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Congress has left well enough alone, but that doesn’t mean funds are necessarily flowing.
The Trump administration and Republicans in Congress have done a pretty good job working in tandem to tear down American climate policy. But one key set of clean energy programs has remained relatively unscathed.
The Inflation Reduction Act’s two home energy efficiency rebate programs — one for carbon-cutting appliances and one for whole-home efficiency upgrades — have not been targeted for agency termination or Congressional repeal, or at least not to date.
Still, that doesn’t mean they haven’t run into roadblocks. The rebate programs are paid for by the federal government and administered by states, which have to apply for the funding and stand up programs to disburse it. While the Biden administration had obligated funding to all 49 states that applied for it, only a small handful of states had fully executed contracts enabling them to use the money by the time Biden left office. The rest are now being stonewalled by the Department of Energy, which is still undertaking a “review” of Biden-era funding decisions. Some officials are wondering whether they’ll ever get their applications approved.
Vermont, for example, is stuck in a holding pattern for its Home Electrification and Appliance Rebates, or HEAR program. HEAR provides low- and moderate-income households cash back on appliances like heat pumps and induction stoves, as well as on insulation, air sealing, and electrical upgrades. The Biden administration “conditionally” approved Vermont’s $58 million application, which focused almost exclusively on heat pumps, according to Melissa Bailey, the director of efficiency and energy resources at the Vermont Department of Public Service. It’s not clear that anything in the application is deficient or needs to be changed, she told me. But the new administration has been unresponsive about next steps.
“Candidly, we were concerned that the funding may just not come through at all, so we essentially have paused our planning efforts,” Bailey said.
Vermont is fortunate in that its application for the other IRA rebate program, known as Home Efficiency Rebates and often referred to as HOMES, was finalized before Biden left office. HOMES offers rebates for upgrades based on the amount of energy the upgrades saved, rather than for specific purchases, and Vermont plans to funnel its $29 million HOMES funding into an existing weatherization program. The state has been able to get administrative expenses reimbursed, but it hasn’t technically launched the program yet, as it’s still waiting on the DOE to approve the modeling software the state plans to use to estimate energy savings.
“DOE is very actively engaging with us on the HOMES application as we move forward,” she said. But on HEAR, which is further back in the approval process, the administration has been much more cagey. “Anytime we bring up HEAR, verbally on calls and email, it’s just this kind of standard language that is, thank you for your patience, we’ll let you know when we’re ready to talk about it.”
By combing through public data and reaching out to state energy offices, I found that just five states plus the District of Columbia have been able to launch both rebate programs. Seven additional states have launched HEAR, but their HOMES applications are in various stages of approvals. But 36 states, plus five U.S. territories, have not launched either program, almost three years after the passage of the IRA.
The Department of Energy did not respond to my questions about the rebate programs. But the agency has been reviewing all Biden-era funding decisions. On June 10, Secretary of Energy Chris Wright told the House Committee on Energy and Commerce that his review was ongoing, but didn’t give a clear indication of how long it would take. “We got a process in place, we have a team in place, we’re getting through maybe a dozen or more projects a week, maybe more than a dozen projects a week,” he said. “And so by the end of this summer or middle of this summer we’re going to have clarity on most of the big projects.”
Since neither the reconciliation bill nor Trump’s budget nor his requested rescissions have threatened the rebate programs, there’s no reason to suspect that the DOE will try to claw back the obligated funds. But the funding review and soft pause on applications has created lingering uncertainty.
Meanwhile, Republicans in Congress are working to strip away other funding for energy efficiency. Both the House and Senate have proposed repealing the federal energy efficiency home improvement tax credit — which has existed in some form since 2005 — as part of Trump’s One, Big Beautiful Bill.
The program helps homeowners reduce their energy use, save money, and make their buildings more comfortable. It also eases strain on the grid. The latest iteration offered 30% off the cost of Energy Star-rated windows and doors, insulation, air sealing, heat pumps, and new electrical panels, up to $3,200 per year.
If Trump signs off on terminating this tax credit and the tax credit for rooftop solar, which also seems doomed, the IRA’s rebate programs will be some of the only subsidies left in many states to help Americans afford home improvements that have high up-front costs but long-term financial benefits.
But the termination of the tax credits could also have a negative impact on the rebate programs. That’s what Brian Kealoha, the Chief Growth and Impact Officer at VEIC, a nonprofit that’s working with seven states and the District of Columbia on their IRA rebate programs, is worried about. “The return on investment is just not going to be attractive enough” for heat pumps, he told me. “Unless you’re passionate about decarbonization … how much participation are you going to get without making the return look good?”
Some of the states that have already launched their IRA rebates were able to move quickly because they had pre-existing energy efficiency programs that they could funnel the funding into, rather than having to develop entirely new initiatives. New York, for example, which launched the first HEAR program in the country, put about $40 million of its $158 million award into its Empower+ program, which already provided incentives to low- and moderate-income New Yorkers for upgrades like insulation and heat pumps. Since then, the program has “supported nearly 5,700 projects, yielding $1.82 million in total energy bill savings,” a NYSERDA spokesperson told me.
The state later launched a second program in November offering rebates for heat pump clothes dryers. That has approved 1,100 applicants so far, 350 of whom have redeemed the rebate.
California, similarly, has launched its appliance rebate program in phases, with only the first phase of funding for heat pumps operating so far. The program is already fully subscribed for single family homes, having approved more than 4,000 applications totaling more than $32 million, but is still accepting applications for multifamily buildings. The California Energy Commission told me the second phase is still under development, and that staff are also working on implementation plans for the HOMES program, which they will submit to DOE later this summer.
Other states have taken the opposite approach, choosing to target projects that were not already served by existing programs. Maine already had a successful rebate for homeowners who switch from fossil fuel heating to heat pumps, for example, so it created two new programs using HEAR funding to get heat pumps to other markets — new multifamily buildings that serve low-income households and manufactured homes, often called mobile homes. To date, it has received 12 multifamily applications and approved five, providing up to $2.5 million to install heat pumps in more than 300 low-income units. It’s also awarded an average of $10,500 to 19 manufactured homeowners to switch their propane or kerosene heating systems to heat pumps.
Afton Vigue, the communications manager for the Governor’s Energy Office, told me in an email that Maine’s application for the HOMES program has been “conditionally awarded” and it is “awaiting guidance from the U.S. Department of Energy” but doesn’t know when that will come.
But it seems that everywhere these programs are operating, they have seen high demand.
Georgia was one of the first states to launch both HEAR and HOMES rebates. As of June 12, the state had paid out 178 HEAR rebate applications totaling $1.6 million, and had 72 more in the pipeline, Shane Hix, the director of public affairs at the Georgia Environmental Finance Authority, told me. Its HOMES program had awarded 93 households totaling $922,500, with 89 applications pending.
North Carolina is also operating both programs, but is rolling them out one county at a time, starting in “high energy burden, disadvantaged communities,” Sascha Medina, the Public Information Officer at the State Energy Office told me. Between the launch in January and June 13, the state had received more than 4,100 applications, she said.
The good news for those living in places that are stuck in limbo is that the funding for the rebate programs was authorized through 2031. As long as Chris Wright doesn’t decide the rebates are a waste of taxpayer dollars, and he ultimately resumes approvals for the programs, you’ll still have a number of years to take advantage.
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When Congress rescinded unobligated funds from the historic climate law, it inadvertently answered a question climate advocates have been asking for months.
The Biden administration left office without ever disclosing how much of the historic climate funding from the Inflation Reduction Act it had spent.
Politico reached out to every federal agency in November in an attempt to answer that question and could only conclude that it was a “big mystery.” The administration had announced awards for about 67% of the $145.4 billion in grants created by the IRA, the outlet found, but the amount that had been obligated — meaning legally committed and therefore, at least in theory, protected — remained largely unknown.
That continued to be true right up until the legislative process for Trump’s One Big Beautiful Bill. In addition to overhauling the IRA’s clean energy tax credits, Republicans in Congress rescinded the unobligated funds from 47 of the law’s more than 80 climate and environmental programs. According to scores from the Congressional Budget Office, $31.7 billion of the $93.4 billion for those programs, or about 34%, was left.
That means the Biden administration spent or contracted out about two-thirds of the funding from these programs. The data puts into focus what the ultimate effects and outcomes of the Inflation Reduction Act will be over the coming decades — or rather, what they could be, if the Trump administration upholds existing contracts. Whether the administration must honor these agreements is the subject of several ongoing lawsuits.
But we can see, for example, that the Environmental Protection Agency, which had the largest appropriation from the IRA of any agency, obligated the vast majority of that money to states, tribes, nonprofits, and other beneficiaries. Billions of dollars to monitor and address air pollution in low-income communities and at schools, to phase down planet-warming refrigerants and transition to next-generation technologies, and to help states build out and implement their climate action plans should theoretically be flowing into the economy, so long as the contracts are ultimately honored. The entirety of the $27 billion Greenhouse Gas Reduction Fund was obligated, and while the EPA has attempted to claw back roughly $20 billion of that — a process that has been held up in the courts — the $7 billion set aside for a low-income solar program called Solar For All is actively funding new projects around the country.
The agency under Biden was less successful in standing up a series of programs designed to advance greenhouse gas emissions reporting. Initiatives to improve the labeling systems for low-carbon construction materials and to standardize corporate emissions reporting never really got off the ground.
The Department of Agriculture was also an efficient spender. While the data shows it had obligated only about $7 billion of the more than $18 billion allocated for climate-focused conservation programs, only $10 billion of the funding was actually available for the department to use by the time Biden left office. On the one hand, that means it awarded 70% of the available funds. On the other, that means Congress has now evaporated a whopping $11 billion that could have been disbursed.
The Forest Service, which is under the USDA, also deployed more than $2 billion, or about 93% of its funding for National Forest restoration, urban forestry, and climate mitigation grants for private forest owners.
There are limitations to the data. It shows that the Department of Energy only spent about 39% of its funding, but because the Budget Office did not break out the rescissions by program, we can’t see how far along the agency got with each one, or how much of each was clawed back. The data can also be somewhat misleading, as several of the programs provide loans and loan guarantees, while the OBBB only rescinded “credit subsidies,” i.e. money to cover the costs of this lending service. In other words, this doesn’t tell us much about how much Biden’s Loan Programs Office accomplished. But in this case the office’s website helps fill out the picture: It lists 23 active loans that were made after the IRA passed, worth nearly $58 billion. (The IRA appropriated about $11.7 billion in credit subsidies to the Loan Programs Office.)
I also put together a list of programs that Congress did not rescind, as they show which IRA creations the GOP either deemed worthwhile or too depleted, a.k.a. obligated, to be worth the effort. Several big-ticket items jump out. As I’ve previously written, two rebate programs for home efficiency improvements remain intact, although most of the $8.8 billion in funding is currently paused. Drought mitigation, water access, and tribal electrification and climate resilience grants were also untouched. A $3 billion EPA program to reduce air pollution at ports made it through the gambit after an initial House draft of the OBBB had proposed killing it.
Republicans in Congress also preserved a nearly $10 billion program to help rural electric cooperatives invest in clean energy and energy efficiency. Rural coops disproportionately rely on coal-fired power plants, burdening their members with higher energy prices and dirtier air. While the National Rural Electric Cooperative Association is a major advocate for coal power and has applauded Trump’s moves to boost it, the group also championed the rural clean energy program, with its CEO telling E&E News last fall that the program was oversubscribed and that “there is an appetite for investing in clean energy.”
To be sure, the question of whether and to what extent the Trump administration will disburse previously obligated funds or continue to spend down the remaining programs is a big one. But the supposition that the OBBB “killed” the IRA is also not really accurate. Between obligated funds and the programs that weren’t rescinded, more than $105 billion could still flow into the economy to fight climate change.
Unlike just about every other car sales event, this one has a real — congressionally mandated — end date.
Car salespeople, like all salespeople, love to project a sense of urgency. You know the familiar seasonal rhythm of the TV commercial: Toyotathon is on now — but hurry in, because these deals won’t last. The end of the discount is, of course, an arbitrary deadline invented to juice that month’s sales figures; there’ll be another sale soon.
But in the electric vehicle market there’s about to be a fire sale, and this time it really is a race against the clock.
Federal incentives for EVs and EV equipment were critically endangered the moment Donald Trump won the 2024 presidential election. Now, with the passage of the omnibus budget reconciliation bill on the Fourth of July, they have a hard expiration date. Most importantly, the $7,500 federal tax credit for an EV purchase is dead after September 30. Drivers who might want to go electric and dealerships and car companies eager to unload EVs are suddenly in a furor to get deals done before the calendar turns to October.
The impending end of the tax credit has already become a sales pitch. Tesla, faced with sagging sales numbers thanks in part to Elon Musk’s misadventures in the Trump administration, has been sending a steady slog of emails trying to convince me to replace my just-paid-off Model 3 with another one. The brand didn’t take long to turn the impending EV gloom into a short-term sales opportunity. “Order soon to get your $7,500,” declared an email blast sent just days after Trump signed the bill.
On Reddit, the general manager of a Mississippi dealership posted to the community devoted to the Ioniq 9, Hyundai’s new three-row all-electric SUV, to appeal to anyone who might be interested in one of the three models that just appeared on their lot. It’s an unusual strategy, a local dealer seeking out a nationwide group of enthusiasts just to move a trio of vehicles. But it’s not hard to see the economic writing on the wall.
The Ioniq 9 is a cool and capable vehicle, but one that starts at $59,000 in its most basic form and quickly rises into the $60,000s and $70,000s with fancier versions. Even with the discount, the Ioniq 9 costs far more than many of the more affordable gas-powered three-row crossovers. And now the vehicle has come down with a serious case of unlucky timing, with deliveries beginning this summer just ahead of the incentive’s disappearance. As of October 1, the EV could become an albatross that nobody in suburban Memphis wants to drive off the lot.
Over the past year, Ford has offered the Ford Power Promise, an excellent deal that throws in a free home charger plus the cost of installation to anyone who buys a new EV. That deal was supposed to expire this summer. But the Detroit giant has extended its offer until — surprise — Sept. 30, in the hopes of enticing a wave of buyers while the getting is good.
This isn’t the first time EV-makers have been through such a deadline crunch. When the $7,500 federal tax credit for EV purchases first started in 2010, the law was written so that the benefit phased out over time once a car company passed a particular sales threshold. By the time I bought my EV in the spring of 2019, for example, Tesla had already sold so many vehicles that its tax credit was halved from $7,500 to $3,750. We had to rush to take delivery in the last few days of June as the benefit was slated to fall again, to $1,875, on July 1, before it disappeared completely in 2020.
The Inflation Reduction Act passed under President Biden not only reinstated the $7,500 credit but also took away the gradual decline of the benefit; it was supposed to stick around, in full, until 2032. But despite Trump’s on-again, off-again bromance with Elon Musk, the president followed through on his long-term antagonistic rhetoric against EVs by repealing the benefit as part of this month’s disastrous big bill.
Trump, despite his best efforts, won’t kill the EV. The electric horse has simply left the barn — the world has come too far and seen too much of what electrification has to offer to turn back just because the current U.S. president wants it to. But the end of the EV tax credit (until a different regime comes into power, at least) seriously imperils the economic math that allowed EV sales to rise steadily over the past few years.
As a result, now might be the best time for a long time to buy or lease an electric vehicle, with remarkably low lease payments to be found on great EVs like the Hyundai Ioniq 5 and Chevy Equinox. Once the tax breaks are gone, lease deals (which got lots of drivers into EVs without them having to worry about long-term ownership questions) are likely to grow less enticing. EVs that would have been cost-competitive with gasoline counterparts when the tax credits taken into account suddenly aren’t.
Plenty of drivers will continue to choose electric even at a premium price because it’s a better product, sure. But hopes of reaching many more budget-first buyers have taken a serious hit. It could be a dream summer to buy an EV, but we’re all going to wake up when September ends.
On the NRC, energy in Pennsylvania, and Meta AI
Current conditions: Air quality alerts will remain in place in Chicago through Tuesday evening due to smoke from Canadian wildfires • There is a high risk of a tropical depression forming in the Gulf this week • The rain is clearing on the eastern seaboard after 2.64 inches fell in New York’s Central Park on Monday, breaking the record for July 14 set in 1908.
The Trump administration is putting pressure on the Nuclear Regulatory Commission to “rubber stamp” all new reactors, Politico reports based on conversations with three people at the May meeting where the expectation was relayed. The directive to the NRC’s top staff came from Adam Blake, a representative of the Department of Government Efficiency, who apparently used the term “rubber stamp” specifically to describe the function of the independent agency. NRC’s “secondary assessment” of the safety of new nuclear projects would be a “foregone conclusion” following approval by the Department of Energy or the Pentagon, NRC officials were made to believe, per Politico.
A spokesperson for the NRC pointed to President Trump’s recent executive order aiming to quadruple U.S. nuclear power by 2050 in response to Politico’s reporting. Skeptics, however, have expressed concern over the White House’s influence on the NRC, which is meant to operate independently, as well as potential safety lapses that might result from the 18-month deadline for reviewing new reactors established in the order.
President Trump and Republican Senator Dave McCormick of Pennsylvania will announce a $70 million “AI and energy investment” in the Keystone State at the inaugural Pennsylvania Energy and Innovation Summit today in Pittsburgh. The event is meant to focus on the development of emerging energy technologies. Organizers said that more than 60 CEOs, including executives from ExxonMobil, Chevron, BlackRock, and Palantir, will be in attendance at the event hosted by Carnegie Mellon University. BlackRock is expected to announce a $25 billion investment in a “data-center and energy infrastructure development in Northeast Pennsylvania, along with a joint venture for increased power generation” at the event, Axios reports.
Ahead of the summit, critics slammed the event as a “moral failure,” with student protests expected throughout the day. Paulina Jaramillo, a professor of engineering and public policy at Carnegie Mellon, wrote on Bluesky that the summit was a “slap in the face to real clean energy researchers,” and that there is “nothing innovative about propping up the fossil fuel industry.” “History will judge institutions that chose short-term gain over moral clarity during this critical moment for climate action and scientific integrity,” she went on.
On Monday, Meta founder and CEO Mark Zuckerberg confirmed on Threads that the company aims to become “the first lab to bring a 1GW+ supercluster online” — an ambitious goal that will require the extensive development of new gas infrastructure, my colleague Matthew Zeitlin reports. The first gigawatt-level project, an Ohio data center called Prometheus, will be powered by Meta’s own natural gas infrastructure, with the natural gas company Williams reportedly building two 200-megawatt facilities for the project in Ohio. The buildout for Prometheus is in addition to another Meta project in Northeast Louisiana, Hyperion, that Zuckerberg said Monday could eventually be as large as 5 gigawatts. “To get a sense of the scale we’re talking about, a new, large nuclear reactor has about a gigawatt of capacity, while a newly built natural gas plant could supply only around 500 megawatts,” Matthew writes. Read his full report here.
BYD
Electric vehicle sales are currently on track to outpace gasoline car sales in China this year, Bloomberg reports. In the first six months of 2025, new battery-electric, plug-in hybrid, and extended-range electric cars accounted for 5.5 million vehicles sold in the country (compared to 5.4 million sales of new gasoline cars), and are projected to top 16 million before the end of December — both of which put EVs a hair over their combustion-powered competitors.
By contrast, battery-electric cars only accounted for 28% of new-car sales in China last year, per the nation’s Passenger Car Association. But “sales this year have been spurred by the extension of a trade-in subsidy” as well as the nation’s expansive electrified lineup, including “several budget options” like BYD’s Seagull, Bloomberg writes. “China is the only large market where EVs are on average cheaper to buy than comparable combustion cars,” BloombergNEF reported last month.
Window heat pumps are an extremely promising answer to the conundrum of decarbonizing large apartment buildings, a new report by the nonprofit American Council for an Energy-Efficient Economy has found. Previously, research on heat pumps had primarily focused on their advantages for single-family homes, while the process of retrofitting larger steam- and hot-water-heated apartment buildings remained difficult and expensive, my colleague Emily Pontecorvo explains. But while apartment residents used to have to wait for their building to either install a large central heat pump system for the whole structure, or else rely on a more involved “mini-split” system, newer technologies like window heat pumps proved to be one of the most cost-effective solutions in ACEEE’s report with an average installation cost of $9,300 per apartment. “That’s significantly higher than the estimated $1,200 per apartment cost of a new boiler, but much lower than the $14,000 to $20,000 per apartment price tag of the other heat pump variations,” Emily writes, adding that the report also found window heat pumps may be “the cheapest to operate, with a life cycle cost of about $14,500, compared to $22,000 to $30,000 for boilers using biodiesel or biogas or other heat pump options.” Read Emily’s full report here.
California was powered by two-thirds clean energy in 2023 — the latest year data is available — making it the “largest economy in the world to achieve this milestone,” Governor Gavin Newsom’s office announced this week.