Maryland steps up as Trump cuts energy efficiency funding
TL/DR –
The Trump administration altered guidelines for two federal home energy rebate programs, announcing it will no longer cover household switches from oil, propane or gas heating to electric heating. The change affects Maryland’s use of $136.6 million in federal funds for household energy-saving upgrades. However, Maryland is using its own funds to fill in the gaps, with state legislators passing the Utility RELIEF Act, which included $72.6 million specifically for heat pump upgrades.
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Trump Administration Changes Guidelines for Federal Home Energy Rebate Programs
A recent policy shift by the Trump administration has resulted in alterations to two federal home energy rebate programs, HOMES (Home Owner Managing Energy Savings Rebates) and HEEHR (High-Efficiency Electric Home Rebate). The changes, announced earlier this month, confirm that the programs will no longer provide coverage for households swapping from oil, propane or gas heating to electric heating.
Impact on Maryland’s Energy-Saving Upgrades
This pivot in policy will have an impact on how Maryland can utilize the $136.6 million in federal funding allocated for household energy-saving upgrades. However, the state seems prepared to address this challenge with a robust local funding strategy already in place.
Earlier this year, state legislators passed the Utility RELIEF Act, a substantial energy policy revision which includes provision of $72.6 million specifically for heat pump upgrades.
The Efficiency of Heat Pumps
Heat pumps are known for their energy efficiency. These devices use electricity to transfer heat from cooler to warmer spaces, making them a viable alternative to traditional furnaces and air conditioners. “These heat pumps are two to four times more efficient than the outdated systems that we’re using to heat our homes,” said Anne Haveman, general counsel for the Chesapeake Climate Action Network.
The HOMES and HEEHR programs, initiated by Congress under the Biden-era Inflation Reduction Act, were initially conceived to offer rebates on energy home-improvement projects. Haveman expressed concerns that the recent modifications to these programs by the Trump administration could limit consumer choice and hinder pathways for households to reduce bills and improve air quality.
Maryland’s Stance on Energy Efficiency Upgrades
Despite the federal changes, Haveman believes that Maryland is in a strong position to lead the way on energy efficiency upgrades at the state level. This view is echoed by Eric Coffman, the division director of Energy Programs with the Maryland Energy Administration (MEA). He stated that the $72.6 million will be split between two programs over the next few years: the state’s existing Residential Energy Equity Program and a new direct-to-consumer rebate program, which will enable residents to apply for funding to transition to heat pumps.
Looking Ahead: Maryland’s Clean Heat Rules
The Maryland Department of the Environment (DOE) is currently working to develop Clean Heat Rules to support the shift to efficient heating solutions across the state. DOE Climate Change Program Manager Mark Stewart noted, “Maryland has improved air quality and reduced climate pollution faster than just about any other state, and that’s in large part because we’ve got really excellent state-level laws.”
Haveman expressed her belief that these proposed Clean Heat Rules, in combination with the tens of millions of state dollars available for heat pump installations, position Maryland as a potential national leader in energy efficiency transitions.
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