A little-noticed veto by Florida Gov. Ron DeSantis signals his likely rejection of more than $346 million in federal money for direct-to-consumer rebates for residential building upgrades, including the installation of high-efficiency electric HVAC equipment.
DeSantis, a candidate for the Republican presidential nomination, in June vetoed a $5 million grant from the federal government that was to go toward the cost of managing the High-Efficiency Electric Home Rebate (HEEHR) and the Home Owner Managing Energy Savings (HOMES) programs in Florida.
HEEHR and HOMES are two of the Inflation Reduction Act (IRA) incentives designed to reduce fossil fuel consumption and carbon emissions from buildings; in all, the IRA provides for nearly $9 billion in rebate money, divided among states, territories, and other U.S. jurisdictions, for qualified home energy-saving and electrification retrofits.
In a reply email, Jeremy T. Redfern, press secretary for DeSantis, did not answer specific questions about the veto or the rebate money, saying only, “The governor reviews every bill and appropriation that comes across his desk and uses his authority under the Florida Constitution to veto bills that he believes are bad public policy.”
A spokeswoman from the U.S. Department of Energy (DOE), which is overseeing HEEHR and HOMES at the federal level, said the programs deliver on President Joe Biden’s agenda, creating good jobs, reducing energy costs, and fighting climate change.
“As responsible stewards of taxpayer dollars, DOE will continue its work to ensure all Americans have access to funding that helps them breathe fresher air, live safely, and keep money in their pockets,” she said in an email.
The IRA rebate money allocated to Florida totals $346,326,390. The state could still apply for the money, the DOE said, even after DeSantis’ rejection of the $5 million grant for administrative costs. Asked several times whether that option was being considered, Redfern did not answer.
If ultimately turned down, the rebate money slated for Florida could be divided among other states and jurisdictions.
The DeSantis move didn’t surprise Barton James, president and CEO of ACCA, who called it a political maneuver.
“There’re going to be more states where this is going to happen,” James said.
James criticized the partisan nature of the IRA, which was approved with no Republican votes in either the House or the Senate.
“Starting to see the political ramifications of Congress passing a bill without one vote from the other party, and political posturing” by politicians seeking higher office, he said.
James said his biggest concern around the IRA’s incentives is ensuring that the higher-efficiency products the incentives will help pay for are properly installed in homes. Where they’re not, he said, the intended energy and carbon-emissions savings won’t be achieved, and the demand on the electrical grid could increase.
Asked if DeSantis should go ahead and accept the federal rebate money on the grounds that it will help Florida homeowners and HVAC contractors, James said: “Are we helping or are we hurting? At the end of the day, we’re all going to pay for this. There’s no free lunch.”
HEEHR will offer point-of-sale rebates to low- and moderate-income households for the purchase of specific Energy Star-rated electric appliances, including up to $8,000 for a heat pump for home heating and cooling. HEEHR also provides for rebates for the electrical work, such as panel upgrades and new wiring, that some homes may need to accommodate such appliances.
HOMES will provide rebates, regardless of income level, for energy-efficiency measures more broadly, including for certain HVAC equipment but also for building upgrades like insulation and new windows. Under HOMES, a retrofit project’s energy savings will have to be documented through a method approved by the DOE in order to qualify for a rebate.
Both rebate programs are to be administered by the states and jurisdictions receiving the money.
