§18795a High-efficiency Electric Home Rebate Program

Summary

The federal government must give $4,275,000,000 to State energy offices and $225,000,000 to Indian Tribes in 2022 to set up high-efficiency electric home rebate programs. The money is available through September 30, 2031. State money is split using the State Energy Program formula in effect on January 1, 2022 and paid only if a state’s application is approved. Tribal money is set aside as the Secretary decides and paid only if a Tribe’s application is approved. Not earlier than 2 years after August 16, 2022, any reserved but unused funds for states or tribes must be redistributed to programs already operating, in proportion to what they received. The Secretary may use up to 3 percent of the funds for federal administration and technical help. States and Tribes may use no more than 20 percent of their grant for planning, administration, or technical assistance. To get a grant, a State energy office or Tribe must submit a plan showing how it will check income, give point-of-sale rebates while verifying income at sale, and make sure the same project does not get another federal rebate. The rebates cover buying and installing certain electric home upgrades. Rebate limits: heat pump water heater $1,750; heat pump for space heating or cooling $8,000; electric stove/cooktop/range/oven or electric heat pump clothes dryer $840; electric load service center upgrade $4,000; insulation, air sealing, and ventilation $1,600; electric wiring $2,500. No one can get more than $14,000 total. For single-family households, if income is 80%–150% of area median income the rebate can cover up to 50% of cost; if income is under 80% of area median income the rebate can cover up to 100% of cost. The same 50% and 100% rules apply for multifamily owners where at least 50% of residents meet those income tests, and for government, commercial, or nonprofit groups doing projects for such households. A group that does the work and gets a rebate must reduce what it charges the household by the rebate amount; if that eligible installer performs the work it may also receive up to $500 more, based on the size of the job. Rebates from this program cannot be combined with any other federal grant or rebate for the same project, including HOMES rebates. Equipment must be ENERGY STAR certified when that applies. Definitions in one line each: Eligible entity — a low- or moderate-income household, a multifamily owner of a building with at least 50% low- or moderate-income residents, or a government/commercial/nonprofit group doing the work for those households. High-efficiency electric home rebate program — the state or Tribal rebate program funded by these grants. Low- or moderate-income household — income under 150% of area median income. Qualified electrification project — buying and installing listed electric appliances, wiring, insulation, sealing, or service center upgrades for single- or multi-family homes, subject to ENERGY STAR rules. Indian Tribe — as defined in federal law.