Heinrich Leads Letter Urging Secretary Wright to Reverse Course on Illegal Guidance for the Home Energy Rebate Program, Allow Working Families the Freedom to Purchase Energy[...]

WASHINGTON - Today, U.S. Senator Martin Heinrich (D-N.M.), Ranking Member of the U.S. Senate Energy and Natural Resources Committee, led ten Senate Democrats in sending a letter to U.S. Department of Energy (DOE) Secretary Chris Wright opposing DOE's new High-Efficiency Electric Home Rebate (HEEHR) program guidance.

The home energy rebate program is based on Heinrich's Zero-Emission Homes Act, which he authored in 2021 and fought for the inclusion of in the Inflation Reduction Act. The program, as Heinrich intended, would help families with the upfront costs of high-efficiency electric home appliances, delivering lower costs for New Mexico families, making homes healthier and more comfortable, and giving more people the freedom to choose the appliances that work for them.

By prohibiting families from using the program to update their gas appliances with electric appliances, DOE's guidance reflects the exact opposite of Congress' intent in creating the program.

"We write to express strong opposition to the Department of Energy's (DOE) new High-Efficiency Electric Home Rebate (HEEHR) program guidance. Congress authorized and provided $4.28 billion to the HEEHR program to ensure that Americans could purchase more efficient appliances and install home upgrades. This voluntary program saves households around $1,000 annually on their energy bills. Because unlike one-time payments, efficiency upgrades provide relief for decades, locking in long-term, predictable savings for American families," Heinrich and his colleagues began.

"The Department's guidance released earlier this month prohibits families from using the program to update their gas appliances with electric appliances," the senators noted. "The statute explicitly states that rebates can be used 'to replace a nonelectric appliance.' DOE does not have the authority to rewrite the statute through guidance. At a time when energy prices are skyrocketing, this Administration should be focused on making energy affordable - not hamstringing one of the few programs that puts money directly in families' pockets."

"The Department's recently released guidance will halt HEEHR programs already operating in 12 states as state energy offices race to comply, and delay approval for dozens of states that have been ready to launch since the beginning of this Administration," the senators continued.

The lawmakers concluded the letter urging Secretary Wright to reverse course and "implement the program as Congress intended."

The letter is led by Heinrich and signed by U.S. Senators Patty Murray (D-Wash.), Ben Ray Luján (D-N.M.), Michael Bennet (D-Colo.), Cory Booker (D-N.J.), John Hickenlooper (D-Colo.), Ed Markey (D-Mass.), Jeanne Shaheen (D-N.H.), Chris Van Hollen (D-Md.), Mazie Hirono, (D- Hawaii), and Peter Welch (D-Vt.).

In 2024, Heinrich celebrated the launch of the home energy rebate program he authored and fought to secure in the Inflation Reduction Act. At the time, New Mexico was the third state in the nation to launch the Home Electrification and Appliance Rebates (HEAR) portion of the rebate program - and the first to do so at the point-of-sale in retail stores. In New Mexico, the program offers eligible households up to $14,000 to help with the purchase of clean and efficient home appliances, including up to $8,000 for heat pumps, $1,750 for a heat pump water heater, and $4,000 for panel/service upgrades.

In July 2023, Heinrich welcomed the U.S. Department of Energy's announced guidance for State and Territorial Energy Offices on the implementation of the Home Energy Rebates Programs. In December 2022, Heinrich announced that $87,742,040 will beavailable to the State of New Mexico and Tribes in the state to establish the Home Energy Rebates Program, which also includes the Home Efficiency Rebates Program that allows States, Territories, and Tribes to create rebates to help reduce the upfront cost of whole-home energy efficiency upgrades in both single-family and multi-family homes.

Read the full letter here and below:

Secretary Wright:

We write to express strong opposition to the Department of Energy's (DOE) new High-Efficiency Electric Home Rebate (HEEHR) program guidance. Congress authorized and provided $4.28 billion to the HEEHR program to ensure that Americans could purchase more efficient appliances and install home upgrades. This voluntary program saves households around $1,000 annually on their energy bills. Because unlike one-time payments, efficiency upgrades provide relief for decades, locking in long term, predicable savings for American families.

The Department's guidance released earlier this month prohibits families from using the program to update their gas appliances with electric appliances. This not only eliminates consumer choice, but goes against Congressional intent and the letter of the law. The statute explicitly states that rebates can be used "to replace a nonelectric appliance." DOE does not have the authority to rewrite the statute through guidance. At a time when energy prices are skyrocketing, this Administration should be focused on making energy affordable -- not hamstringing one of the few programs that puts money directly in families' pockets.

The Department's recently released guidance will halt HEEHR programs already operating in 12 states as state energy offices race to comply, and delay approval for dozens of states that have been ready to launch since the beginning of this Administration. Rather than clearing this backlog and getting funding out the door, DOE has issued illegal restrictions that will reduce consumer choice and delay much needed resources.

We urge you to immediately reverse course and implement the HEEHR program as Congress intended.

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