USGBC 2026 policy highlights
The U.S. Green Building Council (USGBC) released an overview on the most recent updates for building decarbonization policies. The overview highlights updates on the fiscal year 2026 appropriation, Department of Energy (DOE) grant cancellations, federal reduction in force and introductions of legislations across multiple states.
On Jan. 23, a bipartisan-negotiated funding package, which included the Interior and Environment Bill (Environmental Protection Agency [EPA] budget); the Energy and Water Bill (Department of Energy [DOE] budget); and the Commerce, Justice and Science Bill, was signed into law. The package passed both chambers with an overwhelming majority and marked a significant headway, finishing the fiscal year 2026 (FY26) appropriations process.
In response to the DOE canceling billions of dollars in awarded grants last year, including many for green building-related projects, Congress included language in its FY26 energy and water explanatory statement aimed at reasserting legal guardrails for future award terminations.
In 2025, Missouri’s legislature considered bills that ostensibly intended to “streamline development” but effectively would have suppressed green building policies. The bills failed to pass last session but have now been reintroduced.
On Jan. 8, Illinois Gov. JB Pritzker signed the Clean and Reliable Grid Act, which aims to reduce Illinoisans’ energy bills by expanding affordable, clean energy sources through grid-scale battery storage, new large-capacity nuclear power, energy efficiency and stronger consumer protections.
SB 729/Assembly Bill 722 would impose several types of requirements on data centers, including requiring that the owner/operator of a data center certify with the Department of Safety and Professional Services that the data center has attained, within three years after operation has begun, certification under a green building standard, such as LEED. The bills also require certain fees to be collected by utilities to fund energy efficiency, low-income assistance, renewable energy and the state Green Innovation Fund (green bank).
USGBC anticipates that 2026 will be a busy year for regulators and agencies in California, who must now implement last year’s state climate legislation.
