New DOE guidance seeks to quicken $9B efficiency payouts

The rebates targeted at homeowners are a key part of last year's Inflation Reduction Act.

October 17, 2023

The Department of Energy is aiming to speed up the disbursement of nearly $9 billion in Inflation Reduction Act energy efficiency rebates for homeowners across the country.

DOE released new guidance Friday that clarifies arcane sections of the program, potentially allowing state officials administering the rebates to get the money out the door quicker.

The department is also allowing states to award some rebates to homeowners that have retrofitted their homes since Aug. 16, 2022 — the date President Joe Biden signed the Inflation Reduction Act into law — rather than awarding rebates for retrofits completed after states launch their programs. Many efficiency experts praised the new rules.

“With clearer guidance in hand, states can move swiftly to allocate nearly $9 billion in funding for home energy improvement programs that will increase comfort and provide locked-in energy savings for years to come, while also reducing climate emissions and other pollution,” Sara Baldwin, senior director for electrification at Energy Innovation, a clear energy-focused think tank, said in an email.

DOE did not publicly announce the new guidance with a press release.

The Inflation Reduction Act, often regarded as the most ambitious U.S. decarbonization law to date, included at least $369 billion in clean energy grants and tax credits. The nearly $9 billion in home efficiency rebates is one of the most direct ways the law aims to reduce the cost for everyday Americans to decrease emissions.

A report this year from Princeton University's REPEAT project suggests the Inflation Reduction Act and the 2021 bipartisan infrastructure law will together slash U.S. emissions 37 to 41 percent below 2005 levels by 2030.

DOE released the initial guidance for the rebate program in late July. About 15 states have already received administrative funds to launch the rebate programs, according to the National Association of State Energy Officials.

In September, a coalition of nearly 70 House Democrats pushed Energy Secretary Jennifer Granholm to clarify the guidance and make the rebates retroactive, arguing that the department was slow-walking disbursement.

"More than a year after the enactment of the [Inflation Reduction Act], no rebates have been issued and our constituents are still wondering if and when such investments will qualify for rebates," the lawmakers, led by climate hawk Rep. Jared Huffman (D-Calif.), wrote in a letter in September.

The new updates have satisfied Huffman’s concerns, at least partially.

“I wish we could’ve gotten all this clarity and closure a year ago,” Huffman, who spoke with Granholm last week, said in an interview Monday with E&E News. “That would have been nice. But we’ve got it now.”

DOE representatives did not respond to a request for comment on the new guidance.

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By:  Brian Dabbs
Source: Energy Wire