E3 INNOVATE is your local Nashville home-performance team supporting homeowners, architects, developers, and builders with Home Testing, HVAC design, and Indoor-Air-Quality (IAQ) design and installation services. E3 has provided Energy Star consulting and diagnostic testing services across greater Middle and East Tennessee for over 18-years and we are excited to announce that the Energy Star program has received bipartisan support in Washington D.C.
On January 8th, 2026, a bipartisan spending bill was passed by the House of Representatives that would fully fund the Energy Star program for the current fiscal year. This is a massive win for the Energy Star program as there have been multiple statements and actions made by the EPA that indicated the Energy Star program was going to be potentially eliminated altogether.
$33 million is included in the bill for the EPA to fund the Energy Star program and is a slight increase from the $32 million provided in the 2024 fiscal year. This funding will mark a clear and legal requirement to fund the program through the 2026 fiscal year, which has normally been left up to the discretion of the administration and has seen funding decrease over the last decade. This change in direction is due in large part to the numerous individuals and organizations that voiced their support for the program, which included over 1,000 companies and organizations signing an industry letter and 1,600 individuals contacting their representatives. Through this collaboration of market leaders and concerned citizens the administration has been shown that energy efficiency and green building still holds support throughout the country.
While the continued existence of the Energy Star program and increased funding is welcome news, the future implementation of the program across the broader market remains to be seen. The elimination of green and energy efficient mortgage insurance premium rates by the Department of Housing and Urban Development as well as the elimination of the 45L Tax Credit, which was dependent on new homes meeting Energy Star compliance, have certainly reduced the incentives for building to Energy Star levels. However, energy costs have continued to rise over recent years and could incentivize builders to construct high efficiency homes despite these changes. The cost of electricity is up 6.7% over the last year and up nearly 30% since the end of 2021, due in large part to the increased prevalence of AI data centers throughout the country that are putting a significant strain on the grid and spiking electricity rates. As the AI boom continues, energy efficiency should remain a core tenant in new construction and improving existing structures to reduce the financial burden on consumers as well as to reduce the strain on the electrical grid.
E3 INNOVATE, LLC
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