FOR IMMEDIATE RELEASE
July 28, 2023
Contact: Morgan Caplan, morgan.caplan@sierraclub.org
DOE Releases Guidance for Maryland to Develop Electrification and Efficiency Rebates Programs
Maryland Leadership Must Develop Rebates Programs Focused on Low-Income Consumers
College Park, MD- Today, the Department of Energy (DOE) released guidance for states to apply for new Home Energy Rebates Program funding. The program, created by the Inflation Reduction Act (IRA), will distribute a total of $8.5 billion dollars in formula grants for states to deliver home electrification and efficiency rebates to help consumers better afford upgrades that will lower utility bills, improve home comfort and resilience, and reduce indoor and outdoor air pollution. Maryland is eligible to receive approximately $136 million to distribute to consumers.
Maryland will need to develop its own rebates program based on the guidance laid out by DOE, for which there is administrative support available. Once Maryland’s program is developed, DOE will approve its rollout. Applications will be accepted on a rolling basis through January 2025, with consumer rebates expected to be available to consumers in many states by late 2023 or early 2024.
As Maryland begins to use this federal guidance, Maryland Sierra Club is urging officials to coordinate state and federal funding for weatherization, electrification, and home health and safety repairs into one streamlined whole-home retrofit program with this IRA funding to maximize benefits and reduce red tape. Officials should also ensure robust stakeholder feedback, find ways to include and protect renters, and put a primary focus on delivering rebates to low-income households. DOE guidance requests states allocate at least half of program funds to reach low-income households and prepare Community Benefits Plans to assure funds are invested in good jobs and real economic opportunities.
The Home Energy Rebates Program will improve the liveability and energy affordability of homes across Maryland. DOE estimates consumers will save up to $1 billion each year in energy costs.
It will also help grow the job market and boost manufacturing for energy efficient appliances, “supporting an estimated 50,000 U.S. jobs in residential construction, manufacturing, and other sectors,” according to DOE. A companion program, called the Contractor Training Program, provides states with funds to “train, test, and certify residential energy efficiency and electrification contractors.”
In response, Josh Tulkin, Maryland Sierra Club Director, released the following statement:
“Buildings are a major, often overlooked source of climate emissions and dangerous air pollution. More importantly, though, buildings are our shelter from increasingly strong storms and dramatic heat waves and cold snaps. Buildings are our homes where we feed and grow our families – they must be safe and should be comfortable. Electrification and energy efficiency upgrades help achieve clean, safe homes. These appliance swaps and electrical updates should not be reserved for only those with the most resources. Maryland officials must act swiftly to adapt this guidance from DOE to develop the state’s Home Energy Rebates Program so Maryland residents, especially low-income folks and renters, can access support in making these vital electrification and energy efficiency improvements.”