States forge ahead with Inflation Reduction Act energy rebates — so far, South Dakota is the only one to opt out
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A handful of states have rolled out rebates to consumers who make their homes more energy-efficient, just months after New York became the first state to do so, in May.
Meanwhile, South Dakota officials in August declined the federal funding, which is tied to two new programs created by the Inflation Reduction Act, a landmark climate law enacted in 2022.
The IRA earmarked $8.8 billion for consumers via two Home Energy Rebates programs.
Consumers can access up to $8,000 of Home Efficiency Rebates, and up to $14,000 of Home Electrification and Appliance Rebates.
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Together, the two rebate programs aim to defray — or in some cases fully offset — the cost of retrofitting homes and upgrading appliances to be more energy-efficient. Such tweaks can help consumers cut their utility bills while also reducing planet-warming carbon emissions, officials said.
The two programs have varying rules that determine which consumers are eligible and how much money they can access. In some cases, rebates will depend on household income and a home’s overall energy reduction.
Nearly every state has indicated it will launch a rebate program for residents, according to a U.S. Department of Energy spokesperson.
State officials had an August deadline to officially decline the federal funds. They have a Jan. 31, 2025 deadline to submit a program application to the DOE.
South Dakota is the only state so far to have signaled publicly that it won’t administer the rebates.
“With good faith, we did look into this,” Jim Terwilliger, commissioner of the South Dakota Bureau of Finance and Management, said during a July 30 appropriations hearing. “We just don’t believe that it’s the right thing for South Dakota.”
Here are the states that have applied
States, which administer the federal funds, have some leeway relative to program design. They must apply for funding and can distribute rebates to consumers after their application is approved.
New York launched the first phase of its rebates May 30.
Five others — Arizona, Maine, New Mexico, Rhode Island and Wisconsin — have since launched rebate programs, too, according to U.S. Department of Energy data as of Sept. 24.
“I’m expecting more and more to roll out,” said Kara Saul-Rinaldi, president and CEO of AnnDyl Policy Group, a consulting firm focused on climate and energy policy.
Many more states, as well as Washington, D.C., have submitted applications or had them approved, according to DOE data: California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Illinois, Indiana, Michigan, Minnesota, New Jersey, New Hampshire, Massachusetts, North Carolina, Oregon, Tennessee, Vermont, Washington and West Virginia.
Together, these 26 states plus the District of Columbia have applied for $4 billion in total funding so far, the DOE said.
The rebates are a new program, and “complex government programs like these take time and coordination to set up,” according to a DOE spokesperson.
“The Inflation Reduction Act put states in charge of designing and implementing Home Energy Rebate programs that fit their local needs,” the spokesperson wrote in an e-mail. “As each state has different resources and capabilities, each state’s timeline will be different.”
South Dakota is not participating
South Dakota Gov. Kristi Noem at the Republican National Convention on July 15, 2024.
Scott Olson | Getty Images News | Getty Images
However, South Dakota officials in August signaled they wouldn’t participate, the lone state so far to decline the federal rebate funding.
“South Dakota will have no part in facilitating the Green New Deal,” Ian Fury, a spokesperson for Gov. Kristi Noem, a Republican, said in an e-mailed statement.
States had an Aug. 16, 2024 deadline to officially decline the funds.
“We don’t think the administrative burden and the expense of administering a program like that is the appropriate thing to do, and we generally disagree with the policy,” Terwilliger, of the South Dakota Bureau of Finance and Management, said in a July hearing.
The Inflation Reduction Act allows states to use up to 20% of its funding for administrative purposes.
Fifty-one states and territories have applied to DOE for early administrative funding, the agency said.
The $68.6 million of federal money that had been set aside for South Dakota rebates will be redistributed among participating states.
Fury also noted this isn’t the first time South Dakota has rejected federal spending. It was the only state to reject extended unemployment benefits in 2020 during the Covid-19 pandemic, Fury said.
The Green New Deal is a climate-change policy initiative supported by congressional Democrats starting around 2019. Bipartisan legislation to create an energy rebate program had existed almost a decade earlier, like the Home Star Energy Retrofit Act in 2010.
The concept of consumer rebates tied to energy efficiency “predates the Green New Deal by many years,” said Saul-Rinaldi.
Florida reverses course
It appears Florida officials reversed course from their original stance on the rebates.
Republican Gov. Ron DeSantis in 2023 had vetoed the state’s authority to spend about $5 million of federal funds to administer the energy rebate program. At the time, a spokesperson for the state’s Department of Agriculture and Consumer Services told CNBC that Florida wouldn’t be applying for the rebates as a result.
Florida Gov. Ron DeSantis at the Republican National Convention on July 16, 2024.
Robert Gauthier | Los Angeles Times | Getty Images
Now, Florida is preparing for a soft launch of the rebate programs in late 2024 and a full launch in early 2025, according to information on a state website.
A spokesperson for the Department of Agriculture and Consumer Services didn’t return a request for comment on the change in position.
‘Every state is approaching [its program] differently’
At a high level, consumers will be able to get the rebates at the point of sale, when they buy an appliance directly from a retailer or from a qualified contractor who’s helping a household complete an efficiency project.
“Every state is approaching [its program] differently, for many reasons,” Saul-Rinaldi said.
Many are rolling them out in phases. For example, New Mexico is starting by offering a $1,600 rebate for low-income consumers in single-family homes who buy insulation from a participating retailer.
Similar to other states, qualifying New Mexico residents will be able to later access additional rebates such as:
- $8,000 for an ENERGY STAR-certified electric heat pump for space heating and cooling;
- $4,000 for an electrical panel;
- $2,500 for electrical wiring;
- $1,750 for an ENERGY STAR-certified electric heat pump water heater;
- $1,600 for air sealing; and
- $840 for an ENERGY STAR-certified electric heat pump clothes dryer and/or an electric stove.
Consumers and contractors should consult their state energy department website to learn more about their specific programs and eligibility, Saul-Rinaldi said.
The U.S. Energy Department suggests households don’t wait to accomplish necessary home energy upgrades or projects if their state hasn’t formally rolled out rebates. They may be eligible for other federal programs, “including tax credits, the Weatherization Assistance Program, and other state, local, and utility programs,” the agency said.
This fall marks the 25th anniversary of the US launch of the first-gen Toyota Prius — a car that, arguably, has done more to more to shift the market away from fossil fuels than any other single vehicle (more on that in a minute). That means that, in many states, you can now get “antique” or “historic” plates for a modern hybrid.
If that sounds appealing to you, here’s what it might cost to keep that OG Prius on the road for many more years to come.
“When the Prius burst into the US market, it was nothing short of a revolution,” reads the breathless Toyota PR copy. “A true trailblazer in the world of hybrid vehicles, (Prius) set the stage for the electrification movement, captivating environmentally conscious drivers with its innovative spirit.”
I think that’s true. And, as for that claim in the header that the Prius did more to shift the US auto market away from fossil fuels than any other single vehicle, ask yourself this: would there even be a Tesla Roadster (much less an “affordable” Model Y) without the Toyota Prius bringing the conversation about electric cars into the mainstream zeitgeist fully eight years earlier?
I spent enough time behind the wheel of a seriously quick and capable US Electricar Consulier to tell you this much: no, there wouldn’t.
They’re still out there
The inspiration for this article was, predictably enough, a first-generation Prius sighting in my own neighborhood. One of more than 52,000 first-generation Priuses (Prii?) sold in the US, this one was green, with a straight body, glossy paint, and the woman driving it turned out to be the car’s original owner. Her Prius – Toyota’s first gas-electric hybrid – continued to give her great service from its 1.5-liter four-cylinder ICE and high-torque electric motor, and the car’s nickel-metal hydride battery pack seemed serviceable enough, though she couldn’t tell me if it was original (her husband took care of all that).
That, along with the possibility of trolling boomers with an antique-plated Prius, led me to ask myself, “What would it really take to keep one of these on the road?”
Even if your Prius spent its entire life in a garage and has only 60,000 miles on the clock, 25 years is still twenty-five years, and rubber doesn’t care about mileage. That’s not just the rubber in the tires, either. The factory struts, bushings, CV joints, belts – even the engine mounts will surely need to be replaced. Ditto for the door and window seals.
Along with a 12V battery, fresh oil and filter change, and a thorough cleaning, that’s the kind of stuff you should budget for on day one. Here’s a quick estimate on what that would run (parts only, of course, because you work on antiques yourself):
- tires – Michelin Energy Saver A/S or Bridgestone Ecopia EP422 Plus in 195/65R15, plan on spending about $150/tire
- shocks and struts – KYB Excel-G, commonly sold in pairs, expect to pay about $200/ea.
- control arm bushings and sway bar links – MOOG control arm bushings and sway bar end links, $25-50/link
- engine and transmission mounts – Dorman or Westar makes replacements at roughly $60–120 each, depending on which mount(s) you need
- CV boots / axle rebuild kits – GSP or SKF kits typically sell $25–75/boot
- Serpentine / accessory belt – Gates makes an OE-quality replacement belt for about $40
This is the big one
You’ll notice, by now, that I’ve avoiding one particular bill. The one repair item that makes anyone looking at an older EV or hybrid think twice – the high-voltage battery. And, if you’ve done any kind of research into the cost of replacement batteries for older electric cars, you already know why that is. I haven’t mentioned it, because it’s not that bad.
I found a new high-voltage replacement battery for a Prius from GreenTec on sale for just $2,050 with a 36-month warranty, or $1,399 for a refurbished unit with a 12-month warranty. That’s not only significantly less than the price of a refurbished transmission for a Toyota Corolla of a similar vintage – it’s probably a lot less than people who still think EVs are new technology would have guessed, too.
Battery costs are going down
The costs of replacing a high-voltage EV battery in older model year cars continues to go down – and that’s true for newer EVs, too. “We’ve seen about $12-18K as an average replacement cost for a Tesla battery,” says KJ Gimbel, founder and CEO of extended EV warranty firm, Xcelerate Auto. “(At that number) we’re confident that we’ll be able to support the vast majority of claims that arise, regardless of the model.”
In other words, if you’re the type of gear head who expresses a midlife crisis by buying a sensible, reliable daily driver, you could do a lot worse than a historic Prius.
That’s my take, anyway – what’s yours? Let us know what you think of the Prius’ 25th American birthday, its role in the EV revolution, and whether or not it’ll ever gain true classic status in the comments section at the bottom of the page.
Original content from Electrek.
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Orange EV may not be a household name like Mack or Kenworth, but this small-ish maker of all-electric heavy duty terminal tractors is making a name for itself where it matters: on the job. And this week, the company’s deployed fleet logged its ten millionth hour of operation!
Despite claims from oil-backed “efficiency” groups and fossil-backed hydrogen propaganda to the contrary, battery-powered heavy-duty EVs are proving themselves more than capable of getting the job done today, with millions upon millions upon millions of over-the-road miles as proof. Now, Orange EV is throwing its own data into the mix, with a deployed fleet of HDEVs that’s logged ten million hours of operation across more than 27 million low-speed, extreme duty miles.
“Ten million hours makes one thing clear: Orange EV has taken electric terminal trucks from possible to proven,” said Kurt Neutgens, President and CTO of Orange EV. “Our 340 customers are operating at an average of 97% uptime, with no compromises, proving you can cut costs, boost performance, and improve health and safety all at once.”
What might be more impressive than the miles covered, though, is how few trucks Orange has deployed to get to that number. The company reports that multiple units have already surpassed 30,000 hours of active service while others still are approaching a full decade of daily use — and all of them are still running on their original Orange-designed LFP battery packs.
“Diesel yard trucks rarely achieve this level of durability, but Orange EV delivers with every truck,” adds Neutgens, a former Ford engineer. “Every hour of safe, reliable operation raises the bar for what fleets should expect from their equipment.”
Since delivering its first customer truck back in 2015, Orange EV has deployed more than 1,600 trucks across 40 states and four Canadian provinces. Together, these trucks have eliminated approximately 200,000 tons of carbon dioxide and saved fleets over $100 million (US) in fuel and maintenance costs alone. And, in more than 10 million hours of duty, not a single Orange EV yard truck battery has experienced a thermal event.
Electrek’s Take
Over at The Heavy Equipment Podcast, we had a chance to talk to Orange EV founder Kurt Neutgens ahead of last year’s ACT Expo for clean trucking. On the show (available here), Kurt explained how his experience at Ford helped inform his design ideology, and that the Orange EV was designed to be cost competitive with diesel options, even without subsidies.
Give it a listen, then let us know whether you think the big yard dogs’ success will help debunk the “messy middle” myths or not, in the comments.
SOURCE | IMAGES: Orange EV.
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EUNICE, NEW MEXICO — Paul Lorskulsint was a shift manager at a brand new uranium enrichment facility deep in the American Southwest when catastrophe struck Japan in 2011.
A massive tsunami and earthquake had caused a severe accident at the Fukushima Daiichi Nuclear Power Plant. Thousands of miles away in Eunice, New Mexico, Lorskulsint turned on the television to make sure his team could witness what was happening across the Pacific Ocean.
Lorskulsint knew the disaster in Japan was a watershed moment for the nuclear industry. The plant where he was leading an operations shift had just opened in 2010, after the European uranium enricher Urenco had spent years building the facility in anticipation of growing demand.
Over the ensuing decade, public support for nuclear power diminshed and a dozen reactors closed in the U.S. as the industry struggled to compete against a flood of cheap natural gas and renewable energy. Demand for the low enriched uranium that fuels nuclear plants dwindled.
“The price of what we sold basically went through the floor,” Lorskulsint, who is now the chief nuclear officer at Urenco USA, told CNBC. Urenco’s long-term contracts with utilities insulated the facility during the downturn, he said, but the price drop put further expansion plans on hold.
Paul Lorskulsint, Chief Nuclear Officer, Urenco USA talks about the uranium enrichment process.
Adam Jeffery | CNBC
Headquartered outside London, Urenco is joinly owned by the British and Dutch goverments and two German utilities. Its New Mexico facility is the only commercial enrichment facility left in the U.S. The last U.S.-owned commercial facility in Paducah, Kentucky, closed in 2013 and its owner the United States Enrichment Corporation went bankrupt during the downturn after Fukushima.
Fourteen years later, the situation has reversed once again. Urenco USA is racing to expand its enrichment capacity. The nuclear industry is gaining momentum as electricity demand in the U.S. is projected to surge from artificial intelligence and the push to expand domestic manufacturing. Doubts persist about whether U.S. power supplies will ramp up quick enough to meet the needs. Increasing uranium enrichment will be a key part of the process, despite the history of past disappointments.
Also, U.S. enriched uranium supplies are at risk. The U.S. still imported 20% of its enriched uranium from Russia in 2024, a legacy of the now shattered hope for friendship between the two countries after the collapse of the Soviet Union and end of the Cold War.
The U.S. will completely ban the import Russian uranium by 2028 in repsonse to Moscow’s full-scale invasion of Ukraine, leaving a gapping supply deficit just when Washington, the utilities and the tech sector are developing the most ambitious plans in decades to build new reactors.
Nuclear plants like Palisades in Michigan, Crane Clean Energy Center in Pennsylvania and Duane Arnold in Iowa are planning to restart operations this decade after closing years ago. The tech sector is investing hundreds of millions of dollars to bring advanced reactors online in the 2030s to help power their computer warehouses that train and run AI applications.
“It is a pivotal moment, the next five to 10 years for the nuclear industry,” Lorskulsint said. “We’re going to have to have to deliver on time, on schedule and continue to maintain that momentum, which is a significant challenge.”
Employees at Urenco USA receive a cylinder of feed material for enrichment process.
Adam Jeffery | CNBC
Expansion plans
In deeply divided Washington, support for nuclear power is one of the few issues that can still muster some bipartisan support. President Donald Trump wants to quadruple nuclear power by 2050, a significant increase over President Joe Biden’s previous goal to triple it by that date.
The U.S. has only built one new nuclear plant from scratch in the past 30 years, raising doubts about whether such ambitious plans can be realized. But any effort big or small to expand nuclear power in the U.S. will run through Urenco’s facility in New Mexico.
The plant currently has capacity to supply about a third of U.S. demand with $5 billion invested in the facility to date. Urenco is expanding its capacity in New Mexico by 15% through 2027 as utilties replace Russian fuel. It has installed two new centrifuge cascades for enrichment this year. But Urenco’s expansion alone won’t fill the Russian supply gap, Lorskulsint said.
“Our competitors will have to expand in order to make sure that as a whole the industry is still supplied,” he said. “We’re building quickly as we can to make sure that the the industry is not short handed.”
As Russian fuel is banned from the U.S., the Trump administration is pushing for 10 new large reactors to start construction this decade. Alphabet is investing in about 2 gigawatts of new nuclear, Amazon has committed to more than 5 gigawatts, and Meta wants to bring up to 4 gigawatts online.
Urenco USA Facilities in Eunice, New Mexico.
Adam Jeffery | CNBC
The industry is worried about the supply gap, Lorskulsint said, but filling it “is not an insurmountable task.”
Urenco USA is a candidate to receive a contract from the Department of Energy to produce more low-enriched uranium, part of U.S. efforts to standup a domestic nuclear supply chain. The contract would allow the New Mexico facility to expand further with the construction of a fourth production building.
Urenco’s competitors are also seeking support from the Energy Department to build out U.S. enrichment capacity. France’s Orano is planning to build a facility in Oak Ridge, Tennesse, with operations potentially starting in the 2030s.
Publicly traded Centrus has a facility in Piketon, Ohio, where it plans to produce low-enriched uranium, but it hasn’t yet started commercial operations. Centrus is the successor company to the United States Enrichment Corporation that went bankrupt in 2013.
Centrus stock has gained more than 400% this year as investors bet on a growing demand for enriched uranium due to U.S. plans to expand nuclear power.
Paul Lorskulsint, Chief Nuclear Officer, Urenco USA talks about the uranium enrichment process next to centrifuge cascade.
Adam Jeffery | CNBC
Supply chain bottlenecks
But enrichment is just one stage in a long supply chain that will be stretched by growing demand. Uranium delivered to the U.S is often mined in Canada and it is then converted into intermediate state called uranium hexafluoride that is the feedstock for enrichment.
The feedstock is spun in Urenco’s centrifuges to increase the presence of the isotope Uranium-235 to 5%, the level needed for most nuclear plants. The enriched uranium is then shipped to fuel fabricators that manufacture the pellets that go into reactors in power plants.
U.S. nuclear plants are facing cumulative supply gap of 184 million pounds of uranium through 2034, according to the Energy Information Administration.The biggest bottleneck right now for Urenco is the conversion of uranium into the feedstock for enrichment, Lorskulsint said. There are only three facilities in the Western world located in Canada, France and Illinois that convert uranium into feedstock.
“Every portion of the supply chain is going to have to expand, it’s not just about enrichment,” Lorskulsint said. “We need more of everything but conversion right now is the bottleneck.”
The nuclear supply chain may not be the biggest challenge in the end, the executive said. The ageing U.S. electric grid could prove to be the real constraint on building new nuclear due how long it takes to complete upgrades, he said. While this could slow Urenco down, it won’t stop the expansion, he said.
“We came here when the market demanded it,” Lorskulsint said of Urenco’s investment in the U.S. “We were here when the market didn’t demand it. And we are now expanding to make sure that we can still support as much as the market needs from us.”
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