Texas Secures $689 Million in Federal Funding for Energy Efficiency Programs

Texas is getting a parting gift from the Biden Administration. Earlier this month, the application from the Comptroller of Public Accounts’ State Energy Conservation Office for more than $689 million was conditionally approved by the Department of Energy.

What Are the HOMES and HEARS Programs?

That money is meant to run both the HOMES and HEARS programs, which provide rebates for more efficient appliances and energy-efficient retrofits for homes and apartments. The money was authorized under the Inflation Reduction Act of 2022.

When Will the HOMES and HEARS Programs Begin?

Under the conditional approval, Texas will get money in tranches, but the money should be safe from any “clawback.” SECO plans to issue an RFP soon to run the programs and begin the programs in late summer.

Learn More About the HOMES and HEARS Programs

More information about the HOMES and HEARS program can be found here: State Energy Conservation Office - Funding Details.

How Will the $689 Million Benefit Texans?

In response to the conditional approval, Sierra Club’s Legislative and Conservation Director Cyrus Reed stated, “$689.3 million to help Texans weatherize their homes and invest in new better technology will help save money, protect against climate extremes, and make our electric grid more reliable.”

Federal Funds vs. Current Energy Efficiency Spending in Texas

In a typical year, Texas’s eight private Transmission and Distribution Utilities spend only about $110 million in a year on energy efficiency measures, meaning the federal funding is five times as much. Texas will have multiple years to spend the money.

Sierra Club Responds: A Step Toward a Reliable Electric Grid

Reed’s comments highlight the importance of these investments, which aim to create long-term energy savings and improve the reliability of Texas’s electric grid amidst climate challenges.