NPGA: DOE steps to halt incentivized fuel switching
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The National Propane Gas Association (NPGA) has praised the US Department of Energy (DOE) for no longer using Inflation Reduction Act funding to encourage consumers to move from propane or other gas heating and cooling systems to electric heat pumps. The DOE’s program notices mean that nearly $9bn of funding will not be used to change consumer preference, with states required to comply with this change within three months. The move will impact the Home Owner Managing Energy Savings and the High-Efficiency Electric Home Rebate programs, with rebates now only applicable to upgrading existing electric equipment and new construction, as well as insulation and air sealing upgrades.
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The propane industry and its liquid fuel members have received a significant boost as the National Propane Gas Association (NPGA) communicated a major win via a member alert.
The U.S. Department of Energy (DOE) has made a significant announcement about its Inflation Reduction Act funding. The member alert from the NPGA reveals that almost $9 billion of this funding no longer allows for inducing consumers to transition from propane or other gas-based heating and cooling systems to electric heat pumps. States that have already commenced such programs must halt fuel-switching within a three-month period.
The NPGA points out that this shift applies to both the Home Owner Managing Energy Savings (HOMES) program, which provides rebates that can reach $8,000, and the High-Efficiency Electric Home Rebate (HEEHR) program, offering rebates up to $14,000. In the future, these programs will limit rebates to the enhancement of existing electric equipment and new constructions. Additionally, upgrades to insulation and air sealing will be mandatory before any electric upgrades can be installed.
The NPGA, along with its allied partners, appealed for an in-depth review of these programs, with particular attention to the disproportionate impact they have on combustion-fueled appliances.
Stephen Kaminski, the CEO and president of the NPGA, commended U.S. DOE and Secretary [Chris] Wright for their response to the coalition’s concerns. He stated that “These programs were an example of heavy-handed government picking winners and losers rather than allowing homeowners the opportunity to choose the most affordable and efficient system for their needs.”
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