A happy New Year to all in 2026—though I still wish we’d switched to the International Fixed Calendar with its tidy 13 months of 28 days each!
Looking back at the blog I wrote at the start of 2025, I can say with some satisfaction that I was right about a few things—and wrong about others. I am pleased to report that building performance policies continue to be developed, adopted, and refined at the state and local levels. The first building performance standard (BPS) laws in the nation were adopted during the previous Trump presidency and three more BPS have been enacted since President Trump’s reelection, showing that governments are willing to step into the gap left at the federal level. Policy adoptions and changes in 2025 have shown there is still a strong commitment to improving buildings at the state and local levels. I forecast that this will continue in 2026. That said, it is crucial to acknowledge the roadblocks and upheaval of last year and to highlight some concerns for the year ahead. Come with me on a journey to assess the hurdles. We’ll briefly tour recent history and then skip merrily into the future hand-in-hand.
Roadblocks
State and local governments must navigate new pitfalls as they seek to advance energy efficiency and adopt climate solutions. Billions of dollars in federal funding have been revoked, and the impact of environmental rollbacks bode poorly for public health and the economy. These shifts look dire. An absence of federal regulations will make many aspects of day-to-day life worse, by polluting our air, water, and food, and increasing energy bills and the price of groceries, among other things. This makes it all the more important for governments across the country to enact positive changes themselves.
The federal landscape
There are some worrying bills circulating the halls of Congress. A particularly concerning example is HR 3699 – the “Energy Choice Act”, which should have the attention of every state and local government across the country. Rep. Nick Langworthy of New York, the bill’s sponsor, has touted this bill as an effort to “ban the [gas] bans” by preempting the adoption of state and local laws prohibiting fossil fuel appliances. As it is currently written, the bill could preempt state and local authority to adopt and enforce BPS, building codes, zoning, and potentially all regulation of energy utilities. I highly recommend reading the Public Health Law Center’s analysis for more details on the bill’s implications.
Meanwhile in the executive branch, DOE finished out the year by rescinding its National Definition of “Zero Emissions” Buildings, which was formally published in June 2024. Previously, IMT responded to a DOE RFI on the topic and supported and celebrated the creation of the definition. We are disappointed but not surprised to see this change.
In better news, President Trump has signed into law the FY2026 spending bill package, which will fund ENERGY STAR at $33 million for FY2026, as part of a minibus bill funding several agencies. The spending bill package was approved in the full House and Senate by lopsided margins. This is the first time that the ENERGY STAR program has had its own line item in a Congressional budget bill and is a huge win for the business-led coalition supporting ENERGY STAR. The $33 million is on par with current funding. IMT is optimistic that funding will help preserve core ENERGY STAR Portfolio Manager functions, if not new enhancements.
State and local trends
In 2025, governors and state legislatures across the country have softened on climate commitments in response to affordability pressures and political pushback.
California halted the adoption of new residential building codes for the next six years, as part of AB130, a sweeping law aimed at reducing housing costs and speeding up construction. Positive changes in the bill included streamlining the process to create accessory dwelling units, and exemptions for infill housing developments from the California Environmental Quality Act. These changes will help the state address sluggish rates of housing construction. However, the prohibition of code adoption being included in this effort is misguided. It is unlikely to make housing in the state any cheaper, and will negatively impact California’s progress on its energy and climate goals. Stringent energy codes are not what drives high costs in California, and these codes have saved Californians $100B in avoided energy costs over the past 50 years.
New York’s Governor Hochul has delayed the implementation of the state’s All-Electric Buildings Act (AEBA), which would have prohibited the use of gas appliances in most new construction, starting January of this year. The AEBA was due to be enforced in 2026 for new buildings up to seven stories tall, except for commercial and industrial buildings larger than 100,000 square feet. AEBA will cover all new construction starting in 2029 (with exceptions for some building uses). The decision to delay enforcement of the AEBA is extremely unfortunate. Studies have shown that the state has more than enough grid capacity to accommodate all-electric new construction and that the AEBA would save residents thousands of dollars a year.
Similarly, the Association of Contracting Plumbers of the City of New York filed challenges against New York City’s Local Law 154, which also prohibited fossil fuel construction in new residential buildings. As is often the case, filings against these laws are based on weak legal arguments, and throw sand in the gears of a transition towards affordable and reliable clean energy technologies that will help reduce costs for residents and improve health outcomes. I’m cautiously optimistic that the Second Circuit Court of Appeals will rule in favor of the legality of both these laws.
It wasn’t all doom and gloom though, was it?
Last year brought us the adoption of several new building performance policies, and the first performance deadlines of BPS laws in New York City, Denver, and St. Louis. There were also significant steps to simplify policies and set communities up for success. Building performance data is showing encouraging signs for the long term health of BPS laws and the capacity for building owners to meet targets. Based on 2023 data from NYC , 92% of covered buildings were on track to meet their targets last year, and 43% of buildings have already achieved their 2030 targets.
The newbies – BPS policies adopted in 2025
Evanston and West Hollywood both adopted BPS laws in 2025, with the latter including a benchmarking law nested within the adopted language. This means there are now 16 active BPS laws in the country. New Orleans and Clayton, MO, joined the growing list of governments with active benchmarking laws; with nearly 60 state and local U.S. governments now requiring the benchmarking of large buildings (see benchmarking map). IMT applauds these efforts to improve building performance and help residents and local businesses reap the benefits of increased energy efficiency.
The refinements – BPS policy amendments in 2025
Several jurisdictions provided conditional BPS deadline extensions for building owners with Local Law 97 in NYC being the most prominent example, showing that governments are committed to providing building owners flexibility in complying with performance targets. There were also legislative amendments made to a number of enacted BPS laws in efforts to simplify them and bolster resources for building owners undertaking work to meet performance targets. (Washington state’s HB 1543 and Colorado’s HB 1269 are two of the most impactful.)
2026 policy forecast
Here’s where I expect to see momentum this year, based on current commitments and signals from state and local governments:
| Location | Stage in Policy Lifecycle | Policy Predictions |
| California – BPS | Development – California Energy Commission developing BPS Strategy report | SB48 of 2023 requires CEC to deliver a BPS strategy to the state legislature in 2026, setting the state up for potential BPS adoption in 2027 |
| Columbus, OH – BPS | Development – City staff developing draft ordinance | Stakeholder engagement is slated to begin in Q1 of 2026, setting the City up for potential BPS adoption in the second half of 2026 |
| Hawaii – BPS and Benchmarking | Development – State actively exploring development of BPS | Ongoing project to assess readiness for statewide BPS – setting up potential BPS adoption in 2027 |
| Lakewood, CO – BPS and Benchmarking | Advocacy – City staff seeking to present BPS andbenchmarking draft to city council | Lakewood could enact benchmarking law in 2026; BPS development will continue and potentially passes before the end of 2026 |
| Los Angeles, CA – BPS | Development – City actively working on amendments to its building performance ordinance and the development of a BPS | Ongoing project to understand how the City could update existing building performance ordinance to include BPS, which could set up BPS adoption in 2027 |
| New Jersey – BPS | Development – State staff exploring development of BPS | New Jersey has identified statewide BPS as a key strategy, potential exploration of BPS development in 2026 |
| New York – Benchmarking | Advocacy – Statewide benchmarking bills pending | New York has identified statewide energy benchmarking and BPS as key strategies, potential benchmarking adoption in 2026 |
| Rhode Island – BPS and Benchmarking | Advocacy – State staff considering BPS and benchmarking | Rhode Island will likely explore development of BPS in 2026, but unlikely to be adopted this year, with BPS identified as a key strategy |
| Santa Monica, CA – BPS and Benchmarking | Advocacy – BPS and benchmarking bill pending | Santa Monica is likely to adopt a BPS and benchmarking law in first half of 2026 |
What’s next for buildings?
Governments with aggressive climate goals need to continue to develop and adopt building performance policies if they are committed to meeting their targets regardless of how the landscape has shifted. Buildings, particularly existing ones, comprise too great a proportion of greenhouse gas emissions and energy usage for governments to ignore. Improving building performance is going to be key to addressing the very real affordability crisis. While 2025 dampened some momentum toward building energy improvements, it was not the end of the story. Mayor Mamdani has made it clear that he views LL97 as a priority, and his policy proposals show he wants to help building owners meet their targets. The most talked about entrant to the national political stage has made his support of successful BPS implementation clear. My money is on other leaders doing the same.
2026 will continue to test our resolve. But if last year proved anything, it’s that cities and states won’t wait for the White House or Congress to lead.
