From solar panels on rooftops to EV chargers in parking lots, green infrastructure is becoming part of everyday life. But these changes aren’t just a sign of shifting preferences — they’re a result of deliberate policies driving innovation. Solar installations have grown at an annual rate of 25% since 2000, and the number of EV chargers has doubled since 2021.

While there’s plenty of speculation about how the new U.S. administration will impact sustainability efforts, the real action — and the biggest impact for businesses — is happening at the state level. Across the country, states are updating building codes and sustainability regulations to set the stage for a greener future. These updates strike a balance between offering attractive incentives for developers and enforcing strict penalties for non-compliance.

For businesses, keeping up with these evolving regulations isn’t just about meeting the requirements — it’s quickly becoming essential. 

The Drive Behind State-Level Leadership in Sustainability 

So, why are states taking the wheel on sustainability? Simply put, local challenges require local solutions. State-specific needs — like California's droughts or Florida's hurricane threats — demand tailored approaches.  

This concept of "regional sustainability" means that climate and geography directly shape regulations. States are moving ahead of federal mandates because they can't afford to wait; they're addressing pressing environmental challenges, urban density issues, and public health concerns head-on. 

Key States Leading the Way in Sustainable Building Codes 

Let's take a coast-to-coast tour of some of the states pioneering green initiatives. 

California: A Pioneer in Environmental Policy 

California has long been a trailblazer in environmental standards, going back to the nation's first publicly protected wilderness area in 1864 — Yosemite National Park. This trend continues today with national first policies like the planned phase-out of internal combustion engine vehicles starting in 2035.   

For developers, a critical regulation is the state's Title 24 Building Standards Code, which sets rigorous energy efficiency requirements for new construction. Title 24 is updated every 3 years, with the next revision coming in 2025. The updated code revision aims to push the envelope further by targeting enhanced energy efficiency, water conservation, and emissions reductions. 

For instance, 15% of parking spaces for new commercial buildings and 40% for new multifamily developments will need to be built "EV ready" (built with electrical setups to install EV chargers). This signals future requirements for the installation of EV charging infrastructure, and developers should consider the cost and design of these systems in their development plans.  

New York: Aggressive Decarbonization Goals 

On the East Coast, New York is making waves with Local Law 97, mandating carbon emissions caps for large buildings. This follows the state's Climate Leadership and Community Protection Act (CLCPA), one of the most ambitious climate laws in the nation, targeting a 40% reduction in economy-wide greenhouse gas emissions by 2030.  

One expected change in 2025 is a cap and phase-out of specific Hydrofluorocarbons (HFCs) for new air conditioning systems. HVAC is often the most energy-intensive process for commercial properties and will force developers to use alternative systems, like heat pumps. The 2025 update will also push for greener public transportation systems and stricter energy efficiency targets. 

Washington: A West Coast Innovator in Green Building Standards 

Washington State is not far behind. The 2021 updates to Washington State's energy code introduced stringent energy efficiency measures and clean energy requirements, such as installing heat pumps in all new buildings.  

The state's Clean Buildings Act adds to its push towards lower emissions. It mandates energy efficiency improvements and provides a mechanism for regulators to continually enact stricter energy targets for buildings. The current compliance deadline is June 1, 2026. However, the state offers incentives ranging from $0.30 to $0.85 per square foot for building owners that meet compliance requirements early. This is a great opportunity for developers to help subsidize the future required cost of compliance.  

Massachusetts: A Model for Green Communities 

Massachusetts is leading by example with its ambitious climate policy and implementing the "Stretch Energy Code." This code is an optional appendix to the state building code that municipalities can adopt to achieve higher energy efficiency standards for new buildings in their jurisdiction. The code ensures new buildings align with the state's goal of reducing emissions by 50% by 2040 and a net-zero economy by 2050. Currently, over 300 of the 351 cities and towns in Massachusetts have adopted it, covering more than 85% of the state.  

The 2025 code updates are expected to introduce even stricter emissions benchmarks and advanced energy efficiency protocols. This trend will likely continue as the state pursues its emissions reduction goals, signaling the need for developers to get ahead of future regulations by adopting energy efficiency improvements in the near term. 

Florida: Balancing Sustainability and Resiliency 

Florida faces unique environmental challenges beyond standard energy efficiency due to its susceptibility to extreme heat, hurricanes, and rising sea levels. The Florida Building Code now includes stricter requirements for energy efficiency, such as enhanced insulation standards and high-efficiency HVAC systems. For instance, the code mandates a minimum R-value (a measure of thermal resistance) for insulation in walls and attics to reduce energy consumption for heating and cooling. To address climate resilience, the code requires buildings in certain flood zones to be elevated and constructed with materials that can withstand high winds and water intrusion. For example, in some regions, buildings must be designed to withstand winds up to 180 mph. 

Cities like Miami are taking proactive steps with initiatives such as the Miami Forever Bond, a $400 million investment focusing on flood prevention, sea-level rise mitigation, and affordable housing — all incorporating sustainable practices. These efforts improve the city's infrastructure and promote urban sustainability. 

Colorado: A Trailblazer in Renewable Energy Standards 

Colorado aims high with its Greenhouse Gas Pollution Reduction Roadmap, striving for 100% renewable energy by 2040. A cornerstone of this plan is achieving 100% renewable electricity generation by 2040. This involves a substantial shift toward wind, solar, and other renewable energy sources bolstered by supportive state policies and investments. 

In Denver, the Green Buildings Ordinance mandates that new buildings over 25,000 square feet and existing buildings undergoing roof replacements comply with green building requirements. Options for compliance include installing cool roofs solar panels, adding green spaces, or enhancing energy efficiency measures.  

The state has also updated its building energy codes to emphasize energy efficiency and the electrification of buildings. Programs such as the Colorado Commercial Property Assessed Clean Energy (C-PACE) financing enable businesses to fund energy efficiency and renewable energy projects through a property tax assessment, easing the financial burden of these investments. 

Combined, these policies are reshaping Colorado's construction practices and urban design into a sustainability-first approach.  

North Carolina: Charlotte's Push for Green Urbanism 

Charlotte, North Carolina's largest city, is leading the charge toward sustainability with its Strategic Energy Action Plan (SEAP), adopted unanimously by the city council in 2018. The SEAP sets ambitious goals to transition city operations to 100% zero-carbon sources by 2030 and aims for citywide carbon neutrality by 2050. The program encourages sustainable development through policies like density bonuses for green building certifications and investment in an electric bus fleet public transit.  

At the state level, North Carolina's Clean Energy Plan targets a 70% reduction in power sector greenhouse gas emissions by 2030 and carbon neutrality by 2050. The state ranks fourth in the U.S. for installed solar capacity, boasting over 9,500 megawatts, is modernizing its grid to accommodate more renewable energy sources, and provides incentives for renewable energy development. 

Preparing for the Shift: Business Strategies for Staying Compliant 

Navigating new sustainability regulations can be challenging, but proactive strategies turn challenges into opportunities. While this isn’t an exhaustive list, this website is one of the most extensive resources for incentives in the U.S. at all levels — federal, state, and local. Staying compliant is a risk mitigation strategy. While it may appear the regulations are an imposition to business, the reality is there are benefits, too.  

The 3 Top Benefits 

• Cost Savings through Energy Efficiency: Energy efficiency improvements can reduce energy use by 20% to 40%, which results in a 6% to 9% annual cost savings. 

• Increased Value and Attract Tenants: GRESB confirms all buildings that improve their mechanical systems to increase efficiencies will generate more property value at sale or attract more investors. Plus, tenants care, too! Efficient and sustainable commercial office buildings have proven more attractive to tenants.  

• Lower Cost of Capital: Many states and local jurisdictions that have regulations also have incentives that either pay for a part of the upgrade costs or reduce the cost of capital to finance the improvements, such as PACE financing, which is available in 40 states.  

There’s no reason not to get started today!

Actionable Tips: 

Navigate Sustainability and Thrive 

State-led initiatives are reshaping the U.S.'s sustainability landscape and driving economic value. Business leaders need to stay informed and adapt to evolving regulations to remain compliant and competitive.  

By proactively embracing these changes, you position your business as a sustainability leader. Partnering with experts like Emerald Built Environments, A Crete United Company, can help you navigate this complex landscape and capitalize on the existing government incentives.