The federal elections cast a long shadow over many of the energy efficiency, climate, and financing programs that were established under the Inflation Reduction Act and Bipartisan Infrastructure Law. While there is a lot of uncertainty, here’s what we currently know. 

The Good: 

• The Climate Pollution Reduction Grant Priority Climate Action Plan projects have been selected and money is in hand. The Comprehensive Climate Action Planning process is underway. The DEQ received one-time CCAP funds to create the plan, but there was never a goal to provide additional funds to states to implement. Instead, the goal is to drive policy decisions down the line at the state and local levels. DEQ is collecting public feedback via this survey through January 15th. 
• The Energy Efficiency Conservation Block Grant funds that are allocated via formula funding to localities have been secured and will be dispersed as planned. Applications closed on October 31st, and the DOE announced $18M in awards this week. 
  • Virginia Energy received the state allocation and is utilizing a portion of it to administer subgrants to localities that were not eligible for formula funding. Applications for awards of between $10,000 to $100,000 are open through November 29th. Learn more on the VA E website. 
  • An additional allocation of EECBG funds is being used to establish the One-Stop Shop for consumers and contractors to more easily access energy efficiency, solar, EV, and battery storage upgrades.  This program is expected to launch in Q1 of 2025.
• The Environmental Justice Thriving Communities Grants for Region 3 via the Green and Healthy Homes Initiative are open through the end of the year. As these funds are being passed through GHHI, they are considered secure. We encourage our members to apply!
• The Rural Energy Assistance Program (REAP) announced over $256M in investments across 41 states, with many projects in Virginia (start at page 188). The REAP program predates the IRA and BIL and benefits many constituencies that are represented by incoming federal lawmakers, so we predict that these funds will be safe. 
• Virginia Energy is awaiting the formula award for the Revolving Loan Fund. The funds are anticipated to be received later this year. 
• While not strictly EE-focused, the state’s award for the Solar For All program and the National Electric Vehicle Infrastructure program are both secure.  

The Bad: 

• The consensus among many policy analysts is that, if the ink on a contract is not dry and/or money for a climate-related program is not in hand, those funds will not be dispersed. Many incoming federal lawmakers campaigned on promises to repeal or strip the IRA, so the future of unsecured funding is uncertain at best. 

The Big Question-mark- What does this mean for Virginia? 

• The biggest uncertainty is around the Home Energy Rebate Programs. While Virginia is further along in the application process than many other states, its plan has not been submitted or approved by DOE. A recent article in the Washington Post states that “Any states without an accepted plan and a signed contract could lose out on that funding under a new administration. Congress could rescind the unspent funds, or the Trump administration could slow the process of evaluating applications.” Virginia Energy has selected its implementation vendor and intends to submit applications by next month. Hopefully, DOE will expedite the approval process before the inauguration so that more states can launch these valuable programs. 
• The Training Residential Energy Contractor funds were approved by the DOE but have not been received. Likewise, the state was notified that they would be awarded Residential Energy Auditor Funds via the competitive grants under the BIL, but are still in negotiations on that award and are uncertain when the funds will be received. 
• The tax credits for heat pumps, heat pump hot water heaters, EV chargers, and rooftop solar are predicted to be first on the administration’s chopping block. “The parts most vulnerable are consumer-facing: Tax credits for electric-vehicle purchases, tax credits for rooftop solar, for heat pumps,” Ben Cahill, director of energy markets and policy at the Cockrell School of Engineering at the University of Texas at Austin, said. However, analysis from Power Brief and Crux anticipates that changes to the IRA will be “more surgical in nature” as many of the tax credits and domestic manufacturing goals align with the administration’s policy claims. 

Energy efficiency will continue to be the cheapest, easiest, and most accessible way to a cleaner and greener future. As the co-founder and President of VAEEC Member AnnDyl Policy Group stated in the Washington Post, “Energy efficiency has always been bipartisan. Wanting to breathe clean air and have a home that’s comfortable are nonpartisan issues.” While the clouds of change over DC may look daunting, we will persevere and keep working towards our collective mission – to advance energy efficiency across Virginia.