In some instances legislative and executive efforts are required to implement energy efficiency and renewable energy finance approaches.

For certain structure options, like property-assessed clean energy (PACE) programs or qualified energy conservation bonds (QECBs), authorizing legislative or executive efforts will be required at a state level. For example, state-level enabling language for QECBs can be found in this Energy Programs Consortium memo, while PACE legislation is collected on the PACENow website.

For other options, a state can simply promote the use of finance approaches through strongly worded legislation. For instance, in Washington State, with regards to American Reinvestment and Recovery Act funding, legislation provided that:

"The legislature finds that the creation and use of risk reduction mechanisms will promote greater involvement of local financial institutions and other financing mechanisms in funding energy efficiency improvements and will achieve greater leverage of state and federal dollars … Local municipalities receiving federal stimulus moneys through the federal energy efficiency and conservation block grant program or state energy program are authorized to use those funds, subject to federal requirements, to establish loan loss reserves or toward risk reduction mechanisms, such as loan loss reserves, to leverage financing for energy efficiency projects" (RCW 43.330.330-350 [2009 c 379 § 206-8).

At the local level, legislation is sometimes needed or desired for a range of reasons, including authorizing the use of city/county funding, approving a bond issuance, guiding clean energy financing program direction, or creating a PACE financing district.