States pause HVAC rebates following Trump funding freeze

Several states have stopped disbursing HVAC-related consumer rebates amid a federal funding freeze affecting the Inflation Reduction Act (IRA), CNBC reported on Wednesday.  

Refresher: The IRA allocated nearly $9 billion for states to provide point-of-sale rebates to homeowners who make qualified HVAC upgrades. 

• On January 20, President Trump signed an executive order requiring the Department of Energy to “immediately pause the disbursement of funds” under the law, while it “reviews its processes” over a 90-day period. Catch up

What’s happening: While over 20 states have filed a lawsuit against the administration, claiming the freeze is unlawful, Arizona, California, Colorado, and Rhode Island have suspended their rebate programs in response. 

• “Due to the current federal Executive Orders… and communications from the U.S. Department of Energy, funding for all Efficiency Arizona programs is currently unavailable,” an Arizona office said. 
• “California’s Home Electrification and Appliance Rebates (HEEHRA) Program… is paused until further notice,” added California’s Energy Commission.

Of note: Georgia launched a pilot version of its rebate program in the Fall that will continue, but the state is delaying its full program rollout.

• Maine is the only state with an active rebate program that confirmed it’s still operating, with a spokesperson telling CNBC that its program “remains open to those who are eligible.”

Zoom out: As of January 17, 12 states (including D.C.) had launched rebate programs, and all remaining states except South Dakota were developing their programs. 

• Since then, however, the Energy Department has removed its online status tracker — see an archived version here.
• The websites of the six remaining states with previously active programs suggest they’re still operational, though none have officially confirmed their status amid the freeze.

What’s next: While the 90-day freeze (set to end April 20) has affected several states, David Terry, president of the National Association of State Energy Officials, remains optimistic.

• “For these two particular programs, I do not think [the freeze] will stymie the programs,” Terry told CNBC. “I see signs of an interest in moving them forward and working with the states to implement them.”
• The Department of Energy didn’t immediately respond to a request for comment.