U.S. Department of Homeland Security

Federal Emergency Management Agency

Washington, DC 20472

January 30, 2024

MEMORANDUM FOR: FEMA Regional Administrators

Regions 1-10

ATTENTION: Federal Coordinating Officers

Regional Recovery Division Directors

Regional Mitigation Division Directors

Consolidated Resource Center Directors

FROM: William C. Hagmaier

Assistant Administrator

Recovery Directorate, Office of Response and Recovery

Derrick Hiebert

Assistant Administrator for Mitigation

Hazard Mitigation Directorate, Resilience

SUBJECT: Implementation of Inflation Reduction Act Section 70006(2) for

FEMA Public Assistance and Hazard Mitigation Assistance Programs

The purpose of this addendum is to announce FEMA implementation of Section 70006(2) of the

Inflation Reduction Act of 2022 (IRA) for the Public Assistance (PA), Building Resilient

Infrastructure and Communities (BRIC), Pre-Disaster Mitigation (PDM) and Hazard Mitigation 

Grant Programs (HMGP) and HMGP Post-Fire.1

On March 28, 2023, FEMA published the memorandum titled 'Implementing the Inflation Reduction 

Act Section 70006(1) for FEMA Public Assistance and certain Hazard Mitigation Assistance

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delineating the definitions necessary to support the use of -

Section 70006 of the Inflation Reduction Act (IRA) authorizes FEMA to provide financial assistance

under sections 203(h), 404(a), and 406(b) of the Robert T. Stafford Disaster Relief and Emergency 

Assistance Act (Stafford Act) for: -carbon materials; and (2) incentives

that encourage low-carbon and net-

-

implementation of IRA Section 70006(2). These definitions, provided below, are applicable to 

Public Assistance (PA), Building Resilient Infrastructure and Communities (BRIC), Pre-Disaster

Mitigation (PDM) Program, and the Hazard Mitigation Grant Program (HMGP) and HMGP PostFire. Programs will conduct training to implement this provision. For PA, FEMA Net-Zero Energy 

1

 Inflation Reduction Act of 2022, Pub. L. No. 117-169, § 70006, 136 Stat. 2087, available at:

https://www.congress.gov/bill/117th-congress/house-bill/5376/text.

Implementing the Inflation Reduction Act Section 70006(1) for FEMA Public Assistance and certain Hazard

Mitigation Assi available at: fema inflation-reduction-act-implementation-memo 032023.pdf

www.fema.gov

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projects will be funded at the same cost-share rate as other permanent work projects. For BRIC, 

PDM, HMGP and HMGP Post-Fire, FEMA Net-Zero Energy projects will be funded at the same

cost-share as other mitigation projects as long as the project is cost effective and all other eligibility 

criteria are met.

For otherwise eligible PA and HMA projects, the increased costs of designing projects to be net-zero 

over traditional methods is allowable. While funding is not available solely for the purpose of

implementing net-zero energy projects, without a tie to disaster recovery or mitigation, FEMA

encourages applicants to incorporate net-zero activities into their otherwise eligible recovery and 

mitigation projects.

For Public Assistance any federal disaster declared after Aug. 16, 2022, applicants may now use

FEMA financial assistance for unobligated projects under these programs to take advantage of this

opportunity. 

The BRIC Program published the Fiscal Year (FY) 2023 Notice of Funding Opportunity that may 

apply to projects that are subject to higher costs due to incorporation of net-zero energy projects. 

Refer to future Notices of Funding Opportunities for more information.

For the PDM Program, refer to future Notices of Funding Opportunities for more information. 

For HMGP and HMGP Post-Fire, this is applicable for major disaster declarations after August 16, 

2022, with open application periods as of the issuance of this memorandum, or for major disaster

declarations declared after the issuance of this memorandum, provided all other program

requirements are satisfied.

To support implementation of IRA Section 70006(2), FEMA consulted with the U.S. Department of

-

HMGP, HMGP Post-Fire, BRIC, PDM, and PA building projects to best capture the capabilities and 

characteristics of a net-zero energy project.

For a FEMA project to be determined eligible as a net-zero energy project, each project must meet

applicable program eligibility requirements. For new construction, major renovations, 

reconstruction, or code updates to be identified as net-zero energy, the following requirements will

be taken into consideration to allow for additional costs, or other program or grant benefits:

New construction and major renovations projects:

1. Are defined as new buildings or complete overhauls of existing buildings to salvage

existing core structural elements, historical facades, etc. without any functional floor area

being preserved in the process.

2. Must produce buildings that meet or exceed the energy performance thresholds and 

renewable generation requirements specified in the zero energy appendices of the 2021 

International Energy Conservation Code (IECC), appendix CC and RC for commercial

and residential, respectively. Code specifications or standards that are equivalent to or

more stringent than the IECC require the project engineer, design professional, or other

project professional to identify the energy requirements of such local code specifications

or standard as equivalent to or more stringent to the IECC.

3. Must comply with these requirements using the methodology and requirements

outlined in these IECC Appendices, or subsequent, more recent versions, or other
 

 

 

 

 

 

 

 

 

 

 

versions of zero energy building codes as they may emerge and be specified by FEMA or

Department of Energy (DOE) as eligible.

Existing buildings that are transitioning to net-zero energy projects:

1. Are defined as existing buildings which are eligible for FEMA funding that undergo 

an alteration, modification, or other retrofit.

2. Alterations, modifications, or other retrofits affecting part but not all of an existing 

building must meet or exceed the requirements outlined in Chapter 7 and Normative

Appendix B (if applicable) in the 2021 or most recent version of the International Green 

Construction Code (IgCC). These construction and procurement requirements ensure that

high performance equipment and materials are installed in the facility, even if the facility 

as a whole, will not meet the energy performance targets specified in the IECC Zero 

Energy Appendices. Code specifications or standards that are equivalent to or more

stringent than the IgCC require the project engineer, design professional, or other project

professional to identify the energy requirements of such local code specifications or

standard as equivalent to or more stringent to the IgCC. 

3. The project must procure renewable energy generation in an amount equivalent to or

greater than the annual energy consumption of the alteration, modification, or other

retrofit of the existing building. The amount of renewable energy generation required for

the project can be calculated using the methodologies outlined in the IECC Zero Energy 

Appendices. Pairing this renewable generation with high performance equipment and 

materials will enable partial-building projects for existing buildings to achieve net-zero 

standards.

4. Compliance with these requirements will be performed using the methodology and 

requirements outlined in the IECC Zero Energy Appendices and the IgCC where

specified above throughout the construction process.

Jurisdictional code updates regarding net-zero energy projects:

1. Are defined as building code adoption, implementation or enforcement by the

authority having jurisdiction.

2. Must produce buildings that meet or exceed the energy performance thresholds and 

renewable generation requirements specified in the zero energy appendices of the 2021 

International Energy Conservation Code (IECC), appendix CC and RC for commercial

and residential, respectively.

3. Must comply with these requirements using the methodology and requirements

outlined in these IECC Appendices, or subsequent, more recent versions, or other

versions of zero-energy building codes as they may emerge and be specified by FEMA or

DOE as eligible. 

If you have questions about the content of this memo, please contact Robert Pesapane, Director, 

Public Assistance Division, at robert.pesapane@fema.dhs.gov or Gerilee Bennett, Acting Director, 

Hazard Mitigation Assistance Division, at gerilee.bennett@fema.dhs.gov.