sector. It identifies and describes selected decarbonization and deep retrofit programs serving affordable housing markets. 
  • Minimize temporary disruptions and permanent displacement risks due to upgrades. 

  • Los Angeles’s Tenant Habitability Program requires owners to disclose the disruptions they will need to make during a building renovation. This applies to most residential properties protected under the city’s Rent Stabilization Ordinance. The Tenant Habitability Plan describes the scope of the work and the methods that the owner, contractor, and workers will use to mitigate potential impact to the tenants and the tenants’ personal property during the period that renovation work occurs in a tenant’s unit or the building and premises. 

  • This report from Strategic Actions for a Just Economy (SAJE) offers a strategic approach to incorporate renter protections into California’s residential decarbonization policies to prevent aggravating the housing crisis. Aimed at policymakers and advocates, it discusses the current challenges for renters, describes existing legal protections, and proposes strategies to avoid negative impacts from new energy standards and programs, specifically focusing on the private rental market. 
  • Reduce energy bills and operations costs for rental property owners, homeowners, and renters.  

  • Get involved in or begin electricity rate-setting discussions with relevant stakeholders. 

  • Nevada’s Energy Assistance Program provides income-eligible households with a Fixed Annual Credit (FAC) benefit that is calculated for each program participant. The FAC is enough to reduce the energy burden of participating households to the statewide median household energy burden.9  Yim, E., and S. Subramanian. 2023. Equity and Electrification-Driven Rate Policy Options. Washington, DC: ACEEE. aceee.org/white-paper/2023/09/equity-andelectrification-driven-rate-policy-options. For Fiscal Year 2023, the household energy burden for a median-income Nevada household ($85,150) was 2.29%.  
  • In 2012, all investor-owned electric and gas utilities in Colorado started offering a Percentage of Income Payment Plan (PIPP) to income-eligible households. The state caps electricity costs at 6% of income for homes that are heated only with electricity. If the heating source is gas, then costs are capped at 3% each for gas and electricity bills. This ensures that bills are always capped at 6% of income for households, regardless of the heating source. 

  • Provide education to building owners and renters on how to control energy costs. 

  • Northeast Energy Efficiency Partnerships (NEEP) has prepared a guidebook for renters that provides questions to ask landlords and building owners regarding the energy efficiency of their building’s envelope and appliances. The guide also provides tips for ongoing practices renters can use to keep energy costs down. 
  • 1
     Other program goals and metrics may be related to affordability, health and safety, workforce development, racial and social equity, and energy cost reduction. In R2E2‘s opinion, program goals should also specifically include emission reduction goals to ensure that this priority of building upgrade programs is pursued. For more information on this consideration, please see ACEEE’s Climate-Forward Efficiency Initiative.  
  • 2
     Where onsite generation is not possible, R2E2 recommends that both owners and renters consider community solar where it is available. For more information on community solar, see DOE’s primer on community solar.  
  • 3
     Mark Kresowik. 2023. “Leading States Embracing Climate-Forward Efficiency.” ACEEE Blog, July 26. aceee.org/blog-post/2023/07/leading-states-embracing-climate-forward-efficiency. 
  • 4
     Kiki Velez. 2023. ” Progress Report: How States Are Kicking Gas.” NRDC Blog, December 12. nrdc.org/bio/kiki-velez/state-progress-report-kicking-gas.  
  • 5
     American Council for an Energy-Efficient Economy (ACEEE). 2021. “Community-Wide Summary” database.aceee.org/city/mitigation-urban-heat-islands.  
  • 6
    WAP also offers a potential path for protecting housing affordability for unsubsidized rental properties. WAP allows states to set their own affordability restrictions (DOE Regulation 10 CFR 440.22b3) for unsubsidized units that make use of WAP funding. Program administrators should check with the WAP implementor in their locality to see what affordability restrictions apply for unsubsidized properties. See this DOE FAQ for more details.
  • 7
    For additional program examples, see ACEEE’s Energy Equity for Renters initiative. The policy tracker lists several more programs that provide rental efficiency loans and grants in exchange for affordability covenants.
  • 8
    Good cause eviction broadly refers to policies that require owners of rental housing to stipulate a “good cause“ for terminating or not renewing leases. In Philadelphia, examples of good cause reasonsinclude habitual non-payment or late payment of rent, breach of or non-compliance with lease terms, nuisance activity, and more. 
  • 9
      Yim, E., and S. Subramanian. 2023. Equity and Electrification-Driven Rate Policy Options. Washington, DC: ACEEE. aceee.org/white-paper/2023/09/equity-andelectrification-driven-rate-policy-options. For Fiscal Year 2023, the household energy burden for a median-income Nevada household ($85,150) was 2.29%.  
  • 10
      Yim, E., and S. Subramanian. 2023. Equity and Electrification-Driven Rate Policy Options. Washington, DC: ACEEE. aceee.org/white-paper/2023/09/equity-andelectrification-driven-rate-policy-options.