State and local strategies to build energy programs in any funding environment
With a shrinking pool of available funding, state and local governments must become flexible and innovative to provide energy programs with long-term durability. Here are best practices for building lasting programs and institutional capacity for programs that prioritize affordability, pollution, health, climate, reliability, and resilience.
3 best practices for sustainable energy programs
State and local governments (SLGs) are facing a shrinking pool of available funds for climate, energy, and resilience programs. Many SLGs saw budget reductions in 2025 and a pullback in funding sources, forcing leaders to ask themselves how they can build programs that last and ensure that their existing investments endure.
During a recent ICF-hosted webinar, state and local leaders shared strategies for building long-term capacity for programs and with staff. Drawing on their insights, as well as with input from various other state and local leaders across the country, several best practices and innovative ideas have emerged to help SLGs build sustainable programs that can continue to drive necessary benefits and solutions for residents and businesses across the country.
1. Take advantage of technology and regional collaboration to maximize what’s available
With fewer federal dollars available, regional collaboration around shared energy, affordability, environmental, and resilience priorities is more important than ever. Forming partnerships across all levels of government and with regional agencies, national labs, utilities, community organizations, private entities, and other organizations can help state and local offices identify available funding and better position themselves to secure dollars for their region while ensuring long term program durability. For example, teaming with regional agencies on funding applications or for financing programs, rather than competing against one another, can help improve the chances that SLGs secure funding and advance shared goals for their region.
Additionally, technology solutions can help agencies identify and prioritize funding opportunities, as well as maximize their existing budgets. AI-powered grant tracking tools can help agencies rapidly identify and prioritize available funding. And tools that can measure and optimize your existing programs can ensure that agencies are efficiently putting their existing dollars to use.
Fostering a culture of continuous learning and organizational flexibility in adopting new technologies can help state and local agencies adapt to a changing funding landscape.
2. Plan for long-term operation and maintenance, not just program launch
While many climate, energy, and environmental programs include funding for more than just upfront capital costs, long-term operation and maintenance (O&M) can still be a persistent challenge. Ensuring program durability requires funding mechanisms that support not only initial implementation but also the ongoing costs of staffing, upkeep, and performance tracking. As states and localities navigate a complex funding landscape, there’s growing interest in more flexible, locally controlled financing strategies that reduce dependence on short-term or federal sources. These approaches can help agencies sustain impact, adapt to changing conditions, and build resilience over time—especially when paired with thoughtful planning and cross-sector collaboration.
Key considerations for long-term success include securing dedicated O&M funding to keep programs functional and effective, investing in staffing and capacity-building to manage and evolve initiatives, and allocating resources for performance tracking and evaluation to guide improvements. Locally controlled financing tools can reduce reliance on federal or one-time funding sources, and cross-sector partnerships can help align technical, financial, and community expertise to support sustained impact.
3. Build a flexible, cross-trained workforce
As priorities shift, state and local agencies must be able to adapt to navigate the whiplash effect that policy changes can cause. Developing a workforce that is cross-trained and has relationships across departments can help.
State energy offices commonly map out funding streams and staff capacity, planning for 1-, 3-, and 5-year horizons. And some local agencies are able to coordinate across departments and engage community volunteers, expanding capacity beyond their formal staff. Programs that deliver meaningful community impact can be good candidates to leverage community support to help implement, and local agencies can be uniquely positioned to mobilize this. Engaging community members as ambassadors or volunteers can help build programs that scale with community involvement and formalize successful pilot efforts for long-term sustainability.
Additionally, there’s a need to ensure that existing workforce development training programs are tailored to the projects that staff will work on when they fully enter the workforce.
Conclusion
Given the current funding landscape, state and local agencies must prioritize how they build and sustain their programs over the long-term. By fostering stronger regional and community ties, planning for long-term operations, and leveraging technology, state and local agencies can build programs that endure and continue to deliver impact for their communities regardless of the current funding landscape.