The Homeowner Energy Freedom Act would allow homeowners to install and use rooftop solar panels and other renewable energy systems without facing unnecessary regulatory barriers or restrictions from their local governments and homeowners associations. This report from the House Energy and Commerce Committee examines the bill's provisions to expand residential solar adoption and reduce energy costs for American families. The legislation aims to increase energy independence and support the transition to cleaner energy sources at the household level.
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House Report 119-484 - HOMEOWNER ENERGY FREEDOM ACT
[House Report 119-484]
[From the U.S. Government Publishing Office]
119th Congress } { Report
HOUSE OF REPRESENTATIVES
2d Session } { 119-484
======================================================================
HOMEOWNER ENERGY FREEDOM ACT
_______
February 4, 2026.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Guthrie, from the Committee on Energy and Commerce, submitted the
following
R E P O R T
[To accompany H.R. 4758]
[Including cost estimate of the Congressional Budget Office]
The Committee on Energy and Commerce, to whom was referred
the bill (H.R. 4758) to repeal provisions of Public Law 117-169
relating to taxpayer subsidies for home electrification, and
for other purposes, having considered the same, reports
favorably thereon without amendment and recommends that the
bill do pass.
CONTENTS
Page
Purpose and Summary.............................................. 2
Background and Need for Legislation.............................. 2
Committee Action................................................. 3
Committee Votes.................................................. 4
Oversight Findings and Recommendations........................... 8
New Budget Authority, Entitlement Authority, and Tax Expenditures 8
Congressional Budget Office Estimate............................. 8
Federal Mandates Statement....................................... 9
Statement of General Performance Goals and Objectives............ 9
Duplication of Federal Programs.................................. 9
Related Committee and Subcommittee Hearings...................... 9
Committee Cost Estimate.......................................... 10
Earmark, Limited Tax Benefits, and Limited Tariff Benefits....... 10
Advisory Committee Statement..................................... 11
Applicability to Legislative Branch.............................. 11
Section-by-Section Analysis of the Legislation................... 11
Changes in Existing Law Made by the Bill, as Reported............ 11
Minority, Additional, or Dissenting Views........................ 22
Purpose and Summary
H.R. 4758, the Homeowner Energy Freedom Act, was introduced
by Representative Goldman (R-TX) on July 25, 2025, and referred
to the Committee on Energy and Commerce on July 25, 2025. H.R.
4758 repeals three sections of the Inflation Reduction Act
(IRA): section 50122, establishing a new high-efficiency
electric home rebate program; section 50123, establishing the
home energy efficiency contractor training program; and section
50131, to provide financial assistance to states and localities
to adopt the latest energy conservation building code and so-
called zero-energy building energy codes.
Background and Need for Legislation
H.R. 4758 repeals certain provisions from the Inflation
Reduction Act (IRA)\1\ to protect consumer choice and ensure
that home energy costs do not put homeownership out of reach
for Americans.
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\1\Pub. L. No. 117-169, 136 Stat. 1818.
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The bill would repeal sections 50122\2\ and 50123\3\ of the
IRA, designed to subsidize the electrify-everything movement,
and seek to end the use of gas appliances in the name of
climate policies. These sections provide some $4.5 billion to
states to use taxpayer subsidies to incentivize electrification
projects and to pay for related training grants, through rebate
programs. The rebates subsidize the cost of replacing natural
gas stoves with electric cooktops, gas heating with electric
heat pumps, water heaters, and other related electrification
products. In a free-market economy, competition is necessary to
put downward pressure on the price of goods and services.
Inserting taxpayer subsidies into this system deprives the
public of the beneficial forces of the free market and
inappropriately forces taxpayers to pay for new electrical
appliance products, keeping prices high for consumers.
---------------------------------------------------------------------------
\2\42 U.S.C. Sec. 18795a.
\3\42 U.S.C. Sec. 18795b.
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It is not appropriate for taxpayers to support incentives
intended to pursue policy agendas to end homeowner use of
natural gas. An aggressive push towards electrification ignores
the household energy needs of Americans, including the
significant number of households that rely on natural gas for
heating their homes and cooking. The U.S. Energy Information
Administration (EIA) reports that in 2020, 61 percent of U.S.
households used natural gas in their homes.\4\ In the Midwest
and West, nearly 75 percent of households rely on natural gas
appliances.\5\ These sections of the IRA remove these choices
from individual families, instead giving them away to
Washington bureaucrats.
---------------------------------------------------------------------------
\4\U.S. Energy Info. Admin. (EIA), The majority of U.S. households
used natural gas in 2020, (Mar. 23, 2023), https://www.eia.gov/
todayinenergy/detail.php?id=55940.
\5\Id.
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Furthermore, these home rebates provide taxpayer subsidies
for households earning over 150 percent of the median household
income of their area. Data from 2024 shows that the median
income in the District of Columbia was $104,800, meaning that
households in Washington D.C. making up to $156,000 can receive
taxpayer subsidies to upgrade their home appliances.\6\ Under
this same threshold, the 2024 median income for Massachusetts
was $113,900, meaning that households making up to $170,850,
which is nearly double the nationwide median household
income,\7\ qualify for these subsidies. The Committee believes
this is an irresponsible and unnecessary use of taxpayer
dollars.
---------------------------------------------------------------------------
\6\Fed. Reserve Bank of St. Louis, Real Median Household Income by
State, Annual, (2024), http://fred.stlousfed.org/release/
tables?eid=259515&rid=249.
\7\Id.
---------------------------------------------------------------------------
By repealing these programs, H.R. 4758 will preserve
consumer choice, allowing consumers to operate in their best
interests, preventing efforts to effectively ban natural gas
use, and spurring technological innovation.
H.R. 4758 also strikes provisions of the IRA that pressured
states and localities to adopt stringent building codes, with
little room to meet local needs. Section 50131\8\ of the IRA
appropriated $900 million for the Department of Energy (DOE) to
distribute grants to States and local governments to adopt the
2021 International Energy Conservation Code (IECC) for
residential buildings. Additionally, the DOE may distribute
grants to state and local governments that adopt the IECC Zero
Energy Code.
---------------------------------------------------------------------------
\8\Pub. L. No. 117-169, Title V, Sec. 50123, Aug. 16, 2022, 136
Stat. 2041., codified at 42 U.S.C.A. Sec. 18795b.
---------------------------------------------------------------------------
The Biden-Harris Administration significantly grew the role
of the federal government through the adoption and enforcement
of gratuitous building codes. On top of this IRA program, the
last administration pushed for building codes and standards
that adopted ``net-zero'' emissions requirements, electric
appliances and furnaces, and rooftop solar panels, and the DOE
and the Pacific Northwest National Laboratory (PNNL) developed
a series of technical briefs and ``model'' building codes.
Efforts to pressure States to adopt rigid building codes
have increased the price of housing, reduced access to
affordable homes for first-time homebuyers, and ultimately hurt
consumers. Nowhere is this more apparent than in Kansas City,
Missouri, which adopted the unamended IECC building codes in
July 2022, in hopes of receiving funding. Immediately upon
adoption, single family home construction permits dropped by 22
percent; meanwhile, the same construction permits rose by 117
percent in surrounding areas, which had not adopted the latest
IECC code.\9\ The forced adoption of these codes clearly has
had a chilling effect on homebuilding, resulting in expensive
housing markets and ultimately exacerbating the affordable
housing crisis in the United States.
---------------------------------------------------------------------------
\9\See Testimony of Buddy Hughes, Building the American Dream:
Examining Affordability, Choice and Security in Appliance and Buildings
Policies: Hearing before the Subcomm. On Energy of the H. Comm. on
Energy and Commerce, 119th Cong. (Sep. 9, 2025).
---------------------------------------------------------------------------
The Committee finds that these sections of the IRA limit
consumer choice, disincentive affordable housing options, and
increase the price of housing for Americans. H.R. 4758 will
help restore balance in the marketplace and consumer choice for
the American people.
Committee Action
On September 16, 2025, the Subcommittee on Energy held a
legislative hearing on H.R. 4758. The Subcommittee received
testimony from:
Jeff Novak, Acting General Counsel and
Principal Deputy General Counsel, U.S. Department of
Energy;
George Lowe, Vice President of Governmental
Affairs and Public Policy, American Gas Association;
Jennifer Cleary, Vice President of
Regulatory Affairs, Association of Home Appliance
Manufacturers;
Brian Tebbenkamp, President and Owner,
Patriot Homes Inc; and,
Andrew deLaski, Executive Director,
Appliance Standards Awareness Project.
On November 19, 2025, the Subcommittee on Energy met in
open markup session and forwarded H.R. 4758, without amendment,
to the full Committee by a record vote of 16 yeas and 14 nays.
On December 3, 2025, the full Committee on Energy and Commerce
met in open markup session and ordered H.R. 4758, without
amendment, favorably reported to the House by a recorded vote
of 25 yeas and 21 nays.
Committee Votes
Clause 3(b) of rule XIII requires the Committee to list the
record votes on the motion to report legislation and amendments
thereto. The following reflects the record votes taken during
the Committee consideration:
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
Oversight Findings and Recommendations
Pursuant to clause 2(b)(1) of rule X and clause 3(c)(1) of
rule XIII, the Committee held hearings and made findings that
are reflected in this report.
New Budget Authority, Entitlement Authority, and Tax Expenditures
Pursuant to clause 3(c)(2) of rule XIII, the Committee
finds that H.R. 4758 would result in no new or increased budget
authority, entitlement authority, or tax expenditures or
revenues.
Congressional Budget Office Estimate
Pursuant to clause 3(c)(3) of rule XIII, the following is
the cost estimate provided by the Congressional Budget Office
pursuant to section 402 of the Congressional Budget Act of
1974:
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
H.R. 4758 would repeal three Department of Energy programs
established by the 2022 reconciliation act and rescind
unobligated balances for those activities. Specifically, the
bill would repeal the following programs:
Home Electrification and Appliances Rebate
program (section 50122);
State-Based Home Energy Efficiency
Contractor Training Grant program (section 50123); and
Assistance for Latest and Zero Building
Energy Code Adoption program (section 50131).
CBO assumes that H.R. 4758 will be enacted early in
calendar year 2026. The 2025 reconciliation act rescinded
unobligated balances for the contractor training program. CBO
estimates that about $300 million in unobligated balances will
be available for the other two programs at the time of
enactment. Accordingly, CBO estimates that enacting the bill
would reduce budget authority in 2026 by about $300 million.
However, relative to the January 2025 baseline, CBO does
not expect that those balances will be spent under current law.
On that basis, CBO estimates that enacting H.R. 4758 would not
affect direct spending over the 2026-2035 period.\1\
---------------------------------------------------------------------------
\1\See Congressional Budget Office, CBO Explains How It Estimates
Saving From Rescissions (May 2023), https://www.cbo.gov/publication/
58915.
---------------------------------------------------------------------------
The CBO staff contact for this estimate is Aaron Krupkin.
The estimate was reviewed by H. Samuel Papenfuss, Deputy
Director of Budget Analysis.
Phillip L. Swagel,
Director, Congressional Budget Office.
Federal Mandates Statement
The Committee adopts as its own the estimate of Federal
mandates prepared by the Director of the Congressional Budget
Office pursuant to section 423 of the Unfunded Mandates Reform
Act.
Statement of General Performance Goals and Objectives
Pursuant to clause 3(c)(4) of rule XIII, the general
performance goal or objective of this legislation is to repeal
sections 50122, 50123, and 50131 of P.L. 117-169.
Duplication of Federal Programs
Pursuant to clause 3(c)(5) of rule XIII, no provision of
H.R. 4758 is known to be duplicative of another Federal
program, including any program that was included in a report to
Congress pursuant to section 21 of Public Law 111-139 or the
most recent Catalog of Federal Domestic Assistance.
Related Committee and Subcommittee Hearings
Pursuant to clause 3(c)(6) of rule XIII, the following
related hearings were used to develop or consider H.R. 4758:
On February 5, 2025, the Subcommittee on Energy held a
hearing on H.R. 4758. The title of the hearing was ``Powering
America's Future: Unleashing American Energy.'' The
Subcommittee received testimony from:
Amanda Eversole, Executive Vice President
and Chief Advocacy Officer, American Petroleum
Institute;
Brigham McCown, Senior Fellow and Director,
Initiative on American Energy Security, The Hudson
Institute;
Gary Arnold, Business Manager, Denver
Pipefitters Local 208; and,
Tyler O'Conner, Partner, Crowell & Moring
LLP.
On February 26, 2025, the Subcommittee on Oversight and
Investigations held a hearing on H.R. 4758. The title of the
hearing was ``Examining the Biden Administration's Energy and
Environment Spending Push.'' The Subcommittee received
testimony from:
Johnathan Black, Chief Advisor for
Strategic Planning and Program Oversight, Office of
Inspector General, U.S. Department of Energy;
J. Alfredo Gomez, Director, Natural
Resources and Environment team, U.S. Government
Accountability Office;
Nicole Murley, Acting Inspector General,
Office of Inspector General, U.S. Environmental
Protection Agency; and,
Frank Rusco, Director, Natural Resources
and Environment team, U.S. Government Accountability
Office.
On March 5, 2025, the Subcommittee on Energy held a hearing
on H.R. 4758. The title of the hearing was ``Scaling for
Growth: Meeting the Demand for Reliable, Affordable
Electricity.'' The Subcommittee received testimony from:
Todd Brickhouse, CEO and General Manager,
Basin Electric Power Cooperative;
Asim Z. Haque, Senior Vice President for
Governmental and Member Servies, PJM;
Noel W. Black, Senior Vice President of
Regulatory Affairs, Southern Company; and,
Tyler H. Norris, James B. Duke Fellow, Duke
University.
On September 9, 2025, the Subcommittee on Energy held a
hearing on H.R. 4758. The title of the hearing was ``Building
the American Dream: Examining Affordability, Choice, and
Security in Appliance and Buildings Policies.'' The
Subcommittee received testimony from:
Buddy Hughes, Chairman, National
Association of Home Builders;
Ben Lieberman, Senior Fellow, Competitive
Enterprise Institute;
Jim Steffes, Senior Vice President of
Regulatory Affairs, Washington Gas; and,
Kara Saul-Rinaldi, Chief Policy Officer,
Building Performance Association.
On September 16, 2025, the Subcommittee on Energy held a
legislative hearing on H.R. 4758. The title of the hearing was
``Appliance and Buildings Policies: Restoring the American
Dream of Home Ownership and Consumer Choice.'' The Subcommittee
received testimony from:
Jeff Novak, Acting General Counsel and
Principal Deputy General Counsel, U.S. Department of
Energy;
George Lowe, Vice President of Governmental
Affairs and Public Policy, American Gas Association;
Jennifer Cleary, Vice President of
Regulatory Affairs, Association of Home Appliance
Manufacturers;
Brian Tebbenkamp, President and Owner,
Patriot Homes Inc.; and,
Andrew deLaski, Executive Director,
Appliance Standards Awareness Project.
Committee Cost Estimate
Pursuant to clause 3(d)(1) of rule XIII, the Committee
adopts as its own the cost estimate prepared by the Director of
the Congressional Budget Office pursuant to section 402 of the
Congressional Budget Act of 1974.
Earmark, Limited Tax Benefits, and Limited Tariff Benefits
Pursuant to clause 9(e), 9(f), and 9(g) of rule XXI, the
Committee finds that H.R. 4758 contains no earmarks, limited
tax benefits, or limited tariff benefits.
Advisory Committee Statement
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act were created by this
legislation.
Applicability to Legislative Branch
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act.
Section-by-Section Analysis of the Legislation
Section 1: Short title
Section 1 provides the short title of ``Homeowner Energy
Freedom Act.''
Section 2: Homeowner energy freedom
Section 2 repeals sections 50122, 50123, and 50131 of the
Inflation Reduction Act. The section also rescinds any
unobligated funds from sections 50122 and 50131.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets and
existing law in which no change is proposed is shown in roman):
PUBLIC LAW 117-169
* * * * * * *
TITLE V--COMMITTEE ON ENERGY AND NATURAL RESOURCES
Subtitle A--Energy
* * * * * * *
PART 2--RESIDENTIAL EFFICIENCY AND ELECTRIFICATION REBATES
SEC. 50121. HOME ENERGY PERFORMANCE-BASED, WHOLE-HOUSE REBATES.
(a) Appropriation.--
(1) In general.--In addition to amounts otherwise
available, there is appropriated to the Secretary for
fiscal year 2022, out of any money in the Treasury not
otherwise appropriated, $4,300,000,000, to remain
available through September 30, 2031, to carry out a
program to award grants to State energy offices to
develop and implement a HOMES rebate program.
(2) Allocation of funds.--
(A) In general.--The Secretary shall reserve
funds made available under paragraph (1) for
each State energy office--
(i) in accordance with the allocation
formula for the State Energy Program in
effect on January 1, 2022; and
(ii) to be distributed to a State
energy office if the application of the
State energy office under subsection
(b) is approved.
(B) Additional funds.--Not earlier than 2
years after the date of enactment of this Act,
any money reserved under subparagraph (A) but
not distributed under clause (ii) of that
subparagraph shall be redistributed to the
State energy offices operating a HOMES rebate
program using a grant received under this
section in proportion to the amount distributed
to those State energy offices under
subparagraph (A)(ii).
(3) Administrative expenses.--Of the funds made
available under paragraph (1), the Secretary shall use
not more than 3 percent for--
(A) administrative purposes; and
(B) providing technical assistance relating
to activities carried out under this section.
(b) Application.--A State energy office seeking a grant under
this section shall submit to the Secretary an application that
includes a plan to implement a HOMES rebate program, including
a plan--
(1) to use procedures, as approved by the Secretary,
for determining the reductions in home energy use
resulting from the implementation of a home energy
efficiency retrofit that are calibrated to historical
energy usage for a home consistent with BPI 2400, for
purposes of modeled performance home rebates;
(2) to use open-source advanced measurement and
verification software, as approved by the Secretary,
for determining and documenting the monthly and hourly
(if available) weather-normalized energy use of a home
before and after the implementation of a home energy
efficiency retrofit, for purposes of measured
performance home rebates;
(3) to value savings based on time, location, or
greenhouse gas emissions;
(4) for quality monitoring to ensure that each home
energy efficiency retrofit for which a rebate is
provided is documented in a certificate that--
(A) is provided by the contractor and
certified by a third party to the homeowner;
and
(B) details the work performed, the equipment
and materials installed, and the projected
energy savings or energy generation to support
accurate valuation of the retrofit;
(5) to provide a contractor performing a home energy
efficiency retrofit or an aggregator who has the right
to claim a rebate $200 for each home located in a
disadvantaged community that receives a home energy
efficiency retrofit for which a rebate is provided
under the program; and
(6) to ensure that a homeowner or aggregator does not
receive a rebate for the same upgrade through both a
HOMES rebate program and any other Federal grant or
rebate program, pursuant to subsection (c)(7).
(c) HOMES Rebate Program.--
(1) In general.--A HOMES rebate program carried out
by a State energy office receiving a grant pursuant to
this section shall provide rebates to homeowners and
aggregators for whole-house energy saving retrofits
begun on or after the date of enactment of this Act and
completed by not later than September 30, 2031.
(2) Amount of rebate.--Subject to paragraph (3),
under a HOMES rebate program, the amount of a rebate
shall not exceed--
(A) for individuals and aggregators carrying
out energy efficiency upgrades of single-family
homes--
(i) in the case of a retrofit that
achieves modeled energy system savings
of not less than 20 percent but less
than 35 percent, the lesser of--
(I) $2,000; and
(II) 50 percent of the
project cost;
(ii) in the case of a retrofit that
achieves modeled energy system savings
of not less than 35 percent, the lesser
of--
(I) $4,000; and
(II) 50 percent of the
project cost; and
(iii) for measured energy savings, in
the case of a home or portfolio of
homes that achieves energy savings of
not less than 15 percent--
(I) a payment rate per
kilowatt hour saved, or
kilowatt hour-equivalent saved,
equal to $2,000 for a 20
percent reduction of energy use
for the average home in the
State; or
(II) 50 percent of the
project cost;
(B) for multifamily building owners and
aggregators carrying out energy efficiency
upgrades of multifamily buildings--
(i) in the case of a retrofit that
achieves modeled energy system savings
of not less than 20 percent but less
than 35 percent, $2,000 per dwelling
unit, with a maximum of $200,000 per
multifamily building;
(ii) in the case of a retrofit that
achieves modeled energy system savings
of not less than 35 percent, $4,000 per
dwelling unit, with a maximum of
$400,000 per multifamily building; or
(iii) for measured energy savings, in
the case of a multifamily building or
portfolio of multifamily buildings that
achieves energy savings of not less
than 15 percent--
(I) a payment rate per
kilowatt hour saved, or
kilowatt hour-equivalent saved,
equal to $2,000 for a 20
percent reduction of energy use
per dwelling unit for the
average multifamily building in
the State; or
(II) 50 percent of the
project cost; and
(C) for individuals and aggregators carrying
out energy efficiency upgrades of a single-
family home occupied by a low- or moderate-
income household or a multifamily building not
less than 50 percent of the dwelling units of
which are occupied by low- or moderate-income
households--
(i) in the case of a retrofit that
achieves modeled energy system savings
of not less than 20 percent but less
than 35 percent, the lesser of--
(I) $4,000 per single-family
home or dwelling unit; and
(II) 80 percent of the
project cost;
(ii) in the case of a retrofit that
achieves modeled energy system savings
of not less than 35 percent, the lesser
of--
(I) $8,000 per single-family
home or dwelling unit; and
(II) 80 percent of the
project cost; and
(iii) for measured energy savings, in
the case of a single-family home,
multifamily building, or portfolio of
single-family homes or multifamily
buildings that achieves energy savings
of not less than 15 percent--
(I) a payment rate per
kilowatt hour saved, or
kilowatt hour-equivalent saved,
equal to $4,000 for a 20
percent reduction of energy use
per single-family home or
dwelling unit, as applicable,
for the average single-family
home or multifamily building in
the State; or
(II) 80 percent of the
project cost.
(3) Rebates to low- or moderate-income households.--
On approval from the Secretary, notwithstanding
paragraph (2), a State energy office carrying out a
HOMES rebate program using a grant awarded pursuant to
this section may increase rebate amounts for low- or
moderate-income households.
(4) Use of funds.--A State energy office that
receives a grant pursuant to this section may use not
more than 20 percent of the grant amount for planning,
administration, or technical assistance related to a
HOMES rebate program.
(5) Data access guidelines.--The Secretary shall
develop and publish guidelines for States relating to
residential electric and natural gas energy data
sharing.
(6) Exemption.--Activities carried out by a State
energy office using a grant awarded pursuant to this
section shall not be subject to the expenditure
prohibitions and limitations described in section
420.18 of title 10, Code of Federal Regulations.
(7) Prohibition on combining rebates.--A rebate
provided by a State energy office under a HOMES rebate
program may not be combined with any other Federal
grant or rebate[, including a rebate provided under a
high-efficiency electric home rebate program (as
defined in section 50122(d)),] for the same single
upgrade.
(d) Definitions.--In this section:
(1) Disadvantaged community.--The term
``disadvantaged community'' means a community that the
Secretary determines, based on appropriate data,
indices, and screening tools, is economically,
socially, or environmentally disadvantaged.
(2) HOMES rebate program.--The term ``HOMES rebate
program'' means a Home Owner Managing Energy Savings
rebate program established by a State energy office as
part of an approved State energy conservation plan
under the State Energy Program.
(3) Low- or moderate-income household.--The term
``low- or moderate-income household'' means an
individual or family the total annual income of which
is less than 80 percent of the median income of the
area in which the individual or family resides, as
reported by the Department of Housing and Urban
Development, including an individual or family that has
demonstrated eligibility for another Federal program
with income restrictions equal to or below 80 percent
of area median income.
[SEC. 50122. HIGH-EFFICIENCY ELECTRIC HOME REBATE PROGRAM.
[(a) Appropriations.--
[(1) Funds to state energy offices and indian
tribes.--In addition to amounts otherwise available,
there is appropriated to the Secretary for fiscal year
2022, out of any money in the Treasury not otherwise
appropriated, to carry out a program--
[(A) to award grants to State energy offices
to develop and implement a high-efficiency
electric home rebate program in accordance with
subsection (c), $4,275,000,000, to remain
available through September 30, 2031; and
[(B) to award grants to Indian Tribes to
develop and implement a high-efficiency
electric home rebate program in accordance with
subsection (c), $225,000,000, to remain
available through September 30, 2031.
[(2) Allocation of funds.--
[(A) State energy offices.--The Secretary
shall reserve funds made available under
paragraph (1)(A) for each State energy office--
[(i) in accordance with the
allocation formula for the State Energy
Program in effect on January 1, 2022;
and
[(ii) to be distributed to a State
energy office if the application of the
State energy office under subsection
(b) is approved.
[(B) Indian tribes.--The Secretary shall
reserve funds made available under paragraph
(1)(B)--
[(i) in a manner determined
appropriate by the Secretary; and
[(ii) to be distributed to an Indian
Tribe if the application of the Indian
Tribe under subsection (b) is approved.
[(C) Additional funds.--Not earlier than 2
years after the date of enactment of this Act,
any money reserved under--
[(i) subparagraph (A) but not
distributed under clause (ii) of that
subparagraph shall be redistributed to
the State energy offices operating a
high-efficiency electric home rebate
program in proportion to the amount
distributed to those State energy
offices under that clause; and
[(ii) subparagraph (B) but not
distributed under clause (ii) of that
subparagraph shall be redistributed to
the Indian Tribes operating a high-
efficiency electric home rebate program
in proportion to the amount distributed
to those Indian Tribes under that
clause.
[(3) Administrative expenses.--Of the funds made
available under paragraph (1), the Secretary shall use
not more than 3 percent for--
[(A) administrative purposes; and
[(B) providing technical assistance relating
to activities carried out under this section.
[(b) Application.--A State energy office or Indian Tribe
seeking a grant under the program shall submit to the Secretary
an application that includes a plan to implement a high-
efficiency electric home rebate program, including--
[(1) a plan to verify the income eligibility of
eligible entities seeking a rebate for a qualified
electrification project;
[(2) a plan to allow rebates for qualified
electrification projects at the point of sale in a
manner that ensures that the income eligibility of an
eligible entity seeking a rebate may be verified at the
point of sale;
[(3) a plan to ensure that an eligible entity does
not receive a rebate for the same qualified
electrification project through both a high-efficiency
electric home rebate program and any other Federal
grant or rebate program, pursuant to subsection (c)(8);
and
[(4) any additional information that the Secretary
may require.
[(c) High-efficiency Electric Home Rebate Program.--
[(1) In general.--Under the program, the Secretary
shall award grants to State energy offices and Indian
Tribes to establish a high-efficiency electric home
rebate program under which rebates shall be provided to
eligible entities for qualified electrification
projects.
[(2) Guidelines.--The Secretary shall prescribe
guidelines for high-efficiency electric home rebate
programs, including guidelines for providing point of
sale rebates in a manner consistent with the income
eligibility requirements under this section.
[(3) Amount of rebate.--
[(A) Appliance upgrades.--The amount of a
rebate provided under a high-efficiency
electric home rebate program for the purchase
of an appliance under a qualified
electrification project shall be--
[(i) not more than $1,750 for a heat
pump water heater;
[(ii) not more than $8,000 for a heat
pump for space heating or cooling; and
[(iii) not more than $840 for--
[(I) an electric stove,
cooktop, range, or oven; or
[(II) an electric heat pump
clothes dryer.
[(B) Nonappliance upgrades.--The amount of a
rebate provided under a high-efficiency
electric home rebate program for the purchase
of a nonappliance upgrade under a qualified
electrification project shall be--
[(i) not more than $4,000 for an
electric load service center upgrade;
[(ii) not more than $1,600 for
insulation, air sealing, and
ventilation; and
[(iii) not more than $2,500 for
electric wiring.
[(C) Maximum rebate.--An eligible entity
receiving multiple rebates under this section
may receive not more than a total of $14,000 in
rebates.
[(4) Limitations.--A rebate provided using funding
under this section shall not exceed--
[(A) in the case of an eligible entity
described in subsection (d)(1)(A)--
[(i) 50 percent of the cost of the
qualified electrification project for a
household the annual income of which is
not less than 80 percent and not
greater than 150 percent of the area
median income; and
[(ii) 100 percent of the cost of the
qualified electrification project for a
household the annual income of which is
less than 80 percent of the area median
income;
[(B) in the case of an eligible entity
described in subsection (d)(1)(B)--
[(i) 50 percent of the cost of the
qualified electrification project for a
multifamily building not less than 50
percent of the residents of which are
households the annual income of which
is not less than 80 percent and not
greater than 150 percent of the area
median income; and
[(ii) 100 percent of the cost of the
qualified electrification project for a
multifamily building not less than 50
percent of the residents of which are
households the annual income of which
is less than 80 percent of the area
median income; or
[(C) in the case of an eligible entity
described in subsection (d)(1)(C)--
[(i) 50 percent of the cost of the
qualified electrification project for a
household--
[(I) on behalf of which the
eligible entity is working; and
[(II) the annual income of
which is not less than 80
percent and not greater than
150 percent of the area median
income; and
[(ii) 100 percent of the cost of the
qualified electrification project for a
household--
[(I) on behalf of which the
eligible entity is working; and
[(II) the annual income of
which is less than 80 percent
of the area median income.
[(5) Amount for installation of upgrades.--
[(A) In general.--In the case of an eligible
entity described in subsection (d)(1)(C) that
receives a rebate under the program and
performs the installation of the applicable
qualified electrification project, a State
energy office or Indian Tribe shall provide to
that eligible entity, in addition to the
rebate, an amount that--
[(i) does not exceed $500; and
[(ii) is commensurate with the scale
of the upgrades installed as part of
the qualified electrification project,
as determined by the Secretary.
[(B) Treatment.--An amount received under
subparagraph (A) by an eligible entity
described in that subparagraph shall not be
subject to the requirement under paragraph (6).
[(6) Requirement.--An eligible entity described in
subparagraph (C) of subsection (d)(1) shall discount
the amount of a rebate received for a qualified
electrification project from any amount charged by that
eligible entity to the eligible entity described in
subparagraph (A) or (B) of that subsection on behalf of
which the qualified electrification project is carried
out.
[(7) Exemption.--Activities carried out by a State
energy office using a grant provided under the program
shall not be subject to the expenditure prohibitions
and limitations described in section 420.18 of title
10, Code of Federal Regulations.
[(8) Prohibition on combining rebates.--A rebate
provided by a State energy office or Indian Tribe under
a high-efficiency electric home rebate program may not
be combined with any other Federal grant or rebate,
including a rebate provided under a HOMES rebate
program (as defined in section 50121(d)), for the same
qualified electrification project.
[(9) Administrative costs.--A State energy office or
Indian Tribe that receives a grant under the program
shall use not more than 20 percent of the grant amount
for planning, administration, or technical assistance
relating to a high-efficiency electric home rebate
program.
[(d) Definitions.--In this section:
[(1) Eligible entity.--The term ``eligible entity''
means--
[(A) a low- or moderate-income household;
[(B) an individual or entity that owns a
multifamily building not less than 50 percent
of the residents of which are low- or moderate-
income households; and
[(C) a governmental, commercial, or nonprofit
entity, as determined by the Secretary,
carrying out a qualified electrification
project on behalf of an entity described in
subparagraph (A) or (B).
[(2) High-efficiency electric home rebate program.--
The term ``high-efficiency electric home rebate
program'' means a rebate program carried out by a State
energy office or Indian Tribe pursuant to subsection
(c) using a grant received under the program.
[(3) Indian tribe.--The term ``Indian Tribe'' has the
meaning given the term in section 4 of the Indian Self-
Determination and Education Assistance Act (25 U.S.C.
5304).
[(4) Low- or moderate-income household.--The term
``low- or moderate-income household'' means an
individual or family the total annual income of which
is less than 150 percent of the median income of the
area in which the individual or family resides, as
reported by the Department of Housing and Urban
Development, including an individual or family that has
demonstrated eligibility for another Federal program
with income restrictions equal to or below 150 percent
of area median income.
[(5) Program.--The term ``program'' means the program
carried out by the Secretary under subsection (a)(1).
[(6) Qualified electrification project.--
[(A) In general.--The term ``qualified
electrification project'' means a project
that--
[(i) includes the purchase and
installation of--
[(I) an electric heat pump
water heater;
[(II) an electric heat pump
for space heating and cooling;
[(III) an electric stove,
cooktop, range, or oven;
[(IV) an electric heat pump
clothes dryer;
[(V) an electric load service
center;
[(VI) insulation;
[(VII) air sealing and
materials to improve
ventilation; or
[(VIII) electric wiring;
[(ii) with respect to any appliance
described in clause (i), the purchase
of which is carried out--
[(I) as part of new
construction;
[(II) to replace a
nonelectric appliance; or
[(III) as a first-time
purchase with respect to that
appliance; and
[(iii) is carried out at, or relating
to, a single-family home or multifamily
building, as applicable and defined by
the Secretary.
[(B) Exclusions.--The term ``qualified
electrification project'' does not include any
project with respect to which the appliance,
system, equipment, infrastructure, component,
or other item described in subclauses (I)
through (VIII) of subparagraph (A)(i) is not
certified under the Energy Star program
established by section 324A of the Energy
Policy and Conservation Act (42 U.S.C. 6294a),
if applicable.
[SEC. 50123. STATE-BASED HOME ENERGY EFFICIENCY CONTRACTOR TRAINING
GRANTS.
[(a) Appropriation.--In addition to amounts otherwise
available, there is appropriated to the Secretary for fiscal
year 2022, out of any money in the Treasury not otherwise
appropriated, $200,000,000, to remain available through
September 30, 2031, to carry out a program to provide financial
assistance to States to develop and implement a State program
described in section 362(d)(13) of the Energy Policy and
Conservation Act (42 U.S.C. 6322(d)(13)), which shall provide
training and education to contractors involved in the
installation of home energy efficiency and electrification
improvements, including improvements eligible for rebates under
a HOMES rebate program (as defined in section 50121(d)) or a
high-efficiency electric home rebate program (as defined in
section 50122(d)), as part of an approved State energy
conservation plan under the State Energy Program.
[(b) Use of Funds.--A State may use amounts received under
subsection (a)--
[(1) to reduce the cost of training contractor
employees;
[(2) to provide testing and certification of
contractors trained and educated under a State program
developed and implemented pursuant to subsection (a);
and
[(3) to partner with nonprofit organizations to
develop and implement a State program pursuant to
subsection (a).
[(c) Administrative Expenses.--Of the amounts received by a
State under subsection (a), a State shall use not more than 10
percent for administrative expenses associated with developing
and implementing a State program pursuant to that subsection.]
PART 3--BUILDING EFFICIENCY AND RESILIENCE
[SEC. 50131. ASSISTANCE FOR LATEST AND ZERO BUILDING ENERGY CODE
ADOPTION.
[(a) Appropriation.--In addition to amounts otherwise
available, there is appropriated to the Secretary for fiscal
year 2022, out of any money in the Treasury not otherwise
appropriated--
[(1) $330,000,000, to remain available through
September 30, 2029, to carry out activities under part
D of title III of the Energy Policy and Conservation
Act (42 U.S.C. 6321 through 6326) in accordance with
subsection (b); and
[(2) $670,000,000, to remain available through
September 30, 2029, to carry out activities under part
D of title III of the Energy Policy and Conservation
Act (42 U.S.C. 6321 through 6326) in accordance with
subsection (c).
[(b) Latest Building Energy Code.--The Secretary shall use
funds made available under subsection (a)(1) for grants to
assist States, and units of local government that have
authority to adopt building codes--
[(1) to adopt--
[(A) a building energy code (or codes) for
residential buildings that meets or exceeds the
2021 International Energy Conservation Code, or
achieves equivalent or greater energy savings;
[(B) a building energy code (or codes) for
commercial buildings that meets or exceeds the
ANSI/ASHRAE/IES Standard 90.1-2019, or achieves
equivalent or greater energy savings; or
[(C) any combination of building energy codes
described in subparagraph (A) or (B); and
[(2) to implement a plan for the jurisdiction to
achieve full compliance with any building energy code
adopted under paragraph (1) in new and renovated
residential or commercial buildings, as applicable,
which plan shall include active training and
enforcement programs and measurement of the rate of
compliance each year.
[(c) Zero Energy Code.--The Secretary shall use funds made
available under subsection (a)(2) for grants to assist States,
and units of local government that have authority to adopt
building codes--
[(1) to adopt a building energy code (or codes) for
residential and commercial buildings that meets or
exceeds the zero energy provisions in the 2021
International Energy Conservation Code or an equivalent
stretch code; and
[(2) to implement a plan for the jurisdiction to
achieve full compliance with any building energy code
adopted under paragraph (1) in new and renovated
residential and commercial buildings, which plan shall
include active training and enforcement programs and
measurement of the rate of compliance each year.
[(d) State Match.--The State cost share requirement under the
item relating to ``Department of Energy--Energy Conservation''
in title II of the Department of the Interior and Related
Agencies Appropriations Act, 1985 (42 U.S.C. 6323a; 98 Stat.
1861), shall not apply to assistance provided under this
section.
[(e) Administrative Costs.--Of the amounts made available
under this section, the Secretary shall reserve not more than 5
percent for administrative costs necessary to carry out this
section.]
* * * * * * *
MINORITY VIEWS
H.R. 4758, the Homeowner Energy Freedom Act H.R. 4758, the
Homeowner Energy Freedom Act, repeals three programs created by
the Inflation Reduction Act: the High-Efficiency Electric Home
Rebate Program, the State-Based Home Energy Efficiency
Contractor Training Grants, and Assistance for Latest and Zero
Building Energy Code Adoption. The bill also rescinds all
unobligated funds for the High-Efficiency Electric Home Rebate
Program and Assistance for Latest and Zero Building Energy Code
adoption. The One Big Beautiful Bill Act has already rescinded
unobligated funds for the State-Based Home Energy Efficiency
Contractor Training Grants. The IRA provided $4.5 billion to
help residential customers electrify their homes, $200 million
to support energy efficiency and electrification workforce
training, and $1 billion to assist with the adoption of
building codes. The Committee Minority strongly opposes this
bill and the claims and reasoning for this bill made in the
Majority report for H.R. 4758.
While the Majority report frames these repeals as a
protection of consumer choice, the programs repealed by H.R.
4758 are actually incredibly popular with Americans and are
urgently needed to help with the current affordability crisis
inflicted by policies imposed by President Trump. The High-
Efficiency Electric Home Rebate program provides funding for
point-of-sale rebates for appliances and home upgrades. This
program helps low- and moderate-income households electrify
their homes and access the benefits of clean and efficient
technology, all while lowering their energy bills and reducing
strain on the electric grid. Electrification and energy
efficiency are important tools to lowering costs for Americans.
Considering that electricity prices are up thirteen percent
nationwide, incentives that help families upgrade their homes
with efficient appliances are important now more than ever to
safeguard Americans from rising costs. Rewiring America finds
that by installing a modern electric heat pump to replace a
furnace, installing a heat pump for water heating, installing
rooftop solar, and converting to an electric vehicle, a
household will save $1,800 on energy bills a year.\1\ The
electrification rebates repealed by H.R. 4758 will help
households access the appliances that result in these savings,
and insulates them from the price volatility of fossil fuels
and President Trump's current energy crisis.
---------------------------------------------------------------------------
\1\Rewiring America, The Electric Explainer: Key Programs in the
Inflation Reduction Act and What They Mean for Americans
(www.rewiringamerica.org/policy/inflation-reduction-act) (accessed Mar.
26, 2023).
---------------------------------------------------------------------------
Along with the electrification rebates, H.R. 4758 repeals
assistance for contractor training grants. The State-Based
Contractor Training Grants provide assistance for job and
workforce training in the efficiency and electrification space.
Current trends show that the up to 88 percent of employers in
the construction, professional services, and manufacturing and
trade subsectors of the energy efficiency sector report high
levels of hiring difficulties.\2\ There is a clear demand for
qualified workers and workforce training in the industry, and
H.R. 4758 removes this necessary and important funding.
---------------------------------------------------------------------------
\2\Building Performance Association, Energy Efficiency Jobs in
America (Dec. 2025).
---------------------------------------------------------------------------
H.R. 4758 also repeals assistance for building energy code
adoption. Building energy code adoption assistance will help
reduce emissions from residential and commercial building stock
through energy code adoption, thus reducing energy consumed and
lowering energy bills. The Majority claims that the adoption of
these codes would add to the cost of new homes. These claims
are challenged by findings that show that all-electric, single-
family new construction is more economical to build than a home
with gas appliances.\3\ These households also have
significantly lower lifetime emissions.
---------------------------------------------------------------------------
\3\Rocky Mountain Institute, The Economics of Electrifying
Buildings: Residential New Construction (2022).
---------------------------------------------------------------------------
The Majority report argues that this bill is needed to
protect consumer choice and keep home energy costs affordable.
Interestingly, the Majority seems to think that the best way to
protect consumer choice is to remove optional, point-of-sale
rebates for low- and moderate-income households, remove
assistance for workforce training, and remove assistance for
optional building code adoption--programs that all enable
access to clean and efficient technology and energy bill
savings. The programs being repealed by H.R. 4758 are not
mandates. They are optional programs that increase access to
efficient appliances, reduce energy bills, improve indoor air
quality, and reduce emissions. The Majority, by repealing these
programs, argues that it is defending consumers, when they are
in fact doing the opposite. H.R. 4758 will only serve to lock
Americans in to paying even more on their energy bills.
For the reasons stated above, I dissent from the views
contained in the Committee's report and oppose H.R. 4758.
Frank Pallone, Jr.,
Ranking Member.
[all]