February 13, 2025 | SWEEP Staff
The new year has started off with ample amounts of turmoil and uncertainty, particularly for those of us working in the clean energy space. Fresh off the hottest year in recorded history, we watched unprecedented wildfires burn through Los Angeles. Meanwhile, we wonder about the fate of promised funding from the Inflation Reduction Act — funding designed to help mitigate the heat waves and droughts fueling the intensity of this destruction and to spur a transformation to a clean electricity-powered future for our cars, buildings, and industries.
At the same time, new directives from Washington, D.C. have raised concerns about how resources will be prioritized, particularly for upgrading leaky, unhealthy homes in historically underserved neighborhoods that have borne the brunt of pollution and neglect. These developments make it challenging to feel hopeful, and it’s clear that the path forward will require us to adapt and advocate with even greater determination.
Yes, there is a lot to be concerned about. But as we reflect on the progress made in recent years and the resilience of our efforts, there is also room for cautious optimism. There are some universal values that unite us all — a commitment to improving energy affordability, minimizing energy waste, and promoting energy reliability, to name a few. Every action we take towards achieving these, no matter how small, moves us closer to a future where everyone has access to the energy solutions they need to thrive.
Also, amidst the current about-face on climate commitment at the federal level, it’s easy to forget that much of the progress that’s been made to date on curbing greenhouse gas (GHG) emissions, generating clean energy jobs, and cutting energy waste has been — and will continue to be — spurred by action at the state and local level.
Looking forward, the Southwest Energy Efficiency Project (SWEEP) team has a long to-do list of impactful work planned for 2025. Across the Southwest, we are rolling up our sleeves and following through on our New Year’s resolution to keep moving the ball forward towards a clean and efficient energy future for all — in collaboration with state energy offices, city councils, state legislatures, local building officials, and community partners. Below are a handful of some of the important efforts we’ve resolved to engage in over the next 12 months.
COLORADO
2025 is poised to be a pivotal year for building electrification and energy efficiency in Colorado, despite uncertainties in funding. Starting on January 1st, Xcel Energy significantly increased its electrification and energy efficiency incentives following approval of its inaugural Clean Heat Plan. This includes substantial incentives for cold climate heat pumps, now qualifying for over $2,000/ton. Additionally, we anticipate a substantial infusion of funding through the state’s Home Energy Rebate Programs and the Denver Regional Council of Governments’ building decarbonization initiative. Together, these programs are set to provide over $1 billion in incentives over the next three years. However, it’s crucial to note that some of this funding remains uncertain due to the federal pause. To complement these efforts, SWEEP is actively developing a statewide on-bill financing program through both Xcel filings at the Public Utilities Commission and legislative avenues. This initiative aims to bridge funding gaps, allowing Coloradans to make energy efficiency and electrification improvements with minimal upfront costs.
Colorado is projected to grow by 1.7 million people by 2050, a 30% increase, while grappling with a severe housing affordability crisis and falling short of its transportation GHG reduction targets. To tackle these challenges, it’s crucial that Colorado adopt smart growth policies that create more housing in urban areas near transit, jobs, and key destinations while protecting open space and agricultural lands from exurban sprawl. In 2024, the Colorado Legislature passed landmark legislation to promote climate-friendly land use, transit-oriented development, and gentle density, including Accessory Dwelling Units. This year, SWEEP will partner with stakeholders to help local governments achieve or exceed the outcomes envisioned by these new laws, maximizing benefits for climate, affordability, public health, congestion, and community well-being. We will also support new measures to further boost affordability and housing production in urban, transportation-efficient areas.
UTAH
In 2025, SWEEP and its partner, Utah Clean Energy, will continue to champion and support the implementation of an estimated $400 million of federal funds coming to the Beehive State. This landmark funding will benefit Utahns by boosting home efficiency and electrification upgrade programs, expanding medium- and heavy-duty vehicle electrification opportunities, creating new rooftop and community solar initiatives, and more.
NEVADA
In this year’s state legislative session, SWEEP is excited to advocate for clean energy solutions such as a $5 million infusion of funding for the Nevada Clean Energy Fund (NCEF), the state’s nonprofit green bank that provides financial and technical assistance for clean energy projects across Nevada. Dedicated state dollars would sustain NCEF’s operations and unlock its potential to leverage federal and private capital, bringing affordable clean energy to more Nevadans. Building on its 2023 successes — including securing $1 million in state support and pursuing transformative grants — this funding will strengthen NCEF’s capacity to drive effective energy solutions and economic growth. Together, we can ensure that Nevada’s energy future is clean, low-carbon, and efficient, benefiting all communities while addressing historical barriers to progress.
NEW MEXICO
Two states over, SWEEP is working hard to secure passage of the Powering Up New Mexico bill in the legislature. This measure, based on legislation we helped pass last year in Colorado, would direct electric utilities to proactively invest in their distribution system to accommodate load growth related to electrifying buildings and transportation. In addition, it would require New Mexico’s electric utilities to help customers install space and water heating and appliances powered by clean electricity in their homes and businesses. These components are essential for the state to meet its decarbonization targets by enabling greater investments in transportation and building electrification.
ARIZONA
Throughout 2025, SWEEP will remain active in the Grand Canyon State, defending against legislative and regulatory rollbacks while seizing opportunities to advance building and transportation electrification as a grid resource. Our efforts will also prioritize securing consumer-friendly, reliable energy efficiency services across multiple policy forums. Additionally, we will support local governments and businesses in adopting energy-saving building codes and ensuring electric vehicle (EV) charging programs are both accessible and dependable. This work will be carried out in collaboration with local businesses, schools, utilities, and regional, state, and local governments, as well as community organizations.
FEDERAL
Light-duty EV sales have accelerated dramatically across the Southwest in the past few years, ending 2024 at above 15% market share, with Colorado approaching 30%. Medium- and heavy-duty EVs are taking off as well, accounting for close to 8% of new vehicle sales across the region. That’s great news for our wallets, because energy-efficient EVs offer significant and meaningful savings on fuel. Federal incentives are making these cost savings more accessible for individual consumers, businesses, and commercial fleets. Unfortunately, however, EV tax credits and grants may be in the crosshairs back in Washington. SWEEP will be working diligently in 2025 to bolster support for preserving these critical federal policies that are helping us all save money on transportation.
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